RevenueShares, the exchange traded funds provider known for its lineup of revenue-weighted ETFs, is reportedly seeking a buyer.
VTL Associates LLC, the consulting firm that is the parent company of RevenueShares, has hired Royal Bank of Canada to find suitors for RevenueShares, reports Jessica Toonkel for Reuters. VTL’s asking price for RevenueShares and interested parties were not immediately revealed, according to Reuters.
Well-known RevenueShares ETFs include the RevenueShares Large Cap Fund (NYSEArca: RWL), RevenueShares Financials Sector Fund (NYSEArca: RWW) and the RevenueShares Ultra Dividend Fund (NYSEArca: RDIV).
RDIV is comprised of 60 stocks from the S&P 900, ranked by the average 12 month trailing dividend yield in each of the previous trailing four quarters, according to RevenueShares. Weighing its 83 holdings by revenue means RWW features Warren Buffett’s Berkshire Hathaway (NYSEArca: BRK-B) as its top holding, a rarity among financial services ETFs that are often dominated by large-cap money center banks. [Revenue-Weighting Works for This ETF]
RWL, which turned seven earlier this year, is a revenue-weighted answer to the S&P 500. With its February debut, the RevenueShares Global Growth Fund (NYSEArca: RGRO) is the newest revenue shares ETF.
Smaller ETF providers are becoming attractive acquisition targets as the industry swells toward $3 trillion in assets under management. According to ETFGI, a London-based ETF research firm, the global exchange traded products industry will surpass hedge funds in terms of assets under management this quarter.
Although mega-deals have yet to be struck, mergers and acquisitions activity within the ETF industry has picked up in recent months. For example, New York Life’s New York Life Investment Management (NYLIM) unit, the company’s third party global asset management business, recently completed its acquisition of IndexIQ. [New York Life Gets Into the ETF Game]
In the fourth quarter of 2014, Janus Capital (NYSE: JNS) paid $30 million to acquire VelocityShares, the company known for exchange traded notes, such as the VelocityShares Daily 2x VIX Short Term ETN (NYSEArca: TVIX) and the VelocityShares Daily Inverse VIX Short-Term ETN (NYSEArca: XIV).
Smaller ETF providers are becoming attractive acquisition targets as the industry swells toward $3 trillion in assets under management.
RevenueShares Ultra Dividend Fund
