Forensic Accounting ETF to Move to Nasdaq From NYSE

The Forensic Accounting ETF (NYSEArca: FLAG) said Wednesday that has filed an application to move to the NASDAQ from the New York Stock Exchange.

Upon approval of its application, the Forensic Accounting ETF expects that its shares of common stock will begin trading on the NASDAQ on July 20, 2015 under the symbol, FLAG. Until that time, the Forensic Accounting ETF will continue to trade on the NYSE Arca under the symbol, FLAG, according to a statement.

FLAG’s holdings are drawn from a universe of 500 stocks and tracks the Del Vecchio Earnings Quality Index, which assigns 500 large-cap stocks a grade of A through F based on fun manger John Del Vecchio’s “earnings quality” methodology. The index looks for aggressive revenue recognition, inventory issues, reserve concerns, large changes in operation expenses, large changes in operation income and tax issues. The index would then exclude F ranked stocks, instead of shorting them. [FLAG Boots the Weak Links]

Companies ranked the highest in earnings quality make up 40% of the index, whereas rank B, C, D earnings quality firms receive a 20% weighting.

Excluded companies raise red flags by carrying too much debt, using aggressive accounting practices, holding too much inventory and other issues, according to fund data.

Forensic Accounting ETF