Thus far in 2019, strength in U.S. equities is translating to strength in emerging markets (EM) after a tumultuous 2018, and issuers like Transamerica Asset Management, Inc recognize the value of EM. The issuer announced today the launch of the DeltaShares® S&P EM 100 & Managed Risk ETF, an expansion of the DeltaShares by Transamerica suite of strategic beta exchange-traded funds (ETFs) introduced in August 2017.
The new DeltaShares ETF tracks the S&P EM 100 Managed Risk 2.0 Index and offers investors the opportunity to participate in the performance of the 100 largest companies in the emerging markets plus the Republic of Korea, while seeking to reduce downside risk.
“With the addition of the DeltaShares S&P EM 100 & Managed Risk ETF, we can meet investors’ demand for a risk-managed emerging markets ETF. Like all of the DeltaShares ETFs, this new fund aims to allow investors to participate in rising markets while potentially limiting losses during sustained declining ones,” said Tom Wald, chief investment officer for Transamerica Asset Management, Inc.
The DeltaShares S&P EM 100 & Managed Risk ETF (NYSE: DMRE) seeks to track the investment results of the S&P EM 100 Managed Risk 2.0 Index, which is designed to simulate a portfolio that dynamically adjusts its allocations across the S&P EM 100 Index. Investing in a combination of emerging market stocks, U.S. Treasury Bonds, and cash, the fund strives to optimize its investment choices by utilizing rules-based, transparent strategies based on stock market volatility trends.
The suite of DeltaShares strategic beta ETFs also includes:
- DeltaShares S&P 500 Managed Risk ETF (NYSE: DMRL). This ETF tracks the S&P 500® Managed Risk 2.0 Index, which is designed to measure U.S. large-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
- DeltaShares S&P 400 Managed Risk ETF (NYSE: DMRM). This ETF tracks the S&P 400® Managed Risk 2.0 Index, which is designed to measure U.S. mid-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
- DeltaShares S&P 600 Managed Risk ETF (NYSE: DMRS). This ETF tracks the S&P 600® Managed Risk 2.0 Index, which is designed to measure U.S. small-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
- DeltaShares S&P International Managed Risk ETF (NYSE: DMRI). This ETF tracks the S&P EPAC Ex. Korea LargeMidCap Managed Risk 2.0 Index, which offers broad international developed markets equity exposure using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
Transamerica chose Milliman Financial Risk Management LLC (Milliman FRM), a Chicago-based SEC-registered investment adviser and a global leader in institutional risk management, to act as sub-adviser for the DeltaShares Managed Risk ETFs. Milliman FRM is a market leader in managed risk solutions providing investment advisory, hedging, and consulting services on $141.9 billion in global assets as of December 31, 2018.
“We are pleased to once again collaborate with Transamerica to launch a DeltaShares Managed Risk ETF,” stated Adam Schenck, head of portfolio management for Milliman FRM. “The success of the initial suite has shown us that investors appreciate the DeltaShares’ unique management strategies, which help them take advantage of upside market potential, while seeking to mitigate their risks as they invest to achieve their long-term goals.”
The S&P Managed Risk 2.0 Index Series applies a unique approach designed to simulate, through a rules-based methodology, a dynamic portfolio with the aim of both managing the volatility of each respective index in the series and limiting losses from the index’s equity exposure. Each index seeks to achieve these objectives by allocating weightings among the underlying equity index (such as the S&P 500 Index), the S&P U.S. Treasury Bond Current 5-Year Index and the S&P U.S. Treasury Bill 0-3 Month Index.
Financial professionals and investors can learn more about DeltaShares by Transamerica by visiting www.deltashares.com.
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