On Friday, Global Beta ETFs, in collaboration with Impact Partners and S&P Dow Jones Indices, announced they are expanding their factor-based suite of ETFs listing the Global Beta Low Beta ETF (GBLO), and the Global Beta Momentum Growth ETF (GBGR) on the NYSE Arca. Both ETFs list with an annual net expense ratio of 29 basis points.
“We’re excited to introduce two new strategies today that help investors gain targeted factor exposure at a more attractive valuation relative to their peer group,” said Vince Lowry, CEO of Global Beta ETFs. “At this point in the equity cycle, we believe the easy money has been made, and that valuations of traditional broad-base, capitalization-weighted index funds have become significantly stretched relative to their historic averages.”
Lowry continues, “Our research indicates that, across all relevant factors in the market, improving the price-to-sales ratio within a portfolio can significantly improve returns, and can provide investors an additional level of downside risk mitigation. Given the current market environment today, we believe valuation is more important than ever.”
Looking At The Funds
GBLO seeks to track the performance (before fees and expenses) of the Global Beta Low Beta Factor Index. The index is composed of stocks from the S&P 500 index with the lowest beta relative to the S&P 500. The fund is designed to provide exposure to domestic large cap names with the lowest systematic risk to the broad market. It was developed with the goal to provide investors a low beta market exposure, at a better valuation than market capitalization weighted indexes, and with an effort to provide robust mitigation of downside risk during periods of heightened market volatility.
GBGR seeks to track the performance (before fees and expenses) of the Global Beta Momentum-Growth Factor Index. The index is composed of stocks from the S&P 500 index with the highest year-over-year sales growth. GBGR was developed with the aim to provide investors exposure to domestic large cap securities with the highest sales growth and momentum, at better valuations than market capitalization weighted indexes.
“Global Beta ETFs has partnered exclusively with Impact Partners Consulting and Distribution to lead the sales and marketing efforts for our factor-based suite of ETFs,” continued Justin Lowry, CIO of Global Beta ETFs.
“We are honored that Global Beta ETFs has entrusted Impact Partners to spearhead their ETF marketing initiatives,” added John Davenport, Partner with Impact Partners. “We have a great deal of respect for the work that Vince, Justin and their team have produced over the years, and firmly believe that the Global Beta suite of factor-based ETF strategies help solve many of the issues investors face in today’s challenging markets, offering advisors and their clients an important foundation for a well-designed portfolio.”
For more market trends, visit ETF Trends.