ETF Investors May Soon Access Seasonal Rotation Investment Styles

CFRA, one of the world’s largest providers of independent research, has rolled out a number of alternative indices that try to seize upon the benefits of a seasonal rotation strategy, paving the way for a number of potential smart beta exchange traded fund options down the line.

The research provider has launched four CFRA-Stovall Indices, including the CFRA-Stovall Large Cap Seasonal Rotation Index (CSAMSRLC), CFRA-Stovall Equal Weight Seasonal Rotation Index (CSAMSREW), CFRA-Stovall Small Cap Seasonal Rotation Index (CSAMSRSC) and the CFRA-Stovall Global Seasonal Rotation Index (CSAMSRGL).

“We are committed to providing global investors with unique insights to enhance investment returns and reduce risk. The CFRA-Stovall Indices allow market participants to consider a new asset strategy by tracking a trusted benchmark,” Peter de Boer, CEO of CFRA, said in a note.

The suite of indices measure the performance of a seasonal rotation strategy based on research done by Sam Stovall, CFRA Chief Investment Strategist, as a way to beat relevant benchmarks with lower volatility.