All three underlying indices specifically screen for U.S. companies in their respective market capitalization targets based on four factors, including quality, value, momentum and low volatility.
The quality factor incorporates measures like return on equity, earnings, variability, cash return on assets and leverage. The value factor incorporates measures such as price-to-earnings, price-to-forward earnings, price-to-book value and dividend yield. The momentum factor covers measures such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. Lastly, the low volatility factors include measures like historical beta, a measure of the volatility of a security relative to the total market.
“First launched in June 2016, our suite of strategic beta ETFs was developed based on feedback from clients, who wanted to be able to access our expertise in an ETF format. We continue to build on the momentum of the initial launch by adding to our LibertyQ suite, which can serve as attractive long-term portfolio holdings,” O’Connor added.
For more information on new fund products, visit our new ETFs category.