The DeltaShares by Transamerica suite of four strategic beta ETFs is designed to provide core equity strategies with an embedded risk-management feature. DeltaShares by Transamerica are the first and only suite of ETFs that track the S&P Managed Risk 2.0 Index Series so that investors can track the performance of a given segment of the equity market while seeking to control volatility.
Tom Wald, chief investment officer for Transamerica Asset Management, said the DeltaShares ETFs aim to help investors participate in rising equity markets in order to meet retirement goals and fund liabilities, while potentially reducing downside risk during falling markets.
“Through a combination of stocks, U.S. Treasury Bonds, and cash, these DeltaShares ETFs will seek to optimize the most appropriate combination of these investment choices through a rules-based methodology based on stock market volatility trends,” Wald said. “DeltaShares by Transamerica is setting out to enhance the link between risk and reward for institutions, retirees, and investors who are seeking competitive investment returns but remain sensitive to equity market losses and volatility.”
DeltaShares ETFs use rules-based, transparent, passive strategies in order to provide investors with access to institutional risk management practices that are used in an effort to help stabilize equity portfolio volatility and potentially reduce downside risk in significant and prolonged downturns. This suite of DeltaShares strategic beta ETFs 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.
ETF Trends publisher Tom Lydon moderated a panel Monday morning in NYC on the DeltaShares Managed Risk ETFs. Panelists included Joe Becker (Milliman), Vinit Srivastava (S&P), Brian Lockhart (Peak Capital), and Julie Abbott (JP Morgan).
Among the topics, the panel discussed how the risk-managed strategy is different from smart beta strategies.
Financial advisors and investors can learn more about DeltaShares by Transamerica by visiting www.deltashares.com.