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According to Smalley, VESH seeks to outperform 100% of the total return of the S&P 500 Index by providing inverse (short) exposure to large- and mid-capitalization U.S. equities. It systematically sells (shorts) listed futures contracts based on the S&P 500 and its sectors according to a proprietary, relative strength momentum methodology that overweights short exposure to sectors that have exhibited the weakest relative strength. As such, VESH marries a classic enhanced beta technique with short selling.
“VESH demonstrates our commitment to deliver innovative ETF solutions that seek to mitigate risk management challenges in investor portfolios,” Smalley said.
VESH, which is Rampart’s first ETF strategy, is managed by a team that is experienced at implementing hedged equity strategies to complement existing investment strategies and equity exposures. The team includes Warun Kumar, chief investment officer, and portfolio managers Michael Davis, Brendan R. Finneran and Robert F. Hofeman, Jr.
For more information on new fund products, visit our new ETFs category.