ALPS Adds Momentum to Its ETF Factor Lineup
10 Enero 2017 - 8:00AM
Business Wire
Dorsey, Wright & Associates to Provide
Unique Dual Relative Strength Screen
ALPS, a subsidiary of DST Systems, Inc. (NYSE: DST) providing
products and services to the financial services industry, today
announced a strategic alliance with Dorsey, Wright &
Associates, a Nasdaq Company (DWA) to launch a new factor
exchange-traded fund (ETF), which is designed to capture momentum
investing at both the sector and stock level.
The ALPS Dorsey Wright Sector Momentum ETF (Nasdaq Ticker:
SWIN) leverages Dorsey Wright’s proprietary Point and Figure
Relative Strength charting to create a high conviction portfolio of
50 stocks. The Fund seeks to track, before fees and expenses, the
Dorsey Wright US Sector Momentum Index (DWUSSR), an equally
weighted index consisting of 50 large and midcap stocks listed in
the US.
“We are excited to collaborate with such a prestigious company,”
says Tom Carter, President of ALPS Advisors Inc., “The combination
of Dorsey Wright’s research and our focus on product innovation has
created a new strategy for enhancing portfolio construction.”
Historically, momentum strategies tend to perform best when
clear leadership is established and sustained for a meaningful
period; they often lag during time when there is no clear
leadership among sectors. “SWIN is the first Momentum ETF to
combine both macro (sector) and micro (stock) level screens,” says
Mike Akins, SVP & Head of ETFs for ALPS, “We believe its unique
two-screen construct creates opportunity for outperformance in
strong sector momentum cycles, while simultaneously maintaining a
diversification cushion to help weather periods where no clear
sector leadership is present.”
Although SWIN is concentrated on the top performing momentum
sectors, it maintains an equal-weighted strategy at the stock
level. “At ALPS we strive to help investors and advisors build
better portfolios,” says Akins, “ALPS Sector Dividend Dog ETF
(SDOG), which employs an equal-weight sector and stock strategy
with a tilt toward equity income, and SWIN are complementary
strategies that provide diversified exposure to both value and
momentum.”
Important Disclosures & Definitions
An investor should consider the investment objectives, risks,
charges and expenses carefully before investing. To obtain a
prospectus which contain this and other information call
866.675.2639 or visit www.alpsfunds.com. Read the
prospectus carefully before investing.
ALPS Dorsey Wright Sector Momentum ETF Shares are not
individually redeemable. Investors buy and sell shares of the ALPS
Dorsey Wright Sector Momentum ETF on a secondary market. Only
market makers or “authorized participants” may trade directly with
the Fund, typically in blocks of 50,000 shares.
An investment in the Fund is subject to investment risk,
including the possible loss of the entire principal amount that you
invest.
Diversification does not eliminate risk.
The Fund is subject to the additional risks associated with
concentrating its investments in companies in the market
sector.
The Fund is considered non-diversified and can invest a greater
portion of its assets in securities of individual issuers than a
diversified fund.
ALPS Dorsey Wright Sector Momentum Index is a rules-based index
intended to track the overall performance of the stocks with the
highest relative strength or “momentum” within the NASDAQ US Large
Mid Cap Index (the “NASDAQ Index”) on a sector-by-sector basis.
An investor cannot invest directly in an index.
Point and Figure Relative Strength: measures how one security is
doing versus another security or benchmark. The calculation
consists of dividing the price of one security by the price of
another security or benchmark index. The ratio is then plotted on a
Point & Figure chart providing a logical way to filter out the
short term noise and provide objective interpretations of the trend
in relative strength.
“Relative strength” is an investing strategy that seeks to
determine the strongest performing securities by measuring certain
factors, such as a security’s relative positive performance against
the overall market or a security’s relative strength value, which
is derived by comparing the rate of increase of the security’s
price to that of a benchmark index. Nasdaq, Inc. (the “Index
Provider”) uses a proprietary methodology to analyze the relative
strength of each security within the universe of eligible
securities and determine a “momentum” score. In general, momentum
is the tendency of a security to exhibit persistence in its
relative strength; a “momentum” style of investing emphasizes
investing in securities that have had better recent performance
compared to other securities. The momentum score for each security
included in the Underlying Index is based on intermediate and
long-term upward price movements of the security as compared to a
representative benchmark and other eligible securities within the
universe.
The fund is new and has limited operating history.
ALPS Portfolio Solutions Distributor, Inc. is the distributor
for the ALPS Dorsey Wright Sector Momentum ETF.
*Tom Carter is a registered representative of ALPS Portfolio
Solutions Distributor, Inc.
About ALPS
Through its subsidiary companies, ALPS Holdings, Inc. is a
leading provider of innovative investment products and customized
servicing solutions to the financial services industry. Founded in
1985, Denver-based ALPS delivers its Asset Gathering and Asset
Servicing Solutions through offices in Boston, New York, Seattle,
and Toronto. ALPS is a wholly-owned subsidiary of Kansas City-based
DST Systems, Inc. For more information about ALPS and its services,
visit www.alpsinc.com. Information about ALPS products is available
at www.alpsfunds.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110005268/en/
DST Global Public RelationsLaura M. Parsons,
816-843-9087mediarelations@dstsystems.com
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