Elevation ETF Trust, begun trading a new ETF, the Dhando Junoon ETF (NYSE Arca: JUNE) on Monday, April 4, 2016. Here is a synopsis of the new ETF:
|Symbol: JUNE||Exchange: NYSE Arca|
|Name: Dhando Junoon ETF||Net Expense Ratio: 0.75%|
The Dhando Junoon ETF seeks investment results that correspond (before fees and expenses) generally to the performance of the Dhandho Junoon Index.
The Dhandho Junoon Index utilizes a proprietary, rules-based methodology developed by Indxx LLC (Index Provider) to select approximately 100 U.S. equity securities, master limited partnerships (MLPs) and American depositary receipts (ADRs) listed on the NYSE, NYSE Arca and the NASDAQ Stock Market from 3 categories of issuers – “Share Buyback,” “Spin-off” and “Select Value Manager Holdings.”
The methodology and criteria used to select the components of the Underlying Index are described in more detail below:
To qualify for the Share Buyback category, issuers must have repurchased between 1% to 26% of their shares outstanding during the trailing 12 month period measured one quarter preceding the Underlying Index’s rebalancing date and have a market capitalization of at least $1 billion. The securities from this universe are then ranked from highest to lowest based on the percentage of shares repurchased and the 33 issuers with the highest such percentages are selected for inclusion in the Underlying Index.
To qualify for the Spin-off category, issuers must have been spun-off from their parent companies in the past 12-84 months and have a market capitalization of at least $500 million. The securities from this universe are then ranked based on how recently the spinoff occurred and the 25 to 33 issuers with the most recent spin-off dates are selected for inclusion in the Underlying Index.
Select Value Manager Holdings
To qualify for the Select Value Manager Holdings category, issuers must have been held by one of 22 selected value hedge funds during the preceding quarter as reported on their Form 13F filings, and the issuers must have a market capitalization of at least $1billion.
The securities from this universe are then grouped by hedge fund and ranked within each group from largest position to smallest position held by each hedge fund. The 34 issuers with the largest position in the hedge funds are selected for inclusion in the Underlying Index, subject to a predetermined limit per hedge fund. During reconstitutions, the hedge funds will be selected by an independent investment committee based upon the committee’s selection criteria including, that the hedge fund must have:
(i) at least five years of Form 13F filings,
(ii) assets under management of at least $500 million, and
(iii) an increase in assets under management at least equal to the Consumer Price Index in the last 12 months.
Initially, the Underlying Index allocated its exposure 75% to the Share Buyback category, 5% to the Spin-off category and 20% to the Select Value Manager Holdings category and the constituents were equally-weighted within each category. At each rebalance, proceeds from any corporate actions, dividends and sales of securities, are allocated as follows:
Share Buyback. 35% is invested in constituents that are more than three years old in the category; 35% is invested in constituents that are two to three years old in the category; and 30% is invested in new constituents that enter the category during the rebalance. The proceeds are allocated among the constituents equally within each group.
Spin-off. 50% is allocated to existing category constituents and 50% is allocated to new category constituents. The proceeds are allocated among the constituents equally within each group.
Select Value Managers Holdings. 100% is allocated equally among new category constituents. If there are no new constituents, proceeds are allocated equally among the existing constituents.
Fund Top 10 Holdings (04/05/16):
|The Travelers Cos Inc.||TRV||12.83%|
|Six Flags Entertainment Corp.||SIX||3.76%|
|American International Group Inc.||AIG||3.53%|
|The Gap Inc.||GPS||3.26%|
|Allied World Assurance Co. Holdings AG||GPS||3.20%|
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