CLOSED Thursday, March 24, 2016
ALPS begun trading the ALPS Sector Low Volatility ETF (NYSEArca: SLOW) on Wednesday, July 01, 2015.
Here is a synopsis of the new ETF:
|Exchange: NYSE Arca
|Name: ALPS Sector Low Volatility ETF
|Net Expense Ratio: 0.40%
The ALPS Sector Low Volatility ETF seeks investment results that generally correspond to, before fees and expenses, the performance of the S-Network Sector Low Volatility Index.
The S-Network Sector Low Volatility Index is a rules-based index intended to give investors a means of tracking the overall performance of the stocks in the S&P 500 that demonstrate key characteristics associated with growth and quality (Sector Leaders) on a sector-by-sector basis and with the lowest volatility.
Sector Leaders refers to the 5 stocks in each of 9 Global Industry Classification Standard (GICS) sectors that make up the S&P 500 which offer the best growth potential. The GICS sectors included combine the telecommunications sector with the information technology sector and exclude investments in real estate investment trusts (REITS).
The Underlying Index methodology selects the 5 stocks in each of nine GICS sectors that make up the S&P 500 which demonstrate the best growth potential based on key characteristics associated with growth and quality as of the last business day of November.
Individual securities to be included in the Underlying Index are selected based on a two-tiered screening system within each sector that screens stocks based upon quantitative criteria. The first tier screens stocks based on growth characteristics, including growth in earnings per share and growth in sales per share, and the second tier screens stocks based on quality characteristics including debt to equity ratio and return on equity.
Eligible stocks are then ranked within each sector based on their growth characteristics and the five highest ranked stocks in each sector are selected for inclusion in Underlying Index. The eligible stocks that are selected for inclusion in the Underlying Index’s portfolio are equally weighted. The Underlying Index is rebalanced quarterly.
Index Sector Weightings (06/30/15):
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Category: Equities> Regions> USA> US Sectors/Industries> US Sector Strategy