Legg Mason Inc., begun trading of 4 new ETFs, the Legg Mason Developed ex-US Diversified Core ETF (NASDAQ: DDBI), the Legg Mason Emerging Markets Diversified Core ETF (NASDAQ: EDBI), the Legg Mason US Diversified Core ETF (NASDAQ: UDBI) and the Legg Mason Low Volatility High Dividend ETF (NASDAQ: LVHD) on Τuesday, December 29, 2015.
1.
FUND INFORMATION:
| Symbol: DDBI | Exchange: Nasdaq |
| Name: Legg Mason Developed ex-US Diversified Core ETF | Net Expense Ratio: 0.40% |
FUND OBJECTIVE:
The Legg Mason Developed ex-US Diversified Core ETF seeks to track the investment results of the QS DBI Developed ex-US Diversified Index.
REFERENCE INDEX:
The QS DBI Developed ex-US Diversified Index seeks to provide exposure to equity markets in developed countries outside the United States and is based on a proprietary methodology created and sponsored by QS Investors, LLC (QS), the fund’s subadviser. QS is affiliated with both LMPFA and the fund. The Underlying Index is composed of equity securities in developed markets outside the United States that are included in the MSCI World ex-US Index. The proprietary rules-based process initially groups this universe of securities into multiple investment categories based on geography and sector. Within each of these investment categories, securities are weighted by market capitalization. The process then combines those investment categories with more highly correlated historical performance into a smaller number of “clusters.”
A cluster is a group of investment categories based on geography and sector that have demonstrated a tendency to behave similarly (high correlation). Thereafter, each of these clusters are equally weighted in the Underlying Index to
produce a highly diversified portfolio. QS anticipates that the number of component securities in the Underlying Index will range from 900 to 1,000 from approximately 20 countries, including Australia, Austria, Belgium, Canada, Denmark, Finland,France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, Norway, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The Underlying Index may include large, medium and small capitalization companies. The components of the Underlying Index, and the degree to which these components represent certain countries and sectors, may change overtime. The Underlying Index’s components are reconstituted annually and rebalanced quarterly.
Top Holdings (01/06/16):
| VALEANT PHARMACEUTICALS INTE | 1.43% |
| TEVA PHARMACEUTICAL IND LTD | 1.29% |
| CRH PLC | 1.26% |
| NOVO NORDISK A/S B | 1.20% |
| CK HUTCHISON HOLDINGS LTD | 0.95% |
| ERICSSON LM B SHS | 0.95% |
| CLP HOLDINGS LTD | 0.86% |
| SOFTBANK GROUP CORP | 0.81% |
| TELSTRA CORP LTD | 0.81% |
| KDDI CORP | 0.80% |
Useful Links:
DDBI Home Page
Category: Equities>
2.
FUND INFORMATION:
| Symbol: EDBI | Exchange: Nasdaq |
| Name: Legg Mason Emerging Markets Diversified Core ETF | Net Expense Ratio: 0.50% |
FUND OBJECTIVE:
The Legg Mason Emerging Markets Diversified Core ETF seeks to track the investment results of the QS DBI Emerging Markets Diversified Index.
REFERENCE INDEX:
The QS DBI Emerging Markets Diversified Index seeks to provide exposure to equity securities in emerging markets and is based on a proprietary methodology created and sponsored by QS Investors, LLC (QS), the fund’s subadviser. QS is affiliated with both LMPFA and the fund. The Underlying Index is composed of emerging markets equity securities that are included in the MSCI Emerging Markets Index. The proprietary rules-based process initially groups this universe of securities into multiple investment categories based on geography and sector. Within each of these investment categories, securities are weighted by market capitalization. The process then combines those investment categories with more highly correlated historical performance into a smaller number of “clusters.”
A cluster is a group of investment categories based on geography and sector that have demonstrated a tendency to behave similarly (high correlation). Thereafter, each of these clusters are weighted in the Underlying Index to produce a highly diversified portfolio. QS anticipates that the number of component securities in the Underlying Index will range from 700 to 800 from approximately 21 countries, including Brazil, Chile, China, Colombia,the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey. The Underlying Index may include large, medium and small capitalization companies. The components of the Underlying Index, and the degree to which these components represent certain countries and sectors, may change over time. The Underlying Index’s components are reconstituted annually and rebalanced quarterly.
Top Holdings (01/06/16):
| SSGA GOV MM FD | 10.05% |
| CHINA MOBILE LTD | 1.33% |
| TUPRAS TURKIYE PETROL RAFINE | 1.20% |
| PETRONAS CHEMICALS GROUP BHD | 1.16% |
| S.A.C.I. FALABELLA | 1.06% |
| CREDICORP LTD | 0.92% |
| TURKCELL ILETISIM HIZMET AS | 0.85% |
| BIDVEST GROUP LTD | 0.82% |
| MAGNIT PJSC SPON GDR REGS | 0.79% |
| AMERICA MOVIL SAB DE C SER L | 0.78% |
Useful Links:
EDBI Home Page
Category: Equities>
3.
FUND INFORMATION:
| Symbol: UDBI | Exchange: Nasdaq |
| Name: Legg Mason US Diversified Core ETF | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The Legg Mason US Diversified Core ETF seeks to track the investment results of the QS DBI US Diversified Index.
REFERENCE INDEX:
The QS DBI US Diversified Index seeks to provide exposure to equities of U.S. companies and is based on a proprietary methodology created and sponsored by QS Investors,LLC (QS), the fund’s subadviser. QS is affiliated with both LMPFA and the fund. The Underlying Index is composed of U.S. companies that are included in the MSCI USA IMI Index. The proprietary rules-based process initially groups this universe of securities into multiple investment categories based on industries. Within each of these investment categories, securities are weighted by market capitalization. The process then combines those investment categories with more highly correlated historical performance into a smaller number of “clusters.
”A cluster is a group of investment categories based on industry that have demonstrated a tendency to behave similarly (high correlation). Thereafter, each of these clusters are equally-weighted in the Underlying Index to produce a diversified portfolio. QS anticipates that the number of component securities in the Underlying Index will range from 2,200 to 2,500. The Underlying Index may include large, medium and small capitalization companies. The component sof the Underlying Index, and the degree to which these components represent certain industries, may change over time. The Underlying Index’s components are reconstituted annually and rebalanced quarterly.
Top Holdings (01/06/16):
| AT+T INC | 2.11% |
| PROCTER + GAMBLE CO/THE | 2.06% |
| PHILIP MORRIS INTERNATIONAL | 2.02% |
| AMAZON.COM INC | 1.88% |
| VERIZON COMMUNICATIONS INC | 1.87% |
| COCA COLA CO/THE | 1.79% |
| ALTRIA GROUP INC | 1.71% |
| PEPSICO INC | 1.49% |
| APPLE INC | 1.35% |
| JOHNSON + JOHNSON | 0.84% |
Useful Links:
UDBI Home Page
Category: Equities>
4.
FUND INFORMATION:
| Symbol: LVHD | Exchange: Nasdaq |
| Name: Legg Mason Low Volatility High Dividend ETF | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The Legg Mason Low Volatility High Dividend ETF seeks to track the investment results of the QS Low Volatility High Dividend Index.
REFERENCE INDEX:
The QS Low Volatility High Dividend Index seeks to provide more stable income through investments in stocks of profitable U.S. companies with relatively high dividend yields and lower price and earnings volatility. The Underlying Index is based on a proprietary methodology created and sponsored by QS Investors, LLC (QS), the fund’s subadviser. QS is affiliated with both LMPFA and the fund. The Underlying Index is composed of stocks of U.S. companies across a wide range of market capitalizations, including the largest 3,000 U.S. stocks as determined by the Solactive US Broad Market Index. Stocks in the Underlying Index must have demonstrated profitability over the last four fiscal quarters as a whole. Stocks whose yields are not supportedby earnings are excluded from the Underlying Index.
The methodology calculates a composite “stable yield” score, with the yield of stocks with relatively higher price volatility and earnings volatility adjusted downward and the yield of stocks with relatively lower price volatility and earnings volatility adjusted upward. QS anticipates that the number of component securities in the Underlying Index will range from 50 to 100. As initially constituted and balanced, no individual component of the Underlying Index will exceed 2.5% of the Underlying Index, no individual sector (as defined by QS) will exceed 25% of the Underlying Index, and real estate investment trust (REIT) components as a whole will not exceed 15% of the Underlying Index. The Underlying Index’s components are reconstituted annually and rebalanced quarterly.
Top Holdings (01/06/16):
| WAL MART STORES INC | 2.74% |
| MCDONALD S CORP | 2.69% |
| SOUTHERN CO/THE | 2.63% |
| REYNOLDS AMERICAN INC | 2.59% |
| COCA COLA CO/THE | 2.58% |
| ALTRIA GROUP INC | 2.57% |
| VERIZON COMMUNICATIONS INC | 2.56% |
| DU PONT (E.I.) DE NEMOURS | 2.55% |
| PHILIP MORRIS INTERNATIONAL | 2.54% |
| GENERAL MILLS INC | 2.54% |
Useful Links:
LVHD Home Page
Category: Equities>
ETFtrack comment:
Here is a comment from Rick Genoni, Head of the ETF business at Legg Mason:
” There are compelling opportunities to help investors achieve their objectives, whether capital preservation, income, or growth in an ETF format as the market grows and the ETF vehicle evolves. These innovative, outcome-oriented products have the potential to serve the needs of investors looking to better diversify across risks in their portfolios. We are excited to begin building our ETF offering and will continue to identify ways in which we can capitalize on the investment strengths of the Legg Mason investment affiliates.”