Global X begun trading the Global X Scientific Beta US ETF (NYSE Arca: SCIU) on Tuesday, May 12, 2015.
Here is a synopsis of the new ETF:
|Symbol: SCIU||Exchange: NYSE Arca|
|Name: Global X Scientific Beta US ETF||Net Expense Ratio: 0.35%|
The Global X Scientific Beta US ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Scientific Beta United States Multi-Beta Multi-Strategy Equal Risk Contribution Index .
The Fund invests at least 80% of its total assets in the securities of the Underlying Index.
The Scientific Beta United States Multi-Beta Multi-Strategy Equal Risk Contribution Index generally comprises approximately 500 or less U.S. listed common stocks selected based on a proprietary methodology developed by EDHEC Risk Institute Asia Ltd. (Index Provider).
The objective of the Underlying Index is to outperform traditional market capitalization-weighted indexes, with lower volatility.
The components of the Underlying Index are selected from a universe of the largest 500 U.S. stocks as measured by free float market capitalization. The Underlying Index’s components are selected by applying 4 factors that have been widely recognized by academic literature to outperform market capitalization weighted-indexes over the long run:
Value, Size, Low-Volatility and Momentum.
Each of these factors is applied by using the following metrics: price-to-book ratio for Value; free-float market capitalization for Size; historical volatility over the trailing 104 week period for Low-Volatility; and one-year-minus-one-month total returns for Momentum.
Finally, components are weighted by employing a proprietary, multi-step process that combines multiple weighting methodologies to diversify the risks associated with any one weighting scheme.
Index Top Consituents (05/12/15):
|UnitedHealth Group Inc.||0.8%|
|Annaly Capital Management, Inc.||0.7%|
|Merck & Co. Inc.||0.7%|
|American Water Works Company, Inc.||0.6%|
|Avalonbay Communities Inc||0.6%|
|ConAgra Foods, Inc.||0.6%|
Index Industry Breakdown (05/12/15):
SCIU Home Page