Compass EMP adds 3 new Smart Beta ETFs to Product LineUp NASHVILLE Tenn July 8 2014

Post on: 27 Март, 2015 No Comment

Compass EMP adds 3 new Smart Beta ETFs to Product LineUp NASHVILLE Tenn July 8 2014

NASHVILLE, Tenn. July 8, 2014 /PRNewswire-USNewswire/ — Compass EMP announces the launch of three (3) Exchange Traded Funds (ETFs) which began trading on the NASDAQ Stock Market last week. 

The new ETFs will seek to track the CEMP Volatility Weighted Indexes, which combine the Smart Beta methodology of including companies with four quarters of positive earnings with a distinct broad-market volatility weighting of these individual securities.  The three (3) newly launched ETFs are:

  • Compass EMP U.S. 500 Volatility Weighted Index ETF (NASDAQ: CFA)  
  • Compass EMP U.S. 500 Enhanced Volatility Weighted Index ETF (NASDAQ: CFO)  
  • Compass EMP U.S. EQ Income 100 Enhanced Volatility Weighted Index ETF (NASDAQ: CDC)  

Stephen Hammers. Chief Investment Officer, said, We are excited to introduce these innovative products based upon our Smart Beta Indexes and seek to outperform both traditional indexes as well as active ETFs over the long-term.  These ETFs combine fundamental inclusion criteria with volatility weighting of the individual securities, which should not be confused with the simplicity of any existing ‘low volatility’ ETFs*.  Additionally, two of these new ETFs have the distinct ability to liquidate 75% of their holdings to cash in the event of a market decline.

Additional information is available at www.CEMPIndex.com  and www.CompassEMP.com  

About Compass EMP:  Compass EMP was founded in 1996 and is a Registered Investment Advisor with the SEC. The SEC does not approve or disapprove of any securities. The firm is led by David J. Moore. CFP  (Chairman), Stephen M. Hammers. CIMA (Chief Investment Officer) and Rob Walker (President).  Compass EMP is the creator of the CEMP Indexes, manages 21 total mutual funds and ETFs built upon those Indexes, and offers globally diversified investment portfolios to institutions, financial advisors and their clients. 

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Investments involve risk. Principal loss is possible. The Funds have the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited and often commissions are charged on each trade, and ETFs may trade at a premium or discount to their net asset value. The Funds may invest, directly or indirectly, in junk bonds. Such securities are speculative investments that carry greater risks than higher quality debt securities. In general the price of a fixed income security falls when interest rates rise. Investing in medium cap companies involves additional risks such as limited liquidity and greater volatility than large companies. The Funds are not actively managed and may be affected by a general decline in market segments related to the index. The Funds invest in securities included in, or representative of securities included in, the index, regardless of their investment merits. The performance of the Funds may diverge from that of the Index.

Compass EMP adds 3 new Smart Beta ETFs to Product LineUp NASHVILLE Tenn July 8 2014

There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment.

Indexes are unmanaged and investors are not able to invest directly into any index.

Smart beta strategies attempt to deliver a better risk and return trade-off than conventional market cap weighted indices by using alternative weighting schemes based on measures such as volatility.

*  Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Generally, the higher the volatility, the riskier the security. Financial theory holds a risk/reward anthem:  The greater the risk (volatility), the higher the potential reward in up market environments; similar, the greater the risk (volatility), the higher the potential loss in down market situations.

Low Volatility (Low-Vol) seeks to reduce overall portfolio’s risk.  The goal is to reduce probability of large daily, weekly, monthly price fluctuations.

Compass EMP Volatility Weighting seeks to create a balanced portfolio as it pertains to risk and return. Weights are assigned by an inverse function of price volatility with lower weights given to high volatility stocks and sectors and higher weights to low volatility stocks and sectors.  Volatility Weighting seeks to be agnostic in risk assumption. All investments involve risk.

Please consider the Funds’ investment objectives, risks, charges, and expenses carefully before investing. This and other important information about the Compass EMP Funds can be found in the Funds’ current prospectus, which may be obtained by calling your Financial Advisor or shareholder services at 866-376-7890. Please read the prospectus carefully before investing.

Compass EMP Funds ETFs are distributed by Quasar Distributors, LLC. Compass Efficient Model Portfolios, LLC is the advisor to the Compass EMP Funds.

SOURCE Compass EMP Funds

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