Bringing you live news and features since 2006 

Source and Rothschild launch US equal risk ETF

RELATED TOPICS​

Exchange-traded fund provider Source and Risk Based Investment Solutions (RBIS), a wholly owned subsidiary of Rothschild & Co Group, have launched the Source RBIS Equal Risk Equity US UCITS ETF.

This is the second Rothschild RBIS product available as an ETF.
 
It aims to provide broad US equity exposure with lower volatility than traditional market-capitalisation-weighted investments without compromising on long-term returns.
 
The first product – the Source R Equal-Risk European Equity UCITS ETF – was launched in January 2015 and, since inception, has garnered EUR137 million in assets and delivered an 11.4 per cent return, almost 5 per cent ahead of the MSCI Europe index.
 
The ETF tracks the R Risk-Based US Equity Index, providing exposure to US equities. The largest 500 US stocks are eligible for inclusion. From this, the 250 stocks with the lowest risk (on the basis of their volatility and correlation) are selected. Stocks are then weighted such that they each contribute equal risk. The index is rebalanced monthly and reviewed quarterly.
 
The R-Risk Based US Equity Index has delivered 3 per cent lower volatility than the S&P 500 since January 2015 while outperforming that benchmark, with annualised returns of 7.77 per cent vs 7.02 per cent. It has delivered better risk-adjusted returns than the S&P 500 with a Sharpe ratio of 0.62 vs 0.45.
 
Catherine Adibi at RBIS says: “This product offers the same innovative and successful strategy as the European equity centred ETF but for US-focused investors. Most traditional constituent selection methods treat risk as an incidental consequence of the process: the Source RBIS Equal Risk Equity US UCITS ETF effectively turns the process around by using risk as an input. It provides a compelling investment strategy with a proven index track record.”
 
Chris Mellor at Source says: “The launch of this latest product reflects Source’s commitment to providing best-in-class smart beta strategies and the products that investors are increasingly looking for in today’s volatile, risk-conscious markets. We believe that this form of risk control offers a significant step forward beyond volatility targeting and minimum variance strategies. Source is also committed to working with best-in-breed partners and is delighted to be working once again with Rothschild.”
 
The ETF is available in USD on the London Stock Exchange.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Cryptocurrencies
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by