Solactive has launched the first Solactive Intuitive Beta Indices which have been constructed around intuitive themes such as workforce efficiency, corporate longevity and value investing.
Solactive says Intuitive Beta is: ‘an innovative investment approach constituting the bedrock of a series of smart beta indices in which intuition, or gut feeling, takes a prominent role in defining the passive investment strategy”.
Timo Pfeiffer (pictured), Head of Research at Solactive, says: “With Intuitive Beta we are building a whole range of investment strategies targeted at index-linked products, such as ETFs and structured products, in which we go beyond purely quantitative screens. Providers are also seeking a storyline behind the strategies they deploy in their products. With this in mind, Intuitive Beta promotes an approach based on intuitive and straightforward stories that should of course also translate into performance.”
The first two Intuitive Beta indices are: the Solactive Workforce Efficiency US Large Cap Index, which is based on the concept of workforce efficiency and thinking about what resources make a company outstanding, including viewing employees as human capital; and the Solactive P/E Ratio US Large Cap Index, an index made up of undervalued US companies, as measured by the P/E ratio.
Last but not least, what is the average age of the 100 oldest companies in the US? The Solactive US Established Companies Index deals exactly with this question by selecting the 100 oldest companies among US large caps. By investing in a basket of “time-proof” companies, where companies are on average 159 years old, investors can gain exposure to companies that have demonstrated resilience over time through repeated business cycles. Examples of constituents are Du Pont founded in 1802, Goldman Sachs in 1869 and Pfizer in 1849.