Salt Financial, a provider of data, ETF and index products, has launched the Salt Low truBeta US Market ETF (LSLT), which uses the firm’s proprietary truBeta forecast and is designed to target low volatility and beta stability.
The ETF tracks the Salt Low truBeta US Market Index, gives exposure to US large and midcap equities with the opportunity for better risk adjusted returns.
The fund is launching with an expense ratio of 29 basis points. Although the fund filed a recent amendment covered by the press and in social media, the filing is pending review by the SEC. Unless otherwise disclosed, the fund will operate at an expense ratio of 29 basis points.
Paired with the existing Salt High truBeta US Market ETF (SLT), the company is giving investors the capability to target their desired levels of risk exposure in their portfolios. The funds, tracking the Low and High truBeta indices share a common selection universe and construction methodology. They begin by selecting components from the Solactive US Large and Midcap Index, a benchmark of the top 1,000 stocks in the US ranked by market capitalisation. The universe is further filtered by trading volume, helping minimise transaction costs in tracking the index while selecting from a broad range of more liquid US large and midcap stocks. The portfolios are equally weighted, sector capped, and rebalanced quarterly.
The Salt Low truBeta US Market Index has a lower PE ratio and a higher yield than some of the leading low volatility alternatives. Investors keen on lowering their market risk while maintaining exposure to US equities should find LSLT an attractive addition to their portfolio.
“In the quest for outperformance, we aim to supply sophisticated investors with the advanced tools to measure, enhance and build their optimal portfolios,” says Tony Barchetto, Salt Financials’ Founder and Chief Investment Officer.