17 Sep Justin Lowry Interviewed by What the Funds
The Invesco S&P 500 Low Volatility ETF (“SPLV”) was spoken about in this video as a means of comparison to the Global Beta Low Beta ETF (“GBLO”). SPLV is a direct competitor of GBLO. Below is a comparative summary between the two funds.
|Fund Name||Global Beta Low Beta ETF||Invesco S&P 500 Low Volatility ETF|
|Index||Global Beta Low Beta Factor Index||S&P 500 Low Volatility Index|
|Fund Objective||GBLO seeks to track the Global Beta Low Beta Factor Index, which selects companies with the lowest beta relative to the S&P 500 and weights them by revenue. Beta is a measure of the relative volatility of a security as compared to the market.||SPLV seeks to track the S&P 500 Low Volatility Index, which selects companies with the lowest realized volatility over the past 12 months and weights by that volatility.|
|Gross Expense Ratio||0.36%||0.25%|
|Net Expense Ratio||0.29%||0.25%|
|Principal Risks||Fund is subject to the principal investment risks noted below, any of which may adversely affect the Fund’s net asset value (“NAV”), trading price, yield, total return and ability to meet its investment objective. The fund is also subject to the following principal risks that may have an adverse effect on the fund. The market values of the Fund’s investments, and therefore the value of the Fund’s shares, will go up and down, sometimes rapidly or unpredictably. Turbulence in the financial markets and reduced liquidity may negatively affect issuers. In addition, there is a risk that policy changes by the U.S. Government, Federal Reserve and/or other government actors, such as increasing interest rates, could cause increased volatility in financial markets and disruption in the creation/redemption process of the Fund. The Target Index, and thus the Fund, seeks to achieve the specific factor exposures. There can be no assurance that targeting exposure to such factors will enhance the Fund’s performance over time, and targeting exposure to those factors may detract from performance in some market environments. There is no guarantee the Index Provider’s methodology will be successful in creating an index that achieves the specific factor exposures identified above. In addition to the risks of common stocks, low volatility stocks are seen as having a lower risk profile than the overall markets. However, a portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks’ price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices. There is a risk that the present and future volatility of a security will not be the same as it has historically been and thus that the Target Index will not be exposed to less volatile securities. The Fund is classified as “non-diversified” under the 1940 Act, which means that a relatively high percentage of the Fund’s assets may be invested in a limited number of issuers.||The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective. Securities in the Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in the Underlying Index. Equity securities, including common stocks, may fall due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that the Fund holds. In addition, equity risk includes the risk that investor sentiment toward one or more industries will become negative, resulting in those investors exiting their investments in those industries, which could cause a reduction in the value of companies in those industries more broadly. The value of a company’s common stock may fall solely because of factors, such as an increase in production costs, that negatively impact other companies in the same region, industry or sector of the market. A company’s common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its management or lower demand for the company’s products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.|
Distributor: Compass Distributors
Beta is a measure of the relative volatility of a security as compared to the market.
Global Beta Low Beta Factor Index is composed of stocks in the S&P 500 index with the lowest relative beta to the S&P 500.
S&P 500 Index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus or summary prospectus. A copy may be obtained by visiting www.globalbetaetfs.com or calling (833) 933-2083. Please read the prospectus or summary prospectus carefully before investing.
Investing involves risk including the possible loss of principal. There can be no guarantee that the Fund will achieve its investment objective. The Funds are subject to the principal investment risks noted below, any of which may adversely affect the Fund’s net asset value (“NAV”), trading price, yield, total return and ability to meet its investment objective.
Non-diversified risk. The Fund is considered “non-diversified” and may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly invested in certain issuers than a diversified fund.
Factor Risk. The fund’s underlying index, and thus the Fund, seeks to achieve specific factor exposures. There can be no assurance that targeting specific factors will enhance the Fund’s performance over time, and targeting exposure to those factors may detract from performance in some market environments.
Low Beta Risk. Although subject to the risks of common stocks, low volatility stocks are seen as having a lower risk profile than the overall markets. However, a portfolio comprised of low volatility stocks may not produce investment exposure that has lower variability to changes in such stocks’ price levels. Low volatility stocks are likely to underperform the broader market during periods of rapidly rising stock prices.