18 Dec Global Beta ETFs Announces Index and Name Change for the Global Beta Momentum Growth ETF (Ticker: GBGR)
- Factset Rising Stars Index: New index
- Global Beta Rising Stars ETF: New Fund name
- Ticker symbol and CUSIP will remain the same
PHILADELPHIA, PA December 18, 2020 — Global Beta ETFs announced today the Global Beta ETFs Board of Trustees has approved an index and name change for the Global Beta Momentum Growth ETF (NYSE Arca: GBGR). Effective December 18, 2020, the Fund name will be change to the Global Beta Rising Stars ETF and the underlying index will become the FactSet Rising Stars Index. The Fund ticker symbol, and CUSIP remain the same, and current shareholders are not required to take any actions as a result of the changes.
“We’re excited to introduce a new portfolio strategy today that provides investors with broader exposure to U.S. growth stocks that we consider to be rapidly emerging in the space,” said Vince Lowry, CEO of Global Beta ETFs. “The Index change introduces more mid and small-cap securities into the portfolio, and we believe this will effectively reduce the valuation risk that currently exists in many large-cap growth portfolios today. At Global Beta, we encourage advisors, and investors to seriously consider the valuations they pay for investments, especially for growth-oriented mandates given the current market environment.”
“Across relevant factor attributes that are associated with higher investment returns, we believe, based on our research, that lowering the price-to-sales ratio of a portfolio can significant improve overall returns, while adding a level of risk mitigation during market corrections,” stated Justin Lowry, CIO of Global Beta ETFs. “We are pleased to be collaborating with FactSet to re-position GBGR as the Global Beta Rising Stars ETF, a targeted strategy that seeks exposure to the top emerging U.S. listed growth stocks at a reasonable price. By identifying stocks that are demonstrating the greatest expansion of market share in the fastest growing industries, and removing those with frothy market valuations, we believe investors are much better positioned to improve their return probability.”
FactSet Rising Stars Index Methodology Details
The FactSet Rising Stars Index is constructed from a universe of 3000 NYSE and Nasdaq listed securities that is initially screened for liquidity and relative valuations, evaluating each company’s current sales growth relative to its expected sales growth, and the required growth needed based the company’s current valuations and margins. That subset is then scored by calculating the weighted average growth in market share across each subindustry within technology according to FactSet’s RBICS (Revere Business Industry Classification System), the weighted average subindustry growth rate it participates in, and year over year growth in operating margins. Scores are totaled together to select the top 100 companies for inclusion in the index, and then weighted by those scores to assign the highest weightings to the top ranked holdings.
The Global Beta Rising Stars ETF (GBGR) seeks to track the performance of the Factset Rising Stars Index. GBGR was developed to provide investors exposure to domestic securities that demonstrate the greatest market share expansion in the fastest growing tech industries at better valuations than its peers.
Global Beta Advisors is a Registered Investment Advisor based in Philadelphia, PA., and the issuer of Global Beta ETFs. At Global Beta, our mission is to provide factor-based investment strategies that are nimble, dynamic and seek proper exposure at an appropriate price. Working in partnership with Impact Consulting & Distribution, S&P, Factset, Solactive, US Bank, NYSE, Foreside and Stradley Ronon, our combined expertise harnesses the strengths and abilities from diverse corners of the investing ecosystem to deliver clients a best in class experience. Global Beta ETFs offer smart, diversified, dynamic, low-cost access to global investment markets. For additional information please visit www.globalbetaetf.com
Global Beta ETFs
2001 Market Street, Suite 2630
Philadelphia, PA 19103
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. The Funds are classified as “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.
Distributor: Compass Distributors
Momentum-Growth Factor: Fast growing companies that have outperformed in the past and tend to exhibit strong returns going forward.
Global Beta Momentum-Growth Factor Index is composed of stocks in the S&P 500 index with the highest sales growth.
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.
Growth Securities Risk. The Fund invests in growth securities, which may be more volatile than other types of investments, may perform differently than the market as a whole and may underperform when compared to securities with different investment parameters. Under certain market conditions, growth securities have performed better during the later stages of economic recovery (although there is no guarantee that they will continue to do so). Therefore, growth securities may go in and out of favor over time.
Momentum Securities Risk. Stocks that previously exhibited high momentum characteristics may not experience positive momentum or may experience more volatility than the market as a whole.