GBLO Q4 2021 Rebalance Announcement

The Global Beta Low Beta ETF will rebalance at the close of 12/17/21!

Please visit GBLO GlobalbetaETF for Top 10 holdings, Standardized Performance, and to find out more about the fund and its investment objective!

Below you will find securities in the fund that are at risk of being removed from the portfolio, given current volatility trends in the securities relative to the market and their respective valuations:

Securities in Jeopardy

Ticker Company Name Current Price-to-Sales Ratio Current 1-Year Beta
DHR Danaher Corporation 8.33 0.63
MCD McDonald’s Corporation 8.17 0.64
SHW Sherwin-Williams Company 4.49 0.73
HOLX Hologic Inc. 3.45 0.64
ORLY O’Reilly Automotive Inc. 3.43 0.64
AZO AutoZone, Inc. 2.83 0.64
OTIS Otis Worldwide Corporation 2.43 0.73
HAS Hasbro Inc. 2.18 0.65
FE FirstEnergy Corp. 1.86 0.66
SEE Sealed Air Corporation 1.76 0.79

Current price-to-sales ratio as of 11/30/21. One-year beta based on correlation in daily returns of the company compared to the S&P 500 from 11/30/20 to 11/30/21 multiplied by the quotient of the standard deviation of returns for the company and the S&P 500. Price-to-sales takes the company’s current market capitalization and divides by the company’s most recently reported 12-month trailing revenue. Correlation is the relationship between one series of returns and the next with a ratio of 1 implying a perfect relationship and 0 implying no relationship at all. Standard deviation is the variation in returns over a period of time.

Below you will find securities that the fund may be considering, given current volatility trends in the securities relative to the market and their respective valuations:

Securities in Consideration

Ticker Company Name Current Price-to-Sales Ratio Current 1-Year Beta
IP International Paper Company 0.81 0.59
DVA DaVita Inc. 0.90 0.54
LDOS Leidos Holdings,Inc. 0.93 0.62
FOX Fox Corporation Class B 1.47 0.61
PKG Packaging Corporation of America 1.67 0.55
EIX Edison International 1.68 0.58
BLL Ball Corporation 2.32 0.52
LHX L3Harris Technologies Inc 2.33 0.62
NEM Newmont Corporation 3.60 0.52
BIIB Biogen Inc. 4.03 0.32

Current price-to-sales ratio as of 11/30/21. One-year beta based on correlation in daily returns of the company compared to the S&P 500 from 11/30/20 to 11/30/21 multiplied by the quotient of the standard deviation of returns for the company and the S&P 500. Price-to-sales takes the company’s current market capitalization and divides by the company’s most recently reported 12-month trailing revenue. Correlation is the relationship between one series of returns and the next with a ratio of 1 implying a perfect relationship and 0 implying no relationship at all. Standard deviation is the variation in returns over a period of time. The S&P 500 is an index of 500 leading companies and covers approximately 80% of available market capitalization.

As a reminder, our methodology contemplates risk based on beta relative to the S&P 500 Index. Therefore, as relative risk changes in the makeup of a particular security in relation to the risk profile of the S&P 500, our index reflects those changes. We believe this allows us to identify securities that are contrarian to the overall market.

Turnover Recap

 

Current Price-to-Sales Ratio Current 1-Year Beta
Stocks in Consideration 1.97 0.55
Stocks in Jeopardy 3.89 0.68

Current price-to-sales ratio as of 11/30/21. One-year beta based on correlation in daily returns of the company compared to the S&P 500 from 11/30/20 to 11/30/21 multiplied by the quotient of the standard deviation of returns for the company and the S&P 500. Price-to-sales takes the company’s current market capitalization and divides by the company’s most recently reported 12-month trailing revenue. Correlation is the relationship between one series of returns and the next with a ratio of 1 implying a perfect relationship and 0 implying no relationship at all. Standard deviation is the variation in returns over a period of time.

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.

The fund’s primary risks:

Mid-Capitalization Securities Risk
The securities of mid-capitalization companies are often more volatile and less liquid than the stocks of larger companies and may be more affected than other types of securities during market downturns. Compared to larger companies, mid-capitalization companies may have a shorter history of operations, and may have limited product lines, markets or financial resources.

Concentration Risk
To the extent that the Target Index is concentrated in a particular industry, group of industries or sector, the Fund is also expected to be concentrated in that industry, group of industries or sector, which may subject the Fund to a greater loss as a result of adverse economic, business or other developments affecting that industry, group of industries or sector.

Dividend-Paying Securities Risk
The Fund’s emphasis on dividend-paying stocks involves the risk that such stocks may fall out of favor with investors and underperform the market. Also, a company may reduce or eliminate its dividend after the Fund’s purchase of such a company’s securities.

Large Capitalization Securities Risk
The securities of large market capitalization companies may underperform other segments of the market because such companies may be less responsive to competitive challenges and opportunities and may be unable to attain high growth rates during periods of economic expansion.

Distributor: Compass Distributors, LLC

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