As we wind down the last trading days of 2021, we are on the verge of another banner year for the S&P 500 Index. The S&P 500 Index is currently up 23.18% with an annualized standard deviation of just 10.75%. In fact, the S&P 500 Index is set to close 2021 better than 2020, and if current levels hold, it will be the 9th best year for the index since 1990 and the 6th best year on a risk adjusted basis over that span…
Some investors avoid trading low volume ETFs because they believe that their liquidity is based upon actual trading volume and, therefore, the lower the volume the greater the risk. However, this is far from the truth. In fact, the value of any ETF is actually determined by the trading volume and shares of it’s underlying securities. In this download, we’ll share step-by-step instructions for buying and selling low volume ETFs through online retail brokerages as well as several trading examples.
Distributor: Compass Distributors
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.
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.
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.
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.
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.
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.