Smart Beta Product Seeks to Outperform Traditional Indexes and Active ETFs
NASDAQ OMX today announced that Compass EMP listed a new exchange traded fund (ETF) which began trading on Friday, August 1, 2014. Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index (Nasdaq:CSF), listed on The NASDAQ Stock Market® (NASDAQ®).
"It's exciting to introduce our latest, innovative Smart Beta product that seeks to outperform both traditional indexes as well as active ETFs over the long-term," said Stephen Hammers, Chief Investment Officer of Compass EMP Funds. "Our newest ETF is focused on U.S. small cap equities and may offer performance enhancements through fundamental criteria combined with its unique securities volatility weighting. Further, this ETF has the ability to liquidate 75% of the securities in the index to cash in the event of a market decline."
CSF is designed to track the performance of the CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index, before expenses. The fund will track the CEMP Smart Beta Index and will combine Smart Beta methodologies with the ability to move cash in the event of a market decline. The CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index is based on the daily price of the CEMP U.S. Small Cap 500 Volatility Weighted Index. The index represents the broad U.S. small cap stock market, and is designed to hedge downside risk potential.
"We're pleased to welcome Compass EMP's fourth innovative exchange traded product (ETP) to the NASDAQ marketplace," said Dave LaValle, Head of Exchange Traded Product Listings at NASDAQ OMX. "We value our partnership with Compass EMP and appreciate their confidence in choosing NASDAQ as their listing partner to bring their first suite of ETPs to market."
NASDAQ OMX operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support at every level including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world's most innovative ventures, NASDAQ OMX generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.