Solactive launches the Adaptive Wealth Strategies U.S. Factor Index combining three strategies in one index…
Kristopher Carroll, Chief Investment Officer at Carroll Financial
Solactive launches the Adaptive Wealth Strategies U.S. Factor Index which dynamically allocates across three sub-indices with exposure to U.S. equities in the large and mid-cap segment and exhibits characteristics of one of three primary factors: value, momentum and low volatility.
The index has been developed together with Adaptive Wealth Strategies, a division of Carroll Financial Associates, based on their existing strategy and will be the underlying for the new Global X Adaptive U.S. Factor ETF.
The Adaptive Wealth Strategies U.S. Factor Index gives investors a dynamic investment approach to multiple investment factors in one product.
The index will dynamically allocate across the following three Solactive factor indices:
• Solactive U.S. Large & Mid-Cap Value 100 Index TR (ISIN: DE000SLA5ZZ6)
• Solactive U.S. Large & Mid-Cap Momentum 100 Index TR (ISIN: DE000SLA5Z09)
• Solactive U.S. Large & Mid-Cap Minimum Downside Volatility 100 Index TR (ISIN: DE000SLA5Z33)
The weighting is determined by the performance of each sub-index in the past 2 years.
Timo Pfeiffer, Head of Research at Solactive, commented: “ The Adaptive Wealth Strategy is a very innovative multi – factor model that combines different sub – strategies such as Minimum Downside Volatility – focusing on negative returns only – in one model. It is great to see this concept being put into an index format and made investable for US clients.
” Kristopher Carroll, Chief Investment Officer at Carroll Financial, commented: “We recognize that we could improve our adaptive factor strategy by combining minimum volatility, value, and momentum into one index. We have utilized a strategy of combining these three separate factors in our private portfolios for many yea rs, and have now decided to turn what were once three separate positions, into one by utilizing the ETF structure. We are excited to work with Solactive AG and Global X, to bring our strategy wrapped in an efficient structure to the broader market.”