QuantShares Fills Pipelines, LocalShares Plans Nashville ETF

by on October 5, 2012

Stocks continued to grind their way higher throughout the week as mixed economic data reports around the globe ultimately tipped sentiment in the bulls’ favor. The “risk on” theme on Wall Street remains strong as stimulus efforts from the Fed and European Central Bank have proven to be a worthy catalysts for restoring confidence. Earlier in the week, FlexShares beefed up its lineup with the launch of two emerging markets “tilt” ETFs, while QuantShares and newcomer LocalShares filled the development pipeline [see also Best ETF Plays For QE3].

Boston-based QuantShares had laid the groundwork for six intriguing products that look to employ a “smart beta” screening methodology [see also How To Pick The Right ETF Every Time]:

  • QuantShares U.S. High Dividend Absolute Return Fund: This ETF will select its holdings from a universe of 1,000 U.S. listed securities and look to generate positive return regardless of general market conditions [see also Monthly Dividend ETFdb Portfolio].
  • QuantShares U.S. Low Beta Absolute Return Fund: This ETF will identify and hold U.S. securities with the lowest beta within each sector; the fund will also include a short component comprised of the highest beta securities.
  • QuantShares U.S. Relative Value Fund: This ETF will rank and select securities based on a variety of fundamental metrics, including: expected earnings, cash flow and book value.
  • QuantShares U.S. High Quality Fund: This ETF will look to track the performance of the highest quality ranking stocks within each sector based on a set of fundamental metrics like return-on-equity and debt-to-equity ratios.
  • QuantShares U.S. Low Beta Fund: This ETF will include stocks with the lowest beta in each sector, thus offering exposure to securities with the lowest sensitivity to market movements.
  • QuantShares U.S. High Momentum Fund: This fund will select the stocks deemed to have the highest momentum within each sector.
Tennessee-based money manager LocalShares is planning to make a splash in the ETF industry with a geographically-focus fund [see also 101 ETF Lessons Every Financial  Advisor Should Learn]:
  • LocalShares Nashville ETF: This fund will seek to replicate the price and yield performance of the LocalShares Nashville Index, which is comprised of publicly traded U.S. companies that have corporate headquarters in the Nashville, Tennessee region. The SEC filing noted that the Nashville ETF would charge 0.49% in annual expense fees.

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Disclosure: No positions at time of writing.