Transamerica Asset Management, Inc. today launched the DeltaShares by Transamerica suite of strategic beta exchange-traded funds (ETFs)…..
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The DeltaShares suite includes four ETFs designed to provide core equity strategies with an embedded risk-management feature. DeltaShares by Transamerica are the first and only suite of ETFs that track the S&P Managed Risk 2.0 Index Series so that investors can track the performance of a given segment of the equity market while seeking to control volatility.
“With the DeltaShares ETFs, we aim to help investors participate in rising equity markets in order to meet retirement goals and fund liabilities, while potentially reducing downside risk during falling markets,” said Tom Wald, chief investment officer for Transamerica Asset Management. “Through a combination of stocks, U.S. Treasury Bonds, and cash, these DeltaShares ETFs will seek to optimize the most appropriate combination of these investment choices through a rules-based methodology based on stock market volatility trends. DeltaShares by Transamerica is setting out to enhance the link between risk and reward for institutions, retirees, and investors who are seeking competitive investment returns but remain sensitive to equity market losses and volatility.”
DeltaShares ETFs use rules-based, transparent, passive strategies in order to provide investors with access to institutional risk management practices that are used in an effort to help stabilize equity portfolio volatility and potentially reduce downside risk in significant and prolonged downturns. This suite of DeltaShares strategic beta ETFs includes:
DeltaShares S&P 500 Managed Risk ETF (NYSE: DMRL). This ETF tracks the S&P 500® Managed Risk 2.0 Index, which is designed to measure U.S. large-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
DeltaShares S&P 400 Managed Risk ETF (NYSE: DMRM). This ETF tracks the S&P 400® Managed Risk 2.0 Index, which is designed to measure U.S. mid-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
DeltaShares S&P 600 Managed Risk ETF (NYSE: DMRS). This ETF tracks the S&P 600® Managed Risk 2.0 Index, which is designed to measure U.S. small-cap equities using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
DeltaShares S&P International Managed Risk ETF (NYSE: DMRI). This ETF tracks the S&P EPAC Ex. Korea LargeMidCap Managed Risk 2.0 Index, which offers broad international developed markets equity exposure using a managed risk strategy seeking to limit losses and capture the upside in rising markets.
Transamerica chose Milliman Financial Risk Management LLC (Milliman FRM), a Chicago-based SECregistered investment adviser and a global leader in institutional risk management, to act as subadviser for the DeltaShares Managed Risk ETFs. Milliman FRM is a market leader in managed risk solutions providing investment advisory, hedging, and consulting services on $152 billion in global assets and sub-advising approximately $52 billion in managed risk assets for insurers, institutional investors and retirement investors as of June 30, 2017.
Adam Schenck, head of portfolio management for Milliman FRM, said, “It is a privilege to work with Transamerica to launch these DeltaShares Managed Risk ETFs and help people achieve their goals through innovative risk management. ETFs have seen substantial growth over the past decade in terms of assets as well as providers. The debut of DeltaShares marks the first time this type of managed risk equity exposure is offered within the accessible, efficient and lower cost structure offered by ETFs.”
The S&P Managed Risk 2.0 Index Series applies a unique approach designed to simulate, through a rules-based methodology, a dynamic portfolio with the aim of both managing the volatility of each respective index in the series and limiting losses from the index’s equity exposure. Each index seeks to achieve these objectives by allocating weightings among the underlying equity index (such as the S&P 500 Index), the S&P U.S. Treasury Bond Current 5-Year Index and the S&P U.S. Treasury Bill 0-3 Month Index. S&P Dow Jones Indices’ white paper, titled “Understanding the S&P Managed Risk 2.0 Indices,” provides further insight into this index series.
Vinit Srivastava, head of strategy and ESG Indices for S&P Dow Jones Indices commented, “The S&P Managed Risk 2.0 Index Series, which simulate a downside-protected portfolio, represents a significant advancement in the field of managed risk indexing and builds on the industry-leading S&P Risk Control Indices. While other ways of hedging risk have existed in passive strategies, the managed risk indices are designed to reduce equities exposure into a reserve asset in times of market stress. Our team is excited DeltaShares selected these indices for its ETFs to track.”
Source: ETFWorld
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
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