WHEATON, IL--(Marketwired - December 30, 2016) - Elkhorn Investments, LLC, a pioneer of research-based investing and a strategic partner of Barclays, announced today the launch of nine Elkhorn S&P MidCap Sector Exchange-Traded Funds (ETFs) on the Bats Global Markets exchange.
The Elkhorn S&P MidCap Sector ETFs are the first midcap sector ETFs available and provide beta exposure to U.S. midcaps, tracking the S&P MidCap 400® Capped Indexes which provide investable market cap exposure to the underlying GICS sectors of the S&P MidCap 400® Index1. Midcaps are often referred to as the "sweet spot" within U.S. equities given their long-term outperformance of both U.S. large and small caps.
"The launch of the Elkhorn S&P MidCap Sector ETFs is a groundbreaking development for the ETF industry," said Ben Fulton, CEO of Elkhorn Investments. "Plain and simple, midcaps are a severely overlooked area of the market. The launch of midcap sector ETFs trails the first large cap sector ETFs by almost two decades. We think investors tend to be heavily underweight midcaps, thinking a combination of small and large caps equals midcap exposure. It doesn't. Over the last 30 years, if you invested in midcaps, you would have made twice as much money than if you were only invested in large or small caps.2"
"For all the innovation that has occurred in ETFs, beta exposure to U.S. midcap sectors were, for some reason, overlooked. With the launch of the Elkhorn S&P MidCap Sector ETF building blocks, investors will now be able to build more targeted and customized midcap ETF portfolios," says Graham Day, SVP, Head of Product and Research at Elkhorn. "We think midcaps are the most underutilized source of alpha in the U.S. equity market today."
Unfortunately, active managers have been a disappointment for investors in midcaps as evidenced by more than 91% failing to outperform the S&P MidCap 400® Index over the last ten years3. The beta exposure in the Elkhorn midcap sector ETFs seeks to provide investors better passive tools for portfolio construction when compared to active management.
"Now investors have a complete toolset for beta sector exposure to our benchmark S&P 500 Index, S&P 600 Index and now S&P 400 Index" says Philip Murphy, Vice President, Product Management, at S&P Dow Jones Indices. "For investors, midcaps are what we call a sweet spot for performance in the U.S. equity market, and the midcap sectors will provide investors more comprehensive exposure to the midcap space."
The launch of the nine Elkhorn S&P MidCap Sector ETFs, each with a 0.29% expense ratio, adds to Elkhorn's growing list of ETPs, including the Elkhorn Lunt Low/Vol High Beta Tactical ETF (LVHB), and the Elkhorn S&P High Quality Preferred ETF (EPRF). To learn more about the midcap sectors and other Elkhorn ETFs, please visit www.elkhorn.com/etf.
Founded in 2013 by Ben Fulton, a recognized leader and pioneer of the ETF industry, Elkhorn is redefining the relationship between investment strategy and product structure: designing, sponsoring and distributing innovative, research-based investments solutions. At Elkhorn, research drives design and advisors drive structural decisions. Elkhorn has a strategic relationship with Barclays which has increased the capacity of investment solutions offered by Elkhorn. To learn more about Elkhorn please visit www.elkhorn.com.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a part of McGraw Hill Financial. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.
1. The Elkhorn S&P MidCap Sector ETFs provides exposure to the following GICS sectors: energy, materials, industrials, consumer discretionary, consumer staples, health care, financials, information technology, telecommunication services, and utilities.
2. Source: Bloomberg L.P., Russell MidCap, Russell 1000 and Russell 2000 Indexes, 1/1979 to 11/2016
3. S&P SPIVA® U.S. Scorecard, Mid-Year 2016, https://us.spindices.com/documents/spiva/spiva-us-mid-year-2016.pdf
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The funds' return may not match the return of the underlying index. Because the funds are non-diversified, changes in a particular sector could cause greater fluctuations in share price. The funds are new and have a limited operating history. Alpha is a measure of performance on a risk-adjusted basis. Beta is a measure of the volatility. Performance data quoted represents past performance, which is not a guarantee of future result.
The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.
The S&P MidCap 400® Index provides investors with a benchmark for mid-sized companies. The S&P MidCap 400® Capped Index is similar to the S&P MidCap 400® Index, but imposes capped weights on the index constituents. The S&P 500® Index is widely regarded as the best single gauge of large-cap U.S. equities. The S&P 600® Index measures the small-cap segment of the U.S. equity market.
Shares are not individually redeemable and owners of the shares may acquire those shares from the fund and tender those shares for redemption to the fund in Creation Units only, typically consisting of 50,000 Shares.
ALPS Distributors, Inc. is the distributor of Elkhorn exchange-traded funds.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1.630.384.8700. Read the prospectus carefully before investing.