SOURCE: Elkhorn Investments

Elkhorn Investments

December 10, 2015 09:50 ET

Elkhorn Launches RAFI High Yield U.S. Equity ETF

WHEATON, IL--(Marketwired - Dec 10, 2015) - Elkhorn Capital Group, LLC, a pioneer of research-based investing and a strategic partner of Barclays, announced today the launch of the Elkhorn FTSE RAFI U.S. Equity Income ETF (BATS: ELKU).

This new ETF is based on the FTSE RAFI™ US Equity Income Index and offers a risk-managed approach to high yield dividend investing. The RAFI strategy screens high-dividend paying stocks for financial health and then applies their patented fundamental weighting. According to RAFI's research, fundamental investing in high-dividend companies seeks to eliminate financially unsound companies and may mitigate sector concentration risk, resulting in reduced volatility and enhanced returns.

"We are excited to be partnering with leading global innovators like Research Affiliates and FTSE Russell," said Ben Fulton, Founder and CEO of Elkhorn. "Income remains an important area of need for investors and Research Affiliates brings a new and thoughtful approach to high yield equity investing. Their fundamental approach seeks to deliver better risk-adjusted returns over the long-term, and we are excited to deliver this new strategy to investors."

"Our Equity Income Index Series is an exciting new development in fundamental indexing, and we are pleased to partner with Elkhorn to deliver innovative solutions to investors. Although there are a number of dividend-based strategies on the market, we believe our extensive research in this area has produced a new, differentiated product that income-oriented investors should consider," said Rob Arnott, Chairman and CEO of Research Affiliates.

"We have a longstanding relationship with the leadership team at Elkhorn and are thrilled that they are introducing this ETF based on our new FTSE RAFI™ US Equity Income Index," said Ron Bundy, CEO North America Benchmarks for FTSE Russell. "In addition, we are excited to continue our collaboration with Research Affiliates to develop a fundamental dividend index solution for investors."

As of Nov 30, 2015, the dividend yield of the FTSE RAFI™ U.S. Equity Income Index is 3.50%.

The launch of the Elkhorn FTSE RAFI U.S. Equity Income ETF adds to Elkhorn's structurally diverse product lineup of Unit Investment Trusts (UITs), Structured Notes, Market-Linked CDs (MLCDs) and Exchange-Traded Funds (ETFs), including the first-ever capital expenditures ETF, Elkhorn S&P 500 Capital Expenditures Portfolio (CAPX). To learn more about Elkhorn's product offerings, please visit www.elkhorn.com.

About Elkhorn
Founded in 2013 and a strategic partner of Barclays, 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's founder, Ben Fulton, is a recognized leader in the ETF industry, leveraging 30 years of financial services experience to meet the needs of today's investment advisor. To learn more about Elkhorn please visit www.elkhorn.com.

About Research Affiliates
Research Affiliates is an asset allocation firm based in Newport Beach, California. Founded in 2002, Research Affiliates has become a global leader in innovative indexing led by Rob Arnott, Jason Hsu, and Chris Brightman. As of June 30, 2015, over $174 billion in assets are managed worldwide using investment strategies developed by Research Affiliates.

About FTSE Russell
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. FTSE Russell is wholly owned by London Stock Exchange Group.

Important Information
Fundamental indexing is a technique that selects companies according to their financial strength, using metrics such as sales, cash flow, book value, and dividends. Dividend yield is the annual dividends per share divided by the price per share of the security.

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 Fund's returns may not match the return of the Underlying Indexes. One cannot invest in an index. Index yield does not represent an investment in the ETF.

The fund is new and has a limited operating history.

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.

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 1.800.355.4676. Read the prospectus carefully before investing.

ALPS Distributors, Inc. is the distributor of Elkhorn exchange-traded funds.

Elkhorn Investments, LLC, Research Affiliates, LLC, FTSE Russell and ALPS Distributors, Inc. are not affiliated with each other.

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