SmartBe Wealth Inc. Announces Amendments to Index for SmartBe Global Value Momentum Trend Index ETF

SmartBe Wealth Inc

CALGARY, Alberta, Nov. 23, 2020 (GLOBE NEWSWIRE) — SmartBe Wealth Inc. (“SmartBe”) announces that the index provider for the Alpha Architect Value Momentum Trend for Canada Index (the “Index”) has made several amendments to the Index, which will be effective as of November 23, 2020. In order to minimize trading costs, these changes will take place for each sub-index at the time of the next scheduled rebalance.
The SmartBe Global Value Momentum Trend Index ETF (the “SmartBe ETF”) has filed an amendment dated November 23, 2020 to its prospectus dated January 22, 2020, which sets out the amendments to the Index. The amendments include the following changes to the Index and its sub-indices (the “Indices”).Alpha Architect U.S. Quantitative Value Index and Alpha Architect International Quantitative Value IndexThe beginning universe of stocks is now the top 1,500 firms based on market capitalization (previously 40th percentile market capitalization) and a liquidity screen is used to eliminate illiquid firmsAdded negative screens to eliminate firms ranking worse on earnings-to-price or cash-flow-to-price ratiosSelect the top 100 firms on value (previously it was the top 10%) and then use value quality metrics to select the top 50 stocks (previously, this varied between 40-50)If there are any “ties” on the financial strength score, the momentum factor is used as the the tiebreakerRebalance every quarter (previously semi-annually) for Alpha Architect International Quantitative Value Index
Alpha Architect U.S. Quantitative Momentum Index and Alpha Architect International Quantitative Momentum IndexThe beginning universe of stocks is now the top 1,500 firms based on market capitalization (previously 40th percentile market capitalization) and a liquidity screen is used to eliminate illiquid firmsAdded negative screen to eliminate firms with high beta or poor measures on six-month and nine-month momentumSelect the top 100 firms on momentum (previously it was the top 10%) and then use momentum quality metrics to select the top 50 stocks (previously, this varied between 40-50)
Alpha Architect Quantitative Value Canada IndexThe beginning universe of stocks is now the top 200 firms (previously 150) within Canada ranked on market capitalization and a liquidity screen is used to eliminate illiquid firmsAdded the same negative screens as Alpha Architect U.S. Quantitative Value Index and Alpha Architect International Quantitative Value IndexSelect the top 40 firms on earning-before-interest-and-taxes to total-enterprise value ratio (previously it was the top 20%)Select the top 20 firms (previously 15) based on financial strengthAssume rebalances take place near the end of the quarter-ending months (previously, assumed rebalances take place near the beginning of the quarter-ending months)
Alpha Architect Quantitative Momentum Canada IndexThe beginning universe of stocks is now the top 200 firms within Canada ranked on market capitalization (previously 150) and a liquidity screen is used to eliminate illiquid firmsAdded the same negative screens as the Alpha Architect U.S. Quantitative Momentum Index and Alpha Architect International Quantitative Momentum IndexSelect the top 40 firms on the momentum factor (previously it was the top 20%)Select the top 20 firms (previously 15 firms) using the frog-in-the-pan metric to select firms with higher quality-of-momentum amongst the high-momentum firms.Further information about the SmartBe ETF can be found at www.smartbewealth.com.About SmartBe
SmartBe wealth Inc. is a wealth management firm and the manager of the SmartBe Global Value Momentum Trend Index ETF. The company partners with international and academically published index providers to construct and deliver Canadian exchange-traded funds for widespread public distribution. SmartBe is dedicated to brining new quantitative approaches to Canadian investors interested in affordable alternatives to sophisticated investment strategies.
Read the SmartBe ETF’s prospectus and consult your financial advisor before investing. The prospectus and other disclosure documents can be found at www.smartbewealth.com. or www.sedar.com. These documents and the ETF facts make up the ETF’s legal documents. Exchange-traded funds are not guaranteed; their values change frequently and past performance may not be repeated. Investors will pay management fees and expenses, will not pay commissions or trailing commissions and may experience a gain or loss.

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