Solactive launches adaptive wealth strategies US factor index

Solactive has launched Adaptive Wealth Strategies US Factor index, which dynamically allocates across three sub-indices with exposure to US equities in the large and mid-cap segment and exhibits characteristics of one of three primary factors: value, momentum and low volatility.

The index has been developed together with Adaptive Wealth Strategies, a division of Carroll Financial Associates, based on their existing strategy and will be the underlying for the new Global X Adaptive US Factor ETF.

The index gives investors a dynamic investment approach to multiple investment factors in one product. The weighting is determined by the performance of each sub-index in the past 2 years.

The index will dynamically allocate across the following three Solactive factor indices:
• Solactive US large & mid-cap value 100 index TR
• Solactive US large & mid-cap momentum 100 index TR
• Solactive US large & mid-cap minimum downside volatility 100 index TR

Timo Pfeiffer, head of Research at Solactive, commented: “The Adaptive Wealth Strategy is a very innovative multi-factor model that combines different sub-strategies such as Minimum Downside Volatility – focusing on negative returns only – in one model. It is great to see this concept being put into an index format and made investable for US clients.”

Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

Read more from Ridhima Sharma

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