NEW YORK, May 10, 2016 (GLOBE NEWSWIRE) -- Guggenheim Investments, the global asset management and investment advisory business of Guggenheim Partners, today announced the launch of Guggenheim U.S. Large Cap Optimized Volatility ETF (NYSE Arca:OVLC). The ETF tracks the Guggenheim U.S. Large Cap Optimized Volatility Index, designed to capture the benefits of low-volatility investing while attempting to outperform these strategies during market rallies.
“Optimized volatility is a systematic, risk-controlled approach for creating portfolios that respond to changing market conditions,” said William Belden, Guggenheim Managing Director and Head of ETF Business Development.
“While the performance of minimum volatility portfolios tends to be defensive, providing better returns in falling markets, in up markets these strategies tend to underperform. Optimized volatility portfolios are built to be defensive most of the time and to be more aggressive when the market is rewarding risk characteristics.”
Using the S&P 500® Index as its selection universe, OVLC’s underlying index uses a proprietary formula to calculate the risk-to-reward returns for the trailing 12-month period and attempts to project each stock’s volatility and correlation to other stocks in the portfolio.
“The premise is that the reward to these risk characteristics over the last year may serve as a fair estimate for how the market will reward volatility and correlation in the near future,” Belden said. “The underlying index is rebalanced quarterly. Stock and sector constituents are subject to limits to help the portfolio remain well diversified.”
For more information, please visit http://www.guggenheiminvestments.com/etf or call 888.WHY.ETFs to speak to a representative.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, with $199 billion1 in assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 275+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.
1Guggenheim Investments total asset figure is as of 03.31.2016. The assets include leverage of $11.4bn for assets under management and $0.5bn for assets for which we provide administrative services. Guggenheim Investments represents the following affiliated investment management businesses: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Real Estate, LLC, Transparent Value Advisors, LLC, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited and Guggenheim Partners India Management.
Past performance is no guarantee of future results.
RISK CONSIDERATIONS Guggenheim U.S. Large Cap Optimized Volatility ETF is subject to risks and may not be suitable for all investors. • Investing involves risk and special consideration, including the possible loss of principal. • There are no assurances that the fund will achieve its investment objective and/or strategy. • Investments in large capitalization stocks may underperform other segments of the equity market or the equity market as a whole. • The fund may also not be able to achieve its target daily volatility level and the fund may experience greater or lower than expected volatility due to market, sector or other factors. • The fund is not actively “managed” which means the fund would not necessarily sell a security because the security’s issuer was in financial trouble unless that security is removed from the index. In addition, the fund will not otherwise take defensive positions in declining markets unless such positions are reflected in the Index. • Non-Correlation risk refers to the risk that the Advisor may not be able to cause the fund’s performance to match or correlate to that of the fund’s underlying index, either on a daily or aggregate basis. Non-Correlation risk may cause the fund’s performance to be less than you expect. • If the Index concentrates in an industry or group of industries, the fund’s investments will be concentrated accordingly. In such event, the value of the fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. • Shares may trade below their net asset value (“NAV”). The NAV of shares will fluctuate with changes in the market value of the fund’s holdings. In addition, although the fund’s shares are currently listed on NYSE Arca, Inc. (the “Exchange”), there can be no assurance that an active trading market for shares will develop or be maintained. • Please read the prospectus for more detailed information regarding these and other risks.
Index Disclaimer: Guggenheim U.S. Large Cap Optimized Volatility Index is a trademark of Accretive Asset Management LLC. Accretive Asset Management, LLC is an affiliate of Guggenheim Investments.
Read a fund’s prospectus and summary prospectus (if available) carefully before investing. It contains the fund’s investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.guggenheiminvestments.com or call 800.820.0888.
The referenced fund is distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners (“Guggenheim”), which includes Guggenheim Funds Investment Advisors (“GFIA”), the investment advisor to the referenced fund. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim and GFIA.
Media Contact Ivy McLemore Guggenheim Partners 212.518.9859 Ivy.McLemore@guggenheimpartners.com
Source: Guggenheim Investments