On Tuesday, 6 Meridian, a registered funding advisor, introduced the enlargement of their product lineup with the launch of its latest fairness ETF, the 6 Meridian High quality Progress ETF (SXQG), an actively managed technique that helps buyers seize publicity to corporations exhibiting robust progress traits.
SXQG takes a rigorously screened, quant-driven strategy, leading to a portfolio of the highest 100 names which have demonstrated top quality and progress relative to their friends, providing a novel twist on progress past a portfolio of largely tech names.
This launch comes on the anniversary of the agency’s entrance to the ETF market final 12 months, when the agency launched 4 energetic ETFs that the corporate had initially supplied as individually managed accounts (SMAs). SXQG is the primary technique from 6 Meridian that has gone straight to an ETF construction from its creation because of the ETF construction’s inherent tax benefits.
“It’s been an unimaginable 12 months for progress names, however not all progress is created equal, and never all progress gives the standard buyers deserve over the long run,” mentioned Andrew Mies, CIO of 6 Meridian. “We imagine the screening of corporations by way of varied metrics like excessive profitability, low leverage, and low liquidity is crucial for figuring out the alternatives for capital appreciation. We’re thrilled to be launching SXQG, which takes a rigorously screened, quant-driven strategy, leading to a portfolio of the highest 100 names have demonstrated top quality and progress relative to their friends.”
As famous, SXQG’s portfolio is constructed utilizing a quantitatively pushed methodology designed to emphasise top quality securities. The choice course of begins with corporations within the broad U.S. fairness market. From this preliminary universe, micro cap corporations (i.e., corporations with a market capitalization of lower than $500 million) are excluded.
High quality is outlined as excessive and bettering profitability, low leverage and low default likelihood, and low web fairness and debt issuance relative to dividends and web buybacks. Securities are first ranked on a composite of a number of quality-focused variables supposed to measure profitability, progress, and skill to service financing obligations. The fund rebalances twice a 12 months.
“We’ve designed our product lineup with our shoppers in thoughts, as we intention to supply them and the market considerate, disciplined methods that match their investing objectives,” added Mies. “We’re excited to be launching SXQG on the anniversary of our first ETF suite launch in 2020, displaying our continued dedication to offering our strategy in value and tax-efficient options through the ETF wrapper.”
For extra data, go to 6meridianfunds.com.
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