Investors think in terms of picking winners, when their goal should be to avoid the losers™.
New Age Alpha, an asset management company that provides the global investment community with ETFs, indexes, SMAs, data and tools, announces two Avoider ETFs, AVDR US LargeCap Leading ETF (Ticker: AVDR) and AVDR US LargeCap ESG ETF (Ticker: AVDG). The alpha-seeking ETFs aim to provide an innovative source of alpha and an uncorrelated source of return by avoiding the losers – stocks we believe to be overpriced.
Tracking the New Age Alpha U.S. Large-Cap Leading 50 Index and the New Age Alpha U.S. Large-Cap ESG Index, the Avoider ETFs follow New Age Alpha’s proprietary methodology, which is the process of using a probability, the Human Factor, to avoid the losers. The Human Factor is the probability a company will fail to deliver the growth implied by its stock price – and this occurs when investors impound vague or ambiguous information into a stock price. By providing exposure to a portfolio that consists of 50 stocks with the lowest Human Factor, AVDR and AVDG seek to provide an innovative source of alpha and diversification from traditional investment approaches.
"In today’s environment, investors seek tools that see beyond beta exposure and complicated thematic strategies. AVDR and AVDG represent the next wave of innovation in alpha-seeking ETFs by combining the alpha potential of active management with the advantages of rules-based investing," said Julian Koski, Co-founder and CIO at New Age Alpha. "We are excited to offer the Avoider ETFs alongside our full scope of portfolio solutions and tools that help advisors, institutions and investors build better portfolios," noted Koski.
New Age Alpha’s AVDR US LargeCap Leading ETF (Ticker: AVDR) seeks to deliver alpha over existing large-cap benchmarks by using the Human Factor to avoid overpriced companies. Starting with the S&P500®, AVDR identifies and removes 450 stocks with the highest Human Factor scores, resulting in a portfolio that consists of the 50 stocks with the lowest Human Factor that seeks to deliver alpha over existing large-cap benchmarks.
New Age Alpha’s AVDR US LargeCap ESG ETF (Ticker: AVDG) seeks to deliver alpha and ESG responsibility simultaneously by combining the Human Factor with the most highly rated ESG companies, resulting in a fully integrated risk managed ESG solution weighted by market capitalization. Starting with the 600 U.S. stocks with the largest free-float market cap, AVDG removes all but those with the highest Refinitiv ESG rating. The remaining stocks are ranked based on a combination of ESG rating and the Human Factor and the fund invests in the top 50 which results in a portfolio that seeks to deliver alpha over existing large-cap ESG benchmarks.
AVDR and AVDG each have an expense ratio of 0.6%, and trade on CBOE. For additional information, please visit: www.newagealphaetfs.com
About New Age Alpha
New Age Alpha is an asset management company that provides the global investment community with ETFs, indexes, SMAs, data and tools. New Age Alpha’s portfolio solutions follow our proprietary methodology, which is the process of using a probability, the Human Factor, to avoid the losers. Combining the alpha potential of active management with the advantages of rules-based investing, we provide investors with portfolio solutions that seek to deliver alpha across all asset classes and geographies. Founded in 2018, New Age Alpha is headquartered in Rye, NY and has offices in South Africa. www.newagealpha.com
Past performance does not guarantee future results and there is no assurance that the Fund will achieve its investment objectives, goals, generate positive returns or avoid losses.
All investments involve risks, including possible loss of principal.
Diversification does not ensure profit or prevent losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of the New Age Alpha Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained at www.newagealphaetf.com or by calling 888‐559‐7146. The prospectus should be read carefully before investing. The New Age Alpha Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC is not affiliated with New Age Alpha Advisors, LLC.
The New Age Alpha Funds involve risks including the possible loss of principal and may not be suitable for all investors. There is no assurance that the fund will achieve its investment objectives. There is no assurance that the Advisor or index methodology will successfully identify and quantify the H‐Factor methodology risk or which stocks have low or high H‐Factor Scores. Errors and additional rebalances carried out by the Advisor with respect to the Index may increase the costs and market exposure risk of the Fund. The Fund is not ‘actively’ managed and maintaining investments regardless of market condition could lower Fund performance. Markets and equity securities can decline in value sharply and unpredictably, and in times of severe disruptions you could lose your entire investment.
The Fund has a limited number of intermediaries that act as authorized participants, and none of these authorized participants are or will be obligated to engage in creation or redemption transactions. Cash equivalents are not guaranteed as to principal or interest, and the Fund could lose money through these investments. The Fund may effect creations and redemptions in cash or partially in cash, which may be less tax‐efficient than an investment in an ETF that distributes portfolio securities entirely in‐kind. In following its methodology, the Index may be concentrated in securities of issuers operating in a single industry and the Fund will concentrate its investments to approximately the same extent. Investments in fixed‐income instruments are subject to the possibility that interest rates could rise sharply, causing the value of the Fund’s holdings and share price to decline.
The Fund is subject to the risk that large‐capitalization securities may underperform other segments of the equity market or the equity market as a whole. The Fund’s return may be uncorrelated and not match the return of the benchmark index. The Fund is non‐diversified, which means it invests a high percentage of its assets in a limited number of securities. The Fund seeks to track a quantitative strategy index and the Fund invests in securities comprising an index created by a proprietary model. The success of the Fund’s principal investment strategies depends on the effectiveness of the model. The value of a REIT can depend on the structure of and cash flow generated by the REIT. The Fund’s investment return on repurchase agreements will depend on the counterparty’s willingness and ability to perform its obligations. U.S. government securities are subject to the risks associated with fixed‐income and debt securities, particularly interest rate risk and credit risk.
ETF Trading Disclosure
ETF shares are not redeemable with the issuing fund other than in large creation unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market. The NAV of the Fund’s shares is calculated each day the national securities exchanges are open for trading, normally 4:00 p.m. Eastern time. Shares are bought and sold at market price not NAV. Market Price returns are based upon the official closing price on the listing exchange at 4:00 p.m. ET when NAV is normally determined for most Funds, and do not represent the returns you would receive if you traded shares at other times. An active secondary market for the Fund’s shares may not exist. Although the Fund’s shares will be listed on an exchange, it is possible that an active trading market may not develop or be maintained. There is no guarantee that distributions will be paid.
Index: Investments cannot be made in an Index. Unmanaged index returns do not reflect any fees, expenses or sales charges. Past performance is no guarantee of future results. Large Cap: Large cap (sometimes called "big cap") refers to a company with a market capitalization value of more than $10 billion. Alpha: measures a manager's value‐added return over a benchmark index by comparing its actual return to the return expected based on the risk level. Beta: is a measure of a fund's sensitivity to market movements. The beta of the market is 1.00 by definition. Correlation: measures how two securities move in relation to one another based on monthly returns. S&P 500: The S&P 500 Index contains 500 of the largest stocks that trade on the New York Stock Exchange and Nasdaq, making it a tool to gauge the overall health of large American companies.
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New Age Alpha
Max Leitenberger, 914-434-5725