5 min readBy Beqa Bumbeishvili ETF Insider
How does the IWFH ETF work?
The IWFH ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The QVMS ETF is managed by S&P Dow Jones Indices LLC (S&P DJI), the same index provider that compiles and maintains the Underlying Index. The Underlying Index, which QVMS aims to track, is designed to measure the performance of 90% of the stocks within the S&P SmallCap 600® Index, excluding those with the lowest quality, value, and momentum multi-factor scores.
While the primary objective of the QVMS ETF may not revolve around dividend income, it still mirrors the dividend distribution of the underlying index. Dividend distributions from this ETF typically occur on a periodic basis and are influenced by the dividend policies and performances of the constituent companies within its underlying index. Investors should note that QVMS primarily focuses on tracking the performance of specific stocks and may not provide substantial dividend yield as its primary goal is capital appreciation.
The QVMS Tracking ETF primarily seeks to mirror the performance of the Underlying Index, which is compiled and maintained by S&P Dow Jones Indices LLC. This index is designed to gauge the performance of 90% of the stocks within the S&P SmallCap 600® Index, excluding those with the lowest quality, value, and momentum multi-factor scores. To construct the Underlying Index, each security in the Parent Index is evaluated based on three fundamental factors: quality, value, and momentum. The resulting multi-factor score determines the inclusion of securities in the Underlying Index, which are then weighted by their float-adjusted market capitalization. As of October 31, 2022, the Underlying Index consisted of 532 constituents, with market capitalizations ranging from $168.52 million to $5.94 billion. The QVMS Tracking ETF adopts a full replication methodology, investing in all securities within the Underlying Index proportionally. It should be noted that the ETF is considered non-diversified and does not have to meet specific diversification requirements under the Investment Company Act of 1940, except when the Underlying Index itself reflects a concentration in a particular industry or group of industries.
While specific correlation details for the QVMS ETF are not readily available, understanding its correlation dynamics is essential for investors to comprehend its market behavior. Investors can leverage the ETF Insider web app to explore in-depth correlation data, gaining insights into how QVMS interacts with various market factors. The ETF Insider's user-friendly visualization tool provides a comprehensive analysis of correlations, overlaps, and connections with other assets, empowering investors to make informed decisions and implement effective risk management strategies within their portfolios based on a nuanced understanding of QVMS ETF's correlation patterns.
The QVMS Sector ETF primarily focuses on tracking the performance of 90% of the stocks within the S&P SmallCap 600® Index, with an emphasis on quality, value, and momentum factors. This ETF utilizes a multi-factor scoring system that selects securities with higher quality, value, and momentum scores, representing the top 90% of the Parent Index. The fund employs a full replication methodology, meaning it invests in all the securities comprising the Underlying Index in proportion to their weightings, and it may concentrate its investments in certain industries based on the composition of the Underlying Index. As of October 31, 2022, the Underlying Index consisted of 532 constituents with market capitalizations ranging from $168.52 million to $5.94 billion, providing investors with exposure to a diversified set of small-cap stocks.
The exposure characteristic of the QVMS ETF highlights its strategy of tracking the QV Multi-Factor Small Cap Index. This index is designed to capture the performance of small-cap stocks in the U.S. market that exhibit strong qualities in terms of quality, value, and momentum factors. With a focus on the top 90% of stocks from the S&P SmallCap 600® Index, the QVMS ETF aims to provide investors with a targeted approach to small-cap investing, offering potential opportunities for enhanced returns through a multi-factor approach.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
5 min readThe IWFH ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
6 min readThe QVMS ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
4 min readCompare the UUP and FXF ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
