The RESP issuer behind the fund aligns with a strategy that prioritizes stability and measured growth. Operating in accordance with its investment objectives, the issuer ensures that at least 90% of the fund's assets are invested in securities comprising the Underlying Index. This index, meticulously compiled and managed by S&P Dow Jones Indices LLC, is specifically tailored to measure the performance of the 200 least volatile stocks from the S&P Developed ex-U.S. & South Korea LargeMidCap. By leveraging statistical measures of volatility over a trailing 12-month period, the index weights constituents to prioritize the least volatile stocks, thus promoting stability within the fund's portfolio. With a focus on large- and mid-cap securities in developed markets worldwide (excluding the United States and South Korea), the Underlying Index represents a diverse range of countries and industries. The fund employs a full replication methodology, mirroring the composition of the Underlying Index to achieve its investment objectives. Additionally, the fund maintains diversification in accordance with the Investment Company Act of 1940, with measures in place to mitigate concentration risk in specific industries or groups of industries. Overall, the RESP issuer's approach underscores a commitment to prudent risk management and long-term capital appreciation for investors.
While the RESP ETF (RESP) primarily focuses on replicating the performance of the S&P Developed ex-U.S. & South Korea LargeMidCap Low Volatility Index, its dividend distribution is influenced by the dividend policies of the underlying securities. Dividends are typically distributed on a periodic basis, reflecting the dividend payments of the index constituents. As the fund aims to replicate the index, investors can expect dividends from a diversified portfolio of relatively low volatility stocks from developed markets outside the United States and South Korea.
Tracking the S&P Developed ex-U.S. & South Korea Low Volatility LargeMidCap Index lies at the heart of the LOWV ETF's strategy. This ETF primarily invests in securities that comprise the Underlying Index, which is meticulously maintained by S&P Dow Jones Indices LLC. The index is designed to measure the performance of the 200 least volatile stocks of the S&P Developed ex-U.S. & South Korea LargeMidCap, excluding the United States and South Korea. LOWV employs a full replication methodology to closely track the index, offering investors exposure to low-volatility segments of developed markets worldwide. With a diversified portfolio reflecting various countries and industries, LOWV provides a strategic option for investors seeking stability and consistent performance.
RESP correlation refers to the degree of association or relationship between investments within a Registered Education Savings Plan (RESP). In constructing an RESP portfolio, it's crucial to consider how different assets move in relation to one another. A well-diversified RESP portfolio typically includes a mix of asset classes such as stocks, bonds, and possibly other investments like real estate or commodities. The correlation among these assets plays a vital role in managing overall portfolio risk. Investments with low or negative correlation tend to move independently of each other, providing diversification benefits and potentially reducing overall portfolio volatility. Conversely, investments with high positive correlation may move in tandem, amplifying portfolio risk during market fluctuations. Therefore, understanding and managing correlation within an RESP portfolio is essential for optimizing risk-adjusted returns and achieving long-term investment objectives while safeguarding educational savings.
The RESP ETF (RESP) primarily focuses on investing in securities that comprise the Underlying Index, which is designed to measure the performance of the 200 least volatile stocks of the S&P Developed ex-U.S. & South Korea LargeMidCap. This ETF offers exposure to large- and mid-cap securities in developed markets across various countries, excluding the United States and South Korea. With a concentration on low-volatility stocks, RESP aims to provide investors with a less risky investment option within the international market. By employing a full replication methodology, RESP seeks to closely track the performance of its underlying index, offering investors a diversified approach to international investing while minimizing the impact of market fluctuations.
The exposure characteristic of the RESP ETF, based on the S&P Developed ex-U.S. & South Korea LargeMidCap 200 least volatile stocks, highlights a focus on stability and international diversification. As the Fund is designed to track low-volatility stocks outside the U.S. and South Korea, investors gain exposure to developed markets across various regions, including Australia, Belgium, Canada, and more. With a full replication methodology, the Fund ensures comprehensive coverage of its underlying index, offering investors a straightforward approach to accessing stable returns from international markets. For in-depth analysis and understanding of RESP's exposure and potential overlaps with other investments, ETF Insider provides a valuable tool through its web app, enabling users to explore correlations, sector allocations, and more for a well-informed investment strategy.
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