The Reverse Cap Weighted U.S. Large Cap ETF (Ticker: RVRS) provides exposure to the companies in the S&P 500 index. However, while traditional market cap weighted indexes such as the S&P 500 weight companies inside the index by their relative market capitalization, RVRS does the opposite, weighting companies by the inverse of their relative market cap. By investing smallest-to-biggest, the fund is tilting investment exposure to the smaller end of the market cap spectrum within the large cap space.
- Reverse cap weighting tilts large cap exposure to the smaller end of the size spectrum. Studies have shown that while more volatile, smaller stocks can have outsized returns.1
- Reverse cap weighting provides a less concentrated distribution of stock weightings, increasing overall diversification.
- Reverse cap weighting results in a weighted average market cap that is both significantly lower than market cap weighted large cap funds, and significantly higher than mid cap funds. Portfolios that allocate to market cap weighted versions of large, mid and small cap now have a tool to gain exposure to a sizeable gap in their holdings.
Minding the Gap of Size Investing:
Portfolios that allocate weightings by market capitalization skew to the largest stocks. This leaves large sections of the market under-represented or not represented at all.
Reverse Cap weighting attempts to fill this gap by:
- Lowering your portfolio’s weighted average market-cap exposure.
- Providing more diversification with a less concentrated portfolio.
- Avoiding the “buying high” bias by rebalancing based on current market capitalization every quarter.
The RVRS ETF can help bridge the gap between the investment exposure you think you have (large cap) and what you actually have (mega cap).
The Reverse Cap Weighted U.S. Large Cap ETF (the “Fund”) seeks to track the performance, before fees and expenses, of the Reverse Cap Weighted U.S. Large Cap Index (the “Index”).
The Index is a rules-based, reverse capitalization weighted index comprised of the 500 largest U.S.-listed companies as measured by their free-float market capitalization contained within the S&P 500 universe. The Index seeks to provide exposure to the U.S. large-cap market but with greater emphasis on the smaller-end of the large-cap spectrum, unlike many traditional market capitalization weighted indexes that place a greater emphasis on the largest companies in the large-cap market.
|Distributor||Quasar Distributors LLC|
|Lead Market Maker||Wolverine Trading|
|Primary Exchange||Cboe BZX|
|Net Expense Ratio||0.29%|
|Index||Reverse Cap Weighted U.S. Large Cap Index|
as of 12/31/2019
|Fund||1 month||3 month||6 month||YTD|
|S&P 500 Index||3.02%||9.07%||10.92%||31.49%|
|Fund||1 year||3 year||Inception*||Gross Expense Ratio|
|S&P 500 Index||31.02%||-||13.28%||-|
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the ETF shares will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance, current to the most recent month-end, call 734-882-2401. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Total Returns are calculated using the daily 4:00pm net asset value (NAV). Market returns are based on the composite closing price and do not represent the returns you would receive if you traded the shares at other times. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date.
as of 02/14/2020
|LB||L BRANDS INC||4,657.00||$113,351.38|
|HRB||BLOCK H & R INC||3,125.00||$69,937.50|
|IPGP||IPG PHOTONICS CORP||455.00||$63,467.95|
Fund holdings and sector allocations are subject to change and are not recommendations to buy or sell any security.