CARROLL FINANCIAL ANNOUNCES LAUNCH OF
ADAPTIVE WEALTH STRATEGIES
U.S. FACTOR INDEX
Low cost, tax-efficient, and alpha-generating strategies built for your clients.
Global X Funds, the New York-based provider of exchange-traded funds (ETFs), recently launched the Global X Adaptive U.S. Factor ETF (NYSE: AUSF). The fund will track the Adaptive Wealth Strategies U.S. Factor Index, which seeks to navigate various market conditions by dynamically allocating to sub-indexes representing three academically-backed factors: value, momentum, and minimum volatility. Each sub-index consists of 100 U.S. mid and large cap stocks that represent a particular factor.
The index adjusts its factor exposures on a quarterly basis based on a mean-reversion methodology that seeks to access underperforming factors. At any given time, the index accesses two factors, equally weighted, or all three factors with a weighting of 40% / 40% / 20%, underweight or eliminating the most recent outperforming factor to protect against potential downside and manage risk more effectively. In rotating its weightings to underperforming factors, the index is designed to potentially mitigate downside risks while generating outperformance versus cap-weighted benchmarks over the long run.
BUILT FOR ADVISORS, BY ADVISORS.
“We recognized that we could improve our adaptive factor strategy by combining value, momentum, and minimum volatility in one ETF,” said Kristopher Carroll, CFA®, CFP® Chief Investment Officer at Carroll Financial Associates. “We have utilized a strategy of combining these three separate factors in our private portfolios for many years, and have now decided to turn what were once three separate positions into one by utilizing the ETF structure. We are excited to work with Global X to bring our strategy wrapped in an efficient structure to the broader market.”
“It has been great to see over a year’s worth of work building this index finally come to completion. This process illustrates that we continue to be dedicated to the interests of our clients,” said Patrick Bobbins, CIMA® Trading & Portfolio Manager at Carroll Financial Associates. “By having this factor-based index we took a current strategy and redesigned it to be potentially more tax efficient for our clients. The adaptive factor index exhibits creativity in how we serve our clients and I’m excited to see this implemented.”
This fund is the eighth fund in Global X’s Core suite of ETFs.
ABOUT CARROLL FINANCIAL
Carroll Financial’s philosophy is, and always has been: “The best interest of the client is the only interest that matters.” Established in 1980, Carroll Financial is one of the Charlotte region’s oldest and largest independent comprehensive financial planning and wealth management firms. The firm now manages over $2.7 billion in client assets and their 23 financial advisors, which includes 21 Certified Financial Planners™, offer many years of experience and customized financial planning to clients. Carroll Financial’s unique investment approach is focused on five core sectors: simplicity, risk, income, diversification, and price. Their clients have the potential to benefit from this adaptive investment strategy which is backed by a solid academic foundation.
For more information about the Adaptive U.S. Factor Index and Carroll Financial visit:
4201 Congress Street, Suite 210, Charlotte, NC 28209
Adaptive Wealth Strategies (AWS) is a department of Carroll Financial Associates, Inc., a Registered Investment Advisor. Registration does not imply a certain level of skill or training. Carroll Financial and AWS are not affiliated with any other named party. Global X Management Company LLC is not affiliated with AWS or Carroll Financial Associates, Inc.
Investing involves risk, including the possible loss of principal. There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment objective. Market disruptions and regulatory restrictions could have an adverse effect on the Fund's ability to adjust its exposure to the required levels in order to track the Underlying Index. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index. Performance of companies in the financial sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. AUSF is non-diversified. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. Past performance is not an indication or guarantee of future results.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange. Closing price returns do not represent the returns you would receive if you traded shares at other times.
Since the Fund’s shares typically do not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in Shares, the NAV of the Fund is used to calculate market returns.
The information provided herein is not a recommendation or solicitation to buy or sell an investment product.
Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by AWS, nor does AWS make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with AWS.