AlphaClone makes changes to two ETFs

Dec 19th, 2017 | By | Category: Alternatives / Multi-Asset

AlphaClone and Exchange Traded Concepts have announced that they are changing the fees, indices and trading exchange of two AlphaClone-branded ETFs, effective 27 December 2017.

Maz Jadallah, CEO of AlphaClone

Maz Jadallah, CEO of AlphaClone

The AlphaClone Alternative Alpha ETF (ALFA US) will begin tracking the AlphaClone Hedge Fund Masters Index. The index is designed to track the performance of up to 50 US-listed equities selected based on a proprietary hedge fund position replication methodology developed by AlphaClone. The methodology ranks hedge funds and institutional investors based on the efficacy of replicating their publicly disclosed positions and selects equities from those managers with the highest ranking. Unlike the index it is replacing, the new index is long only and equal weighted.

ALFA will also lower its total expense ratio (TER) from 0.95% to 0.65%.

The AlphaClone International ETF (ALFI US) will begin tracking the AlphaClone International Index. The index is designed to track the performance of international companies for which hedge funds and institutional investors have disclosed significant exposure through American Depositary Receipts (ADRs). The proprietary index methodology developed by AlphaClone ranks hedge funds and institutional investors based on the efficacy of replicating their publicly disclosed positions. ADRs are selected from those managers with the highest ranking, or “Clone Score”.  Unlike the index it is replacing, the new index is also long only and equal weighted.

ALFI will lower its TER from 0.95% to 0.75%.

Speaking at the time of ALFA’s launch, Maz Jadallah, CEO of AlphaClone said, “Our approach seeks to combine the best of man and machine by leveraging the most established investors while offering a rules-based investment methodology.”

In addition, the AlphaClone ETFs have filed an application to list their shares on Cboe Exchange which, if approved, will see the funds transferred from NYSE Arca.

Exchange Traded Concepts is the investment adviser to ALFA, while AlphaClone is investment adviser to ALFI.

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