Investors searching for exposure to top companies, outside the U.S. and not in emerging markets, can now buy a new exchange-traded from Compass.
The new ETF, listed via Nasdaq OMX, gives investors a chance to capture the yield from international large cap stocks and help them hedge existing exposure.
Compass EMPs ETF, Compass EMP Developed 500 Enhanced Volatility Weighted Index ETF, will trade under the symbol CIZ. It will begin trading on Wednesday, October 1.
“It’s exciting to introduce an innovative international, smart beta product that seeks to outperform both traditional indexes as well as active ETFs over the long-term,” said Stephen Hammers, chief investment officer at Compass EMP. “Our latest ETF is focused on the largest 500 international equities, and may offer performance enhancements through fundamental criteria combined with its distinct securities volatility weighting. In addition, this ETF has the ability to liquidate 75% of the securities in the index to cash in the event of a market decline.”
CIZ seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the CEMP International 500 Long/Cash Volatility Weighted Index (the “Index”). CIZ’s investment objective and the Index may be changed without shareholder approval. The Index is a passive index and generally consists of the common stock of the 500 largest companies by market capitalization that have their headquarters in a developed country (excluding the U.S. and emerging markets) and the stock of which trades on an exchange in a developed country (other than the U.S. and emerging markets). The Index includes only those companies with consistent positive earnings (at least its 4 most recent quarters) and is weighted based on the volatility of each stock.
Compass EMP was founded in 1996 and is a Registered Investment Advisor with the SEC.
