Evolve and Solactive partner on global innovation ETF

Apr 30th, 2018 | By | Category: Equities

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Evolve ETFs is to launch a new fund on Toronto Stock Exchange that invests in equities of companies involved in innovative or disruptive trends across a broad range of industries. The Evolve Innovation Index ETF (EDGE CN) will begin trading on 2 May 2018.

Raj Lala, President and CEO of Evolve ETFs

Raj Lala, president and CEO of Evolve ETFs.

Raj Lala, president & CEO of Evolve ETFs, commented, “Innovation has always been a long-term, key driver of global economic growth. Investors need better tools to gain exposure to the themes that are shaping the world.

“The Evolve Innovation Index ETF combines today’s most transformational themes into a single diversified portfolio of disruptive industries. We believe this balanced approach makes it easy for investors to benefit from emerging industries and trends in a simple one-stop solution.”

“The Evolve Innovation Index ETF combines today’s most transformational themes into a single diversified portfolio of disruptive industries.”
Raj Lala, president & CEO of Evolve ETFs

The fund will track the recently unveiled Solactive Global Innovation Index. The index’s methodology selects companies listed in developed markets that operate in the following industries: robotics and automation, future cars, cyber security, big data and cloud computing, genomics, and social media.

Each industry group is equally weighted in the index, and constituents within each industry group are also equally weighted. The exception to this rule is the cyber security group where companies are weighted according to their market capitalization with a cap of 7.5% per constituent.

The index is reconstituted and rebalanced on a quarterly basis.

As of 25 April 2018, the index was composed of 107 constituents with US, Japanese, and German stocks representing 85% of the total index weight.

Using back-tested data from October 2013, the index has returned an impressive 22.8% per annum with annualized volatility of 16.2%.

Source: Solactive.

Timo Pfeiffer, head of research at Solactive, said, “Technology is advancing at a very fast pace creating many opportunities in the market. By investing in companies driving innovation, investors can be directly exposed to the performance of market segments expected to grow in the future. We are happy to team up with Evolve ETFs and develop an innovative and investable index strategy.”

The prospectus lists the fund’s management fee as 0.40%.

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