SRH Funds has made its ETF debut by launching a smart beta US equity fund based on a multi-factor investment approach.

The smart beta ETF equally weights a portfolio of US equities that have been screened for value, growth, and quality factors.

The SRH US Quality ETF (SRHQ US) has been listed on NYSE Arca, coming to market with $100 million in initial assets under management.

The ETF is linked to the SRH US Quality Index, designed by Rocky Mountain Advisers, which captures the performance of US-listed companies that exhibit consistent and moderate revenue growth and do not trade at excessive valuations.

The index’s initial eligible universe consists of the common stock of the 1,000 largest firms that are domiciled and tradeable in the US.

The universe is first screened according to value (enterprise value to cash flow), growth (5-year revenue growth), and quality (growth variability) criteria. Any company that does not meet certain thresholds regarding these criteria is removed.

The remaining constituents are equally weighted, and the index is reconstituted and rebalanced on an annual basis.

The ETF comes with an expense ratio of 0.35%. Distributions are sent to investors on a quarterly basis.