Solactive launches adaptive wealth strategies US factor index

Ridhima Sharma
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Solactive has launched Adaptive Wealth Strategies US Factor index, which dynamically allocates across three sub-indices with exposure to US equities in the large and mid-cap segment and exhibits characteristics of one of three primary factors: value, momentum and low volatility.

The index has been developed together with Adaptive Wealth Strategies, a division of Carroll Financial Associates, based on their existing strategy and will be the underlying for the new Global X Adaptive US Factor ETF.

The index gives investors a dynamic investment approach to multiple investment factors in one product. The weighting is determined by the performance of each sub-index in the past 2 years.

The index will dynamically allocate across the following three Solactive factor indices:
• Solactive US large & mid-cap value 100 index TR
• Solactive US large & mid-cap momentum 100 index TR
• Solactive US large & mid-cap minimum downside volatility 100 index TR

Timo Pfeiffer, head of Research at Solactive, commented: “The Adaptive Wealth Strategy is a very innovative multi-factor model that combines different sub-strategies such as Minimum Downside Volatility – focusing on negative returns only – in one model. It is great to see this concept being put into an index format and made investable for US clients.”

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