Small Cap Value

USA

Opus lists small cap value ETF

Alabama-based Opus Capital Management is teaming up with white labeller ETF Series Solutions to list an actively managed value small cap ETF. The Opus Small Cap Value Plus ETF (OSCV) will invest 80% or more of its assets in US small caps, using the Russell 2000 definition of small cap.

 

In selecting which small caps to invest in, Opus uses a “factor-based analysis with rigorous fundamental research to identify high-quality, growing companies that the sub-adviser believes are undervalued,” the prospectus says. Opus focuses on three themes to help it pick companies:

 

(i) Higher quality: Companies with sound business models, higher returns on equity, strong balance sheets, and shareholder-friendly management.

(ii) Higher growth: Companies that are well-positioned to grow sales, earnings, cash flows, and dividends.

(iii) Lower valuation: Companies whose valuations reflect lower price-to-earnings and higher yields than their peers.

 

Opus will generally sell a stock when it believes the company is no longer of a high quality; when its anticipated growth rate has significantly declined; when it is no longer considered undervalued; or when it is no longer considered a small-cap after a significant period of time (e.g., more than one year).

 

Japan

Next Funds lists emerging markets bond tracker

Next Funds, an arm of Nomura Group, the largest Japanese asset manager, is listing an EM debt ETF of the type that is proving popular in Europe. The Next Funds Emerging Market Bond J.P. Morgan EMBI Plus ETF (2519) will track the JP Morgan EMBI Plus Composite Index, which measures emerging markets debts, including US dollar-denominated Brady bonds and Eurobonds

 

Korea

Hanwha lists inverse Kosdaq ETF

Hanwha Group, a chaebol based on Seoul, is listing a new inverse ETF. The Hanwha ARIRANG KOSDAQ150 F-Inverse ETF (301410) will track the performance of F-KOSDAQ150 Index. The index gives the performance of the “daily volatility of NAV per share similar to one negative multiple of the daily volatility of the F-KOSDAQ150 Index,” Kosdaq’s website says.