Exchange Traded Concepts, LLC and Tiedemann Wealth Management announced today the launch of the Deep Value ETF (Symbol: DVP). The new ETF, which began trading on the NYSE Arca on September 23, 2014, seeks to track the performance of the TWM Deep Value Index, an advanced beta strategy created by Tiedemann Wealth Management that aims to provide investors with concentrated exposure to attractively valued dividend-paying companies with positive earnings, strong free cash flows and solid balance sheets.
“With U.S. corporate balance sheet strength at its highest level in over 30 years, CEOs are increasingly under pressure to maximize shareholder value. The TWM Deep Value Index was developed to provide exposure to undervalued, dividend paying stocks where value creation is expected to come from improving fundamentals, investor activism, or merger and acquisition activity,” says Paul Buongiorno, Managing Director and Chief Investment Strategist at Tiedemann Wealth Management. “In light of the many potential benefits of ETFs, including a more tax efficient structure, transparency, liquidity and cost, we are pleased to be collaborating with Exchange Traded Concepts on the launch of the Deep Value ETF.”
The TWM Deep Value Index is comprised of 20 large cap stocks that are considered undervalued compared to the S&P 500® Index, have had positive earnings, generated strong free cash flow, and currently pay a dividend. The companies within the Index are weighted based on a rules-based assessment of their valuations so that stocks with the lowest valuations are overweight. The full Index is reconstituted annually in September and the portion of the Index with the 10 smallest weighted companies is reconstituted quarterly in December, March and June.
“We’re thrilled to be partnering with such a distinguished team of experts in the wealth management industry,” said Exchange Traded Concepts CEO, J. Garrett Stevens. “Tiedemann’s sophisticated, rules-based approach and thoughtful vision contribute to making this new relationship one we’re excited to begin.”
Primary responsibility for day-to-day management of the Deep Value ETF resides with Mellon Capital, a sub-advisor retained by Exchange Traded Concepts.
For more information about the Deep Value ETF, visit www.twmfunds.com
About Exchange Traded Concepts
Exchange Traded Concepts is a private-label ETF advisor with passive and active exemptive relief from the SEC under the Investment Company Act of 1940 to launch custom domestic and international equity and fixed income exchange traded funds through a complete turnkey solution.
About Tiedemann Wealth Management
Tiedemann Wealth Management is an independent wealth advisor with a singular focus – working in partnership with clients to achieve their specific financial goals. Tiedemann provides high net worth individuals, wealthy families, and trusts and foundations with customized, objective investment management and wealth planning services. An owner-managed Firm, Tiedemann works with approximately 130 clients and advises them on over $9bn of investable assets.
Founded in 1999, Tiedemann Wealth Management is headquartered in New York, with offices in Palm Beach and San Francisco. The Firm provides trust services through Tiedemann Trust Company, a state-chartered trust company located in Delaware.
An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800-617-0004 or visit twmfunds.com. Please read the prospectus and summary prospectus carefully before investing.
Investing involves risk. Principal loss is possible. Fund shares are bought and sold at market price (not NAV) and are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called creation units and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons. For example, the Fund incurs operating expenses and portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times or may hold securities not included in the Index. The Index methodology is based on a value style of investing, and consequently, the Fund could suffer losses or produce poor results relative to other funds, even in a rising market, if the methodology used by the Index to determine a company’s value or prospects for exceeding earnings expectations or market conditions is wrong. In addition, value stocks can continue to be undervalued by the market for long periods of time.
Free cash flow represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Beta is a calculation that attempts to measure the price volatility of a security or a mutual fund in comparison with the market as a whole. The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. You cannot invest directly in an index.
TWM Deep Value Index is the property of Tiedemann Wealth Management, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors. Neither S&P Dow Jones Indices, nor any of their affiliates or third party licensors will be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of Standard & Poor’s Financial Services LLC (‘SPFS’) and have been licensed for use by S&P Dow Jones Indices and sublicensed for certain purposes by [Licensee].
The Deep Value ETF is distributed by Quasar Distributors, LLC. Exchange Traded Concepts, LLC serves as the investment adviser and Mellon Capital Management Corporation serves as the sub-advisor to the fund. Quasar Distributors, LLC is not affiliated with Exchange Traded Concepts, LLC Mellon Capital Management Corporation or Standard & Poors.
Max Leitenberger, 845-592-4530