CHICAGO, Aug. 10, 2016 /PRNewswire/ -- Zacks Index Services is pleased to announce the launch of the Summit Zacks Global Water Index (ZAZWTRX); a proprietary, factor-based global water index. This is the first and only global water index with a weighting scheme based on dividend yield rather than market capitalization and exemplifies a "smart" selection process that enhances the overall yield of the Index. The Index will serve as the basis for the Summit Water Infrastructure Multifactor ETF, trading on the New York Stock Exchange (NYSE) under the symbol WTRX.
The Summit Zacks Global Water Index utilizes a proprietary, three-factor model that ranks specific data points that have been determined through rigorous testing and experience to be the most relevant to company valuation and profitability in the global water industry. The Index was created in collaboration with Summit Water Capital Advisors, which has been designing investment strategies in the global water industry for 30 years.
"We are excited to partner with Summit Water, an expert in the global water industry, to create this unique, multifactor index that taps into a core investment theme," said Jamie Adams, Managing Director of Zacks Index Services. "Zacks has continued to leverage its years of investment research and practice to create this unique strategy that offers access to a global portfolio of water industrials and water utilities in a single product wrapper."
"As opposed to passive water indices that are constructed through various measures of market capitalization, equities are selected for inclusion in the Index by a proprietary formula of relevant company fundamentals including measures of price/earnings, intrinsic value, and return on capital," said Matt Dickerson, CEO of Summit Water Capital Advisors. "Through this methodology, the Index targets a more balanced and representative exposure to the global water industry that encompasses several world markets and broader capitalization levels, as opposed to a less-diversified basket of the largest, most expensive stocks."
To learn more please visit zacksindexservices.com.
About Zacks Index Services
Zacks Index Services, a division of Zacks Investment Management (ZIM), creates and maintains proprietary, quantitative portfolio strategies that are licensed to product sponsors and serve as the basis of investment products such as ETFs, unit investment trusts and closed-end funds. ZIM, a wealth management boutique, is a leading expert on earnings and using earnings estimates in the investment process. ZIM is a wholly owned subsidiary of Zacks Investment Research, one of the largest providers of independent research in the U.S.
About Summit Water Capital Advisors
Summit Water Capital Advisors is a San Diego-based investment management firm with an unrivaled, 30-year focus on investment strategies into the global water industry. It is widely recognized as a pioneer and thought leader in the water investment space, having deployed more than $1 billion into a theme that has become the focus of growing investor attention due to its major global economic and social impact. Summit Water has developed unique proprietary methods for investing in water-related equities, physical water assets, and water infrastructure through several private investment partnerships, public funds, and managed accounts.
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Disclosure: This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice.
The Summit Zacks Global Water Index is comprised of 30 to 50 constituents selected from a universe of U.S. and international companies with a significant portion of their business activities dedicated to the global water industry. The stocks are selected using a quantitative, rules-based methodology developed by Zacks Index Services. An investor cannot invest directly in an Index. The volatility of the benchmark may be materially different from the individual performance obtained by a specific investor.
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SOURCE Zacks Investment Management