SAN FRANCISCO and OKLAHOMA CITY, Dec. 13, 2017 /PRNewswire/ -- Exchange Traded Concepts, LLC, investment adviser to the AlphaClone Alternative Alpha ETF (NYSE Arca: ALFA), and AlphaClone Inc., investment adviser to the AlphaClone International ETF (NYSE Arca: ALFI), announced today several exciting changes to the AlphaClone ETFs. Effective December 27, 2017, the AlphaClone ETFs will change the underlying indexes that they track – the AlphaClone Alternative Alpha ETF will begin tracking the AlphaClone Hedge Fund Masters Index and the AlphaClone International ETF will begin tracking the AlphaClone International Index.
The AlphaClone Hedge Fund Masters Index is designed to track the performance of up to 50 U.S.-listed equity securities selected based on a proprietary hedge fund position replication methodology developed by AlphaClone, Inc. The methodology ranks hedge funds and institutional investors based on the efficacy of replicating their publicly disclosed positions and selects equities from those managers with the highest ranking. Unlike the index it is replacing, the new index is long only and equal weighted.
The AlphaClone International Index is designed to track the performance of international companies for which hedge funds and institutional investors have disclosed significant exposure through American Depositary Receipts (ADRs). The proprietary index methodology developed by AlphaClone Inc. ranks hedge funds and institutional investors based on the efficacy of replicating their publicity disclosed positions. ADRs are selected from those managers with the highest ranking, or "Clone Score". Unlike the index it is replacing, the new index is long only and equal weighted.
In addition, the AlphaClone ETFs have filed an application to list their shares on the Cboe BZX Exchange, Inc. Upon approval of its application, the AlphaClone Alternative Alpha ETF and AlphaClone International ETF expect that their shares will begin trading on the Cboe BZX on December 27th under the symbols "ALFA" and "ALFI", respectively. Until that time, shares of the funds will continue to trade on the NYSE Arca under the same symbols.
Also effective December 27, 2017, the funds' annual management fees will be reduced from 0.95% to 0.65% for the AlphaClone Alternative Alpha ETF and from 0.95% to 0.75% for the AlphaClone International ETF.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
It is not possible to invest directly in an index.
The ETFs are distributed by Quasar Distributors, LLC.
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus and summary prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-800-617-0004 or visiting www.alphaclonefunds.com. Read it carefully before investing.
SOURCE Exchange Traded Concepts, LLC