Roundhill Acquirers Deep Value ETF Announces Strategy Change
DEEP will now target small cap and micro cap value stocks
NEW YORK, Oct. 26, 2020 /PRNewswire/ -- The Roundhill Acquirers Deep Value ETF (NYSE: DEEP) has announced a change in its underlying index. The Acquirers Deep Value Index will now target deeply undervalued small-and-micro cap companies. The index previously focused exclusively on large cap stocks.
Tobias Carlisle, the founder of Acquirers Funds, commented: "It is an historic moment for deeply undervalued small-and-micro cap stocks. While small value has delivered material long-run outperformance, it has lagged over the last decade, creating a generational buying opportunity."
Examples of companies in the DEEP ETF include:
1. Atkore International Group Inc. (NYSE: ATKR) is an undervalued diversified industrial conglomerate that produces electrical equipment and power systems.
- The stock trades on an Acquirers Multiple® (EV-EBIT Operating Income) of 7.6x
- Shares outstanding have shrunk from 67 million in 2017 to 48 million in 2020
2. Kimball International (NASDAQ: KBAL) is an undervalued manufacturer of office and hospitality furniture under the brands Kimball, National, and Kimball Hospitality.
- The stock trades on an Acquirers Multiple® (EV-EBIT Operating Income) of 6x and has a dividend yield of 3.25%.
- Shares outstanding have shrunk from 37.8 million in 2017 to 36.9 million in 2020.
Both companies, along with the others included in the Index, have strong track records of earnings growth, increasing free cash flow and consistent returns on invested capital.
The Roundhill Acquirers Deep Value ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Acquirers Deep Value Index.
To learn more about the fund and its holdings, please visit https://www.roundhillinvestments.com/etf/deep.
About Roundhill Investments
Roundhill Investments is a registered investment adviser and ETF sponsor focused on thematic and sector-specific investing. We create thoughtful investment products designed to help investors express their vision of the future. To learn more about the company, please visit roundhillinvestments.com.
About Acquirers Funds
Acquirers Funds, LLC is a deep-value investment firm located in Los Angeles, California managed by Tobias Carlisle. The firm advises The Acquirers Fund, ticker ZIG, a long/short deep value ETF of U.S. listed securities.
Effective June 22, 2020, Roundhill Financial Inc. became the fund's sponsor and the fund's name, ticker, benchmark index, and investment objective changed. DEEP previously traded as the Deep Value ETF, ticker DVP. Exchange-Traded Concepts, LLC remains the fund's investment adviser.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the DEEP ETF please call 1-855-561-5728 or visit the website at https://www.roundhillinvestments.com/etf/deep. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. 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. Historically, small and micro cap stocks have been more volatile than the stock of larger, more-established companies. Smaller companies may have limited resources, product lines and markets, and their securities may trade less frequently and in more limited volumes than the securities of larger companies. Please see the prospectus for details of these and other risks.
Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Exchange Traded Concepts serves as the investment advisor. The Funds are distributed by Quasar Distributors, LLC. which is not affiliated with Roundhill Financial Inc., Exchange Traded Concepts or any of their affiliates.
SOURCE Roundhill Investments
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