Salt Financial Announces Launch of Low truBeta™ US Market Index
Low Volatility with Added Stability Empowers Investors to Target Better Risk Adjusted Returns
Nov 27, 2018, 09:00 ET
NEW YORK, Nov. 27, 2018 /PRNewswire/ -- Salt Financial LLC, a provider of data, indices and ETFs, today announced the launch of the Salt Low truBeta™ US Market Index (Index Ticker: SFSTB). The Low truBeta™ Index targets not just lower volatility but stocks that tend to maintain a more stable beta over time, which can potentially outperform both the broader market and traditional low volatility index strategies in terms of risk-adjusted return. The index complements the company's existing Salt High truBeta™ US Market Index.
"The Salt Low and High truBeta™ indices are designed to target specific levels and characteristics of market sensitivity," said Tony Barchetto, Founder and Chief Investment Officer at Salt Financial. "For the first time, investors are given the ability to customize their beta exposure with what we believe is a more responsive and accurate market risk measurement, helping optimize the risk/reward trade-offs in their portfolios."
The Low and High truBeta™ indices share a common selection universe and construction methodology. The indices select components from the Solactive US Large and Midcap Index, a benchmark of the top 1,000 stocks in the US ranked by market capitalization. The universe is further filtered by trading volume, helping minimize transaction costs in tracking the index while selecting from a broad range of more liquid US large and midcap stocks. Both indices are also equally weighted, sector capped, and rebalanced quarterly.
Salt's truBeta™ is the company's beta forecast for the next quarter, using a blend of intraday, near, and longer-term historical data, aided by the use of a machine learning algorithm, to arrive at what the company believes to be a more responsive and accurate beta forecast. Traditional beta estimates use only months or years of stale historical data and can fail to capture a timely measure of current market risk.
"With both our Low and High truBeta™ indices now available, we are dedicated to empowering investors with unique capabilities – not just products," added Barchetto.
About Salt Financial
Founded in 2017, Salt Financial LLC is the financial industry's first and only provider of truBeta™ portfolio construction tools. By using a proprietary method, Salt strives to deliver powerful financial products including indices and ETFs that are designed to give investors the ability to target specific levels and characteristics of beta. Founded by two industry pioneers who have been widely recognized for their achievement in running innovative and disruptive businesses, Salt is committed to simplifying and empowering the pursuit of financial outperformance for investors, advisers, and portfolio managers. For more information, please visit www.saltfinancial.com.
SOURCE Salt Financial LLC