SPA ETFs Inc. Announces Listing of Exchange Traded Funds on the American Stock Exchange

- MarketGrader

- Based ETFs Offer Attractive Investment Opportunity with Equal Weighting,

Rebalancing and 24 fundamental factors -

- Provides U.S. Investors with Unique Offering Amidst a Growing Marketplace

-



Oct 17, 2007, 01:00 ET from SPA ETFs Inc.

    NEW YORK, Oct. 17 /PRNewswire/ -- SPA ETFs Inc. (SPA ETFs), an
 investment adviser and affiliate of London & Capital, a specialist provider
 of investment products including Exchange Traded Funds (ETFs), today listed
 its initial U.S. equities-focused ETFs on the American Stock Exchange
 (Amex). The SPA ETFs utilize the performance of fundamentally driven
 indices created by U.S. research company MarketGrader to provide investors
 with private and institutional access to an investment vehicle with equal
 weighting, rebalancing and 24 fundamental factors.
     Beginning today, U.S. investors will have access to the first family of
 MarketGrader indices made available through ETFs on the Amex:  
     -- MarketGrader 40 (SFV)
     -- MarketGrader 100 (SIH)
     -- MarketGrader 200 (SNB)
     -- MarketGrader Small Cap (SSK)
     -- MarketGrader Mid Cap (SVD)
     -- MarketGrader Large Cap (SZG)
     The first three, based on MarketGrader "Core" Indices are baskets of
 40, 100 and 200 top-rated North American securities. The three "Cap"
 indices are based on the top 100 North American stocks within each market
 capitalization category.
     "This is a very exciting time for ETFs in the U.S. Market, with more
 than 900 ETFs launched worldwide, and we are thrilled to launch the SPA
 ETFs on the American Stock Exchange since the SPA ETFs' possess unique
 qualities in this crowded space to investors" said, Daniel Freedman,
 Director, SPA ETFs Inc. "We have found in MarketGrader a fundamentally
 based methodology system that has a solid performance history, and we are
 confident that this will provide investors with an investment tool that
 will stand out among this growing market."
     The uniqueness of the MarketGrader indices lies in its sophisticated
 methodology of weighting and evaluating the stocks:
     -- All the stocks in each basket have an Equal weighting
        -- MarketGrader 40 - 2.5%
        -- MarketGrader 100 and "Cap" indices - 1%
        -- MarketGrader 200 - 0.5%
 
     -- Each MarketGrader index also undergoes a self-correcting rebalancing
        process to ensure equal weighting and holdings are of optimal grade.
        This ensures that stocks which have become overvalued are replaced in
        favour of more attractive, undervalued opportunities.  One of the major
        advantages of the MarketGrader system is that it remains objective,
        taking emotion, over-reaction and bandwagon effects out of the
        investment decision making process.
        -- MarketGrader 40 - rebalanced quarterly
        -- All other indices - rebalanced semi annually
 
     -- The MarketGrader uses 24 Quantitative Filters within four main areas
        (growth, value, profitability and cash flow) to carry out a thorough
        fundamental evaluation of more than 5,700 North American stocks.
     All MarketGrader indices have gone through a significant period of
 back- testing (at least five years) before their launch as ETFs. Similarly,
 the alpha-generation capabilities of each must be demonstrated prior to
 market launch. In the past five years (as of September 7, 2007), the
 MarketGrader 40 index has achieved a cumulative return of 67.75%, compared
 to the S&P 500, which has returned 29.63%.*
     The listing of the SPA ETFs on the Amex is further evidence of the
 company's growing presence as a global provider of ETFs. Earlier this
 month, SPA ETFs hired a team of professionals to staff its new U.S.
 headquarters based in New York. This launch also follows SPA ETFs listing
 of the first set of fundamental ETFs on the London Stock Exchange (LSE) on
 September 12, 2007.
     SPA ETFs appoints Joe Steffanelli and Bob Tull as independent directors
 of the MarketGrader 40, 100 and 200 on the AMEX:   Bank of New York serves as
 Administrator, Custodian and Sub Advisor; Foreside Fund Services, LLC
 serves as Distributor; Clifford Chance serves as Legal Counsel and Goldman
 Sachs and Kellogg Capital serve as Market Makers.
     About SPA ETF
     SPA ETFs Inc. is an innovative, independent specialist provider of
 Exchange Traded Funds (ETFs) established to offer global private and
 institutional investors access to ETFs tracking fundamental US focused
 indices.
     SPA ETFs Inc. is affiliated with London & Capital, an independent firm
 of investment advisors and fund managers, with services including
 investment expertise, research, quantitative analysis and regulatory
 authorizations. London & Capital has $3.5 billion assets under management.
 Additional information is available at www.spa-etf.com.
     *This is provided for illustrative purposes only and does not represent
 the return for any investment. It is not possible to invest directly in an
 index. Past performance is no guarantee of future performance
     Investments in the Funds are subject to investment risk, including the
 possible loss of principal amount invested. Fund returns may not match the
 return of their respective Index, known as non-correlation risk, due to
 operating expenses incurred by the Fund. The Funds may invest in foreign
 securities which involve certain risks and increased volatility not
 associated with investing solely in the U.S. These risks include currency
 fluctuations, economic or financial instability, and lack of timely or
 reliable financial information. The Funds may also invest in small and
 medium sized companies which involve greater risk than is customarily
 associated with investing in more established companies.
     Before investing you should carefully consider the Funds' investment
 objectives, risks, charges and expenses. This and other information is in
 the prospectus, a copy of which may be obtained by visiting the Funds'
 website at www.spa-etf.com. Please read the prospectus carefully before you
 invest. Foreside Fund Services, LLC, Distributor.
     Note to Editors:
     SPA ETFs is a global provider of fundamentally driven Exchange Traded
 Funds. The company was established to offer private and institutional
 investor's access to Exchange Traded Funds tracking fundamental and
 enhanced indices, which will be listed in London, New York and a number of
 exchanges in Europe and Asia. With offices in London and New York, SPA ETFs
 aims to become a leading provider globally.
     The first family of ETFs that SPA offers tracks the performance of
 stock indices created by research provider MarketGrader's fundamental
 methodology. MarketGrader has created indices which focus on US equities
 and which seek to outperform the major US indices. All MarketGrader indices
 are:
     -- Selected on the strength of their fundamentals
     -- Equally weighted to extract performance from each stock
     -- Diversified on the basis of sound portfolio diversification
     -- Automated computer-generated algorithms with no subjective bias
     -- Regularly re-balanced
 
     About MarketGrader
     www.marketgrader.com
     Through MarketGrader, all companies are given a short-term grade
 between zero and 100, based upon the given parameters. Each index,
 therefore, is able to undertake a level of analysis that is difficult to
 achieve by a human analyst.
     Marketgrader.com Corporation is a privately-owned financial research
 firm incorporated in the USA in 1999. In 2004, UK asset manager, London &
 Capital, signed an exclusive agreement with MarketGrader to incorporate its
 research product into an investable product.
     MarketGrader Indices Rules & Filters
 
     Index  Sector rules Market cap    Re-        Earnings        Maintenance
                         rules         balanced
 
     MG40   No economic  At least USD  Quarterly  Must have met   Any stock
     40     sector can   $100m         -          analyst         deleted
     stocks represent                  February,  earnings        from index
            more than    At least 25%  May,       estimates       as a result
            30% of the   above USD     August and during          of a
            entire       $10bn         November   earnings        corporate
            index and                             report          actions
            no sub-      No more than             immediately     such as a
            sector can   25% can have             preceding the   merger,
            represent    market cap               Index           acquisition,
            more than    below USD                selection       spin-off,
            15% of the   $1bn                                     de-listing or
            entire                                Must have       bankruptcy is
            index        All stocks               reported        not replaced
                         must have                quarterly/      until
            No           three month              annual          rebalancing
            utilities    daily                    figures no
            or real      average                  later than
            estate       trading                  six months
            investment   dollar value             prior to the
            trusts are   of at least              selection
            included in  USD $2m                  date
            the index
 
     MG100  No economic  At least USD  Semi-      Must have at
     100    sector can   $100m         Annually   least met
     stocks represent                  February   analyst
            more than                  and August earnings
            25% of the   At least 25%             estimates
            entire       above USD                during
            index and    $10bn                    earnings
            no sub-                               report
            sector can   No more than             immediately
            represent    25% can have             preceding the
            more than    market cap               Index
            15% of the   below USD                selection
            entire       $1bn
            index.                                Must have
                         All stocks               reported
            No           must have                quarterly/
            utilities    three month              annual
            or real      daily                    figures no
            estate       average                  later than
            investment   trading                  six months
            trusts are   dollar value             prior to the
            included in  of at least              selection
            the index    USD $2m                  date
 
     MG200  No economic  Total market  Semi-      Must have
     200    sector can   capital-      Annually   reported
     stocks represent    isation       in March   quarterly/
            more than    above USD     and        annual
            20% of the   $250m         September  figures no
            entire                                later than
            index        At least 25%             six months
                         above $3bn               prior to the
                                                  selection
            No           All stocks               date
            utilities    must have a
            or real      three month
            estate       average
            investment   daily
            trusts are   trading
            included in  dollar value
            the index    of at least
                         USD $2m
 
 
     Index  Sector rules Market cap    Re-        Earnings        Maintenance
                         rules         balanced
 
     MG     No economic  Total market  Semi-      Must have       Any stock
     Small  sector can   capitalisa-   Annually   reported        deleted
     Cap    represent    tion above    March and  quarterly/      from index
     100    more than    USD $250m     September  annual figures  as a result
     stocks 25% of the   and below                no later than   of a
            entire       USD $2bn                 six months      corporate
            index                                 prior to the    actions
                         All stocks               selection date  such as a
            No           must have a                              merger,
            utilities    three month                              acquisition
            or real      average                                  spin-off,
            estate       daily                                    de-listing
            investment   trading                                  or
            trusts are   dollar value                             bankruptcy
            included in  of at least                              is not
            the index    USD $2m                                  replaced
                                                                  until
     MG Mid No economic  Total market  Semi-      Must have       rebalancing
     Cap    sector can   capitalisa-   Annually   reported
     100    represent    tion above    March and  quarterly/
     stocks more than    USD $1bn and  September  annual figures
            25% of the   below USD                no later than
            entire       $10 bn                   six months
            index                                 prior to the
                         All stocks               selection date
            No           must have a
            utilities    three month
            or real      average
            estate       daily
            investment   trading
            trusts are   dollar value
            included in  of at least
            the index    USD $2m
 
     MG     No economic  Total market  Semi-      Must have
     Large  sector can   capitalisa-   Annually   reported
     Cap    represent    tion above    March and  quarterly/
     100    more than    USD $4 bn     September  annual figures
     stocks 25% of the                            no later than
            entire       All stocks               six months
            index        must have a              prior to the
                         three month              selection date
            No           average
            utilities    daily
            or real      trading
            estate       dollar value
            investment   of at least
            trusts are   USD $2m
            included in
            the index
 
 

SOURCE SPA ETFs Inc.
    NEW YORK, Oct. 17 /PRNewswire/ -- SPA ETFs Inc. (SPA ETFs), an
 investment adviser and affiliate of London & Capital, a specialist provider
 of investment products including Exchange Traded Funds (ETFs), today listed
 its initial U.S. equities-focused ETFs on the American Stock Exchange
 (Amex). The SPA ETFs utilize the performance of fundamentally driven
 indices created by U.S. research company MarketGrader to provide investors
 with private and institutional access to an investment vehicle with equal
 weighting, rebalancing and 24 fundamental factors.
     Beginning today, U.S. investors will have access to the first family of
 MarketGrader indices made available through ETFs on the Amex:  
     -- MarketGrader 40 (SFV)
     -- MarketGrader 100 (SIH)
     -- MarketGrader 200 (SNB)
     -- MarketGrader Small Cap (SSK)
     -- MarketGrader Mid Cap (SVD)
     -- MarketGrader Large Cap (SZG)
     The first three, based on MarketGrader "Core" Indices are baskets of
 40, 100 and 200 top-rated North American securities. The three "Cap"
 indices are based on the top 100 North American stocks within each market
 capitalization category.
     "This is a very exciting time for ETFs in the U.S. Market, with more
 than 900 ETFs launched worldwide, and we are thrilled to launch the SPA
 ETFs on the American Stock Exchange since the SPA ETFs' possess unique
 qualities in this crowded space to investors" said, Daniel Freedman,
 Director, SPA ETFs Inc. "We have found in MarketGrader a fundamentally
 based methodology system that has a solid performance history, and we are
 confident that this will provide investors with an investment tool that
 will stand out among this growing market."
     The uniqueness of the MarketGrader indices lies in its sophisticated
 methodology of weighting and evaluating the stocks:
     -- All the stocks in each basket have an Equal weighting
        -- MarketGrader 40 - 2.5%
        -- MarketGrader 100 and "Cap" indices - 1%
        -- MarketGrader 200 - 0.5%
 
     -- Each MarketGrader index also undergoes a self-correcting rebalancing
        process to ensure equal weighting and holdings are of optimal grade.
        This ensures that stocks which have become overvalued are replaced in
        favour of more attractive, undervalued opportunities.  One of the major
        advantages of the MarketGrader system is that it remains objective,
        taking emotion, over-reaction and bandwagon effects out of the
        investment decision making process.
        -- MarketGrader 40 - rebalanced quarterly
        -- All other indices - rebalanced semi annually
 
     -- The MarketGrader uses 24 Quantitative Filters within four main areas
        (growth, value, profitability and cash flow) to carry out a thorough
        fundamental evaluation of more than 5,700 North American stocks.
     All MarketGrader indices have gone through a significant period of
 back- testing (at least five years) before their launch as ETFs. Similarly,
 the alpha-generation capabilities of each must be demonstrated prior to
 market launch. In the past five years (as of September 7, 2007), the
 MarketGrader 40 index has achieved a cumulative return of 67.75%, compared
 to the S&P 500, which has returned 29.63%.*
     The listing of the SPA ETFs on the Amex is further evidence of the
 company's growing presence as a global provider of ETFs. Earlier this
 month, SPA ETFs hired a team of professionals to staff its new U.S.
 headquarters based in New York. This launch also follows SPA ETFs listing
 of the first set of fundamental ETFs on the London Stock Exchange (LSE) on
 September 12, 2007.
     SPA ETFs appoints Joe Steffanelli and Bob Tull as independent directors
 of the MarketGrader 40, 100 and 200 on the AMEX:   Bank of New York serves as
 Administrator, Custodian and Sub Advisor; Foreside Fund Services, LLC
 serves as Distributor; Clifford Chance serves as Legal Counsel and Goldman
 Sachs and Kellogg Capital serve as Market Makers.
     About SPA ETF
     SPA ETFs Inc. is an innovative, independent specialist provider of
 Exchange Traded Funds (ETFs) established to offer global private and
 institutional investors access to ETFs tracking fundamental US focused
 indices.
     SPA ETFs Inc. is affiliated with London & Capital, an independent firm
 of investment advisors and fund managers, with services including
 investment expertise, research, quantitative analysis and regulatory
 authorizations. London & Capital has $3.5 billion assets under management.
 Additional information is available at www.spa-etf.com.
     *This is provided for illustrative purposes only and does not represent
 the return for any investment. It is not possible to invest directly in an
 index. Past performance is no guarantee of future performance
     Investments in the Funds are subject to investment risk, including the
 possible loss of principal amount invested. Fund returns may not match the
 return of their respective Index, known as non-correlation risk, due to
 operating expenses incurred by the Fund. The Funds may invest in foreign
 securities which involve certain risks and increased volatility not
 associated with investing solely in the U.S. These risks include currency
 fluctuations, economic or financial instability, and lack of timely or
 reliable financial information. The Funds may also invest in small and
 medium sized companies which involve greater risk than is customarily
 associated with investing in more established companies.
     Before investing you should carefully consider the Funds' investment
 objectives, risks, charges and expenses. This and other information is in
 the prospectus, a copy of which may be obtained by visiting the Funds'
 website at www.spa-etf.com. Please read the prospectus carefully before you
 invest. Foreside Fund Services, LLC, Distributor.
     Note to Editors:
     SPA ETFs is a global provider of fundamentally driven Exchange Traded
 Funds. The company was established to offer private and institutional
 investor's access to Exchange Traded Funds tracking fundamental and
 enhanced indices, which will be listed in London, New York and a number of
 exchanges in Europe and Asia. With offices in London and New York, SPA ETFs
 aims to become a leading provider globally.
     The first family of ETFs that SPA offers tracks the performance of
 stock indices created by research provider MarketGrader's fundamental
 methodology. MarketGrader has created indices which focus on US equities
 and which seek to outperform the major US indices. All MarketGrader indices
 are:
     -- Selected on the strength of their fundamentals
     -- Equally weighted to extract performance from each stock
     -- Diversified on the basis of sound portfolio diversification
     -- Automated computer-generated algorithms with no subjective bias
     -- Regularly re-balanced
 
     About MarketGrader
     www.marketgrader.com
     Through MarketGrader, all companies are given a short-term grade
 between zero and 100, based upon the given parameters. Each index,
 therefore, is able to undertake a level of analysis that is difficult to
 achieve by a human analyst.
     Marketgrader.com Corporation is a privately-owned financial research
 firm incorporated in the USA in 1999. In 2004, UK asset manager, London &
 Capital, signed an exclusive agreement with MarketGrader to incorporate its
 research product into an investable product.
     MarketGrader Indices Rules & Filters
 
     Index  Sector rules Market cap    Re-        Earnings        Maintenance
                         rules         balanced
 
     MG40   No economic  At least USD  Quarterly  Must have met   Any stock
     40     sector can   $100m         -          analyst         deleted
     stocks represent                  February,  earnings        from index
            more than    At least 25%  May,       estimates       as a result
            30% of the   above USD     August and during          of a
            entire       $10bn         November   earnings        corporate
            index and                             report          actions
            no sub-      No more than             immediately     such as a
            sector can   25% can have             preceding the   merger,
            represent    market cap               Index           acquisition,
            more than    below USD                selection       spin-off,
            15% of the   $1bn                                     de-listing or
            entire                                Must have       bankruptcy is
            index        All stocks               reported        not replaced
                         must have                quarterly/      until
            No           three month              annual          rebalancing
            utilities    daily                    figures no
            or real      average                  later than
            estate       trading                  six months
            investment   dollar value             prior to the
            trusts are   of at least              selection
            included in  USD $2m                  date
            the index
 
     MG100  No economic  At least USD  Semi-      Must have at
     100    sector can   $100m         Annually   least met
     stocks represent                  February   analyst
            more than                  and August earnings
            25% of the   At least 25%             estimates
            entire       above USD                during
            index and    $10bn                    earnings
            no sub-                               report
            sector can   No more than             immediately
            represent    25% can have             preceding the
            more than    market cap               Index
            15% of the   below USD                selection
            entire       $1bn
            index.                                Must have
                         All stocks               reported
            No           must have                quarterly/
            utilities    three month              annual
            or real      daily                    figures no
            estate       average                  later than
            investment   trading                  six months
            trusts are   dollar value             prior to the
            included in  of at least              selection
            the index    USD $2m                  date
 
     MG200  No economic  Total market  Semi-      Must have
     200    sector can   capital-      Annually   reported
     stocks represent    isation       in March   quarterly/
            more than    above USD     and        annual
            20% of the   $250m         September  figures no
            entire                                later than
            index        At least 25%             six months
                         above $3bn               prior to the
                                                  selection
            No           All stocks               date
            utilities    must have a
            or real      three month
            estate       average
            investment   daily
            trusts are   trading
            included in  dollar value
            the index    of at least
                         USD $2m
 
 
     Index  Sector rules Market cap    Re-        Earnings        Maintenance
                         rules         balanced
 
     MG     No economic  Total market  Semi-      Must have       Any stock
     Small  sector can   capitalisa-   Annually   reported        deleted
     Cap    represent    tion above    March and  quarterly/      from index
     100    more than    USD $250m     September  annual figures  as a result
     stocks 25% of the   and below                no later than   of a
            entire       USD $2bn                 six months      corporate
            index                                 prior to the    actions
                         All stocks               selection date  such as a
            No           must have a                              merger,
            utilities    three month                              acquisition
            or real      average                                  spin-off,
            estate       daily                                    de-listing
            investment   trading                                  or
            trusts are   dollar value                             bankruptcy
            included in  of at least                              is not
            the index    USD $2m                                  replaced
                                                                  until
     MG Mid No economic  Total market  Semi-      Must have       rebalancing
     Cap    sector can   capitalisa-   Annually   reported
     100    represent    tion above    March and  quarterly/
     stocks more than    USD $1bn and  September  annual figures
            25% of the   below USD                no later than
            entire       $10 bn                   six months
            index                                 prior to the
                         All stocks               selection date
            No           must have a
            utilities    three month
            or real      average
            estate       daily
            investment   trading
            trusts are   dollar value
            included in  of at least
            the index    USD $2m
 
     MG     No economic  Total market  Semi-      Must have
     Large  sector can   capitalisa-   Annually   reported
     Cap    represent    tion above    March and  quarterly/
     100    more than    USD $4 bn     September  annual figures
     stocks 25% of the                            no later than
            entire       All stocks               six months
            index        must have a              prior to the
                         three month              selection date
            No           average
            utilities    daily
            or real      trading
            estate       dollar value
            investment   of at least
            trusts are   USD $2m
            included in
            the index
 
 SOURCE SPA ETFs Inc.