Global Beta Advisors (“Global Beta”)
The Global Beta Indexes used in the Global Beta Program include:
- Global Beta Quality-Value Index (“Value-Quality Index”)
- Global Beta Momentum-Growth Factor Index (“Momentum-Growth Factor Index”)
- Global Beta Low Beta Index (“Low Beta Index”)
- Global Beta Mid-Small Index (“Mid-Small Index”)
- Global Beta All Cap Multi-Factor Index (“All Cap Multi-Factor Index”)
- Global Beta Large Cap Multi-Factor Index (“Large Cap Multi-Factor Index”)
- Global Beta ETF Rotation Model (“ETF Rotation Model”)
- Collectively (the “Global Beta Indices and ETF Rotation Model”)
- Certain information provided on the Global Beta website is based on third-party sources which information, although believed to be accurate, has not been independently verified. Global Beta assumes no liability for errors and omissions in the information contained herein. This website information is provided for informational purposes only.
Forward Looking Statements
The presentations included on this website may contain “forward-looking statements” which are based on Global Beta’s beliefs, as well as on a number of assumptions concerning future events, based on information currently available to Global Beta. Current and prospective clients are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of future performance, and are subject to a number of uncertainties and other factors, many of which are outside Global Beta’s control, which could cause actual results to differ materially from such statements. Any forward-looking statements speak only as of the date they are made and Global Beta assumes no duty to and does not undertake to update forward-looking statements.
The performance results included in this presentation are hypothetical returns which have been compiled by Global Beta. The performance results are based upon a hypothetical model. Hypothetical performance results may have inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. One of the limitations of hypothetical performance results is that they are prepared with the benefit of hindsight. There are numerous other factors related to the markets in general or to the implementation of any specific trading strategy which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. These returns should not be considered as indicative of the skills of the investment adviser.
Performance Results Presented Net of Fees
The Global Beta website contains net-of-fees returns of the Global Beta Indices and ETF Rotation Model that are managed in accordance with Global Beta’s investment strategy. The net-of-fees returns reflect the deduction of a model annual investment management fee of 0.20% and other fees (such as brokerage commissions) which collectively reduce returns. The net-of-fee returns reflect the reinvestment of dividends and other earnings. Performance results will vary based upon when an investor would have invested during the period measured, and past performance is not indicative of future results.
Benchmark Definitions and Disclosures
S&P 500 Value
We measure value stocks using three factors: the ratios of book value, earnings, and sales to price. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 500®.
S&P 500 Growth
We measure growth stocks using three factors: sales growth, the ratio of earnings change to price, and momentum. S&P Style Indices divide the complete market capitalization of each parent index into growth and value segments. Constituents are drawn from the S&P 500®.
All-Cap Add S&P Composite 1500
The S&P Composite 1500® combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600®, to cover approximately 90% of U.S. market capitalization. It is designed for investors seeking to replicate the performance of the U.S. equity market or benchmark against a representative universe of tradable stocks.
For the Large Cap Multi Factor, Value-Quality, Momentum Growth, and Low Beta Indices:
The S&P 500® Index is a free-float market capitalization weighted index that includes a representative sample of 500 leading companies in leading industries of the U.S. economy focusing on the large-cap segment of the market, with over 80% coverage of U.S. equities. Its ticker symbol is SPX.
For the Mid-Small Size Index:
The S&P SmallCap 600™ Index is a capitalization-weighted index designed to be an efficient portfolio of U.S. small-cap companies that meet specific inclusion criteria to ensure that they are investable and financially viable. The Index covers approximately 3% of the U.S. equities market. Its ticker symbol is SML
For All Cap Multi-Factor:
The S&P 1500® is a broad market capitalization-weighted U.S. equity index that combines three leading indices, the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600®. Thus, the S&P 1500 Index includes the top large cap, mid cap and small cap stocks and covers approximately 90% of the U.S. market. Its ticker symbol is SPR
For the ETF Rotation Model
A blended benchmark of 80% iShares MSCI All Country World Index ETF, 20% iShares Barclays Aggregate ETF.
You cannot invest directly in an index, which also does not take into account trading commissions and costs. The volatility of the indices may be materially different from the performance of the Global Beta Indices or ETF Rotation Model. The S&P 500, S&P 600, S&P 1500 Index information and the blended benchmark are included merely to show the general trend in the broad and small [and mid-] cap markets for the periods indicated and are not intended to imply that any portfolio [Global Beta Indices or the ETF Rotation Model] is similar to an index either in composition or element of risk. The indices are unmanaged and an investment cannot be made directly into the indices or the blended benchmark presented.
Marks Dow Jones® and S&P® are trademarks of Dow Jones Trademark Holdings, LLC and Standard & Poor’s Financial Services, LLC, respectively, and the mark “Calculated by S&P Dow Jones Indices” has been licensed for use by Global Beta Advisors and sublicensed to Global Beta Advisors in connection with the management of clients’ assets that are invested in the Global Beta Program.
Past performance is no guarantee of future results.
Please refer to ADV part 2 for more information.