BOSTON--(BUSINESS WIRE)--Columbia Threadneedle Investments today announced the expansion of its strategic beta exchange-traded fund (ETF) suite, with the launch of Columbia Research Enhanced Core ETF (NYSE Arca: RECS) and Columbia Research Enhanced Value ETF (NYSE Arca: REVS). These strategic beta portfolios offer investors and their advisors access to the firm’s quantitative investment research strength in a cost-efficient manner.
“Today, many investors recognize the limitations of traditional benchmark investing and are looking for a more thoughtful approach to passive investing,” said Marc Zeitoun, Head of Strategic Beta at Columbia Threadneedle Investments. “RECS and REVS were designed with the benchmark investor in mind. They are built on the strength of our quantitative research and the active insights that underly our strategic beta solutions.”
RECS and REVS are designed to outperform the Russell 1000 Index® and Russell 1000 Value Index®, respectively, by marrying proprietary investment research with market-capitalization weighting. The ETFs aim to optimize equity exposure by eliminating stocks from the benchmark that are rated unfavorably by the Columbia Threadneedle quantitative research team. This approach addresses a common concern voiced in a recent Columbia Threadneedle Investments survey1, which found that 65 percent of financial advisors feel frustrated about not being able to remove underperforming stocks from passive ETFs’ indices.
RECS seeks to track the firm’s Beta Advantage® Research Enhanced US Equity Index, which typically consists of 325 to 400 stocks of large-cap U.S. growth and value companies. REVS seeks to track the firm’s newly created Beta Advantage® Research Enhanced US Value Index, which typically consists of 250 to 290 stocks of large-cap U.S. value companies. RECS and REVS are sector neutral relative to their respective Russell index. The indices the ETFs seek to track are rebalanced semi-annually.
RECS and REVS are managed by Christopher Lo, Senior Portfolio Manager, and Jason Wang, Head of Quantitative Research.
"We are offering optimized equity exposure, with the potential for enhanced returns, at a price comparable to funds that track broader benchmarks," said Zeitoun. "With the launch of these two ETFs, we continue to enhance our strategic beta offering with strategies powered by our expertise and insight."
RECS and REVS launch today and have total expenses of 15 and 19 basis points, respectively.
About Columbia Threadneedle Investments:
Columbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $4682 billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.
