SXQG is an active strategy designed to offer exposure to stocks exhibiting higher growth metrics based on a proprietary quant screening approach
6 Meridian, a well-established registered investment advisor, today announced the expansion of their product lineup with the launch of their newest equity ETF, the 6 Meridian Quality Growth ETF (SXQG), an actively managed strategy to help investors capture exposure to those companies exhibiting strong growth characteristics.
“It’s been an incredible year for growth names, but not all growth is created equal and not all growth provides the quality investors deserve over the long term,” said Andrew Mies, CIO with 6 Meridian. “We believe the screening of companies through various metrics like high profitability, low leverage and low liquidity, is essential for identifying the opportunities for capital appreciation. We’re thrilled to be launching SXQG, which takes a carefully screened, quant-driven approach, resulting in a portfolio of the top 100 names have demonstrated high quality and growth relative to their peers.”
SXQG’s portfolio is constructed using a quantitatively driven methodology designed to emphasize high quality securities. The selection process begins with companies in the broad U.S. equity market. From this initial universe, micro-cap companies (i.e., companies with a market capitalization of less than $500 million) are excluded. Quality is defined as high and improving profitability; low leverage and low default probability; and low net equity and debt issuance relative to dividends and net buybacks. Securities are first ranked on a composite of several quality-focused variables intended to measure profitability, growth, and ability to service financing obligations. The fund rebalances twice a year.
“We’ve designed our product lineup with our clients in mind, as we aim to provide them and the market thoughtful, disciplined strategies that fit their investing goals,” added Mies. “We’re excited to be launching SXQG on the anniversary of our first ETF suite launch in 2020, showing our continued dedication to providing our approach in cost and tax efficient solutions via the ETF wrapper.”
About 6 Meridian
6 Meridian is a Wichita, KS based registered investment advisor founded in 2016. In addition to investment management, 6 Meridian also provides wealth advisory services to high net worth individuals and institutions. The 6 Meridian ETFs were launched to help simplify client reporting and provide a potentially more tax efficient investment vehicle while maintaining our current research strategies. Our mission is clear, innovate based on our clients’ needs and deliver investment options that are transparent, efficient and at the forefront of the financial services industry.
Important Disclosures
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus or summary prospectuses, which may be obtained by visiting https://6meridianfunds.com/investor-materials. Investors should read it carefully before investing or sending money.
The Funds are distributed by SEI Investments Distribution Co. which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Investing involves risk, including possible loss of principal. The funds are non-diversified. The funds are actively managed and there is no guarantee the securities selected or the strategies employed will achieve the intended results.
The funds rely heavily on quantitative models as well as data and information supplied by third parties that are utilized by the models. To the extent the models do not perform as designed or as intended, the Funds’ strategies may not be successfully implemented and the Funds may lose value. If the models or data are incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the models or data been correct and complete.
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