NEW YORK, April 21, 2015 (GLOBE NEWSWIRE) -- Nasdaq announced that US Bancorp will list a new exchange-traded fund (ETF), The AlphaMark Actively Managed Small Cap ETF (Symbol: SMCP), which will begin trading on The Nasdaq Stock Market today, April 21, 2015.
"The AlphaMark Small Cap ETF will provide actively managed small cap exposure driven by high quality earnings momentum at a reasonable price to cash flow while utilizing an alpha preservation strategy," said Michael Simon, Founder and CIO of AlphaMark Advisors, LLC.
SMCP is designed to invest in U.S.-listed securities, including American depositary receipts, which are less than $5 billion in market capitalization. AlphaMark will take a "bottom up" approach to target stocks exhibiting consistent growth, earnings and cash flow to arrive at a portfolio of 25-40 stocks based on earnings momentum, cash flows relative to capital spending, and reviews of financial statements, enterprise value and management.
The fund will use an indexing strategy during periods when the managers believe that the stocks targeted via their analysis are unlikely to outperform the small-cap segment of the U.S. market. SMCP can exit positions if there are material changes in the company or in the industry the company operates in, or a drop-off in earnings momentum. There are no other actively managed ETFs specifically targeting the small-cap growth space, and the largest index-based fund in the space, the iShares Russell 2000 Growth ETF (IWO | A-84), has $6.8 billion in assets under management. The average market capitalization of its components is $2.2 billion, just above the upper end of the range targeted by the planned AlphaMark ETF.
"We are pleased to launch SMCP with our partners at AlphaMark and we appreciate their confidence in choosing the Nasdaq marketplace to list and trade ETFs," said Jeff McCarthy, Vice President, Head of ETP Listings at Nasdaq. "We believe AlphaMark will benefit from increased product exposure and access to one of the single largest pools of liquidity."
Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world's most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.
AlphaMark Advisors, LLC:
AlphaMark Advisors is a Registered Investment Advisor founded in 1999 caring for over $325 million in assets under management. AlphaMark Advisors provides unparalleled investment counsel to institutions, mutual funds, trusts, pensions and high net worth individuals. The firm's investment philosophy is grounded by an appreciation of risk while investing in large cap and small cap high quality companies exhibiting earnings momentum yet trading at a reasonable price to cash flow valuation.
US Bancorp Partners:
U.S. Bancorp (NYSE:USB) with $403 billion in assets as of December 31, 2014, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The company operates 3,176 banking offices in 25 states and 5,022 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.
About Nasdaq:
Nasdaq (Nasdaq:NDAQ) is a leading provider of trading, clearing, exchange technology, listing, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of approximately $9.5 trillion and more than 10,000 corporate clients. To learn more, visit: nasdaq.com/ambition or business.nasdaq.com.
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