Market Leaders and Enhanced Yield: Summit Global Adds to ETF Lineup
Rhea-AI Summary
Summit Global Investments has launched the SGI Enhanced Market Leaders ETF (LDRX), an actively managed fund focusing on market-leading companies. The ETF targets companies with strong business metrics and favorable quantitative factors while implementing SGI's Managed Risk Approach™ for risk management.
The fund aims to generate income through two sources: dividends from market-leading companies and enhanced yield via options overlay. LDRX is managed by industry veterans with over 30 years of experience in equity risk management, tactical positioning, and research.
Positive
- Dual income generation strategy through dividends and options overlay
- Active risk management through SGI's Managed Risk Approach™
- Experienced management team with over 30 years of industry expertise
- Focus on companies with strong business metrics and favorable quantitative factors
Negative
- None.
News Market Reaction
On the day this news was published, LDRX gained 0.93%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
LDRX targets "market leaders": companies with strengthening business metrics (i.e., earnings, debt, return on assets, competition, customers, industry, etc.) and favorable quantitative factors such as earnings quality, price/book, price/cash flow, etc. In addition, the Adviser applies SGI's Managed Risk Approach™ and may sell a stock if idiosyncratic risks are deemed elevated with increased downside risks and/or if the risk/return characteristics decline due to increasing risk and/or decreasing return potential.
"Investors shouldn't have to choose between market leaders to seek growth and income," says Dave Harden, CEO, Summit Global Investments, "so we set out to design a solution that could deliver both. LDRX was designed to deliver capital appreciation and income coupled with risk management—all within a single ETF."
Dual Income Generation
This active strategy aims to generate income from two complementary sources: dividends from market leading companies and from an "enhanced yield" via an options overlay.
Managers of the fund, each with over 30+ years in the investment industry, have deep expertise in equity risk management, tactical positioning, and rigorous research.
For more information: www.sgiam.com
About Summit Global Investments
Headquartered in
SGI's investment process has evolved over decades of research and continuous revisions to understand and exploit what reduces risks and drives market returns.
Return on assets: ratio that indicates a company's profitability relative to its total assets.
Price/book: ratio that measures the market's valuation of a company relative to its book value.
Price/cash flow: an equity valuation metric that indicates a company's ability to continue operating; calculated by dividing its market capitalization by free cash flow values.
The Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the investment company and may be obtained by calling (888) 251-4847 or visit our website at sgiam.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. The Fund is a newly organized, diversified management investment company with no operating history. Securities that can be converted into common stock, such as certain securities and preferred stock, are subject to the usual risks associated with fixed income investments, such as interest rate risk and credit risk. The Fund's investments in derivative instruments including options, forward currency exchange contracts, swaps and futures, which may be leveraged, may result in losses. Investments in derivative instruments may result in losses exceeding the amounts invested. An option is a type of derivative instrument that gives the holder the right (but not the obligation) to buy (a "call") or sell (a "put") an asset in the near future at an agreed upon price prior to the expiration date of the option.
The Fund's investment performance may be affected by the investment performance of the underlying funds in which the Fund may invest. The Fund is non-diversified. Compared to other funds, the Fund may invest more of its assets in a smaller number of companies. Gains or losses on a single stock may have greater impact on the Fund.
Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
Distributed by Quasar Distributors, LLC.
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SOURCE Summit Global Investments
FAQ
What is the LDRX ETF and when was it launched?
How does the LDRX ETF generate income?
What is SGI's Managed Risk Approach in the LDRX ETF?
What types of companies does the LDRX ETF invest in?
Who manages the LDRX ETF?
