FYI: Earlier this week, GraniteShares, a boutique ETF shop that mostly offers commodity ETFs, launched a fascinating new smart beta equity fund: the GraniteShares XOUT U.S. Large Cap ETF (XOUT).
What makes XOUT unusual for a smart beta ETF—or any ETF, really—is that it doesn't aim to pick winners. Its sole goal is to avoid losers. We thought it would be interesting to look under the hood of this new fund for “ETF of the Week.”
Using fundamental financial data such as revenue growth, profitability and hiring growth, XOUT evaluates and ranks the 500 largest U.S. companies for their ability to weather and keep up with technological disruptions. The stocks determined to be the least well equipped to deal with change are then excised from the index. (The index is reconstituted and rebalanced on a quarterly basis.)
Regards,
Ted
https://www.etf.com/sections/features-and-news/etf-week-avoiding-future-losers?nopaging=1
