PRINCETON, N.J., April 9 /PRNewswire/ -- As the investment industry struggles with the challenge of delivering active strategies within the exchange-traded fund format, Princeton-based Javelin Investment Management thinks that its new index-based fund has found the sweet spot.
JETS Contrarian Opportunities Index Fund is designed to track the Dow Jones U.S. Contrarian Opportunities Index, whose universe consists of stocks that have underperformed in recent years, but which also applies qualitative screens in the hope of identifying stocks with strong fundamentals.
"This fund advances the concept of index-based investing," says Javelin president and founder Brint Frith. "Index funds often apply only quantitative criteria, such as market capitalization. The result can be a crudely-defined portfolio that makes no attempt at selectivity. We are impressed that Dow Jones has devised a benchmark that preserves the transparency and discipline of an index, but also encapsulates a well-researched investment strategy."
The new ETF begins trading today under the symbol JCO. It is the first ETF based on a contrarian strategy, which focuses on stocks that have recently underperformed the market. Javelin's SEC filing anticipates an expense ratio of .58% for the new fund.
The Dow Jones U.S. Contrarian Opportunities Index is composed of 125 equal-weighted U.S. equities. Eligibility is based on a semi-annual screening that identifies stocks with the lowest three-year trailing total returns. From this pool, constituents are selected according to rankings by ten qualitative factors, including sales growth, price to cash flow ratio, and recent earnings revisions.
Javelin Investment Management was founded for the purpose of introducing new and compelling ETFs. Its first offering, the JETS Dow Jones Islamic Market International Index Fund began trading on July 1, 2009.
An investment in the Fund is subject to investment risk, including the possible loss of principal amount invested. The risks associated with the fund include stock market risk, index risk, tracking error risk, replication management risk, small and mid cap company risk, market price risk and trading halt risk.
Price to cash flow ratio is the measure of the market's expectations of a firm's future financial health. Contrarian investing refers to the investment style that seeks to identify and invest in public companies that are temporarily out of favor.
Before investing you should carefully consider the fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, which can be obtained by visiting www.Jetsetfs.com. Please read the prospectus carefully before you invest.
"Dow Jones" and "Dow Jones U.S. Contrarian Opportunities Index™" are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Javelin Investment Management, LLC. Javelin Investment Management, LLC's JETS Dow Jones Contrarian Opportunities Fund based on the Dow Jones U.S. Contrarian Opportunities Index is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of trading in such products.
Foreside Fund Services, LLC, Distributor.
SOURCE Javelin Investment Management
