New York-based Salt Financial has launched a low volatile ETF which incorporates its analytical software truBeta in to the methodology.
The Salt Low truBeta US Market ETF (LSLT) uses truBeta to target stocks with lower sensitivity to the SPDR S&P 500 ETF (SPY). This means the constituents of LSLT can maintain a stable beta over time.
Salt Financial’s truBeta forecasts market sensitivity by including recent performance data into the methodology. The company says there are indices that are constructed using inaccurate estimates as a result of stale data. Therefore Salt Finance has launched LSLT, joining its previously launched Salt High truBeta US Market ETF (SLT), which uses recent data to measure the ETF’s sensitivity.
As you could have guessed, SLT is constructed with stocks with high sensitivity to SPY.
Partnering with Solactive, LSLT is comprised with 100 US-based stocks, selected from the Solactive US Large and Mid Cap Index. The benchmark consists of the 1000 largest US stocks in terms of market cap.
LSLT has an ongoing management fee of 0.29%.