The fund is designed to track the Dow Jones US 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.
The new ETF is based on a contrarian strategy, which focuses on stocks that have recently underperformed the market. Javelin’s Securities and Exchange Commission (SEC) filing anticipates an expense ratio of .58% for the new fund.
Brint Frith, president and founder of Javelin, said: “This fund advances the concept of index-based investing. 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.”
