Interactive Brokers Group’s Covestor Launches Its First Smart Beta Portfolios
February 23 2017 - 09:38AM
Business Wire
Brings more products and convenience of
online investing to individuals and advisors
Interactive Brokers Group, Inc. (NASDAQ GS:IBKR), an automated
global electronic broker and market maker, announced today the
launch of 10 Smart Beta portfolios. The new portfolios are managed
by Interactive Brokers Group’s Covestor subsidiary, a pioneer in
online investing.
“These are unique products that combine the advantages of
actively-managed mutual fund stock-selection techniques and the low
cost of exchange traded funds,” said Thomas Peterffy, Chairman and
CEO of Interactive Brokers Group, Inc.
The 10 Covestor Smart Beta portfolios have low management fees
of 0.08%, industry-low brokerage fees ranging between 0.01% and
0.15% depending on investment amount, and investment minimums of
$5,000. The initial Covestor Smart Beta products include
broad-based equity, value, growth, quality and high-dividend
portfolios.
“Covestor Smart Beta portfolios find the sweet spot between ETFs
and mutual funds,” said Sanjoy Ghosh, Covestor’s Chief Investment
Officer. “They are designed to provide broad market exposure and
potentially higher returns than passively-managed index
trackers.”
Ghosh and his Investment Management Team have significant
experience in managing quantitatively-oriented active equity
strategies designed to compete with actively-traded funds in a
disciplined manner.
The 10 new Covestor Smart Beta portfolios include:
BRMCOV™ : Broad Market Portfolio - designed to
systematically deliver return and risk characteristics of large-
and mid-cap stocks within the US equity market.
DIVCOV™ : Dividend Portfolio - designed to systematically
deliver return and risk characteristics of large- and mid-cap
high-dividend stocks within the US equity market.
GROCOV™ : Growth Portfolio - designed to systematically
deliver return and risk characteristics of large- and mid-cap
growth stocks within the US equity market.
QALCOV™ : Quality Portfolio - designed to systematically
deliver return and risk characteristics of large- and mid-cap
quality stocks within the US equity market.
VALCOV™ : Value Portfolio - designed to systematically
deliver return and risk characteristics of large- and mid-cap value
stocks within the US equity market.
smBRMCOV™ : Small Cap Broad Market Portfolio - designed to
systematically deliver return and risk characteristics of small-cap
stocks within the US equity market.
smDIVCOV™ : Small Cap Dividend Portfolio - designed to
systematically deliver return and risk characteristics of small-cap
high-dividend stocks within the US equity market.
smGROCOV™ : Small Cap Growth Portfolio - designed to
systematically deliver return and risk characteristics of small-cap
growth stocks within the US equity market.
smQALCOV™ : Small Cap Quality Portfolio - designed to
systematically deliver return and risk characteristics of small-cap
quality stocks within the US equity market.
smVALCOV™ : Small Cap Value Portfolio - designed to
systematically deliver return and risk characteristics of small-cap
value stocks within the US equity market.
Individual investors and advisors (on their clients’ behalf) can
invest in the Covestor Smart Beta portfolios on the Covestor
website. Clients’ Smart Beta portfolio investments are held in
clients’ own brokerage accounts at Interactive Brokers LLC.
Covestor automatically rebalances these portfolios and its clients’
investments in them on a quarterly basis. More information on the
new Covestor Smart Beta products is available here.
Covestor’s Smart Beta Portfolios mainly invest in stocks and are
not suitable for all investors. You may lose all or part of the
principal invested in these portfolios, and their past performance
is no guarantee of future results. You may find additional
information on the risks, conflicts of interest, applicable
brokerage commissions, fractional shares, and limitations on
investments and divestments associated with these portfolios (along
with Covestor’s full disclosures) on the Forms and Agreements page
at covestor.com. Brokerage services are provided to Covestor
clients by Interactive Brokers LLC, a broker-dealer registered with
the Securities and Exchange Commission (SEC) and member
NYSE/FINRA/SIPC.
About Interactive Brokers Group, Inc.
Interactive Brokers Group affiliates provide automated trade
execution and custody of securities, commodities and foreign
exchange around the clock on over 120 markets in numerous countries
and currencies from a single IB Universal Account℠ to customers
worldwide. We service individual investors, hedge funds,
proprietary trading groups, financial advisors and introducing
brokers. Our four decades of focus on technology and automation
have enabled us to equip our customers with a uniquely
sophisticated platform to manage their investment portfolios at
extremely low cost relative to the financial services industry. We
strive to provide our customers with advantageous execution prices
and trading, risk and portfolio management tools, research
facilities and investment products, all at unusually low prices,
positioning them to achieve superior returns by providing low costs
compared to our competitors. Interactive Brokers Group acquired
Covestor in 2015 to further expand its service offerings to
clients.
About Covestor Ltd.
Covestor Ltd. is an investment adviser registered with the SEC.
Covestor offers an online investment platform through which its
clients can invest in a variety of Smart Beta and third-party
portfolio manager portfolios, based on a risk scoring methodology.
The portfolios focus on a variety of investment strategies,
including equities and options. Additional information about
Covestor, including the Informational Brochure, may be found at
covestor.com.
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Interactive Brokers Group, Inc.Media:Kalen Holliday,
203-913-1369orInvestors:Nancy Stuebe, 203-618-4070
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