GraniteShares’ XOUT ETF Hits $100 Million in AUM
January 26 2021 - 7:45AM
The GraniteShares XOUT U.S. Large Cap ETF (NYSE Arca: XOUT),
an award-winning smart beta equity ETF launched by GraniteShares
and XOUT Capital®, has amassed over $100 million in assets under
management (AUM) in its second year of trading.
Launched on Oct. 7, 2019, XOUT takes a novel
approach to passive ETF investing by seeking to avoid losers being
disrupted by technological innovation, rather than picking winners.
The XOUT methodology examines the 500 largest U.S. companies and
excludes the bottom 250 stocks deemed most at risk using a
rules-based, quantitative-driven framework.
Since fund inception, the XOUT Index has
returned 49.33% compared to the S&P 500’s 33.70% return,
resulting in 15.63% outperformance.* Throughout 2020, Exxon was
XOUT’s most successful market elimination, resulting in 0.45%
outperformance. As per the XOUT’s Q1 2021 rebalance, J.P. Morgan,
Exxon and Verizon are among the fund’s largest excluded
companies.
“The COVID-19 pandemic has only accelerated the
widening bifurcation between companies that are adaptive to today’s
environment of technological change and those that are lagging in
innovation,” said Will Rhind, Founder and CEO of GraniteShares.
“XOUT has capitalized on this trend by anticipating companies
facing the highest threat of disruption and eliminating them from
the portfolio.”
The ETF analyzes a variety of factors to
identify laggards, including revenue growth, employee growth,
reinvestment in company stock, earnings sentiment, research and
development, management performance and profitability. Index
constituents are re-evaluated on a quarterly basis to account for
the rapidly evolving investment landscape.
“Picking winners is challenging in both good
times and bad times, and while history doesn’t always repeat
itself, we should learn from the unpredictability of disruptive
events and the acceleration with which markets can react,” said
David Barse, founder and CEO of XOUT Capital. “The past year
produced notable market losers and 2021, and all years thereafter
will not be any different in that regard. XOUT’s disciplined,
rules-based methodology has demonstrated that it can generate
sustainable outperformance and provide downside protection with
less risk, simply by eliminating perennial laggards in both up and
down markets.”
Last year, XOUT was named the “Best New Smart
Beta ETF” as part of the 2019 ETF.com Awards. This accolade
recognizes the “most important” smart beta or factor ETF brought to
market in 2019 that uses a quantitative, research-driven approach
to attempt to deliver superior long-term, risk-adjusted
returns.
GraniteShares also offers one of the lowest-cost
physical gold ETFs (BAR), a broad-based commodity ETF (COMB), the
lowest-cost physical platinum ETF (PLTM) and a high alternative
income-focused fund that invests in pass-through securities
(HIPS).
For more information on XOUT or GraniteShares,
please visit www.graniteshares.com.
About GraniteShares
Headquartered in New York City, GraniteShares is
an independent and fully funded exchangetraded fund (ETF) company
that seeks to launch disruptive ETFs. GraniteShares' focus is on
products that bring the excitement back to investing, using new
ideas, innovative structures and low cost. Will Rhind, Founder and
CEO, is an established ETF entrepreneur with more than 20 years of
experience in the industry.
About XOUT Capital®
XOUT Capital® (“XOUT”) is an index company
specializing in identifying which companies not to own or “XOUT” in
an index. XOUT’s first index, the XOUT U.S. Large Cap Index
(ticker: XOUTTR), evaluates the 500 largest U.S. companies and
determines how each company is addressing the challenges of
technological disruption. While most investors focus on the
disruptors, XOUT focuses on eliminating the disruptees.
Media contact:
Gregory FCA for GraniteSharesJill Fritz,
484-832-7034graniteshares@gregoryfca.com
IMPORTANT INFORMATION
This material must be preceded or accompanied by a
prospectus. Please click link for a prospectus for XOUT and our
other ETF products:
https://www.graniteshares.com/etfs
Carefully consider the Fund’s investment
objectives risk factors, charges and expenses before investing.
Please read the prospectus before investing. Investing involves
risk; Principal loss is possible.
XOUT is passively-managed and attempts to mirror
the composition and performance of the Index. The Fund’s returns
may diverge from that of the Index due to costs and expenses
incurred by the Fund or holdings may deviate from a precise
correlation with the Index. The Index uses proprietary methodology
to exclude certain securities and there can be no assurance this
will result in positive performance. The Fund may concentrate its
investments to the same extent as the index and may be exposed to
the risk of loss from adverse developments facing those industries.
One cannot directly invest in an index. Past performance is no
guarantee of future results.
*From 10/7/2019 to 1/25/2021.
Foreside Fund Services, LLC is the distributor
of XOUT, COMB and HIPS. ALPS Distributors, Inc. provides marketing
services for BAR and PTLM. Neither entity is affiliated with
GraniteShares or any of its affiliates.
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