The Arrow DOGS of the World ETF may not be suitable for all investors. New funds have a limited performance record. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. The market price may be higher (premium) or lower (discount) than the Net Asset Value (NAV). The fund’s portfolio may underperform its benchmark and/or other asset classes. The fund’s portfolio may underperform the general equity markets, or other asset classes, with the potential for greater individual security risk, asset class risk, and higher industry concentration risk than more broadly diversified portfolios. The fund may invest in large-cap, mid-cap, and small-cap securities. Investing in small-cap and mid-cap securities may have special risks, including wider variations in earnings and business prospects than larger, more established companies. International investments may involve additional risks, including, but not limited to, currency fluctuation, accounting methods, and geopolitical instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and potentially lower trading volume. Changes in laws, domestically or abroad, could result in the inability of the fund to operate as described in the prospectus. Narrowly focused investments may be subject to higher volatility.
Investment Strategy Seeks long-term capital appreciation that corresponds generally to the performance, before fees and expenses, of the AI Dogs of the World Index (ex. USA). The index selects the five worst performing countries where a return reversal or move back toward the mean (or average) is anticipated. The index has a contrarian approach that looks for deep value among a universe of 44 countries.
Fund Highlights
Global Value– mean reversion focus
May provide low correlation to domestic equity market
Diversification tool for traditional international portfolios (Growth and Cap-weighted)
Unique approach to international equity markets
May be negatively correlated within and across countries
AI Dogs of the World Index
Foreign universe: 44 countries from the developed, emerging market and frontier markets
Country stock baskets will represent the top 75% of the market capitalization
Security screens– a company's location and economic ties will determine its country designation
Index methodology follows a strict screening process
Mean Reversion Effect Among Countries The mean reversion anomaly is one of the oldest anomalies described by academia. It was originally discovered between stocks in one country, but subsequent academic studies have shown it also works on broad country market exposure, and its performance shows strong consistency. One fundamental reason to explain the mean reversion anomalies across countries is insufficient cross-border equity flows due to investors' fears of capital controls. Another explanation is behavioral biases in investors' behavior. The AI Dogs of the World Index was developed to exploit this anomaly. The Arrow Dogs of the World ETF provides investors a low cost and packaged solution to access this trading strategy.
Contrarian Approach The index selects the five worst performing countries.*
*30% of the overall allocation will be to the worst performing country.
Profile
Market Data
as of 02/21/2019
Symbol
DOGS
NAV Price
$50.19
Exchange
NYSE
NAV Price Change
$0.09
Inception Date
01/02/2018
Market Price¹
$50.18
Cusip
042765693
Market Price Change
$0.15
Related Index
AI Dogs of the World Index (ex USA)
Premium/Discount
-0.01
Net Expense Ratio³
2.04%
Shares Outstanding
100,000
IOPV Ticker
DOGS.IV
Volume
64
Related Index Ticker
ADOGXTR
Total Net Assets
$5,019,000.00
Market Data
Daily
Month-End
Quarter-End
as of
Total Returns (%)*
NAV
Market Price¹
Index
YTD
8.45
8.94
8.29
1 Month
0.62
0.52
0.14
3 Months
2.30
0.71
2.06
6 Months
2.13
1.50
2.22
1 Year
2.97
2.59
5.68
3 Years
0.00
0.00
0.00
5 Years
0.00
0.00
0.00
10 Years
0.00
0.00
0.00
Since Inception (01/02/2018)*
2.29
2.28
7.22
Calendar Year Returns
Total Returns (%)*
NAV
Market Price¹
Index
2018²
-5.39
-5.83
-0.99
Fee & Expenses
Expense Type
Amount
Management Fees
0.60
Other Expenses
2.78
Total Fund Expenses³
3.78
Holdings as of 02/21/2019 (Holdings are subject to change)
*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.
Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.
Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
Before investing, please read the prospectus and shareholder reports to learn about the investment strategy and potential risks. Investing involves risk including loss of principal. An investor should also consider the investment objective, charges, expenses, and risk carefully before investing. This and other information is contained in the prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Content reviewed by an affiliate, Archer Distributors, LLC.
