Arrow QVM Equity Factor ETF SMART BETA WITH A HEDGE
Investment Strategy Seeks investment results that correspond generally to the performance of the A.I. Quality Value Momentum Index (AIQVM), before
fees and expenses.
Participate in the equity market when it is trending up.
Tilt the equity exposure between quality and value based on relative strengths.
Guard equity exposure during short-term market down trends.
The AIQVM Index selects investments pursuant to a proprietary Tri-Factor™ methodology that seeks to identify the components with the strongest equity performance characteristics based on market trends. During market down trends, equity exposure is reduced to prevent extended declines.
The AIQVM Index uses a Tri-Factor™ approach to provide exposure to equities at the intersection of Quality, Value and Momentum
Fund Highlights
Core equity strategy: A diversified approach for seeking equity gains during market advances with a strict buy and sell discipline.
Stability: Large companies with strong fundamental
attributes are more likely to pay dividends, have solid balance sheets, and are better equipped to withstand an economic slowdown as compared to smaller companies.
hEDGE: Factor metrics attempt to provide defensive characteristics to the portfolio by reducing historical volatility and mitigating losses during market declines.
Quality Factor
Value Factor
Momentum Factor
The quality factor seeks to capture the price appreciation of stocks with the strongest fundamental performance characteristics.
The quality component consists of 50 stocks that exhibit quality factors such as profitability, consistency of earnings, dividend yield, price to earnings and management confidence.
The value factor seeks to capture the price appreciation of stocks representing the broader U.S. economy.
The value component consists of the Dow 30, considered to be a measure of the market’s overall value based on the performance of 30 large U.S. companies.
The momentum factor evaluates short-term and long-term trends to determine the allocation between the quality and value components and when to allocate to cash for temporary defensive purposes.
The Index will change the equity allocation when the trend indicator is triggered. Possible outcomes:
*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.
