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Arrow Reverse Cap 500 ETF
  • Overview
  • Performance
  • Holdings
  • Distributions
  • Premium/Discount

Arrow Reverse Cap 500 ETF

Investment Objective
The Arrow Reverse Cap 500 ETF (YPS) seeks investment results that correspond generally to the performance of the Reverse Cap Weighted U.S. Large Cap Index (“the Index”), before fees and expenses.
  • Unique exposure to the equity market (S&P 500).
  • Tilt the equity exposure toward Small/Mid-Cap and value-based stocks.
  • Guard equity exposure against equity concentration.
Fund Highlights
  • Exposure: Tilts large cap exposure to the smaller end of the size spectrum providing more diversification with a less concentrated portfolio.
  • 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 slow-down.
  • Hedge: The Fund can be used as a tactical position to help lower your portfolio’s average market-cap exposure.

Reverse Cap Weighted U.S. Large Cap Index

The Index is a rules-based, reverse capitalization weighted Index comprised of constituents of the S&P 500® Index, which consists of approximately 500 leading U.S. listed companies representing approximately 80% of the U.S. equity market capitalization. The Index seeks to provide exposure to the U.S. large-cap market but with greater emphasis on the smaller-end of the large-cap market, unlike many traditional market capitalization weighted indexes that place a greater emphasis on the largest companies in the large-cap market.
Unique Approach: Weighting
For illustrative purposes only.

Market-cap weighting results in a top-heavy portfolio. The reverse approach on the S&P 500 does the opposite, weighting companies the inverse of their relative market cap. This provides exposure to hidden gems within the S&P 500.
Statistically Balanced Value TiltedCore Performer
Why limit your exposure? The Reverse Cap 500 methodology removes the concentration of traditional cap-weighted index products, resulting in a more statistically balanced portfolio (bell curve capitalization exposure).By investing smallest-to-largest, this investment approach is value-tilting its investment exposure to the smaller end of the market cap spectrum within the large-cap space. Studies* have shown that while more volatile, smaller stocks can have outsized returns.The Reverse Cap 500 approach over the long run helps find value in the smaller companies within the S&P 500. This focused methodology makes the Reverse 500 a better core position.

Reverse cap weighting results in a weighted average market cap that is both lower than market cap weighted large cap funds, and higher than mid cap funds.
Minding the Gap of Size Investing
Portfolios that allocate weightings by market capitalization skew to the largest stocks. This leaves large sections of the market under-represented or not represented at all. YPS is a smart beta ETF innovation that can help bridge the gap between the investment exposure you think you have (large cap) and what you actually have (mega cap).
Size of Equity Market
Source: Morningstar, calculated by Arrow. Data as of May 24, 2021.

ETF Materials

Fact Sheet / Prospectus / SAI

Statistical Analysis

Fund Presentation

Profile Market Data as of 03/17/2023
Symbol YPS NAV Price $20.40
Exchange CBOE NAV Price Change $0.00
Inception Date 10/31/2017 Market Price¹ $20.03
Cusip 042765677 Market Price Change $-0.36
Expense Ratio² 0.29% Premium/Discount -0.37
IOPV Ticker YPS.IV Shares Outstanding 1,100,000
    Volume 8,937
  Total Net Assets $22,440,000.00
 30-Day Median Bid-Ask Spread30.30%

As with all funds, there is the risk that you could lose money through your investment in the Fund. Many factors affect the Fund’s net asset value, price of shares, and performance. As with any fund, there is no guarantee that the Fund will achieve its objective.

The Arrow Reverse 500 Cap ETF may not be suitable for all investors. Investments involve risk. Principal loss is possible. As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons. For example, the Fund incurs operating expenses and portfolio transaction costs not incurred by the Index. In addition, the Fund may not be fully invested in the securities of the Index at all times or may hold securities not included in the Index. The Fund has the same risks as the underlying securities traded on the exchange through the day. To the extent the Fund invests more heavily in particular sectors of the economy, the Fund’s performance may be more sensitive to developments that significantly affect those sectors. Diversification does not assure a profit nor protect against loss in a declining market.

*Fama, Eugene L., and French, Kenneth,” The Cross-Section of Expected Stock Returns”, Journal of Finance, pp 427-465.

The S&P 500 Index is a market capitalization-weighted index focused on the large-cap segment of the market. The index is comprised of 500 of the top companies in leading industries in the U.S. economy. It is not possible to invest directly in an index. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); and this trademark have been licensed for use by SPDJI and sublicensed for certain purposes by AIA. These Funds are not sponsored, endorsed, sold or promoted by S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Reverse Cap Weighted U.S. Large Cap Index.

¹Market Price as of market close.

2The Fund's management fee and total annual fund operating expenses are 0.294% of the Fund's average daily net assets. 

3Data shown as of previous business day.

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.

Shares of exchange traded products are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.

Market price returns are based upon the official closing price of the ETF share at market close, and do not represent the returns you would receive if you traded shares at other times.