This article was originally published on ETFTrends.com.
The American Customer Satisfaction Core Alpha ETF (Cboe:ACSI) , which debuted in November 2016, has topped the $50 million in assets under management level.
ACSI follows the American Customer Satisfaction Index (ACSI). That index weights “companies based on their customer satisfaction score, a proven predictor of future changes in public company earnings and performance. This intuitive and relatable investment thesis has resonated with investors and created robust demand for the product,” according to a statement from Michigan-based Exponential ETFs.
ACSI utilizes a proprietary methodology to invest in stocks based on the individual companies’ customer satisfaction scores, incorporates an academically proven leading indicator of stock prices to potentially help investors potentially outperform the broader market.
More About the Customer Satisfaction Milestone
Strong customer satisfaction companies have exhibited a higher frequency of positive revenue and earnings surprises. Additionally, they have consistently outperformed the market cap-weighted S&P 500, notably in down markets, over the past 12 year period.
ACSI currently has 1.65 million shares outstanding, according to issuer data. As of May 16 th , ACSI had $51.78 million in assets under management. Top holdings in the ETF include Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Southwest Airlines Co. (LUV), Humana Inc. (HUM) and Hershey Co. (HSY).
The consumer discretionary and consumer staples sectors combine for almost a third of ACSI's weight. Technology and financial services stocks also combine for about a third of the fund's weight.
“By leveraging the American Customer Satisfaction Index, the only national cross-industry measure of customer satisfaction in the U.S., we’ve created a product that aims to be an alternative to the simple, cap-weighted or advanced beta products that have traditionally dominated the ETF landscape,” said Exponential CEO Phil Bak in the statement.
ACSI charges 0.66% per year, or $66 on a $10,000 investment.
For more information on factor-based strategies, visit our smart beta category.
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