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XOUT Index beat its benchmark by 10.98% in 2020 by excluding U.S. large-cap laggards
NEW YORK, Jan. 26, 2021 (GLOBE NEWSWIRE) -- 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).
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.
Gregory FCA for GraniteShares
Jill Fritz, 484-832-7034
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.