NEW YORK--(BUSINESS WIRE)--The creators of the CrowdInvest Wisdom Index (CROWDWIS) and the Crowd-Invest mobile application today launch the CrowdInvest Wisdom ETF (WIZE), an exchange-traded fund that tracks the CrowdInvest Wisdom Index. WIZE begins trading today on the NYSE. This next generation, smart-beta product allows investors to achieve exposure to a diversified index. This index is composed of U.S.-listed equities weighted by sentiment built by an independent, diverse crowd.
WIZE is unique in that it harnesses the democratized opinions of users, not the opinion of biased portfolio managers. WIZE is an alternative to more common passive index-based strategies. App users’ bullish or bearish views on stocks determine the selection and weighting of the 35 equities in the rules-based CROWDWIS. CROWDWIS outperformed the S&P 500 during its first year by 147 basis points (Jan. 7, 2015 – Jan. 7, 2016). The index was down 0.56 percent for the year ended Jan. 7, 2016 versus the S&P 500 down 2.04 percent on a total return basis.
“WIZE is a smart-beta product in that it provides an alternative weighting to broad U.S. stock market exposure and the ETF puts the average investor in position to own an investment that they can influence themselves,” said Martin Mickus, founder and Chairman of CrowdInvest and 20-year veteran of the financial services industry. “Investors can incorporate WIZE into their portfolios by reallocating some of their core S&P 500 holdings into this fund. Additionally, people can look at WIZE as a tool to demonstrate their frustration with the underwhelming performance of the average portfolio manager.”
In the interest of staying true to a crowd sentiment-weighted portfolio, the CrowdInvest Wisdom ETF rebalances on a monthly basis in response to changes in user sentiment.
“WIZE incorporates a strategy that focuses on the crowd; it captures the natural opinions of these independent and diverse individuals, and demonstrates that their opinions as a group has the potential to outperform that of traditional portfolio managers,” said Annie Wyatt, CEO of CrowdInvest. “The purpose of CrowdInvest is to capture tomorrow’s trends of the digital and tech industries, and apply them to an investment product that anyone can access. As part of the crowd, investors collectively contribute to the construction of a competitive index and investible product. As evident in CROWDWIS’ first year of performance, the many certainly have the potential to outperform the few, which is a testament to the legitimacy of the Wisdom of the Crowd theory.”
Visit www.crowdinvestetfs.com to learn more about WIZE.
About CrowdInvest: CrowdInvest seeks to democratize the asset management industry by harnessing the wisdom of the crowd from user votes on the Crowd-Invest mobile app. The users’ bullish or bearish opinions on any U.S.-traded stock determine which equities will be included in The CrowdInvest Wisdom ETF, a fund based on a crowd sentiment-weighted index. CrowdInvest was nominated for the Benzinga FinTech Awards in 2016. Votes can be cast here.
About Exchange Traded Concepts: ETC is carving out a niche as a portal to launch new, custom exchange-traded funds efficiently and cost-effectively through a complete turnkey solution. ETC is a private-label ETF advisor with passive and active exemptive relief from the Securities and Exchange Commission (SEC) to launch both domestic and international equity exchange traded funds under the Investment Company Act of 1940. For more information, please go to www.exchangetradedconcepts.com.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by visiting www.crowdinvestetfs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The fund is non-diversified.
The Index is designed to measure the performance of a portfolio of securities selected by users of the CrowdInvest Internet Platform (the “Platform”). The Platform is relatively new and may have a small number of users who are responsible for determining the Constituents. Investment decisions made by users may be influenced by a number of biases, resulting in investment choices that underperform the market generally.
There is no guarantee that the Fund or the index will achieve its investment objective. Past performance does not guarantee future results. Index performance is for illustrative purposes only and does not represent fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
Exchange Traded Concepts, LLC serves as the investment advisor. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Exchange Traded Concepts, LLC.
