Clough Capital Celebrates Three-Year Anniversary of Clough Long/Short Equity ETF and Clough Select Equity ETF

Rhea-AI Summary

Clough Capital Partners L.P. (CBLS) and the Clough Select Equity ETF (CBSE) celebrate their three-year anniversary. Vince Lorusso, President & CEO of Clough Capital, highlights the significance of delivering actively managed strategies within the tax-efficient ETF structure. The U.S. ETF market, valued at $7 trillion, has less than 6% in active ETFs, but they are gaining market share.

Positive

• Vince Lorusso's return to Clough Capital as the advisor and Portfolio Manager strengthens the operational capabilities and track records of the two ETFs.
• The growth of active ETFs despite representing a small portion of the U.S. ETF market indicates a potential for market expansion and increased investor interest.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- Clough Capital Partners L.P. ("Clough Capital"), a global multi-strategy alternative asset management firm, is proud to commemorate the three-year anniversary of the Clough Long/Short Equity ETF (Ticker: CBLS) and the Clough Select Equity ETF (Ticker: CBSE).

The two ETFs were initially listed on the NYSE in 2020 by Changebridge Capital, LLC when Vince Lorusso, now President & CEO of Clough Capital, saw an opportunity to deliver investors actively managed strategies within the tax-efficient structure of the ETF. Clough Capital became the advisor to the ETFs in August of this year, with Vince Lorusso rejoining the firm and remaining as Portfolio Manager of the two strategies, a position he has held since inception.

"We are thrilled to mark the three-year milestone of the Clough Long/Short Equity ETF and Clough Select Equity ETF," said Vince Lorusso. "Over the last three years, it was critically important for us to establish our operational capabilities and to build strong track records for the two strategies. As we cross this important milestone, we think our track record confirms that we have a highly capable team, a robust infrastructure and we think the two strategies will be able to benefit our clients well into the future.”

While the U.S. ETF market currently represents approximately $7 trillion in assets, active ETFs represent less than 6% of that market, according to Reuters. Despite the small portion of assets, active ETFs continue taking market share, and make up about 30% of the total flows into ETFs this year. This follows a successful year for active ETFs in 2022, when they captured roughly 14% of total flows, according to Bloomberg data. Clough Capital is excited to play a role in the growing trend towards actively managed ETFs.

“I didn’t originally envision active ETFs gaining this much momentum in the marketplace so quickly,” said Lorusso. “The growth seems to be accelerating, and for good reason. There will always be a market for actively managed strategies and rigorous fundamental research but delivering that capability in the tax efficient and liquid ETF structure is proving to be a game-changer for investors. With a client-centric mindset built upon our fundamental research capabilities, Clough Capital will remain at the forefront of innovation in the active ETF space.”

The Clough Long/Short Equity ETF (Ticker: CBLS) seeks long-term capital appreciation while minimizing volatility. As a liquid alternative ETF, the ETF employs fundamental research to carefully select securities, identifying both long and short investments that are expected to outperform and underperform, respectively.

The Clough Select Equity ETF (Ticker: CBSE) seeks capital appreciation and lower volatility than the broader market. This actively managed, long-only ETF employs fundamental research to identify undervalued securities. The investment process seeks to uncover businesses that are creating long-term competitive advantages.

About Clough Capital

Clough Capital Partners L.P. is a global multi-strategy alternative asset management firm with $1.3 billion in client assets under management (as of September 30, 2023). Clough Capital was founded in 1999 by Charles I. (“Chuck”) Clough Jr. and is based in Boston, MA.

Carefully consider a fund’s investment objective, risks, charges, and expenses contained in the prospectus available at http://www.cloughetfs.com or by calling (617) 204-3400. Read Carefully.

Investing involves risk. Principal loss is possible. ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time, when the NAV is normally calculated for ETFs. Your return may differ if you trade shares at other times. The equity securities held in the Clough Long/Short Equity ETF and the Clough Select Equity ETF (“the Funds”) may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Funds invest.

Short selling involves the sale of securities borrowed from a third party. The short seller profits if the borrowed security’s price declines. If a shorted security increases in value, a higher price must be paid to buy the stock back to cover the short sale, resulting in a loss. The Clough Long/Short Equity ETF may incur expenses related to short selling, including compensation, interest or dividends, and transaction costs payable to the security lender, whether the price of the shorted security increases or decreases. The amount the Clough Long/Short ETF could lose on a short sale is theoretically unlimited. Short selling also involves counterparty risk – the risk associated with the third-party ceasing operations or failing to sell the security back.

Applying ESG criteria to the investment process may exclude securities of certain issuers for non-investment reasons and therefore the Funds may forgo some market opportunities available to funds that do not use ESG criteria. Distributed by Vigilant Distributors, LLC. Vigilant Distributors, LLC and Clough Capital are not affiliated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231113052754/en/

Media:

Rob Jesselson

Lyceus Group

rjesselson@lyceusgroup.com

Source: Clough Capital Partners L.P.

FAQ

What is the significance of the three-year anniversary for Clough Long/Short Equity ETF and Clough Select Equity ETF?

The anniversary marks the establishment of operational capabilities and strong track records for the two strategies, confirming the firm's highly capable team and robust infrastructure.

What is the current market share of active ETFs in the U.S. ETF market?

Active ETFs represent less than 6% of the $7 trillion U.S. ETF market, but they are gaining market share.

Who is the advisor and Portfolio Manager for the two ETFs?

Vince Lorusso, President & CEO of Clough Capital, is the advisor and Portfolio Manager for the Clough Long/Short Equity ETF and Clough Select Equity ETF.