WEBs Investments Inc. and Westwood Holdings Group Launch Defined Volatility℠ ETF Series with Debut of DVSP and DVQQ

Rhea-AI Summary

WEBs Investments and Westwood Holdings Group (NYSE: WHG) have launched two new ETFs: the WEBs Defined Volatility℠ SPY ETF (DVSP) and WEBs Defined Volatility℠ QQQ ETF (DVQQ). These innovative funds use a dynamic, rules-based strategy to adjust market exposure based on real-time volatility.

The ETFs track the Syntax Defined Volatility℠ indices and employ total return swaps during low-volatility periods to enhance returns, while shifting to cash and U.S. Treasuries during high-volatility periods to minimize losses. The strategy offers uncapped upside potential to SPY and QQQ while aiming to provide portfolio stability and dividend income.

This launch represents WEBs' initial product suite, developed by ETF industry veterans led by Ben Fulton, and expands Westwood's ETF platform through their strategic partnership.

Positive

• Launch of two new innovative ETFs expanding Westwood's product offering
• Uncapped upside potential to major market indices (SPY and QQQ)
• Enhanced tax efficiency through swap-based strategy
• Additional value through dividend income generation

Negative

• None.

Insights

Financial Product Analyst

The launch of WEBs Defined Volatility℠ ETFs (DVSP and DVQQ) represents a significant product innovation in the ETF space. These products feature a sophisticated volatility management approach using total return swaps, offering uncapped upside potential while providing downside protection through dynamic allocation to cash and Treasuries. The strategy's ability to adjust exposure based on market conditions, combined with tax efficiency and dividend income potential, addresses key investor concerns in today's market. The partnership leverages Westwood's established infrastructure and WEBs' innovative approach, potentially creating a competitive advantage in the growing volatility-managed ETF segment.

Market Research Analyst

This product launch is strategically timed to capitalize on increasing investor demand for volatility management solutions. The partnership between WEBs and Westwood combines Ben Fulton's proven track record in ETF innovation (having grown PowerShares from $200 million to $80 billion) with Westwood's established distribution network. The thermostat-like approach to portfolio management could appeal to both institutional and retail investors seeking sophisticated risk management tools in an accessible ETF format. For Westwood Holdings (WHG), this represents a significant expansion of their ETF platform and potential new revenue streams.

• WEBs and Westwood Holdings Group Launch Two New, Innovative ETFs Into the Market that Directly Align with Today’s Market Environment and Investors’ Needs
  
  
• Created by ETF Pioneer Ben Fulton and Directly Supported by Westwood’s Distribution, Sales and Administrative Platform, ETF Suite Offers New Framework for Harnessing Volatility for Better Risk-Adjusted Returns
  

PARK CITY, Utah and DALLAS, Texas, Dec. 17, 2024 (GLOBE NEWSWIRE) -- WEBs Investments Inc. (WEBs), an innovator in volatility-managed investment solutions, and Westwood Holdings Group, Inc. (NYSE: WHG) (“Westwood”), a boutique asset management firm, today announced the launch of the WEBs Defined Volatility^SM ETF series. The WEBs Defined Volatility^SM SPY ETF (Nasdaq: DVSP) and the WEBs Defined Volatility^SM QQQ ETF (Nasdaq: DVQQ) are designed to provide a more stable investment experience across market conditions, using a dynamic, rules-based strategy to adjust exposure to equity markets based on real-time volatility.

Tracking the Syntax Defined Volatility^SM U.S. Large Cap 500 Index and the Syntax Defined Volatility^SM Triple Qs Index, the Defined Volatility^SM series seeks to dynamically adjust exposure to match a target risk level. During low-volatility periods, the ETFs use total return swaps to amplify exposure, attempting to enhance potential returns, while in high-volatility periods they shift toward cash and U.S. Treasuries to potentially help cushion against losses. This adaptive approach seeks to smooth the investment journey, and may provide investors with a more stable, risk-adjusted return potential.

“Defined Volatility^SM is a unique approach to help investors better navigate the inevitable swings in the market—one that hasn’t been utilized within the ETF ecosystem before,” said Ben Fulton, Chief Executive Officer of WEBs Investments Inc. “Think of Defined Volatility^SM ETFs as a thermostat for your portfolio–by automatically adjusting exposure based on real-time market conditions, we offer investors a sophisticated yet simple tool to navigate unpredictable markets, enhancing stability and creating new opportunities for growth.”

Brian Casey, Chief Executive Officer of Westwood, added, “Expanding our ETF platform has been a key strategic priority for Westwood. Partnering with Ben Fulton and the WEBs team accelerates this vision by combining our extensive investment expertise and distribution capabilities with WEBs’ innovative approach to ETF design. Together, we are creating a powerful suite of products that addresses investor demand for more sophisticated, volatility-managed solutions.”

The Defined Volatility^SM ETFs offer uncapped upside potential to the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ), enabling significant participation in market gains, while providing portfolio stability by reducing exposure during turbulent periods. Additionally, unlike many option-based strategies, these ETFs seek to generate dividend income, adding another layer of potential value for investors. We believe the swap-based strategy employed by the ETFs also enhances tax efficiency, avoiding substantial tax consequences typically associated with volatility-managed funds.

Defined Volatility^SM is a strategy developed in 2023 by ETF industry veterans Ben Fulton, Keith Cunningham, Tony Trevisan and Kevin Rich, who collectively have over a century of Wall Street experience in ETF innovation, financial analytics and product structuring. This innovative approach represents the initial product suite for WEBs Investments Inc., which was founded in 2024.

Fulton has been a pioneer and leader in the ETF industry since it first began. Fulton previously grew Invesco's PowerShares ETF platform from $200 million to $80 billion during his tenure at the firm from 2005 to 2013. Mr. Fulton and his team have launched over 200 ETFs and more than 1,000 other investment products, accounting for over $150 billion in AUM.

WEBs has partnered with Westwood to bring these new ETF products to market and expand Westwood’s existing ETF platform. This partnership combines WEBs' innovative approach to volatility management with Westwood's established sales, distribution, operational resources and administrative support cultivated over 40 years in the investment management industry, to offer a unique investment solution that is specifically tailored to today's market environment. Westwood’s Head of ETF Distribution & National Accounts, Chris Doran, will also directly support the advancement and distribution of the WEBs Defined Volatility^SM ETFs and will leverage his long-term client relationships for the benefit of the platform.

For more information about the WEBs Defined Volatility^SM ETFs and how they could enhance your investment strategy, please visit websinv.com.

ABOUT WEBs INVESTMENTS INC.

WEBs Investments Inc., which stands for “Westwood Engineered Beta” (“WEBs”), is an investment adviser registered with the U.S. Securities and Exchange Commission led by ETF-industry veteran Ben Fulton. WEBs specializes in developing innovative, volatility-managed investment solutions.

For more information, please visit: websinv.com

ABOUT WESTWOOD HOLDINGS GROUP, INC.

Westwood Holdings Group (NYSE: WHG) is a boutique asset management firm based in Texas that offers a diverse array of actively-managed and outcome-oriented investment strategies along with white-glove trust and wealth services to institutional, intermediary and private wealth clients. For more than 40 years, Westwood’s client-first approach has facilitated strong, long-term client relationships and an unwavering commitment to delivering bespoke investment strategies with a vehicle-agnostic approach, exceptional counsel and an unparalleled level of attentive client service. Westwood’s flexible and agile approach to investing allows the firm to respond and adapt to constantly changing markets, while continually seeking innovative investment strategies that meet investors’ short and long-term needs. Westwood’s team comes from varied backgrounds, reflecting the company’s origins as a woman-founded firm that is committed to incorporating diverse insight and knowledge into all aspects of the services and solutions that they offer clients. Westwood’s core values—integrity, reliability, responsiveness, adaptability, flexibility and collaboration—underpin the company’s pursuit of excellence each and every day.

For more information, please visit: westwoodgroup.com

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 844-455-9327 or visit our website at websinv.com . Read the prospectus or summary prospectus carefully before investing.

The funds are new with a limited operating history. Investing in the fund involves a high degree of risk. Principal loss is possible.

Fund Objective:

The DVSP Fund seeks to provide investment results that, before fees and expenses, correspond to the performance of the Syntax Defined Volatility^SM US Large Cap 500 Index. The Syntax Defined Volatility^SM US Large Cap 500 Index tracks the net asset value (NAV) of a portfolio that seeks exposure to the large-cap US equity market while targeting annual volatility of 20%. The Index seeks to accomplish these objectives by primarily allocating to shares of the SPDR S&P 500 ETF Trust (Ticker: SPY) and alternately allocating to either a cash position as a way of reducing volatility, or a total return swap on SPY as a way of applying leverage to the equity position and thereby increasing volatility.

The DVQQ Fund seeks to provide investment results that, before fees and expenses, correspond to the performance of the Syntax Defined Volatility^SM Triple Qs Index. The Syntax Defined Volatility^SM Triple Qs Index tracks the net asset value (NAV) of a portfolio that seeks exposure to non-financial large-cap US equities while targeting annual volatility of 22%. The Index seeks to accomplish these objectives by primarily allocating to shares of the Invesco QQQ ETF (Ticker: QQQ) and alternately allocating to either a cash position as a way of reducing volatility, or a total return swap on QQQ as a way of applying leverage to the equity position and thereby increasing volatility.

Important Information

The Funds are passively managed ETFs listed for trading on the Exchange. The Fund implements its investment objective by investing, under normal market conditions, at least 80% of its net assets (including borrowings for investment purposes) in financial instruments that achieve the investment results of the Index. The Fund will, from time to time as determined by the Index, hold cash, cash-like instruments or high-quality fixed income securities to the extent the Underlying ETF concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as the Underlying ETF. Because the Fund seeks exposure to the Underlying ETF, the Fund’s investment performance largely depends on the investment performance and associated risks of the Underlying ETF. A significant portion of the Underlying ETF is represented by securities of companies in the information technology sector. The Fund is classified as “non-diversified” which means that the Fund may invest a higher percentage of its assets in a fewer number of issuers than is permissible for a “diversified” fund. If for any reason the Fund is unable to rebalance all or a portion of its portfolio, or if all or a portion of the portfolio is rebalanced incorrectly, the Fund’s investment exposure may not be consistent with the Fund’s investment objective. In these instances, the Fund may have investment exposure to the Index that is significantly greater or less than what is intended in its strategy. As a result, the Fund may be more exposed to leverage risk than if it had been properly rebalanced and may not achieve its investment objective. There can be no assurance that the Fund will achieve its investment objective and could incur substantial losses. The Fund’s returns will likely differ in amount, and possibly even direction, from the returns of the Underlying ETF. These differences can be significant, the Fund could lose money regardless of the performance of its Underlying ETF and as a result of portfolio rebalancing, fees, the Underlying ETF’s volatility, compounding and other factors, the Fund is unlikely to match the performance of the Underlying ETF.

The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with WEBs Investments Inc., Westwood Holdings Group, Inc., U.S. Bank, or any of their affiliates.

Investor Inquiries:
Chris Doran
Head of ETF Distribution and National Accounts
Westwood Holdings Group, Inc.
cdoran@westwoodgroup.com

WEBs Media Inquiries:
For WEBs Investments Inc.
Gregory FCA
webs@gregoryfca.com
484-798-7730

Westwood Media Inquiries:
Catherine Polisi Jones
Polisi Jones Communications
cjones@polisijones.com

FAQ

What are the new ETFs launched by Westwood Holdings Group (WHG)?

Westwood Holdings Group (WHG) and WEBs Investments launched two ETFs: the WEBs Defined Volatility℠ SPY ETF (DVSP) and WEBs Defined Volatility℠ QQQ ETF (DVQQ), which adjust exposure based on market volatility.

How do the WHG Defined Volatility ETFs manage market risk?

The ETFs use a dynamic strategy that increases exposure through total return swaps during low-volatility periods and shifts to cash and U.S. Treasuries during high-volatility periods.

What are the key benefits of WHG's new Defined Volatility ETFs?

The ETFs offer uncapped upside potential to SPY and QQQ, dividend income generation, enhanced tax efficiency through swap-based strategy, and automatic adjustment to market volatility.

Who developed the Defined Volatility strategy for WHG's new ETFs?

The strategy was developed in 2023 by ETF industry veterans Ben Fulton, Keith Cunningham, Tony Trevisan, and Kevin Rich, who collectively have over a century of Wall Street experience.