- 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
Tracking the Syntax Defined VolatilitySM U.S. Large Cap 500 Index and the Syntax Defined VolatilitySM Triple Qs Index, the Defined VolatilitySM 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 VolatilitySM 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 VolatilitySM 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 VolatilitySM 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 VolatilitySM 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 VolatilitySM ETFs and will leverage his long-term client relationships for the benefit of the platform.
For more information about the WEBs Defined VolatilitySM 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 VolatilitySM US Large Cap 500 Index. The Syntax Defined VolatilitySM 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 VolatilitySM Triple Qs Index. The Syntax Defined VolatilitySM 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.
WEBs Media Inquiries:
For WEBs Investments Inc.
Gregory FCA
484-798-7730
Westwood Media Inquiries:
Catherine Polisi Jones
Polisi Jones Communications
