Why ClearShares OCIO ETF?
The Fund is an actively managed ETF of ETFs, holding a diverse portfolio of primarily passive index-based ETFs, also utilizing actively managed ETFs when the Fund’s management believes it advantageous.
A cost-effective alternative to the traditional OCIO model. The Fund integrates the cost advantages of an ETF structure with the experienced professional management, research and analytics of the traditional Outsourced Chief Investment Officer.
Active management where it is likely to deliver the most value. OCIO ETF’s managers focus on the asset allocation and fund selection within target allocations, where we believe active management has the greatest potential to improve long-term performance.
A potential core- or total-portfolio solution. Fees and minimums may be substantially lower than with other outsourced arrangements. OCIO ETF also has the potential to be much less costly and cumbersome than building a portfolio of individual securities or ETFs in-house.
Independent, ETF-neutral. OCIO ETF is independent, with no bias toward in-house or any other ETF provider.
Disciplined risk management. Risk analysis and position limits are embedded in our investment process, and the Fund does not invest in ETFs employing high levels of leverage, derivatives or highly illiquid securities.
The OCIO Advantage
An innovative investment solution integrating the expertise of the Outsourced Chief Investment Officer (OCIO) with the cost advantages of an Exchange Traded Fund (ETF)
The ClearShares Investment Process
A collaborative, disciplined investment process:
1 Top-down, forward-looking capital market research: The OCIO ETF process utilizes forward-looking, top-down macroeconomic research and analysis to isolate forward-skewed opportunities. Our analysis also evaluates global economic scenarios by probability of occurrence, and seeks to identify the markets, asset classes, sectors, styles and geographic regions we believe are best positioned to deliver positive absolute and relative returns.
2 Risk analysis: We also seek to identify markets, asset classes, sectors, styles and geographic regions at risk – those that may encounter negative headwinds over the next 3-12 months. Among the factors included in our analysis are credit spread levels, market volatility, yield curve shape, energy prices, market correlations and currency risks.
3 Bottom-up research: Our bottom-up research seeks to identify asset classes that are attractive on both an absolute and relative basis, and to select optimal ETFs using equities-, fixed income- and alternative investments-specific criteria.
4 Active asset allocation: OCIO ETF seeks to generate active alpha by outperforming a blended benchmark of 60% MSCI ACWI/40% Bloomberg Barclays U.S. Aggregate Bond Index, through over- and under-allocation weights for asset classes, geographic regions, sectors and investment styles. The Fund’s Investment Committee sets ongoing allocations based on its assessment of opportunities and risks at the global macroeconomic level.
Disciplined risk management. We know that limiting downside risk can be just as important for long-term performance as capturing upside movement. In addition to the disciplined risk analysis embedded in our investment process, the Fund does not invest in ETFs that employ high levels of leverage, derivatives, or highly illiquid securities. OCIO ETF typically limits investment in any single ETF to a maximum of 5% of total assets. We do not anticipate using leverage at the Fund level.
Past performance is not indicative of future results. References to efforts to mitigate or “control” risk reflect an effort to address risk but do not mean that the portfolio risk can be completely controlled. All investment has risk, including the risk of loss of principal.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by clicking here. Please read the prospectus carefully before you invest.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV) and may trade at a discount or premium to NAV. Shares are not individually redeemable from the Fund and may be only be acquired or redeemed from the fund in creation units. Brokerage commissions will reduce returns. Additional risks include, but are not limited to investments in debt securities including high yield and mortgage and asset backed securities, foreign and emerging markets securities, REITs, MLPs, small-and mid-cap securities, and investment in other ETFs. The fund invests in other investment companies and bears its proportionate share of fees and expenses of other investment companies. Please refer to the prospectus for additional risks of investing in the fund.
Asset Allocation Risk. The Fund may favor an asset category or investment strategy that performs poorly relative to other asset categories and investment strategies for short or long periods of time.
Investment Company Risk. The risks of investing in investment companies, such as the Underlying Funds, typically reflect the risks of the types of instruments in which the investment companies invest. By investing in another investment company, the Fund becomes a shareholder of that investment company and bears its proportionate share of the fees and expenses of the other investment company. The Fund may be subject to statutory limits with respect to the amount it can invest in other ETFs, which may adversely affect the Fund’s ability to achieve its investment objective. Investments in ETFs are also subject to the following risks: (i) the market price of an ETF’s shares may trade above or below their net asset value (“NAV”); (ii) an active trading market for an ETF’s shares may not develop or be maintained; and (iii) trading of an ETF’s shares may be halted for a number of reasons.
Management Risk. The Fund is actively-managed and may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for the Fund.
New Fund Risk. The Fund is a recently organized, diversified management investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Additionally, the Adviser has not previously managed a registered investment company, which may increase the risks associated with investments in the Fund.
Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index used as a benchmark, since they are often considered to represent the market's movement as a whole. The excess returns of a fund relative to the return of a benchmark index is the fund's alpha.
The MSCI ACWI Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets. One cannot invest directly in an index.
The Bloomberg US Barclays Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non- convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity.
One cannot invest directly in an index.
ClearShares LLC is the investment advisor to ClearShares OCIO ETF. The ClearShares OCIO ETF is distributed by Quasar Distributors, LLC.