According to a press release shared by the fund house, the ETF aims to counter the cyclical theory of single factor index structure strategy. The index provides exposure to a portfolio of stocks from various sectors, based on combination of alpha and low volatility.
“ICICI Prudential Alpha Low Vol30 ETF is a multifactor smart beta strategy. This strategy addresses high sector concentration of single factor based index strategies through diversification of factor-risk exposures and exhibiting lower performance swings. Through this ETF, an investor gets access to smart beta strategy which is rule-based and cost-effective,” Nimesh Shah, MD & CEO, ICICI Prudential AMC.