SMCP Profile
The AlphaMark Actively Managed Small Cap ETF is designed to provide investors with exposure to a diverse range of small-cap companies, utilizing an actively managed approach. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, directly or indirectly in small-cap stocks. This strategy focuses on companies with smaller market capitalizations, which are typically characterized by their potential for higher growth compared to their larger counterparts.
The fund's primary investment approach involves allocating assets to exchange-traded funds (ETFs) that specialize in small-cap equity securities. These ETFs may include stocks listed on U.S. exchanges as well as international and emerging market exchanges. By investing in a variety of small-cap focused ETFs, the fund aims to capture opportunities across different geographies and market environments, providing a broad spectrum of small-cap exposure.
In its quest to uncover high-growth opportunities, the fund employs a rigorous selection process for choosing the underlying ETFs. This involves evaluating various factors such as the financial health of the constituent companies, market trends, and the performance of small-cap segments in different regions. The actively managed nature of the fund allows for dynamic adjustments based on market conditions and economic outlooks, aiming to optimize returns and manage risks associated with small-cap investments.
The emphasis on small-cap companies is grounded in their potential for substantial growth and innovation, though it also comes with higher volatility and risk compared to large-cap stocks. By leveraging a diversified approach through small-cap ETFs, the AlphaMark Actively Managed Small Cap ETF seeks to balance growth potential with strategic risk management, offering investors a focused yet flexible investment solution in the small-cap space.
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