The Benefits To 'Upside Down' Investing With Exponential ETFs

Published 12/28/2017, 11:45 PM
Updated 10/23/2024, 11:45 AM

  • (0:50) - What Are the Pros and Cons of Inverse Weighting?
  • (5:00) - How Does RVRS Handle Underperforming Stocks?
  • (7:20) - RVRS Overview: Notable Trends
  • (9:45) - Episode Roundup: Podcast@Zacks.com

On this special edition of the Zacks Friday Finish Line, hosts and editors Maddy Johnson and Ryan McQueeney are joined once again by Phil Bak, the CEO of ACSI Funds and Exponential ETFs.

Phil is a widely regarded expert in the development, management, and trading of ETFs, and he and his team recently launched the Reverse Cap Weighted U.S. ETF RVRS, a fund that seeks to weight companies by the inverse of their relative market cap.

Together, we discussed this “upside down” approach to investing. For instance, iPhone maker Apple (NASDAQ:AAPL) is the largest component of the S&P 500, but the company would be the smallest component of RVRS; small cap stocks, then, would hold the heaviest positions. Phil walks us through the advantages of this methodology, and how it compares to traditional market cap weighting.

The Friday Finish Line team would like to thank Mr. Bak for joining us on the show. You can also listen to his previous talk with us about America’s most loved and hated companies.

As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating on iTunes.

As always, thanks for listening to this episode of the Zacks Friday Finish Line, and check back for even more news from the investment and financial world!

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

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Apple Inc. (AAPL): Free Stock Analysis Report

RVRS-CP WT USLC (RVRS): ETF Research Reports

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