Nasdaq Lists The AlphaMark Actively Managed Small Cap ETF

Nasdaq announced that US Bancorp will list a new exchange-traded fund (ETF), The AlphaMark Actively Managed Small Cap ETF (Symbol: SMCP), which will begin trading on The Nasdaq Stock Market today, April 21, 2015.

"The AlphaMark Small Cap ETF will provide actively managed small cap exposure driven by high quality earnings momentum at a reasonable price to cash flow while utilizing an alpha preservation strategy," said Michael Simon, Founder and CIO of AlphaMark Advisors, LLC.

SMCP is designed to invest in U.S.-listed securities, including American depositary receipts, which are less than $5 billion in market capitalization. AlphaMark will take a "bottom up" approach to target stocks exhibiting consistent growth, earnings and cash flow to arrive at a portfolio of 25-40 stocks based on earnings momentum, cash flows relative to capital spending, and reviews of financial statements, enterprise value and management.

The fund will use an indexing strategy during periods when the managers believe that the stocks targeted via their analysis are unlikely to outperform the small-cap segment of the U.S. market. SMCP can exit positions if there are material changes in the company or in the industry the company operates in, or a drop-off in earnings momentum. There are no other actively managed ETFs specifically targeting the small-cap growth space, and the largest index-based fund in the space, the iShares Russell 2000 Growth ETF (IWO | A-84), has $6.8 billion in assets under management. The average market capitalization of its components is $2.2 billion, just above the upper end of the range targeted by the planned AlphaMark ETF.