OKLAHOMA CITY, Jan. 31, 2013 /PRNewswire/ -- Exchange
Traded Concepts, LLC (ETC) announces The Forensic Accounting ETF
(NYSE: FLAG) has become the newest exchange-traded fund to begin
trading today through the firm's accelerated, low-cost,
private-label ETF platform.
The DelVecchio Earnings Quality Index was developed by Index
Deletion Strategies (IDS) to avoid companies with aggressive
accounting practices and invest in firms with high quality
earnings, becoming the first exchange-traded fund to take advantage
of company specific financial statement analysis.
"FLAG seeks to track an index of stocks based on the science of
forensic accounting. The proprietary accounting analysis at the
individual stock level identifies financial weakness – so called
red flags – and financial strength," says J. Garrett Stevens, CEO of Exchange Traded
Concepts. "We believe FLAG, which seeks to reduce the investment
risk in equities, is a unique and timely ETF for investors."
The DelVecchio Earnings Quality Index tracked by FLAG is a
rules-based index that applies proprietary forensic accounting
analysis to a universe of U.S. large capitalization stocks. The
analysis focuses on areas including revenue recognition practices,
inventory treatment, profit margins, material changes to operating
expenses or income and financial ratio adjustments. At completion,
the analysis assigns a letter grade to all companies in the large
cap universe. Companies graded lowest are not included in the
index, while the remaining firms make up the index. The
constituents of the index are weighted based off a methodology that
favors higher graded companies.
The DelVecchio Earnings Quality Index is published by Structured
Solutions AG (www.structured-solutions.eu). Structured Solutions AG
specifically publishes the value of the Index.
Exchange Traded Concepts, LLC will serve as investment adviser
to FLAG. Index Management Solutions, LLC will serve as
sub-advisor.
For more information, please visit
www.ExchangeTradedConcepts.com or www.flagetf.com.
About Exchange Traded Concepts
ETC is carving out a
niche as a portal to launch new, custom exchange-traded funds
efficiently and cost-effectively through a complete turnkey
solution. ETC is a private-label ETF advisor with passive exemptive
relief to launch both domestic and international equity exchange
traded funds or ETFs under the Investment Company Act of 1940.
Investment managers, independent advisors, foreign managers and
others seeking to launch an ETF for their strategy have the
opportunity to build awareness and recognition for their brand as a
private label ETF and, for a relatively low initial investment,
launch an ETF in approximately one-third of the time it would take
to launch an ETF from scratch.
ETC's ETF-in-a-Box™ Solution is a turnkey platform that provides
time-sensitive and cost-effective methods to bring an
exchange-traded fund to market. Seasoned ETF professionals have the
operational and regulatory experience plus the industry contacts
needed to navigate the complexities of launching and managing an
ETF.
ETC has developed strategic relationships with other ETF service
providers to assist ETC's sub-advisors in navigating the
exchange-traded fund launch process with the guidance necessary to
maintain regulatory compliance.
ETC can assist your firm to successfully launch an ETF strategy.
For more information, please go to
www.ExchangeTradedConcepts.com.
About Index Deletion Strategies
Index Deletion
Strategies (IDS) is a specialized research firm focused on the
investment merits of forensic accounting and financial statement
analysis. Based off its proprietary forensic accounting analysis,
IDS created the DelVecchio Earnings Quality Index. John DelVecchio, CFA, is the managing member of
Index Deletion Strategies.
About John
DelVecchio
John
DelVecchio, CFA, is the creator of the DelVecchio Earnings
Quality Index, which is tracked by the Forensic Accounting ETF
(FLAG). He is also the co-founder and co-manager of The Active
Bear ETF (HDGE), an actively managed exchange - traded fund
dedicated to shorting individual stocks with fundamental red
flags.
John has authored the book, "What's Behind The Numbers? A Guide
to Exposing Financial Chicanery and Avoiding Huge Losses In Your
Portfolio." Published by McGraw – Hill in late 2012, "What's Behind
The Numbers?" was named the number one investment book for 2013 by
Stock Trader's Almanac.
SOURCE Exchange Traded Concepts