Arch Indices Launches VWI ETF, Empowering Investors to Maximize Returns and Minimize Volatility
Arch Indices, a leading provider of dynamic index solutions, has introduced the Arch Indices VOI Absolute Income ETF (VWI), offering investors and advisors a powerful tool to achieve long-term investment goals while minimizing volatility. This marks the first Exchange Traded Fund from the experienced team at Arch Indices.
VWI is built on Arch Indices’ proprietary Variance Optimized Indexing (VOI) methodology, a dynamic portfolio construction approach that considers the yield, volatility, and correlation of each security in its underlying universe. Unlike traditional passive portfolio weighting methods, which are often arbitrary, the VOI methodology provides a more dynamic and goal-focused approach.
Yang Tang, co-founder of Arch Indices, explained, “We have developed a more dynamic approach to passive investing that optimizes asset allocation based on specific goals and risk concerns. With heightened macro uncertainty and volatility, we believe now is the right time to bring this goal-oriented strategy to the market.”
The Arch Indices VOI Core Absolute Income Index forms the foundation of VWI. This index consists of dividend stocks and fixed income ETFs, weighted to maximize income while minimizing volatility. Equity securities must meet specific criteria, including a minimum market cap of $2 billion, minimum daily average trading volume, minimum 3% dividend yield, and a track record of regular dividend payments. Bond ETFs are selected based on factors such as historical correlation to equities.
VWI dynamically rebalances quarterly to adapt to changing market conditions and is optimized for income generation. By combining quality dividend-paying stocks with fixed income ETFs, the fund aims to benefit from capital appreciation potential while reducing volatility. This approach provides liquidity in equity risk-off scenarios through reduced drawdowns.
Tang added, “We aim to deliver investors an optimized alternative to static asset allocation models. This is the next step in the evolution of passive investing, and we are excited to lead this charge.”
The Arch Indices VOI Absolute Income ETF (VWI) is distributed by Quasar Distributors, LLC. For more information on the ETF, including holdings and expenses, please visit the official website.
About Arch Indices:
Arch Indices is a leading provider of dynamic index solutions, empowering investors to achieve their financial goals. The firm’s proprietary Variance Optimized Indexing (VOI) methodology optimizes asset weightings in portfolios based on specific goals, asset volatility, and correlation. Arch Indices offers model portfolios and custom index solutions. To learn more, visit www.archindices.com.
In conclusion, the launch of the Arch Indices VOI Absolute Income ETF (VWI) provides investors and advisors with a powerful tool to maximize returns while minimizing volatility. With its dynamic portfolio construction approach and goal-focused methodology, VWI offers an optimized alternative to traditional passive investing.