Columbia Research Enhanced Core ETF (RECS) and Columbia Research Enhanced Value ETF (REVS) Celebrate Three-Year Milestone

BOSTON–(BUSINESS WIRE)–$RECS–Columbia Threadneedle Investments celebrated the three-year anniversary of two of its strategic beta equity exchange-traded funds (ETFs), the Columbia Research Enhanced Core ETF (NYSE Arca: RECS) and the Columbia Research Enhanced Value ETF (NYSE Arca: REVS).

Launched in September 2019 for passive benchmark investors, these strategic beta strategies incorporate the firm’s quantitative investment research and active insights in a cost-effective, tax-efficient vehicle. Driven by strong performance, RECS boasts a 5-star Overall Morningstar Rating, with its risk-adjusted returns falling within the top 10% of Morningstar’s U.S. Large Blend category, for the three years ending September 30, 2022. REVS is rated 3-stars overall by Morningstar, in the U.S. Large Value category for the same time period. RECS and REVS have total expenses of 0.15% and 0.19%, respectively1.

“We launched RECS and REVS in 2019 based on our conviction that many investors recognize the limitations of traditional benchmark investing and want to take control of their market exposure within passive investments,” said Marc Zeitoun, Head of Strategic Beta. “We’re proud that since inception, both RECS and REVS have done precisely what we set out for the funds to do by drawing on Columbia Threadneedle’s robust quantitative research and expertise as a leading active equity manager.”

Designed and managed by Christopher Lo, Senior Portfolio Manager, and Jason Wang, Head of Quantitative Research, the team incorporates the results of Columbia Threadneedle’s proprietary quantitative investment models to rate each company within the Russell 1000 Index based on quality, value and catalyst factors, including securities that are favorably rated and omitting those that are not.

Columbia Threadneedle’s quantitative research has a decades-long proven track record of successfully identifying attractive investment opportunities and selecting stocks that have historically shown excess return potential.

This rules-based approach addresses a concern voiced by financial advisors in a recent Columbia Threadneedle survey, which found 78% of respondents feel frustrated about the inability to remove underperforming stocks from passive ETF indices. 2

“Both RECS and REVS delivered on their investment objective of closely tracking their respective indices during the volatile markets we’ve experienced over the past three years. The funds’ performance since inception demonstrates that we can deliver the core investment philosophy of our active equity strategies – enhanced by the intensity of our quantitative research – in a convenient and accessible strategic beta framework,” said Lo.

RECS seeks to track Columbia Threadneedle’s Beta Advantage® Research Enhanced U.S. Equity Index, which typically consists of 325 to 400 stocks of large-cap U.S. growth and value companies. REVS seeks to track the firm’s Beta Advantage® Research Enhanced U.S. Value Index, which typically consists of 250 to 290 stocks of large-cap U.S. value companies. These indices are market-capitalization weighted and rebalanced semi-annually.

Ratings and Rankings

RECS

Time Period

1-Year

3-Year

Overall

Percentile Rank

21

9

 

# of Peers

1,366

1,237

1,237

Star Rating

 

*****

*****

Category: Large Blend

As of September 30, 2022

REVS

Time Period

1-Year

3-Year

Overall

Percentile Rank

56

46

 

# of Peers

1,215

1,153

1,153

Star Rating

 

***

***

Category: Large Value

As of September 30, 2022

Morningstar Ratings are based on a Morningstar Risk-Adjusted Return measure. Morningstar Rankings are based on annualized total returns.

Not FDIC or NCUA Insured

No Financial Institution Guarantee

May Lose Value

About Columbia Threadneedle Investments

Columbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,500 people, including over 650 investment professionals based in North America, Europe and Asia, we manage $598 billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.3

Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc. (NYSE: AMP). For more information, please visit columbiathreadneedleus.com. Follow us on Twitter.

Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

 

Columbia Research Enhanced Core ETF earns a five-star Overall Morningstar Rating among 1237 funds in the Large Blend category as of September 30, 2022, and Columbia Research Enhanced Value ETF earns a three-star Overall Morningstar Rating among 1153 funds in the Large Value category as of September 30, 2022, based on a Morningstar risk-adjusted return measure.

 2

 

Columbia Threadneedle Investments ETF Survey conducted in September 2022 of 133 Financial Advisors.

 3

 

As of June 30, 2022; Includes all assets managed by entities in the Columbia and Threadneedle group of companies.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus or a summary prospectus, which contains this and other important information about the funds, visit www.columbiathreadneedleus.com/investor/. Read the prospectus carefully before investing.

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The fund is passively managed and seeks to track the performance of an index. The fund’s use of a “representative sampling” approach in seeking to track the performance of its index (investing in only some of the components of the index that collectively are believed to have an investment profile similar to that of the index) may not allow the fund to track its index with the same degree of accuracy as would an investment vehicle replicating the entire Index. There is no guarantee that the index and, correspondingly, the fund will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The fund’s net value will generally decline when the market value of its targeted index declines. The fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Investments in a narrowly focused sector may exhibit higher volatility than investments with a broader focus. Investments selected using quantitative methods may perform differently from the market as a whole and may not enable the fund to achieve its objective. Investment in larger companies may involve certain risks associated with their larger size and may be less able to respond quickly to new competitive challenges than smaller competitors. Investments in mid-cap companies often involve greater risks that investments in larger companies and may have less predictable earning and be less liquid than the securities of larger firms. Value securities may be unprofitable if the market fails to recognize their intrinsic worth or the portfolio manager misgauged that worth. Growth securities, at times, may not perform as well as value securities or the stock market in general and may be out of favor with investors. Although the fund’s shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the fund’s shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. This fund is new and has limited operating history.

The Russell 1000 Index tracks the performance of 1,000 of the largest U.S. companies, based on market capitalization. It is not possible to invest directly in an index.

The Beta Advantage® Research Enhanced U.S. Equity Index (the Index) aims to achieve stronger total return than the Russell 1000® Index through a rules-based strategic beta approach. The Index methodology leverages the results of Columbia Threadneedle Investments proprietary equity quantitative investment models to rate each company within the Russell 1000® Index based on quality, value and catalyst factors, and selects securities that are favorably rated. It is market cap-weighted and sector-neutral to the Russell 1000® Index.

The Beta Advantage® Research Enhanced U.S. Value Index (the Index) aims to achieve stronger total return than the Russell 1000® Value Index through a rules-based strategic beta approach. The Index methodology leverages the results of Columbia Threadneedle Investments proprietary equity quantitative investment models to rate each company within the Russell 1000® Value Index based on quality, value and catalyst factors, and selects securities that are favorably rated. It is market cap-weighted and sector-neutral to the Russell 1000® Value Index.

The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2022. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE Russell® is a trademark of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

Carefully consider the fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the fund’s prospectus, which may be obtained by calling 888.800.4347 or by visiting the fund’s website www.columbiathreadneedleus.com/etf to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risks, including possible loss of principal is not possible to invest directly in an index.

Morningstar Percentile Rankings are based on the average annual total returns of the funds in the category for the periods stated. They do not include sales charges or redemption fees but do include operating expenses and the reinvestment of dividends and capital gains distributions. Share class rankings vary due to different expenses. If sales charges or redemption fees were included, total returns would be lower.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ used to rank the fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, without any adjustments for loads (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

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Columbia Management Investment Advisers, LLC serves as the investment manager to the ETFs. The ETFs are distributed by ALPS Distributors, Inc., member FINRA, which is not affiliated with Columbia Management Investment Advisers, LLC.

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Contacts

Liz Kennedy 617.897.9343

Liz.Kennedy@ampf.com

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