Ossiam Shiller Barclays Cape US Sector Value TR UCITS ETF 1C (USD)

Issuer: Ossiam

Asset Class: Equity

TER: 65bps

Trading Currency: GBX

Pays Income: False

Listing Date: 21 Jul 2015

Ticker: CAPU

ISIN: LU1079841513

This investment product offers a systematic, value-driven approach to the U.S. equity market, leveraging the renowned Cyclically Adjusted Price-to-Earnings (CAPE) ratio developed by Nobel laureate Professor Robert Shiller. The core strategy is to identify and invest in sectors that are relatively undervalued compared to their historical earnings over a ten-year period. By focusing on sectors rather than individual stocks, the fund aims to capture broad valuation trends and reduce idiosyncratic risk, providing a diversified yet targeted exposure to the U.S. economy's most attractively priced segments.

The methodology is both disciplined and dynamic. Each month, the underlying index assesses the ten major U.S. equity sectors, selecting the five with the lowest CAPE ratio, indicating they are the most undervalued. To mitigate the risk of investing in 'value traps'—sectors that are cheap for fundamental reasons and may continue to underperform—the strategy incorporates a momentum filter. It avoids any sector that has demonstrated negative price momentum over the past twelve months. This dual-factor approach of combining value and momentum aims to enhance the potential for outperformance by capturing both long-term valuation opportunities and positive short-term market sentiment.

This fund is designed for investors seeking to outperform traditional market-cap-weighted U.S. equity indices over the long run. By systematically rotating into undervalued sectors poised for a potential rebound, it provides a unique and intelligent beta solution. The rules-based process removes emotional decision-making, offering a consistent and transparent method for gaining exposure to the value factor within the world's largest equity market.