Creator of PowerShares $6.6bln SPLV ETF Launches Next Generation Low-Vol Rotation ETF (ticker

LVHB)

WHEATON, IL--(Marketwired - Oct 20, 2016) - Elkhorn Investments, LLC, a pioneer of research-based investing and a strategic partner of Barclays, announced today the launch of the Elkhorn Lunt Low Vol/High Beta Tactical ETF (BATS: LVHB), a next generation, low-volatility rotation ETF. In addition, Soltis Investment Advisors, a Utah-based RIA, has committed to an initial investment of $50mln in LVHB to enhance their U.S. equity strategy.

LVHB tracks the Lunt Capital U.S. Large Cap Equity Rotation Index, which is based on Lunt Capital's proprietary risk-adjusted momentum strategy and calculated by S&P. The index is binary in nature, switching between being fully invested in the S&P 500 Low Volatility Index and the S&P 500 High Beta Index in an effort to generate alpha. The index evaluates the two sub-indices on a monthly basis, choosing the index with the stronger risk-adjusted relative strength.

While at PowerShares in 2011, Ben Fulton built the first low-volatility ETF, SPLV, which has accumulated over $6.6bln in AUM. "Low-volatility strategies have become popular in the past several years, but recent underperformance has shown investors that low-volatility isn't always the best place to be," said Ben Fulton, CEO of Elkhorn Investments. "Factors, including low-volatility, have their own season and Lunt Capital's strategy allows investors to tactically rotate between low-volatility and high-beta stocks within the tax-efficient ETF structure."

"Factor rotation may generate alpha over a static, low-volatility allocation," said John Lunt, President of Lunt Capital. "Using a rules-based strategy to capture the wide dispersion between low-volatility and high-beta stocks offers investors a passive means to generate alpha in their portfolios."

As investors look for alternatives to active large-cap managers, LVHB offers a simple, yet dynamic low-volatility rotation strategy. According to the SPIVA report published by S&P on September 15, 2016, less than 12% of active managers within the U.S. Large-Cap Core mutual funds category have outperformed the S&P 500 Index over the last 10 years.

"We are excited to partner with Elkhorn and Lunt as we invest in the Elkhorn Lunt Low Vol/High Beta Tactical ETF. We believe in low-volatility investing, but also know that it does not always outperform. The fund seeks to offer a better way to be invested in U.S. large cap equities," said Hal Anderson, President, CEO and CIO of Soltis Investment Advisors. "We anticipate that the fund will serve as a long-term core component of our U.S. large cap equity strategy."