KFA Value Line Dynamic Core Equity Index ETF
Top 10 Holdings
What is KVLE?
KVLE is benchmarked to the Value Line Dynamic Core Equity Index, which introduces a market adaptive approach to investing in US large cap companies. The strategy seeks to capture quality US companies based on a three-factor process that selects stocks with high dividend yields and are the highest rated among Value Line s safety and timeliness ranking system. The Underlying Index begins with the universe of stocks that Value Line ranks. All companies with an equity market capitalization of less than $1 billion, registered investment companies, limited partnerships and foreign securities not listed in the U.S. are eliminated from this universe. From this investable universe, the Underlying Index establishes: (1) a dividend target, which is the trailing 12-month dividend yield of stocks in the 25th percentile of yield in this universe; and (2) a beta target of 0.8 to 1 versus the S&P 500 Index based on forecasting models. Beta is a measure of the expected return of the Underlying Index relative to market movements. Each company in the investable universe is assigned a score based on its Safety Rank and Timeliness Rank with companies with Rank 1 receiving a higher score than companies with Rank 2. The Underlying Index then optimizes the weighting of companies using the score assigned to them to maximize the overall score for the Underlying Index taking into account the dividend target and the beta target. At each rebalancing, the Underlying Index seeks a yield that will be no less than the dividend target and a beta within 0.03 of the beta target.
ETFs related toKVLE
ETFs correlated to KVLE include FVD, QDEF, LGLV
What is ETF correlation?
Correlation is a measure of the strength of the relationship between two ETFs. It quantifies the degree to which prices of the two ETFs typically move together.
Here, correlation is measured over the past year with the Pearson correlation coefficient (Pearon’s r), which ranges from -1 to 1.
Using ETF correlations in portfolio and strategy construction
ETF correlations can help you create investing strategies and portfolios. Use them to:
- •Build a diversified portfolio from uncorrelated or inversely correlated ETFs with the aim of minimizing portfolio risk.
- •Compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume.
- •Create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.
Dynamic Stocks and Bonds
Create your own algorithmic trading strategy with KVLE using Composer
We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.
We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.