Asset Growth - Asset growth is defined as the change in total assets from the prior fiscal year to current fiscal year. Small high asset growth stocks are those securities within the small cap universe that are considered to have high changes in total assets over a fiscal year.
Authorized Participants (AP) - Typically a bank or broker/dealer, that has a written agreement with an ETF manager that allows the AP to place orders directly with the fund in the primary market.
Bid/Ask Spread - The difference between the highest price (bid) that a buyer is willing to pay for a security and the lowest price (ask) that a seller is willing to accept.
Capital Gains - A capital gain refers to an increase in an asset's value. A capital gain is considered to be realized when the asset is sold and may be short-term if the asset was held for one year or less, or longterm if held for more than one year.
Corporate Actions - A corporate action is an activity that causes a material change to an organization’s structure or business, and impacts its stakeholders. In some cases, shareholders may be permitted to vote on some corporate actions.
Creation/Redemption Basket - The securities and (or) cash requested by an ETF sponsor to be exchanged for ETF shares in the ETF share creation and redemption process.
Creation Unit - A block of a specified number of ETF shares that the ETF will issue to (or redeem from) an AP in exchange for the deposit (or delivery) of a basket of securities and cash.]. The number of ETF shares in a creation unit can vary by ETF.
In-Kind Creation and Redemption - ETF shares are created and redeemed in the primary market through a process between the ETF provider and authorized participants. When securities are exchanged for ETF shares (creation units), this is known as an in-kind transaction. An AP may place an order directly with the ETF provider to purchase creation units of ETF shares in exchange for securities and/or cash that constitute a creation basket defined by the ETF provider. In the case of a redemption, this process works in reverse.
Investment Stewardship - Investment stewardship refers to the advocation for stronger governance practices at public companies, through activities such as engagement, proxy voting, and public policy advocacy, with the goal of improving shareholder value.
Market Capitalization - The total market value of a company’s outstanding shares, computed as price times shares outstanding.
Market Impact - Market impact is the change in the price of an asset caused by the trading of that asset. The extent to which the price moves is generally dependent on the liquidity of the asset.
Momentum - Momentum investing is the process of buying securities that have had high relative returns over a defined period of time, and selling securities that have had poor relative returns over the same period.
Qualified (Non-Qualified) Dividend Income (QDI) - A qualified dividend is a dividend that meets specific requirements put in place by the IRS, and consequently is taxed at rates that are lower than the income tax rates on non-qualified, or ordinary, dividends.
Relative Price - Refers to a company’s price, or the market value of its equity, in relation to another measure of economic value, such as book value.
Securities Lending - Securities lending is the process of loaning a security to an investor or firm in return for a specified rate. In a securities lending transaction, the borrower is required to put up collateral in the form of cash or other securities, while the title and the ownership are transferred to the borrower for the duration of the transaction.
Turnover - Measures the portion of securities in a portfolio that are bought and sold over a period of time.