Issue link: https://info.seic.com/i/1537650
Managed volatility strategies seek to provide three key benefits: SEI Enhanced Low Volatility U.S. Large Cap ETF (SELV) SEI U.S. Large Cap Core (Managed Volatility SMA) Inception 2022 2016 Objective Seeks long-term capital appreciation and aims for lower volatility compared to the broad U.S. large cap equity market. Seeks long-term capital appreciation with lower volatility than the Russell 1000 Index. Investment approach Quantitative-based, active stock selection process. Portfolio construction integrates a factor scoring model, risk model, and optimization. Key factors Multi-factor model, including low volatility (stocks with historically stable earnings and lower risk profiles), value, quality, and momentum. Implementation Ticker: SELV 80-100 individual stocks Downside mitigation: Designed to limit losses during market downturns by managing beta exposure, helping investors stay invested and avoid emotional decision-making. Diversification: Utilizes multiple investment factors, such as low volatility, quality, and valuation—in an effort to enhance diversification and improve risk- adjusted returns. Staying the course: Strives to reduce market fluctuations through active beta management, making it easier for investors to stick to their long-term plan and avoid panic selling during downturns. Low volatility factor strategies 1 2 3 Beta is a key metric for understanding an investment's risk and volatility compared to an overall market, benchmark, or index. A beta below 1.00 suggests an investment or strategy is less volatile than the market. Conversely, a beta greater than 1.00 indicates an investment or strategy is more volatile than the market. 3