Defiance has launched the Defiance KSM TipRanks Analyst ETF (NYSE:RANK), a new actively rules-based ETF designed to capture U.S. equity momentum by combining Wall Street analyst consensus with price trends. The ETF tracks the TipRanks US Momentum Analysts Index. The strategy seeks to identify large-cap U.S. companies that enjoy both strong analyst conviction and positive market momentum, reflecting a growing trend of ETFs using alternative data to enhance traditional factor investing.
The fund is powered by data from financial intelligence platform TipRanks, whose CEO and co-founder Uri Gruenbaum said the ETF marks a natural extension of the firm’s mission to make institutional-grade investment intelligence more accessible. He noted that the launch allows investment products to be built directly on TipRanks’ proprietary data, calling it a step toward the future of investing. Defiance said analyst upgrades and consensus shifts can act as catalysts for stock performance, and the ETF’s methodology is designed to systematically capture those opportunities while maintaining diversification through sector and position limits.
Key features of the Defiance KSM TipRanks Analyst ETF (RANK):
- Inception date: June 30
- Expense ratio: 0.60%
- Underlying index: TipRanks US Momentum Analysts Index
- Investment universe: The 500 largest U.S. companies by market capitalization
- Screening process: Companies are first ranked by the number of analyst buy recommendations, with the top 100 advancing to the next stage
- Momentum methodology: Stocks are ranked using their current share price versus the prior eight-month average and the 50-day moving average relative to the 200-day moving average
- Final portfolio: The top 50 companies with the strongest momentum scores are selected
- Risk controls: Individual sectors are capped at 20 holdings and a maximum 40% portfolio weight, while each holding is limited to 6%
- Rebalancing: The index is rebalanced quarterly, with final weights adjusted using both analyst recommendation scores and momentum rankings.
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