Columbia Threadneedle Investments Launches Two New Strategic Beta Equity ETFs

Columbia Threadneedle Investments today announced the expansion of its strategic beta exchange-traded fund (ETF) suite, with the launch of Columbia Research Enhanced Core ETF (NYSE Arca: RECS) and Columbia Research Enhanced Value ETF (NYSE Arca: REVS). These strategic beta portfolios offer investors and their advisors access to the firm’s quantitative investment research strength in a cost-efficient manner.

“Today, many investors recognize the limitations of traditional benchmark investing and are looking for a more thoughtful approach to passive investing,” said Marc Zeitoun, Head of Strategic Beta at Columbia Threadneedle Investments. “RECS and REVS were designed with the benchmark investor in mind. They are built on the strength of our quantitative research and the active insights that underly our strategic beta solutions.”

RECS and REVS are designed to outperform the Russell 1000 Index^® and Russell 1000 Value Index^®, respectively, by marrying proprietary investment research with market-capitalization weighting. The ETFs aim to optimize equity exposure by eliminating stocks from the benchmark that are rated unfavorably by the Columbia Threadneedle quantitative research team. This approach addresses a common concern voiced in a recent Columbia Threadneedle Investments survey¹, which found that 65 percent of financial advisors feel frustrated about not being able to remove underperforming stocks from passive ETFs’ indices.

RECS seeks to track the firm’s Beta Advantage^® Research Enhanced US Equity Index, which typically consists of 325 to 400 stocks of large-cap U.S. growth and value companies. REVS seeks to track the firm’s newly created Beta Advantage^® Research Enhanced US Value Index, which typically consists of 250 to 290 stocks of large-cap U.S. value companies. RECS and REVS are sector neutral relative to their respective Russell index. The indices the ETFs seek to track are rebalanced semi-annually.

RECS and REVS are managed by Christopher Lo, Senior Portfolio Manager, and Jason Wang, Head of Quantitative Research.

"We are offering optimized equity exposure, with the potential for enhanced returns, at a price comparable to funds that track broader benchmarks," said Zeitoun. "With the launch of these two ETFs, we continue to enhance our strategic beta offering with strategies powered by our expertise and insight."

RECS and REVS launch today and have total expenses of 15 and 19 basis points, respectively.

About Columbia Threadneedle Investments:

Columbia Threadneedle Investments is a leading global asset manager that provides a broad range of investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $468² billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc. (NYSE: AMP).

For more information, please visit columbiathreadneedle.com/us. Follow us on Twitter.

¹Columbia Threadneedle Investments ETFs Survey conducted in August 2019 of 116 Financial Advisors.

² As of June 30, 2019.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please visit https://www.columbiathreadneedleus.com/etf to view or download the Funds’ prospectuses. Read the Funds’ prospectuses carefully before investing.

For each Fund, investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Each Fund is passively managed and seeks to track the performance of an index. There is no guarantee that the indices and, correspondingly, the Funds will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. Each Fund’s net asset value will generally decline when the market value of its targeted index declines. Each Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Investments in a narrowly focused sector may exhibit higher volatility than investments with a broader focus. Investments selected using quantitative methods may perform differently from the market as a whole and may not enable each Fund to achieve its objective. Investment in larger companies may involve certain risks associated with their larger size and may be less able to respond quickly to new competitive challenges than smaller competitors. Investments in mid-cap companies often involve greater risks that investments in larger companies and may have less predictable earning and be less liquid than the securities in larger firms. Growth securities, at times, may not perform as well as value securities or the stock market in general and may be out of favor with investors. Value securities may be unprofitable if the market fails to recognize their intrinsic worth or the portfolio manager misgauged that worth. Although each Fund’s shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Each Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the shares of each Fund may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Indices and high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains.

ETF shares are bought and sold at market price (not NAV) and are not individually redeemable. Investors buy and sell shares on a secondary market. Shares may trade at a premium or discount to the NAV. Only market makers or “authorized participants” may trade directly with the Fund(s), typically in blocks of 50,000 shares.

These funds are newly organized and do not have an operating history.

Shares are not FDIC insured, may lose value and have no bank guarantee.

Columbia Management Investment Advisers, LLC serves as the investment manager to the ETFs. The ETFs are distributed by ALPS Distributors, Inc., which is not affiliated with Columbia Management Investment Advisers, LLC or its parent company Ameriprise Financial, Inc.

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

The Beta Advantage® Research Enhanced U.S. Equity Index is calculated and maintained by FTSE Russell using the Russell 1000^® Index as a starting universe, and aims to reflect the performance of a Columbia Management proprietary methodology. FTSE Russell does not sponsor, endorse, sell, or promote any investment vehicle that is offered by any third party that seeks to provide an investment return based on the performance of any index. It is not possible to invest directly in an index.

The Beta Advantage® Research Enhanced U.S. Value Index is calculated and maintained by FTSE Russell using the Russell 1000^® Value Index as a starting universe, and aims to reflect the performance of a Columbia Management proprietary methodology. FTSE Russell does not sponsor, endorse, sell, or promote any investment vehicle that is offered by any third party that seeks to provide an investment return based on the performance of any index. It is not possible to invest directly in an index.

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