New BOBP ETF Targets US Large-Caps Using CORE16's Proprietary Skewness Model

White-label ETF platform, Exchange Traded Concepts, has introduced a new fund in conjunction with CORE16 — the CORE16 Best of Breed Premier Index ETF (NYSE:BOBP).

BOBP seeks to capture systematically these skewness-driven opportunities by dynamically rebalancing its components as market conditions change.

The methodology for the index includes quantitative entry and exit triggers, and thus it is a relatively tactical strategy versus more static large-cap benchmarks.

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Surrounding the ETF is the CORE16 Best of Breed Premier Index, a rules-based benchmark that aims to capture stocks with desirable near- to medium-term return potential. The selection process relies heavily on a less well-known statistical metric—equity skewness. This measure estimates the asymmetry of return distributions and whether a stock tends to produce more above- or below-average returns. Practically, it enables the index to spot equities that have favorable performance asymmetries. That’s a subtlety that can be lost in standard valuation measures.

The fund provides investors with exposure to a quantitatively constructed portfolio of 50 large-cap U.S. securities chosen by CORE16’s proprietary algorithm. These securities include SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:BIL), Fastenal Co (NASDAQ:FAST), Kenvue Inc (NYSE:KVUE) and Boeing (NYSE:BA).

Though ETF launches are common in the modern market environment, BOBP attempts to stand out by incorporating behavioral finance concepts and statistical return patterns into its portfolio construction. The end result is a carefully screened list of the aforementioned large-cap securities deemed “best of breed” under CORE16’s lens.

With this launch, ETC continues to diversify its universe of rules-based and niche ETFs, and CORE16 represents its further foray into the U.S. market. The fund is NYSE Arca-listed and is available for trading.

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