Strivo Launches Tracker Certificate 'Globala Småbolag', Targeting High-Quality Small-Cap Stocks with Robust Growth Prospects

Strivo, a Swedish investment services provider, continues to expand its thematic Tracker Certificate portfolio. The latest offering capitalizes on the untapped potential of small-cap stocks as these businesses often show more agility and adaptability compared to their larger counterparts.

The "Trackercertifikat Globala Småbolag" is designed around a meticulous multi-factor model. Its primary aim is to pinpoint high-quality small-cap stocks with growth potential, stable margins, and predictable cash flows. Value factors, quality parameters, and momentum are integrated to curate a diversified and robust investment strategy. The portfolio is invested in developed markets.

Olof Gustafsson, Head of Structuring & Product development at Strivo, remarked, “Historically, small-cap stocks have tended to outperform large-cap stocks over the long haul. Despite their underperformance since 2018, we believe that the current market conditions might signal a resurgence in this segment.”

He added, “With our sophisticated multi-factor model, we're not just scouting for growth; we emphasize financial stability and value, ensuring we identify the most promising small-cap stocks for our investors.”

The selection criteria for this tracker are rigorous. Companies must boast a market cap between 500 million and 6 billion USD and maintain a daily turnover exceeding one million dollars. Further refining the pool, financial and energy sectors combined account for approximately 20 percent of the sectorial distribution. Strivo also applies exclusion lists to ensure sustainability factors are considered in the stock selection. Exclusion lists used to ensure sustainability factors when selecting stocks are from the Swedish National Pension Fund and the issuer of the instruments, UBS AG.

Strivo's Tracker Certificates offer a streamlined way for investors to tap into specific market segments or themes. With no built-in leverage, they reflect the price movement of the underlying asset at a 1:1 ratio. Other trackers from Strivo, listed on Nasdaq First North MTF, span interesting investment themes like e-sports, hydrogen, and cyber security.

The offering period for Tracker Certificate “Trackercertifikat Globala Småbolag” ends on Nov. 6 and it is expected to be listed on Nasdaq First North MTF, with first trading day on Nov. 10, 2023.