After several years of research and product testing and observing real-time Seeyond risk-adjusted performance in Europe, Natixis launched the Natixis Seeyond International Minimum Volatility ETF (MVIN) for US investors in October 2016. We launched this product for three important reasons:

1. We wanted to provide a strategy to investors who may be under-allocated to volatility-controlled (risk-reducing) products, e.g., products that "protect" on the downside. Over the last 9 years of the equity bull market, some investors have over-allocated to higher risk assets and have put themselves at risk in the event of a market correction. MVIN has the potential to help investors address this overexposure to higher risk equity.

2. We found through our product testing that many investors are seeking portfolio diversification. MVIN selects stocks based on their risk profile, rather than their return potential. Products that do this are rare and have the ability to exploit a phenomenon known as the “low volatility anomaly.” This anomaly has found that the lowest volatility stocks across all geographies can outperform stocks of higher risk, over a full market cycle. By working to exploit the low volatility anomaly, MVIN provides investors with the potential to generate strong absolute and risk-adjusted returns.

3. Many US investors remain under-allocated to non-US stocks. The reasons for this can include home country bias, the belief that US stocks carry less risk, and the fact that US stocks have outperformed international stocks during the latest 9-year bull market. Nonetheless, investors may want to get their emotion and behavioral biases in check and own international stocks at a reasonable level to achieve diversification and risk reduction, and to access non-US investment opportunities.

A low volatility international equity ETF, Natixis Seeyond MVIN may act to round out your portfolio and prepare you for the unknown of the next investment cycle.

 


Exchange-traded funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than the ETF's net asset value. Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns. Unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager. There is no assurance that the investment process will consistently lead to successful investing. Volatility management techniques may result in periods of loss and underperformance, may limit the Fund's ability to participate in rising markets and may increase transaction costs. Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Foreign securities may involve heightened risk due to currency fluctuations. Additionally, they may be subject to greater political, economic, environmental, credit, and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline.

All investing involves risk, including the risk of loss. Diversification does not guarantee a profit or protect against a loss.

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed above may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted.

Before investing, consider the fund's investment objectives, risk, charges, and expenses. Visit im.natixis.com for a prospectus or a summary prospectus containing this and other information. Read it carefully.

ALPS Distributors, Inc. is the distributor for the Natixis Seeyond International Minimum Volatility ETF. Natixis Distribution, L.P. is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, L.P.

Seeyond is operated in the US through Natixis Asset Management U.S., LLC.

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