Investment Philosophy

LeaderShares® ETFs seek to deliver a differentiated quantitative systematic approach to investing. More specifically, quantitative processes are used to seek and identify leading characteristics that can define the risk and return of an investment.



At LeaderShares®, we believe that Size is the Enemy of Alpha®. We utilize a rigorous process driven by intellectual curiosity shaped by decades of experience and based on a cycle of:

  • Research
  • Test
  • Refine
  • Repeat

Our findings are that persistent quantifiable advantages exist in capital markets and continue to exist provided that they are not exploited by a large number of market participants. Our focus is on quantitative investment strategies that are defined by critical elements that can be identified as historical drivers of outperformance. Especially in an age where many other quantitative firms are focused on “the more data the better”, we believe it is more important to sort through the noise. We implement our strategies using a disciplined, systematic methodology. This facilitates the creation and management of ETF’s designed to capture quantitative edge within specific objectives of a portfolio.


The AlphaFactor®

The AlphaFactor® is a quantitative methodology that seeks to evaluate unconventional attributes of an investment that can be impactful to a portfolio. Traditional smart beta factors that have grown in popularity such as momentum, value, volatility, and size are predominantly price driven. However, the greater market adoption has introduced price impact, which in turn can impact the alpha opportunity. AlphaFactor® strategies incorporate price agnostic analysis, such as supply and demand, that seek to provide market exposure with a differentiated edge.

ETF Prospectus Offering:

Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 480-757-4277, or visit Read it carefully.

LeaderShares® is a registered trademark of Redwood Invesment Managaement, LLC (“Adviser”).