Actively managed exchange traded fund (ETF) provider AdvisorShares began trading the industry’s first actively managed long/short ETF.
The Mars Hill Global Relative Value ETF (NYSEArca: GRV) will begin trading as the ETF industry’s first actively managed fund with a long-short strategy. GRV employs a “Relative Value” approach created and managed by Mars Hill Partners, which combines long positions in the most attractive country, sector and industry ETFs, with an equal dollar amount short in the least attractive country, sector and industry ETFs. [ETFs: No Longer Just a Mutual Fund Supplement.]
The aim of the strategy is designed to reduce downside volatility and drawdown risk caused by the directional influence of the global equity markets and instead strives to profit from the performance spread between its long and short positions. [Actively Managed ETFs: Why Low Volume Doesn’t Mean Illiquidity.]
For more stories about new ETFs, visit our new ETFs category.
Tisha Guerrero contributed to this article .
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