Arrow Investment Advisors, the advisor to Arrow Funds, will add to its suite of exchange traded funds with the launch of the Arrow QVM Equity Factor ETF (NYSEArca: QVM), which the firm expects to roll out at the end of February.
The Arrow QVM Equity Factor ETF will be an equal-weight fund comprised of 50 stocks that “simultaneously demonstrate strong quality, value and momentum characteristics. The use of a quality metric lends the portfolio a defensive characteristic by reducing overall volatility of returns and helping to mitigate losses during market declines. Meanwhile, the portfolio’s valuation and momentum metrics are designed to capture upward price movement,” according to a statement issued by Arrow.
The Arrow QVM Equity Factor ETF will be the second new ETF launched by ArrowShares in the past five months. In October, the firm introduced the actively managed Arrow DWA Tactical ETF (NasdaqGM: DWAT). [ArrowShares Adds Second ETF]
That ETF “seeks to achieve its investment objective by implementing a proprietary Relative Strength (RS) Global Macro model managed by Dorsey Wright & Associates (DWA),” according to ArrowShares.
The Arrow QVM Equity Factor ETF is based on the Arrow Insights Quality Value Momentum Index (AIQVM), which sports “a favorable risk/return profile relative to both the capitalization-weighted S&P 500 Index and the equal-weighted S&P 500 Index during the past 20 years,” according to ArrowShares.
Arrow’s largest ETF is the Arrow Dow Jones Global Yield ETF (NYSEArca: GYLD). GYLD holds a basket of income-generating equity and fixed-income securities from non-traditional sources. GYLD has $145.1 million in assets under management.
ETF Trends editorial team contributed to this post.