ETF Chart of the Day: Active Income

We have not previously covered WBI Shares, whom now have ten ETFs listed in the U.S. marketplace, the largest of which is WBIH (WBI Tactical High Income Shares, Expense Ratio 1.08%, $171 million in AUM).

According to fund literature, “WBI Shares series of active tactically risk-managed ETFs are designed to enhance the core of your portfolio. The ETFs are actively managed in an effort to provide long-term capital appreciation, while protecting capital during unfavorable market periods.”

WBIH actually traded nearly double its average daily volume just yesterday (40,900 shares versus ADV of 21,900 shares) but as we can see in the daily chart of the security, the intraday range was uncharacteristically wide from high to low, which can of course occur in thinly traded names or those relatively new to the market at times.

Like the other WBI Shares offerings, WBIH launched on August 25 of last year, and the funds now have enough seasoning that charts will show a 50 day Moving Average in terms of simple technical levels. When we look at the holdings more closely of WBIH we see a combination of other ETFs as well as listed equities, specifically with top holdings appearing as follows: PFF (iShares U.S. Preferred Stock, Expense Ratio 0.47%, 8.09% weighting), Short Term Treasury Investment (6.64% weighting) according to fund literature, which appears to be a U.S. Treasury Note position, VMBS (Vanguard Mortgage-Backed Securities, Expense Ratio 0.12%, 5.04% weighting), LWC (SPDR Barclays Capital Long Term Corporate Bond, Expense Ratio 0.12%, 4.93% weighting), and VCLT (Vanguard Long Term Corporate Bond, Expense Ratio 0.12%, 4.90% weighting).

Going further down the list of holdings we see positions in non-ETF names like GM, TS, CMA, and ZION to name a few of the top ten weightings. It is worth pointing out that seven other funds offered by WBI Shares all have >$100 million in assets under management currently, although none are quite as large as WBIH at the moment.