New ETF Follows Trends to Diversification

This has been a brisk week for launches of new exchange traded funds. Among the new offerings is the Tuttle Tactical Management U.S. Core Exchange-Traded-Fund (NasdaqGS: TUTT), which debuted Thursday courtesy of ETF Issuer Solutions with Tuttle Tactical Management acting as sub-adviser.

Actively managed by portfolio manager Matthew Tuttle, the Tuttle Tactical Management U.S. Core ETF is one of a growing number of new ETFs using the ETF of ETFs approach, meaning TUTT’s primary holdings are other ETFs.

TUTT “seeks long-term capital appreciation while maintaining a secondary emphasis on capital preservation, primarily through investments in the U.S. equity market,” according to Tuttle Tactical Management.

The new ETF is rooted in investing principles , such as markets moving in recognizable short and intermediate trends and countertrends. By identifying sectors with positive momentum traits, TUTT is able to profit from the notion leading industries and sectors tend to maintain that leadership over the intermediate term.

TUTT uses multiple, uncorrelated strategies and “removes emotional decision making by using a rules-based approach to market exposure,” according to Tuttle Tactical Management. If TUTT’s management team cannot identify sectors worthy of inclusion in the ETF, the fund has the ability to shift to cash and fixed income holdings.