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.
TUTT’s strategies include “an S&P 500 Momentum Model, which works to track the S&P 500 when it is trending upwards, a Relative Strength Equity Model, which will weight towards a sector based on its relative strength, a Beta Opportunities Model, which will allocate assets using methods other than market capitalization and as well allocate to low-risk instruments during a downtrend, and a counter trend model which looks to buy into market weakness and sell into market strength,” according to a statement.
The new ETF’s current holdings include the ALPS Sector Dividend Dogs ETF (NYSEArca: SDOG), Direxion Daily S&P 500 Bull 3X Shares (NYSEArca: SPXL), First Trust US IPO Index Fund (NYSEArca: FPX) and the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT).
TUTT charges 1.34% per year.
ETF Trends editorial team contributed to this post.