Elkhorn Investments is rolling out a smart beta exchange traded fund that shifts from a low volatility to high beta strategy as a way to help investors adapt to changing market conditions.
The Elkhorn Lunt Low Vol/High Beta Tactical ETF (BATS: LVHB) is expected to begin trading Thursday, October 20. LVHB will come with a 0.49% expense ratio.
“LVHB is a tactical, low cost, alpha-seeking U.S. large cap strategy delivered to investors in a high capacity, liquid, and tax-efficient ETF structure,” according to Elkhorn.
Specifically, LVHB will try to reflect the performance of the Lunt Capital U.S. Large Cap Rotation Index, which utilizes a proprietary relative strength methodology to rotate between the S&P 500 Low Volatility Index and the S&P 500 High Beta Index based on which sub-index exhibits the stronger relative strength measurement at the end of each month, according to a prospectus sheet.
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The S&P 500 Low Volatility Index is made up of 100 securities from the S&P 500 Index with the lowest realized volatility over the past 12 months – volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time.