AdvisorShares is planning to launch an actively managed exchange traded fund (ETF) of ETFs that will pair long and short positions in different ETFs in an attempt to deliver solid, non-correlated returns.
AdvisorShares filed with the Securities and Exchange Commission (SEC) to launch the HTE Global Relative Value ETF (NYSEArca: GRV). There’s no launch date or fee information available yet, though. The new fund will be managed by HTE Asset Management LLC, a small wealth management firm based in Colorado Springs, that gives customized asset management for affluent customers.
Matt Hougan for Index Universe explains that HTE will pair long positions in ETFs covering what it considers “the most relatively attractive global regions and countries within those regions” with short positions in the least attractive areas. Typically, these positions will be balanced, or market neutral, isolating the impact of market direction from returns.
You can peruse the prospectus here.
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