“We rotate investments between the U.S. economic sectors based on our proprietary evaluation in order to try and outperform the overall market,” Alex Gurvich, Co-Founder of Rockledge and portfolio manager of SSAM, said. “We believe that the prudent investor, who understands the risk vs. reward tradeoff, should be looking at sector investing vs. individual stocks. Holding a position in a sector can provide inherent diversification while reducing individual company risk.”
The active management theme has so far been slow to gain traction in the ETF industry. One persistent challenge for active ETFs is providing the necessary disclosure for the funds to trade properly without exposing a fund manager’s trades. [Active ETFs Wrestle with Disclosure Issues]
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.