As a response to the growing demand for low-volatility exchange traded fund products that help shield investors from market swings, AdvisorShares is launching a new actively managed fund that promises to achieve performance while reducing risk.
On July 11, the Global Alpha & Beta ETF (NYSEArca: RRGR) will begin trading. The fund will try to outperform diversified financial indices such as a 60/40 allocation to the S&P 500 Index and the Barclays Capital Aggregate Bond Index. RRGR has an expense ratio of 1.40%.
The RRGR ticker may be a throw back to the portfolio manager, Roger Nusbaum, who will utilize a “top-down” investment approach.
“As a top down portfolio manager, we are continuously analyzing sector and market conditions within today’s global economy to select our various holdings, and to properly determine if our positioning is best utilized as being in or out of specific markets,” Roger said in a press release. “By employing our broad and diversified investment approach within the transparency and efficiency of an actively managed ETF, we strive to benefit shareholders with a clearer and smoother ride throughout varying economic and market cycles.”
The active ETF will hold individual stocks, ETFs and American Depository Receipts (ADRs) that provide exposure to global asset classes, sectors, industries and countries. Additionally, the fund will include defensive positions based on technical indicators, such as the simple moving average and an inverted yield curve, to hedge against down trends.
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.