AdvisorShares, known for its actively managed exchange traded fund products, is launching a new ETF Wednesday that will provide a long/short hedge fund strategy to any retail investor.
According to a press release, the QAM Equity Hedge ETF (NYSEArca: QEH) is an actively managed fund that tries to outperform the S&P 500 Index while diminishing overall risk. The portfolio managers will utilize a long/short equity strategy that will exceed the risk adjusted performance of about 50% of the universe of managers in the HFRI Equity Hedge Total Index. QEH has an expense ratio of 1.64%.
The fund will hold up to 50 ETFs and other securities, and individual holdings will account for between 5% and 10% of the overall portfolio.
Commerce Asset Management is the sub-advisor of the fund. The portfolio managers include Kurt Voldeng, Chief Operating Officer and Portfolio Manager, and Akos Beleznay, Chief Investment Officer and Portfolio Manager.
“We’re excited about our partnership with CAM and bringing QEH to market, providing an alternative strategy and expected return stream that was previously beyond the reach of an average investor but now available with the transparency and liquidity of an actively managed ETF,” Noah Hamman, CEO of AdvisorShares, said in the press release. “Experienced hedge fund managers, represented in this Index that QEH seeks to outperform, are difficult to get access to and a challenge to deal with regarding liquidity, transparency and tax treatment.”
“Through our own advanced proprietary research combined with MPI’s DSA technology, we believe the actively managed methodology employed in QEH may yield better risk adjusted returns than traditional long-only strategies for investors over time,” Beleznay said.
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.