The portfolio consists from 50 to 100 holdings and invests in American Depositary Receipts (ADRs) and international company stocks.
“With the launch of the first international all-short actively managed ETF, we feel that investors and financial advisors in search of portfolio diversification will find HDGI an important investment option not historically available via a transparent, liquid and efficient active ETF structure,” Noah Hamman, chief executive officer of AdvisorShares, said in the press release.
According to AdvisorShares, HDGI could be used in a long/short strategy by pairing the fund with an international long position. Since the ETF has a negative correlation to diversified international stocks, it could also diminish a portfolio’s overall volatility.
“With our scalable and holistic process, we aim to provide shareholders with a compelling alternative to other short and inverse products,” Dr. Howard said in the press release. “Partnering with AdvisorShares allows us to deliver a unique strategy, providing benefits historically associated with alternative and hedge fund strategies, but delivered in a portable, liquid and transparent active ETF.”
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.