ETF Chart of the Day: In the KNOW

KNOW (Direxion All-Cap Insider Sentiment Shares, Expense Ratio 0.65%) is still likely not well-known among portfolio managers, pun intended, but the fund has been turning in impressive performance lately. In fact, the fund has traded at a new all-time high since inception this morning before coming back in a bit to its current levels.

Launched in December of 2011, the fund will be celebrating its three year birthday of live performance in a few weeks, and it is noteworthy to us that a peer ETF, TTFS (AdvisorShares TrimTabs Float Shrink ETF, Expense Ratio 0.99%) recently earned a five star Morningstar ranking from what we read on various ETF media sources.

TTFS like KNOW is categorized in the greater “All-Cap Equity” arena, but both funds are rather new and small in terms of some of the more established giants in the space like VTI (Vanguard Total Stock Market, Expense Ratio 0.05%) and IWV (iShares Russell 3000, Expense Ratio 0.20%) which have a $49 billion and $5.8 billion respectively in assets under management.

KNOW as we said will be hitting its three year milestone shortly, and it will be interesting to see what Morningstar’s take on the fund in terms of its star rating is at that juncture in time, we imagine it will be a very positive outlook.

KNOW, with only about $30 million in assets under management currently and a rather low 8.3000 shares traded daily on average, tracks the Sabrient Multi-Cap Insider/Analyst Quant-Weighted Index, which isolates one hundred individual names from the S&P 1500 Index.

According to fund literature, “the strategy follows a quantitative rules-based equity approach that allows investors access to stocks that corporate insiders are accumulating. The strategy reviews each of the index constituents on a monthly basis, focusing on strong insider buying and favorable analyst ratings.”