The enhanced portfolio will follow a monthly re-optimization or re-allocation to bring the fund holdings in line with its strategy and will remain fully invested across all market cycles.
“Today’s sophisticated investors understand the need for a more comprehensive approach to their investments, one that aims to perform well in both up- and down markets,” iSectors’ founder and CEO, Vern Sumnicht, said in a press release. Traditionally, investors have been exposed to a buy and hold approach which limits portfolio diversification among highly correlated asset classes, and therefore fails to reduce risk as expected. PMPT diversifies its portfolio among low-correlated asset classes with the goal of minimizing risk, especially in a down market.”
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The underlying portfolio will include assets ranging from nine low-correlated areas, including basic materials, bonds, energy, financials, gold, health care, real estate, technology and utilities to generate greater diversification. The fund will also act as a sort of fund-of-funds, only gaining market exposure through other ETFs.
Currently, its top holdings include the VanEck Vectors Gold Miners ETF (NYSEArca: GDX) 16.6%, iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) 16.5% and Vanguard REIT ETF (NYSEArca: VNQ) 14.6%.
Chuck Self, Chief Investment Officer of iSectors, also pointed out that the iSectors PMPT Growth ETF is primarily targeted toward risk-averse investors whom are seeking downturn protection while still maintaing exposure to possible market gains.
For more information on new fund products, visit our new ETFs category.