The Arrow Dow Jones Global Yield ETF (NYSEArca: GYLD) and the Arrow DWA Tactical ETF (NasdaqGM: DWAT) are joining E*TRADE’s Commission-Free ETF platform, said Maryland-based Arrow Funds Wednesday.
The actively managed DWAT, which has an annual expense ratio of 1.52%, “seeks to achieve its investment objective by implementing a proprietary Relative Strength (RS) Global Macro model managed by Dorsey Wright & Associates (DWA),” according to ArrowShares.
Arrow uses a similar methodology for its Arrow DWA Tactical Mutual Fund. Like its mutual fund counterpart, DWAT is positioned as a fund of funds, which means the new ETF’s 10 equity holdings are other ETFs.
DWAT’s holdings are other ETFs.
DWAT “benefits from the research expertise of Dorsey Wright and Associates, leaders in technical analysis for over 25 years. Global macro strategies generally look at the big picture of macroeconomics across global asset classes, in this case, from a relative strength basis. Based on the DWA RS Global Macro strategy, the Arrow DWA Tactical ETF seeks to systematically identify and provide exposure to leading global market strategies across U.S. equities, international equities, fixed income, commodities and currencies. The fund can also invest up to 30% in inverse U.S. equity exposure in the event of a prolonged market drawdown,” according to a statement issued by ArrowShares.
GYLD, the first Arrow ETF, holds a basket of income-generating equity and fixed-income securities from non-traditional sources.
Assets held by GYLD include “Global Sovereign Debt, Global Equity, Global Real Estate, Global Alternatives (Master Limited Partnerships) and Global Corporate Debt. GYLD is equally weighted across its five yield categories to reduce over-exposure to individual securities, as typically experienced by cap-weighted indexes,” according to statement issued Wednesday by Arrow.
Over 100 ETFs are available commission-free on E*Trade and the broker added dozens of ETFs to its commission-free platform earlier this year.