On Tuesday, AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced the launches of the AdvisorShares Q Portfolio Blended Allocation ETF (QPT) and the AdvisorShares Q Dynamic Growth ETF (QPX). QPT and QPX are actively managed ETFs sub-advised by ThinkBetter, LLC which utilizes their proprietary Q Methodology risk management process in the design and management of their portfolios.
QPT is an asset allocation fund that invests across all asset classes and seeks to both maximize total return over the long-term and outperform traditional balanced funds. In pursuing its investment objective, QPT invests in ETFs which include the U.S., international, broad market, and sector equities; government, municipal, and corporate fixed income; real estate, gold, and other commodities.
QPT’s asset allocation is calibrated to the expected drawdown of a typical balanced fund and is optimized on a regular basis. Asset classes may be added or removed from QPT’s portfolio based on changing risk/reward characteristics.
QPX seeks to achieve long-term growth and targets equity market upside while tactically managing downside risk during abnormal market volatility. In pursuing its investment objective, QPX invests in ETFs featuring a broad variety of equities across market cap, style, and sectors as well as various fixed income categories and commodities to manage risk. QPX seeks to provide broad-market equity-like returns and the manager re-optimizes the portfolio monthly.
However, during periods of high market volatility, QPX can allocate to a more defensive portfolio and seek short-term fixed income returns. QPX’s market volatility indicator, the Q Implied Volatility Index™ (QIX), is reviewed daily which may result in mid-month allocation changes. Asset classes may be added or removed from QPX’s portfolio based on changing risk/reward characteristics.
ThinkBetter For Investment
Both ETFs utilize ThinkBetter’s Q Methodology in their investment process. QPT utilizes the proprietary risk management approach to strike a balance between long-term growth and market volatility while seeking to maximize returns. QPX utilizes it to optimally allocate the fund’s assets against a given level of risk.
Additionally, both QPT and QPX feature a fulcrum fee expense structure which further aligns the portfolio manager incentive with shareholder interests.
“We’re excited to showcase ThinkBetter’s collective industry experience and established portfolio management expertise in our active ETF suite,” said Noah Hamman, Chief Executive Officer of AdvisorShares. “We believe advisors and investors who conduct due diligence on these alpha-seeking investment solutions will find them as compelling considerations among their respective investment peer groups.”
“Risk management resides at the core of our investment ethos,” said Ron Piccinini, Ph.D., Chief Investment Officer of ThinkBetter. “We believe our proprietary Q Methodology provides ‘better math’ in navigating portfolio management risk and potential returns which ultimately aims to align better investment outcomes for educated advisors and investors.”
For more information, visit www.advisorshares.com.
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