“Like how the industrial revolution brought a new era of economic growth and development, these disruptive innovators of FNG’s investment focus exemplifies what is driving economic growth in the modern era,” Noah Hamman, chief executive officer of AdvisorShares, said in a note. “FNG provides efficient, concentrated exposure to one of the fastest growing segments of the equity market while maintaining the ability to adapt to changing leadership in a rapidly evolving world.”
Sabretooth Advisors also utilizes a quantitative stock selection process to make allocation decisions, with a technical analysis overlay for timing decisions involving the purchase or sale of securities. The investment philosophy is based on the view that certain e-commerce, communication, and other social media related stocks may outperform the overall market and should continue to see strong growth into the future, according to a prospectus sheet.
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Specifically, the active manager screens for rising market cap or stocks showing consistent growth in market capitalization, strong forward guidance, strong momentum and technical analysis measurements, such as 50-day or 150-day moving average, new 52-week highs or lows, and various other technical analysis charting techniques.
Unlike traditional beta-index strategies, “actively managed aspect of FNG allows for evolution and relevance, as opposed to the constraints and staleness that can follow index-based ETFs,” according to AdvisorShares.
For more information on new fund products, visit our new ETFs category.