Elm Wealth, an independent investment management firm, has launched its first ETF on the New York Stock Exchange – the Elm Market Navigator ETF (ELM). The firm converted ELM from a private fund structure to an ETF.
With $362 million in assets, the conversion positions the ETF as one of the most well-capitalized launches of 2025 so far, marking a significant step in the firm’s strategy to expand its investment offerings.
ELM’s investment approach provides investors with a globally diversified portfolio that adjusts in response to changing market conditions. The ETF leverages Elm Wealth’s Dynamic Index Investing strategy, which has been available in the private market since 2011. This strategy is designed to maximize risk-adjusted returns by dynamically adjusting the portfolio to current market conditions.
The fund typically holds 75% in global equities and 25% in fixed income. It adjusts these allocations based on factors like market risks, interest rates, and return opportunities.
“We believe a sound investing approach should be eyes-open and responsive to varying risks and return, which is why we created Dynamic Index Investing,” said founder Victor Haghani, a former managing director at Salomon Brothers and co-founder of the hedge fund LTCM.
The Value of Tax-Efficiency
Haghani says the firm is hyper-focused on low-cost index investing. The fund aims to offer investors a more cost-effective investment approach that combines aspects of both passive and active management.
“We really appreciate the tax efficiency of the ETF structure,” said Jerry Bell, Elm partner and chief commercial officer. “For a strategy like ours, which involves frequent trading within the portfolio, the ETF wrapper is highly favorable for both our approach and our clients.”
ELM features an expense ratio of 0.24%, thanks to a 2 basis point management fee waiver. This is lower than the average for funds in the Morningstar Global Allocation category according to Elm Wealth. Transparency is also a key feature of the ETF, with a rules-based approach allowing investors to track portfolio changes.
For more news, information, and strategy, visit ETF Trends.
