Gadsden, an institutional asset management firm, is the latest to money manager to enter the quickly growing ETF arena, launching two new fund-of-funds type strategies.
Gadsden ETFs recently launched the actively managed Gadsden Dynamic Growth ETF (NYSEArca: GDG) and the Gadsden Dynamic Multi-Asset ETF (NYSEArca: GDMA), which have a 0.88% expense ratio and a 0.71% expense ratio, respectively.
The two new active ETFs are managed by Kevin R. Harper, Chief Investment Officer and Portfolio Manager of the Adviser, and James W. Judge, Senior Director and Portfolio Manager of the Adviser.
Gadsden Dynamic Growth ETF tries to generate total return by investing in global equity securities generally based on a long-term view of macroeconomic factors under its “strategic sleeve,” along with approximately 20% of its total assets to add or reduce exposure to one or more asset classes generally based on a short-term view of the market under its the “tactical sleeve,” according to the fund’s prospectus.
GDG’s strategic sleeve identifies segments of the global equity market, including emerging markets, that are expected to grow in value over periods of several years and will include countries, regions, sectors, industries, or market capitalizations based on the assessment of the long-term correlation of segments to each other and their correlation and sensitivity to macroeconomic factors.
The tactical sleeve employs a shorter-term view of market opportunities and threats. It is designed to adjust overall the portfolio risk/reward profile either higher or lower. Allocations are based on judgment of the projected investment environment for particular asset classes, the attractiveness of each asset class, and expected future returns of each asset class.
Meanwhile, the Gadsden Dynamic Multi-Asset ETF also seeks total return by investing in a variety of asset classes, geographies, and market capitalizations generally based on a long-term view of macroeconomic factors under the “strategic sleeve,” along with approximately 20% of its total assets to add or reduce exposure to one or more asset classes generally based on a short-term view of the market under the “tactical sleeve,” according to the fund’s prospectus.
GDMA uses a similar strategy but it takes on a broader multi-asset approach, including geographies, market capitalizations, international currencies, equities, fixed-income instruments, real assets and commodities.
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