AdvisorShares has partnered up with Sabretooth Advisors, again, to launch an actively managed exchange traded fund strategy that will cover the growing industry of cloud computing and emerging technologies like blockchain.
On Thursday, AdvisorShares and Sabretooth will roll out the AdvisorShares Sabretooth ETF (NYSEArca: BKCH), which comes with a 0.85% expense ratio.
Scott Freeze, chief investment officer at Sabretooth Advisors, will manage the new active ETF. Sabretooth is also the manager behind the AdvisorShares New Tech and Media ETF (NYSEArca: FNG), which tracks technology and media companies, including innovative and fast-growing technologies such as social media companies and internet retail companies.
The AdvisorShares Sabretooth ETF will try to generate long-term capital appreciation by investing in companies involved with cloud technologies, according to the fund’s prospectus.
“Companies utilizing cloud computing and digital companies that implement emerging technology like blockchain may realize increased profitability and appreciation in stock prices over an extended time horizon,” according to AdvisorShares.
Specifically, BKCH will invest in companies seeking to use digital and/or cloud technologies to streamline data transfer, reduce costs and increase revenue. Companies using digital technology are those that generate, store, process and/or transmit data digitally to reduce costs and generate revenue within the corporate structure. Companies using cloud technology cover those that utilize computing and other digital services, such as servers, storage, databases, networking, software and analytics, over the internet.
Furthermore, when selecting the fund’s components, the manager will screen for specific factors, including: Rising Market Cap where the Sub-Advisor seeks stocks showing consistent growth in market capitalization; Forward Guidance where company-issued guidance and third party investment research are used to gauge underlying stock expectations; Momentum where shorter term trading volume and price growth are viewed favorably in determining allocation percentages as well as additions to and deletions from the portfolio; and lastly, Technical Levels where after all other factors are considered, the Sub-Advisor uses a number of technical analysis measurements on each security to help determine the technical direction of the security and to aid in timing decisions for additions to and deletions from the portfolio.
For more information on new fund products, visit our new ETFs category.