Main Management has joined the exchange traded fund tussle, launching its first actively managed strategy that implements a sector rotation investment style.
Main Management ETF Advisors rolled out the Main Sector Rotation ETF (BATS: SECT). SECT has a 0.65% net expense ratio.
The Main Sector Rotation ETF is an actively managed fund that tries to outperform the S&P 500 during rising markets while diminishing losses during declining periods.
Main Management ETF Advisors‘ Kim D. Arthur, Chief Executive Officer, James W. Concidine, Chief Risk Officer, and J. Richard Fredericks, Managing Director, will act as portfolio managers of SECT.
The active ETF will act like a fund of funds and invest in sector-based equity ETFs, achieving its target through a sector rotation strategy. Main Management will review the sector, industry and sub-industries in the fund’s portfolio, chooses sectors it believes are undervalued and poised to respond favorably to financial market catalysts and sell securities when it achieves its target price or no longer undervalued, according to a prospectus sheet.
Specifically, the management team will analyze economic growth forecasts, inflation trends and other macroeconomic and capital market fundamentals over a six to 18 month time horizon.
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The sector rotation strategy will cover the 11 sectors under the Global Industry Classification Standard, which include energy, materials, industrials, consumer discretionary, consumer staples, healthcare, financials, information technology, telecommunication services, utilities and real estate.
ETFs that are selected in its fund-of-funds methodology will be based on various factors in the respective ETFs, including underlying index and portfolio holdings, sector exposure and weightings, liquidity profiles and tracking error.
For more information on new fund products, visit our new ETFs category.