Amplify ETFs rolled out a new smart beta ETF strategy that switches between fast paced growth stocks and conservative fixed-income assets, depending on overall market trends.
On Thursday, Amplify launched the Amplify EASI Tactical Growth ETF (NYSEArca: EASI), which has a 0.75% expense ratio.
“We believe today’s dynamic markets require core investment strategies that participate in the upside while having the flexibility to potentially protect on the downside,” Christian Magoon, CEO of Amplify ETFs, said in a note. “We believe EASI offers attractive equity exposure via its quantitative selection criteria which incorporates both stock price behavior and fundamentals. Combining this stock selection approach with the ability to rotate into fixed income exposure can be an attractive combination for investors.”
Capture Up Trends, Shields Down Trends
The Amplify EASI Tactical Growth ETF tries to reflect the performance of the EASI Tactical Growth Index, which attempts to take advantage of the investment returns provided during periods of upward acceleration in stock prices while seeking to shield from potential investment losses during periods of downward acceleration in stock prices, according to its prospectus.
Depending on market signals, the underlying index is either in equity or fixed-income assets. The equity allocations may include equity securities and ETFs that invest in large-cap stocks. The fixed-income portion is comprised of five ETFs that cover investment-grade U.S. debt securities.