On Thursday, Ocean Park Asset Management unveiled two new active ETFs. These funds are the Ocean Park Domestic ETF (DUKQ) and the Ocean Park Diversified Income ETF (DUKZ).
Fixed Income Strategy
DUKZ aims to give investors strong total income while mitigating exposure to potential downsides. To do so, the fund invests in a mix of fixed income ETFs along with cash equivalents. The ETF has a net expense ratio of 0.99%.
There are a vast variety of bond options that may be considered eligible for DUKZ’s bond portfolio. These include corporate and municipal bonds, Treasury bonds, mortgage-backed securities, and international bonds, among many others. Additionally, corporate and municipal bond options for the fund may be either investment grade or high yield.
Due to the fund’s portfolio strategy, DUKZ may contain some riskier bond options, such as high yield or emerging market bond ETFs. While these options traditionally come with risk, the ETF’s active management can help mitigate potential volatility concerns.
Equity Options
Much like DUKZ, DUKQ’s goal is to provide return while limiting downside risk. However, DUKQ goes about achieving its goal with a different strategy.
To provide investors with returns, the fund invests in a mix of U.S. equity ETFs and cash equivalents. DUKQ has a net expense ratio of 0.99%.
Eligible equity ETFs for DUKQ can come from a variety of options and portfolio styles. These funds are not limited by market cap, investment strategy, factors, and sector or industry exposure. As such, the fund may invest in ETFs that are either passively or actively managed.
Both ETFs use a “fund of funds” approach, according to the funds’ prospectus. As such, they may engage in frequent trading.
Ocean Park Asset Management uses a proprietary strategy ito calculate when to trade underlying ETFs. The strategy focuses on examining trends and calculating thresholds to best gauge when to purchase or sell an ETF.
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