Dynamic Market Exposure, Risk Management with Smart Beta ETFs

As the industry evolves with a new breed of alternative index-based smart beta exchange traded fund strategies, investors are able to gain more targeted exposure and potentially better manage market risks.

ETF Trends publisher Tom Lydon spoke with Keys Tinney, CEO and Founder of Blue Sky Asset Management, at the Inside ETFs conference that ran Jan. 22-25, 2017 to talk about their new line of smart beta index ETFs.

“We have to aspects of the fund family: One is risk managed product line that is a combination of four different funds that give you primarily risk managed exposure to various asset classes. And then another one which e have launched as a dynamic beta product that give you more of an asymmetric return profile.”

Northern Lights recently came out with the QuantX Risk Managed Multi-Asset Income ETF (BATS: QXMI), QuantX Risk Managed Multi-Asset Total Return ETF (BATS: QXTR), QuantX Risk Managed Real Return ETF (BATS: QXRR), QuantX Risk Managed Growth ETF (BATS: QXGG) and QuantX Dynamic Beta US Equity ETF (BATS: XUSA), which are sub-advised by Blue Sky Asset Management.

“The risk managed funds operate more as a total portfolio solution,” Tinney said. “So we have a global equity, real asset, multi-asset income, total return and so when you combine those things together, along with the risk management that it provides in in the drawdown protection that it provides, really gives a good portfolio for the clients.”