The five ETFs incorporate various proprietary strategies from Blue Sky Asset Management, which were originally developed over the past several years and previously only available to investors in a separate account. The dynamic, quantitative approach provides for a more rapid response to changing markets, while filtering out the emotions that can have a negative impact on decision-making.
Specifically, XUSA follows a type of dynamic beta strategy while QXMI, QXGG, QXRR and QXTR take a risk-managed approach.
The Dynamic Beta US Equity ETF selects large- and mid-cap stocks taken from the Russell 1000 but includes a screening process designed to increase exposure to those that have the highest estimated upside volatility relative to downside volatility.
The “Risk Managed” ETF line incorporate Blue Sky’s “Dynamic Asset Allocation” to provide exposure to key asset classes while optimizing cash and fixed income holdings to manage downside risk. Consequently, the underlying indices have the ability to move their entire portfolios to cash or fixed income instruments to diminish downside risk.
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