AdvisorShares, the Bethesda, Md.-based ETF sponsor known for its
actively managed funds, filed paperwork to market an asset
allocation ETF that would invest in everything from equities to
fixed income to commodities as it seeks to generate capital growth
and income in a changing market environment.
The Pring Turner Dow Jones Business Cycle ETF (NYSEArca:DBIZ)
will indeed own everything from U.S. and foreign equities to
high-quality corporate debt to other ETFs and ETNs, keeping its
asset class and sector allocations flexible to reflect the market's
changing business cycle.
Pring Turner Capital Group, a Walnut Creek, Calif.-based company
known for its conservative investment views, is the brain behind
the business-cycle-focused methodology that looks to optimize
returns throughout the business cycle while mitigating risk when
the markets turn south.
DBIZ would join a few other ETFs in the asset-allocation space
that turn to broadly diversified exposure schemes to capture growth
and income in the long run, although the AdvisorShares fund would
add an active management element to it.
Broadly, asset allocation strategies such as DBIZ often cater to
the more risk-averse investor who is looking for buy-and-forget
long-term plays that promise appreciation and income.
Among others in the space, the PowerShares RiverFront Tactical
Growth & Income Portfolio (NYSEArca:PCA), for instance, is one
of the veterans in the space, but the fund-of-funds strategy has
gathered less than $20 million in four years. PCA also owns a mix
of equities and fixed income as it tracks a RiverFront Global
San Francisco-based iShares also offers a roster of asset
allocation funds that serve up capital appreciation and
income-generating portfolios while catering to investors' specific
risk profiles. They include the $94.1 million iShares S&P
Aggressive Allocation ETF (NYSEArca:AOA), the $92.8 million iShares
S&P Conservative Allocation ETF (NYSEArca:AOK) and the $136.0
million iShares S&P Growth Allocation ETF (NYSEArca:AOR).
"The fund may invest in securities of any capitalization range
and in any market sector at any time as necessary to seek to
achieve the fund's investment objective," AdvisorShares said in the
AdvisorShares manages more than $483 million in assets across
its 14 actively managed ETFs, which include the $200.9 million
Active Bear ETF (NYSEArca:HDGE)-the company's largest fund-and its
$90.8 million Cambria Global Tactical ETF (NYSEArca:GTAA).
No expense ratio was disclosed in the filing.
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