Northern Lights ETF Trust filed regulatory paperwork with the
Securities and Exchange Commission to bring to market an ETF under
the Arrow Investments name thatâs chock full of different types
of assets from around the world, in both emerging and developing
markets, that share one attribute:attractive yields.
The ArrowShares Global ETF, the firm's first, Â is the
latest ETF to focus on high-yielding securities, though most are
focused on either debt or equities. But the ArrowShares ETF appears
to be the first to wrap a number of different assetsâincluding
common stocks, preferred stocks, depositary receipts; corporate
bonds, sovereign bonds; REITs, royalty trusts and master limited
partnershipsâinto one ETF.
With most of the developed world mired in a slow and fitful
recovery from the market meltdown of 2008-2009, official short-term
interest rates remain near zero in the United States. Investors
have thus been scouring the investment landscape for securities
that provide good yields without too much extra risk. We wrote
about that trend in a recent blog that highlighted the iShares High
Dividend Equity Fund (NYSEArca:HDV).
The filing said the Arrow strategy will use a rules-based index
that aggregates all these different types of investments with a
view to cherry-picking those that produce the greatest yield over
the preceding month. It didn't name the index provider.
The fund will invest at least 80 percent of its total assets in
securities of the underlying index and may invest up to 20 percent
of its total assets in other instruments including futures, options
The filing said that although the advisor intends to invest in
all of the positions in the index, the fund may use a sampling
strategy to achieve its objectives.
Olney, Md.-based Arrow Investment Advisors LLC will serve as
investment advisor of the ETF, the filing said. The distributor
hasn't been named. Arrow, which specializes in alternative
investment strategies, already markets five mutual funds. The
permission required from the Securities and Exchange Commission was
obtained more than two years ago, an Arrow official told
IndexUniverse in a telephone interview.
The filing didnât detail the fundâs ticker or expense ratio,
but did indicate that the ETF will trade on Arca, the New York
Stock Exchangeâs electronic trading platform.
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