AdvisorShares Unveils Tactical ETF

AdvisorShares, the Bethesda, Md.-based company known for its actively managed ETFs, launched another ETF this week, this time a broadly diversified fund-of-funds ETF that focuses on changes in the economy and reallocates across multiple asset classes to navigate those changes.

The AdvisorShares Meidell Tactical Advantage ETF (NYSEArca:MATH) "offers a broadly diversified portfolio that measures the velocity of change in value across asset classes to identify the best risk adjusted returns," the company said in a press release.

The ETF, which is a partnership with American Wealth Management of Reno, Nev., uses a quantitative tactical methodology that invests in ETPs considered to be in "long-term durable trends" with a view to provide long-term capital appreciation while minimizing losses.

"We feel investors are seeking a professionally managed tactical strategy like MATH which enables the portfolio manager to evaluate, rank and select the mix of investments in given market conditions while remaining objective and unemotional," AdvisorShares CEO Noah Hamman said in the release.

The portfolio may consist of anything from global equities to fixed income to commodities and cash depending on the market trends. At launch, more than 50 percent of the basket was tied to bonds, with U.S. equities representing another 30 percent of the portfolio.

"We manage MATH by measuring the velocity of change in the different asset classes, and then make investment allocations with the goal of providing positive risk-adjusted returns and minimizing losses through tactical asset allocation," MATH's portfolio manager Laif Meidell said in the prepared statement.

The firm has about $300 million in assets. Its most successful fund is the Cambria Global Tactical ETF (NYSEArca:GTAA), which has about $175 million in assets.

The advisor agreed to keep MATH's total annual fund operating expenses from exceeding 1.35 percent until Oct. 31, 2012, according to the fact sheet posted on the company's website. The cost agreement is limited to the ETF's direct operating expenses and, therefore, doesn't apply to "Acquired Fund Fees and Expenses."

Earlier this week, it launched three ETFs with Madrona Funds of Everett, Wash., that try to outperform their benchmarks through a forward-looking fundamental investment strategy.

The three ETFs are:

  • Madrona Forward Domestic ETF (NYSEArca:FWDD)
  • Madrona Forward International ETF (NYSEArca:FWDI)
  • Madrona Forward Global Bond ETF (NYSEArca:FWDB)

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