Today Arrow Funds rolled out a companion fund to its Arrow DWA Country Rotation ETF (DWCR), which it launched at the end of 2017. The Arrow Dogs of the World ETF (DOGS) takes a sort of contrarian approach, seeking to invest in poorly performing countries to exploit the possibility of mean reversion in the future.
DOGS lists on the NYSE Arca and comes with an expense ratio of 0.65%.
While DWCR follows a momentum-based strategy, DOGS is basically an anti-momentum strategy. It selects five markets from across a universe of 48 countries representing frontier, emerging and developed countries, but excluding the U.S.
The methodology chooses five markets due for a return reversal after a period of underperformance, meaning those that have exhibited the weakest relative strength.
Each market is represented in the portfolio by the companies falling within the top 75% of its market capitalization and assigned a weight of 20% within the index, the prospectus says.
With this latest addition to its lineup, Arrow currently offers six ETFs.
Contact Heather Bell at [email protected]