AdvisorShares' latest actively managed ETF is a multi-asset fund that sets out to do well in all parts of the business cycle.
AdvisorShares, the Bethesda, Md.-based ETF company that helps others bring out actively managed exchange-traded funds, today is launching a multi-asset fund composed of stocks, bonds and commodities that aims to thrive in all parts of the business cycle.
The Pring Turner Business Cycle ETF (NYSEArca: DBIZ), will be based on a strategy created by Martin Pring, one of the principals at Walnut Creek, Calif.-based registered investment advisor Pring Turner Capital Group, AdvisorShares said today in a press release.
The fund will be able to invest in U.S. and foreign stocks and preferred shares, corporate debt rated “BBB” and higher, as well as a range of exchange-traded products, including ETNs and ETFs, according to a recent registration statement detailing the ETF.
DBIZ is part of a small but growing trend in the ETF world of multi-asset funds that are designed to profit in any number of market environments as investors look for ways to grapple with increased volatility following the crash of 2008, coupled with low bond yields.
As economic and market landscapes shift, DBIZ adapts and identifies market sectors and individual securities that have historically outperformed each specific business cycle stage, seeking to optimize returns while minimizing portfolio risk, the press release said.
"We believe DBIZ employs a disciplined strategy that adapts well to cyclical shifts and can build wealth consistently while lessening portfolio risk for the current environment," Pring said in the prepared statement.
The new fund will come with an annual expense ratio of 1.62 percent, the regulatory paperwork said.