Asset Allocation ETFs Debut

Two new ETFs switch between bonds and equities in trend-following strategy.

Today ETF newcomer Howard Capital Management rolled out two funds that track asset allocation strategies that rely on trend-following tactics. The HCM Defender 500 Index ETF (LGH) and the HCM Defender 100 Index ETF (QQH) transition between allocations to fixed income and equities based on how an equity index is trending.

Both funds come with an expense ratio of 1.36% and list on the NYSE Arca.

LGH transitions between a full allocation to the S&P 500 Index, a 50/50 allocation between the S&P 500 and one- to three-month Treasury instruments, and a full allocation to one- to three-month Treasury instruments based on the trend of the S&P 500. HCM uses a proprietary quantitative model to indicate when the trend is up or down, moving into equities as the equity market trends up and into fixed income securities when the equity market trends down.

QQH uses the exact same strategy, but with the equity portion represented by the Nasdaq-100 Index. Both funds can use ETFs to gain exposure to their underlying equity indexes. 

Schwab Adds 3 Bond ETFs
Also today, Charles Schwab rolled out some plain vanilla funds, each priced at 0.06%, which matches the lowest prices in their respective categories.

The three funds all list on the NYSE Arca:

• Schwab Long-Term U.S. Treasury ETF (SCHQ)
• Schwab 5-10 Year Corporate Bond ETF (SCHI)
• Schwab 1-5 Year Corporate Bond ETF (SCHJ)

The new funds bring Schwab’s total lineup to 25 products.

Contact Heather Bell at [email protected]