Daily ETF Watch: Absolute Shares To Debut

ETF newcomer will roll out 10 actively managed ETFs.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

ETF newcomer will roll out 10 actively managed ETFs.

A newcomer to the ETF arena is about to make a splash on Wednesday, Aug. 27, with the launch of 10 new actively managed funds, according to an NYSE communique. The multi-asset-class ETFs will implement an absolute=return strategy.

The Absolute Shares Trust, an arm of Millington Securities, made its initial filing with the SEC for the funds late last year; the funds are to be subadvised by WBI Investments, an affiliate of Millington Securities.

The prospectus indicates the funds will adopt an absolute-return approach, aiming for consistent returns while keeping volatility and risk to capital in check. The funds will apply quantitative screens to the fundamentals of potential holdings, and then use technical analysis to further determine when a security should be purchased. The prospectus noted that holdings will only be purchased when their price trends are positive.

The subadvisor also has a rigorous methodology for selling holdings from the portfolio; the Dynamic Trailing Stop/Loss System is a proprietary methodology that establishes an acceptable price range for holdings, and dictates that they be sold when they fall below that range.

Each fund can also invest in multiple asset classes to achieve their goals, including domestic and foreign securities, as well as debt and equity securities. Additionally, they can invest in other exchange-traded products and use equity option strategies, the prospectus said.

The funds, their tickers and expense ratios are as follows:

  • WBI SMID Tactical Growth Shares (WBIA), 1.00 percent
  • WBI SMID Tactical Value Shares (WBIB), 1.00 percent
  • WBI SMID Tactical Yield Shares (WBIC), 1.00 percent
  • WBI SMID Tactical Select Shares (WBID), 1.00 percent
  • WBI Large Cap Tactical Growth Shares (WBIE), 1.00 percent
  • WBI Large Cap Tactical Value Shares (WBIF), 1.00 percent
  • WBI Large Cap Tactical Yield Shares (WBIG), 1.00 percent
  • WBI Large Cap Tactical Select Shares (WBIL), 1.00 percent
  • WBI Tactical Income Shares (WBII), 1.05 percent
  • WBI Tactical High Income Shares (WBIH), 1.08 percent

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.