Day Hagan Asset Management is rolling out a complementary fund to its $299 million Day Hagan/Ned Davis Research Smart Sector ETF (SSUS), which launched in January 2020.
The actively managed Day Hagan/Ned Davis Research Smart Sector Fixed Income ETF (SSFI) invests in different categories of the bond markets based on a proprietary model, similar to what SSUS does with equity sectors.
The new fund coms with an expense ratio of 0.79% and lists on the NYSE Arca.
Like its sister fund, SSFI will invest mainly in other ETFs. It relies on the Ned Davis Fixed Income Model, which incorporates macroeconomic and technical indicators in allocating to areas of the fixed income market that it anticipates will outperform.
The model is also designed to protect capital in weak economic environments. SSFI can implement derivatives in its portfolio and can hold significant allocations to cash and cashlike investments as needed, according to its prospectus.
The categories covered by SSFI include U.S. investment-grade corporate, U.S. long-term Treasury, U.S. mortgage-backed securities, international investment-grade bonds, U.S. Treasury inflation-protected securities, U.S. high yield bonds, emerging market bonds and U.S. floating rate notes, the fund document says.
Although SSUS holds a portfolio of Select Sector SPDR ETFs, it is not clear from SSFI’s prospectus what ETFs it will likely hold in its portfolio.
Contact Heather Bell at [email protected]