ETF Watch: ‘Post Modern Portfolio Theory’ Fund Launches

Virtus is rolling out an actively managed ETF today on the Nasdaq that looks to implement a next-generation modern portfolio theory approach. The iSectors Post-MPT Growth ETF (PMPT) is subadvised by iSectors LLC. PMPT comes with an expense ratio of 1.55%.

Modern portfolio theory focuses on market efficiency and diversification, and adherents tend to use a mean-variance optimization approach to portfolio construction. iSectors has its own quantitatively based post-MPT methodology that considers more factors than standard MPT, such as interest rates, inflation rates, gross domestic product, unemployment rates and money supply, according to the prospectus. 

The fund will invest in nine different categories: basic materials, bonds, energy, financials, gold, health care, real estate, technology and utilities. The prospectus notes that 0-30% of the fund can be invested in any of those categories except for bonds and gold. Up to 25% of the portfolio can be invested in gold and 50% in bonds. The fund is managed with the objective of maximizing returns and minimizing losses, the prospectus said.

UBS Shutters 4 ETNs
Four of UBS’ Etracs ETNs traded for the last time on Tuesday. The closures were originally announced in late July.

The ETNs that ceased to trade after the market close yesterday include the following:

• Etracs Diversified High Income ETN (DVHI)
• Etracs Monthly Pay 2X Leveraged Dow Jones International Real Estate ETN (RWXL)
• Etracs Wells Fargo MLP Index ETN (MLPW)
• Etracs Wells Fargo MLP Ex-Energy ETN (FMLP)

Contact Heather Bell at [email protected].