ETF Watch: VanEck Files for Long/Flat Fund

Fund’s index will shift between allocations to the S&P 500 and T-bills.

A new filing from VanEck provides details on an ETF that will use market signals to adjust its allocations between the S&P 500 and Treasury bills. The VanEck Vectors Long/Flat US Equity ETF tracks an index based on a model from Ned Davis Research and Capital Management Group.

The index will use mean reversion and trend-following indicators in relation to the S&P 500’s industry groupings to generate trade signals that determine whether the index will invest 0%, 40%, 80% or 100% of its assets in ETFs tracking the S&P 500, with the remainder of the portfolio assets invested in Treasury bills included in the Solactive 13-week U.S. T-bill Index, according to the prospectus.

The ETF will list on the NYSE Arca exchange, but the filing did not include a ticker or expense ratio.

Contact Heather Bell at [email protected].