High-Turnover ETF Planned

A new filing outlines plans for an ETF that will track an index based on a strategy developed by Whitford Asset Management. The Volshares Large Cap ETF will be advised by Whitford and subadvised by Vident Investment Advisory.

The fund’s underlying index uses Whitford’s model to select its components from the 500 stocks in the Solactive US Large Cap Index based on their likelihood of appreciating in the following week and their low levels of volatility. It relies on the opening and closing prices of each of the stocks to do this, according to the prospectus.

On a weekly basis, the methodology identifies 25 companies that will comprise the portfolio. It weights each one at 3.9% of the index and keeps the remaining 2.5% of the index in cash, the document says.

Unsurprisingly, the prospectus warns of high portfolio turnover, given the weekly reconstitutions.

The filing did not include a ticker or listing exchange, but did indicate the fund will come with an expense ratio of 0.65%.

Contact Heather Bell at [email protected]