On Friday, Gadsden ETFs rolled out two actively managed ETFs advised by Vident Investment Advisory. The Gadsden Dynamic Growth ETF (GDG) and the Gadsden Dynamic Multi-Asset ETF (GDMA) invest 80% of their assets based on long-term views of the macroeconomic environment as the fund’s strategic sleeve, and 20% of their assets based on short-term views of the markets as the fund’s tactical sleeve.
GDG comes with an expense ratio of 0.88%, while GDMA charges 0.71%. Both funds list on the NYSE Arca.
Both funds define long-term investments as those held for more than three years, and short-term investments as being held for less than that length of time. Gadsden selects the market segments and asset classes to be included in the strategic and tactical sleeves. The funds can include individual securities or other investment companies, such as ETFs, in their portfolios.
GDG’s managers consider equities across countries, regions, sectors, industries and market capitalizations, and seek exposure to them based on their correlations with each other and correlations and sensitivities to different macroeconomic factors, the prospectus says.
GDMA uses a similar approach to different asset classes, considering different geographies and market capitalizations across currencies, equities, fixed-income instruments, real assets and commodities.
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