Today saw the launch of a new ETF from Little Harbor Advisors. The LHA Market State Tactical Beta ETF (MSTB) is an actively managed ETF-of-ETFs that aims to outperform the large-cap segment of the U.S. market and uses analysis of the S&P 500 Volatility Index’s movements to determine its positions.
The fund comes with an expense ratio of 1.16% and lists on Cboe Global Markets, the parent company of ETF.com.
The fund mainly invests in assets that are tied to the S&P 500’s performance or its volatility and can take long or short positions in those assets. MSTB’s default position is 90% exposure to the S&P 500 Index, but it uses a quantitative model incorporating the movements of the S&P 500 Volatility Index to determine how it should adjust that exposure, the prospectus says.
In addition, the fund can also apply an options overlay to protect against a market downturn and generate income.
Little Harbor Advisors is also behind the $25 million LHA Market State Alpha Seeker ETF (MSVX).
Contact Heather Bell at [email protected]