Exchange Traded Concepts aims to launch a fund of funds with a long/short S&P 500 strategy.
Exchange Traded Concepts (ETC), the firm that helps other money management firms bring ETFs to market, filed regulatory paperwork detailing plans to bring a fund-of-funds ETF to market that will hold a basket of S&P 500 strategies.
The Hull Tactical US ETF will hold long as well as short positions in inverse and leveraged S&P 500 ETFs, according to the filing. ETC, the Oklahoma-based ETF issuer known for its “ETF In A Box” platform, is keen on alternative strategies. The issuer has about $275 million in assets between its five ETFs, and all five of those funds provide access to a specialized corner of the investment market.
The fund’s advisor will employ a sort of crystal ball strategy, using a “proprietary, analytical investment model” to examine retrospective market data and predict future movements of the S&P 500. This model will provide the advisor with investment “signals,” according to the prospectus. The Hull Tactical US ETF will be invested in long or short positions in S&P 500-related ETFs in an exposure that can change as frequently as on a daily basis, depending on market movement.
These positions can amount to no more than a 200 percent long and a 100 percent short exposure, according to the prospectus.
The prospectus didn’t name a ticker or price for the fund.