The ‘fundamental’ ETF shop RevenueShares hopes to offer active ETFs.
RevenueShares, the ETF issuer known for its fundamental indexing methodology that screens securities for revenues, filed paperwork with the Securities and Exchange Commission to gain permission to offer actively managed ETFs.
The fund company, which currently has seven “RevenueShares” ETFs on the market, looks to be interested in adding to its family of “smart” quasi-active index funds with genuinely active strategies. While active funds—67 out of more than 1,500 listed in the United States—make up less than 1 percent of the $1.6 trillion in ETF assets, many believe active ETFs have a very bright future.
The initial fund outlined in RevenueShares’ “exemptive relief” filing would be an active twist on the RevenueShares Navellier Overall A-100 fund (RWV | D-47): the RevenueShares Active Navellier Overall A-100 fund.
RWV is a U.S. equity fund that using a three-layer, fundamental system to select 100 U.S. securities. The fund is illiquid and at high risk of closure, according to research by IndexUniverse’s ETF Analytics unit.
It’s not clear from the prospectus how the methodology behind the active iteration of RWV will differ.