AdvisorShares and TrimTabs serve up a new way to build an ETF.
AdvisorShares, the Bethesda, Md.-based firm known for its actively managed ETFs, has partnered with TrimTabs Asset Management to launch a liquidity-based ETF that looks at supply and demand rather than value when determining which securities to pick.
TrimTabs Asset Management is a subsidiary of TrimTabs Investment Research, a company known for its research and coverage of U.S. stock market liquidity.
The idea behind the partnership is to create an ETF that would serve as an alternative to market-cap or fundamentally weighted core holdings. The methodology looks at stock prices as a function of supply and demand, rather than value, AdvisorShares Chief Executive Officer Noah Hamman said in a press release.
“Most quantitative ETFs focus on easily available price, volume and earnings data,” Charles Biderman, TrimTabs founder and chief executive, said in the release. “Since data on the supply and demand for stocks is scattered across many sources, most strategies ignore stock market liquidity.”
The companies didn’t provide any details on their planned ETF. The new fund would join AdvisorShares’ growing roster of actively managed ETFs, which include:
- AdvisorShares Dent Tactical ETF (NYSEArca: DENT)
- AdvisorShares Mars Hill Global Relative Value ETF (NYSEArca: GRV)
- AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSEArca: AADR)
- AdvisorShares Cambria Global Tactical ETF (NYSEArca: GTAA)
- AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD)