BNY Mellon said that the mandate expands its contract with AdvisorShares, which began in 2009, and covers 12 ETFs with assets worth more than $420m.
Sub-advised by New York-based Rockledge Advisors, the new ETF seeks to generate stable and consistent annual returns under all market conditions by investing in both long and short positions in US sector ETFs that offer exposure to US large capitalisation equities.
Based on a proprietary quantitative analysis called as the sector scoring and allocation methodology, the ETF employs a diversified equity sector rotation process.
Utilizing this analysis, the fund managers will buy long the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling short an equal dollar amount of sector ETFs that are expected to underperform the S&P 500.
The fund expects to hold equal amounts long and short, creating a dollar neutral portfolio.
