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ETF Chart of the Day: AdvisorShares Meidell Tactical Advantage

tlydon@globaltrend.com (Tom Lydon)

An actively managed ETF that will celebrate its first birthday on June 24 is AdvisorShares Meidell Tactical Advantage ETF (MATH - News).

The ETF functions as a “fund of funds,” in that its sub-advisor, a firm called American Wealth Management, purchases other ETFs that apply to their tactical strategy.

The fund is generally categorized as “multiasset” because the portfolio manager has the flexibility to move “all in” or “all out” whether in terms of equities, fixed income, or cash and equivalents via the ETFs that MATH invests in.

The ultimate objective of the fund is to deliver a tactical approach that systematically rotates away from asset classes that are perceived to have higher volatility, and into asset classes that are viewed as having lower volatility at these points in time where the fund rebalances. [Dent Tactical ETF Throws in the Towel]

For example, today, MATH’s top holdings are BIL (SPDR Barclays 1-3 Month T Bill, 34.33%), Dreyfus Institutional Treasury (13.47%), IVW (iShares S&P 500 Growth, 9.74%), OEF (iShares S&P 100, 4.86%), and IWB (iShares Russell 1000, 4.83%).

So roughly 47% of the portfolio is currently allocated to short term fixed income and/or cash/cash equivalents, with another 19% invested in large cap U.S. equities via IVW, OEF and IWB.

Small exposures are currently weighted towards Mid Cap U.S. equities (14%), and International/Emerging Markets equities (4%). Since inception last June, MATH has registered a return of 0.40% versus the S&P 500 Index down 1.44%.

MATH only averages about 9800 shares traded daily, but that said, given the nature of the underlying holdings (all very liquid and broad based ETFs at the moment), the fund can be traded in size given the proper technique and the assistance of a trading desk that specializes in ETF liquidity.

AdvisorShares Meidell Tactical Advantage

For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.