WBI Shares, begun trading a new tactical rotation ETF, the WBI Tactical Rotation Shares (Nyse Arca: WBIR) on Wednesday, July 27, 2016. Here is a synopsis of the new ETF:
|Exchange: NYSE ARCA
|Name: WBI Tactical Rotation Shares
|Net Expense Ratio: 1.43%
The WBI Tactical Rotation Shares is an actively managed fund which seeks long term-capital appreciation while also seeking to protect principal during unfavorable market conditions.
The Fund will seek to achieve its investment objective by utilizing a flexible investment strategy and will invest directly in financial instruments or indirectly through a broad array of registered investment companies, ETFs, exchange-traded vehicles issuing equity securities (ETVs) and ETNs (collectively ETPs). Direct investments, and indirect investments through ETPs, may include equity and fixed income securities and other financial instruments, including but not limited to futures contracts, swap agreements and forward contracts, reverse repurchase agreements, and options on securities, indices, and futures contracts (collectively Financial Instruments) that provide exposure to a broad range of global asset classes, sectors, industries, geographic regions, currencies, indices, or security characteristics which WBI Investments, Inc., (Sub-Advisor) and an affiliate of Millington Securities, Inc., (Advisor), believes display attractive prospects for risk-adjusted total return relative to the other opportunities being evaluated.
These investments will be selected on the basis of the Sub-Advisor’s proprietary global asset rotation investment model and Selection Process as described briefly below. The investments used by the Fund are intended to obtain economic exposure to various domestic and international debt markets (all types, all maturities), including government-related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational, and local authority debt), commodities, foreign currencies, hedging strategies (such as through VIX calls or options, index options, or inverse ETFs), and other alternative asset classes including real assets (i.e., economic exposure through ETPs to precious metals, real estate and mortgages on real estate, art work, and collectibles) and exposure to domestic and international equities classified by company size, growth, or value characteristics, country or region, and industry groups. Such securities can be denominated in non-U.S.D. currencies or indirectly have exposures to foreign currencies and there are no limits on the non-U.S.D. currency exposure that the Fund can hold. There are no limitations on the equity securities held directly by the Fund (or indirectly including through ETPs or options and other derivatives). The Fund will not be limited by sector, capitalization size, or geography, and the Fund may invest in the securities of domestic or foreign issuers without limitation, including securities of issuers in emerging markets. Option strategies used by the Fund include writing (selling) covered calls, buying puts, using combinations of calls and puts, and using combinations of calls and combinations of puts. The Fund may also use options on indices.
Cash and cash equivalents are considered to be among the investment opportunities evaluated by the Selection Process, and the Fund may invest in and hold cash or cash equivalents as part of the normal operation of its investment strategy. As a result, an investment in cash or cash equivalents may periodically represent a material percentage of the Fund’s assets.
The Sub-Advisor uses a series of proprietary quantitative computer models to assess factors and conditions it believes are likely to affect the potential risk-adjusted return of the investment opportunities under consideration. Each model attempts to measure factors relevant to the particular investment opportunity being evaluated. Depending on the type of investment, these may include economic, market, monetary, sentiment, or other external factors as well as price, valuation, fundamental, technical, or other investment-specific factors. The goal of the models is to identify relevant changes in these factors to assess the risk-adjusted return prospects of each opportunity relative to the other opportunities being evaluated. The results of the models are ranked in order of their expected risk-adjusted returns, and Fund assets are allocated among those with positive expected risk-adjusted returns. The opportunities being evaluated may include market indices, properties of the yield curve, commodities, non-U.S. currencies, geographic regions, broad classes of assets, specific industries, or other identifiable investment opportunities for which direct investment would not be possible, efficient, or cost effective. Therefore, Fund assets will be invested in Financial Instruments that provide direct or indirect exposure for the opportunities being modeled. There can be no guarantee that the indications of the Sub-Advisor’s models will prove profitable or that the investments selected to implement the models will accurately track the modeled opportunity or perform as expected.
The investment opportunities under consideration may represent exposure to any global asset class, sector, industry, geographic region, currencies, country, index, or security characteristic for which the Sub-Advisor has developed a model.
Top Holdings (08/01/16):
|Cash & Other
|SPDR BARCLAYS CAPITAL INTL TREASURY BOND ETF
|VANGUARD WORLD FDS TELCOMM ETF
|ISHARES TR U.S. TELECOM ETF
|SELECT SECTOR SPDR TR SBI MATERIALS
|VANGUARD INDEX FDS VALUE ETF
|SELECT SECTOR SPDR TR SBI CONS STPLS
|ISHARES TR RUS 1000 VAL ETF
|PIMCO ETF TR INV GRD CRP BD
|IPATH S&P 500 VIX M/T FU ETN
WBIR Home Page
Here is a comment from Matt Schreiber, President of WBI:
“Knowing where and when to invest can be difficult. WBIR is designed to take advantage of opportunities around the globe while seeking to protect capital during unfavorable market conditions.”