I came across an interesting thread where a money manager was describing the strategy of the ETF that they manage, an investment solution they offer through their wealth management practice.
He illustrated that their clients are invested in their ETF, $HF - an ETF he runs through their practice, DGA Advisors.
In his words:
I'm a global macro-manager.
One of the ways we reduce unsystematic risk in our absolute return portfolios ($HF) is to utilize macro diversification. This starting point aligns with your initial thoughts on positioning to reduce market timing and individual security selection.
As an active manager, I manage a model-driven systematic hedging overlay to the core global macro portfolio that doesn't approach active management from a perspective of market timing but from a framework of gradient risk exposure.
Notice the buzz words "Model Driven Systematic Hedging Overlay" and " Macro Diversification"
Anyway - since the fellow linked his name and his practice I couldn't help myself but to check out $HF, this so called Model Driven Systematic Hedging Overlay Strategy.
Quick summary of $HF - this is a "long-short" portfolio.:
It has 8 holdings, ALL INDEX Funds. They are VTI + VT + SPYV +SPYG + SPY + SH +QQQ +DIA.
Roughly 30% is allocated towards $SH which is ProShares Ultrashort S&P.
The remainder is long equities, but across major index funds VTI, VT, SPYV, SPYG, SPY, QQQ, DIA.
Oh - and the expense ratio is 1.53%.
This ETF is basically a closet index fund with unusual overlap (SPY + SPVV+SPYG??) with a 30% short position.
"Model Driven Systematic Hedging Overlay" .... yikes.
Original thread here: https://www.reddit.com/r/ETFs/comments/16e6rkb/comment/kgsus4m/?utm_source=share&utm_medium=web2x&context=3
Submitted January 25, 2024 at 01:18AM by SuccessfulCrew661 https://ift.tt/XyKkiRV
