The new fund, Recon Capital USA Managed Risk ETF (NYSE:USMR), begins trading today on the NYSE. From the press release:
“Investors are concerned about low volatility, and smart beta strategies due to crowding, factor, and rebalancing issues,” said Kevin Kelly, Portfolio Manager and Chief Investment Officer, Recon Capital Partners. “We believe this ETF provides investors with a fully-fledged portfolio management strategy that strives to consistently give the optimal allocation in order to seek to reduce risk around market moving events like government referendums or interest rate hikes. This involves dynamically rotating around stock, industry, and factor allocations, taking into account current market information while also rebalancing monthly to the dynamic and ever-changing markets. The objective of the ETF is to seek to provide the most optimal portfolio for risk-adjusted returns.”
USMR is based on the STOXX USA 900 Minimum Variance Unconstrained Index, which “seeks low volatility and strives to reduce the risk of a portfolio and potentially can improve its long-term returns,” according to STOXX Limited.
We’ll be sure to bring investors more coverage of this new ETF once it gains some
initial additional assets and gets a bit of trading history under its belt.
Update: As per Recon Capital CIO Kevin Kelly on Twitter, USMR began trading today with an impressive $15 million in initial assets.