According to a recent SEC filing, ETF issuer Virtus is planning to launch a brand new actively managed fund, the Virtus WMC Global Factor Opportunities ETF (NYSE:VGFO).
The risk-managed ETF will trade on the NYSE Arca exchange, and primarily target equities from the U.S., emerging markets, and developed markets as well. There’s no word yet on what sort of expense ratio the fund will carry, but actively managed funds tend to have much higher fees than their passive index-tracking counterparts.
Here’s some official info from the filing itself:
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to outperform the global equity market over a full market cycle within a framework that attempts to manage portfolio risk. The Fund invests primarily in equity securities of U.S. and foreign issuers, including emerging markets issuers, of any market capitalization. The principal types of equity securities in which the Fund invests are common and preferred stock, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). The Fund may also invest in equity interests in real estate investment trusts (“REITs”) of U.S. and foreign issuers.
Wellington Management Company will be the sub-advisor to the fund, and employ its multi-factor approach to picking its holdings. Its three tactical strategies are listed as 1) mean reversion, 2) trend following, and 3) risk aversion.
Once the fund officially launches and it gets some decent trading history under its belt, we’ll be sure to issue a SMART Grade for it. Until then, you can check the official Virtus ETF site for more information.