New Issuer WBI Shares Debuts 10 ETFs
August 28 2014 - 9:00AM
ETFDB
Wall Street saw the S&P 500 Index logging in its first ever
above-2,000 close this week, setting a new milestone in the stock
market’s recent bull run. Also this week, investors digested
several economic reports. Orders for durable goods surged 22.6% in
July from the prior month, well above analyst expectations of 7.5%
(but driven mostly by airplane orders). In addition, the
S&P/Case-Shiller index rose 8.1% in June, slightly below
expectations [see How the S&P 500 Reacts to Unemployment
Reports].
On the ETF front, a new issuer made its Wall Street debut,
launching 10 new exchange traded funds, which began trading on
Wednesday, August 27.
WBI Shares
WBI Shares is partnered with WBI Investments, a New Jersey-based
firm that provides institutional and private client wealth
management solutions. According to its website, WBI Shares
specializes in offering innovative actively managed ETFs, which
focus on providing “consistent, attractive returns, net of
expenses, with potentially less volatility and risk to capital than
traditional approaches.”
All of the issuer’s new ETFs are actively managed and utilize
quantitative-based screening methodologies, and all of
them are computer-driven. Each fund also seeks to provide
investors with a wealth-building investment strategy that targets
an optimal blend of bear market capital preservation and bull
market return.
Small- and Mid-Cap Options
Four of WBI’s new ETFs offer exposure to both domestic and
foreign small- and mid-cap securities, each with different
investment objectives. All of these ETFs charge a gross expense
ratio of 1.00%:
- WBI SMID Tactical Growth Shares (WBIA) focuses on securities
with improving fundamental growth trends.
- WBI SMID Tactical Value Shares (WBIB) targets stocks with
consistent fundamentals and strong value characteristics.
- WBI SMID Tactical Yield Shares (WBIC) invests in securities
that present themselves as undervalued opportunities with
attractive dividend yields.
- WBI SMID Tactical Select Shares (WBID) focuses on stocks
with attractive value characteristics and prospects for financial
stability.
Large-Cap Offerings
These next four ETFs are essentially the large-cap counterparts
to the four small- and mid-cap options above. Each fund also
charges a gross expense ratio of 1.00%:
- WBI Large Cap Tactical Growth Shares (WBIE)
- WBI Large Cap Tactical Value Shares (WBIF)
- WBI Large Cap Tactical Yield Shares (WBIG)
- WBI Large Cap Tactical Select Shares (WBIL)
Multi-Asset Portfolios
Two of WBI Shares’ new funds are actively managed multi-asset
funds, each of which provides a mix of foreign and domestic bonds
and stocks with a focus on income:
- WBI Tactical Income Shares (WBII) charges a gross fee of
1.05%.
- WBI Tactical High Income Shares (WBIH) charges an expense ratio
of 1.08%.
Both funds utilize WBI’s proprietary bond model, which strives
to reduce interest rate risk on core bond holdings in an effort to
protect invested capital. The goal is to actively shorten duration
to minimize loss as interest rates rise, or to lengthen duration to
increase yield and potential for capital gain as interest rates
decline.
WBI’s stock selection process is computer-driven. Quantitative
fundamental information flows through the system to evaluate
domestic and foreign equity securities.
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Disclosure: No positions at time of
writing.
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