AdvisorShares launches actively managed hedged equity ETF
AdvisorShares, a sponsor of actively managed exchange-traded funds (ETFs), has launched the AdvisorShares Alpha DNA Equity Sentiment ETF (SENT).
SENT is an actively managed ETF sub-advised by Alpha DNA Investment Management, a quantitative research-based manager which specialises in a proprietary investment approach that broadens the use of machine learning to create better portfolio outcomes.
SENT employs a quantitative, systematic investment process which seeks long-term capital appreciation by investing in US large-, mid- and small-cap equities. The portfolio manager applies an options hedging strategy to help mitigate losses from market declines and keeps the ETF both invested and always hedged.
Every day, Wall Street analysts forecast company earnings and every quarter there are unexpected surprises. SENT uses proprietary research designed to uncover companies growing faster than Wall Street expectations and seeks to invest in a stock portfolio that can deliver superior returns. The portfolio manager deploys machine learning and alternative data analytics to decode sentiment as a proxy for tailwinds in demand.
“Alpha DNA’s highly specialised portfolio management delivered within the benefits of an ETF vehicle adds another dimension to our equity strategy lineup,” says Noah Hamman, chief executive officer of AdvisorShares. “We believe SENT offers a compelling, long-term core equity solution for advisors and investors seeking to mitigate portfolio risk and withstand unexpected volatility, especially important in this market environment.”
“In managing SENT, we always stay invested to provide equity participation in bull markets and always stays hedged to mitigate downside when markets turn bearish,” says Wayne Ferbert, founder and managing director of Alpha DNA Investment Management and portfolio manager of SENT. “Our unique investment approach removes any emotion from decision-making and any need for market timing in an effort to provide SENT shareholders with a peace of mind to stay the course in reaching their investment goals.”