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AdvisorShares, the ETF issuer known primarily for its actively managed offerings, will introduce the AdvisorShares ROCKLEDGE SectorSAM ETF (NYSE: SSAM) ETF today.
The ETF will be buying (being long) the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling (being short) an equal dollar amount of sector ETFs that they forecast to underperform the S&P 500, based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM), according to the AdvisorShares Web site.
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SSAM is expected to hold equal amounts long and short positions so it will be dollar neutral. The new ETF has an expense ratio of 1.5%.
The ETF's current long positions consists of the Materials Selector Sector SPDR (NYSE: XLB), Technology Select Sector SPDR (NYSE: XLK) and the Energy Select Sector SPDR (NYSE: XLE).
The fund is short the Financial Select Sector SPDR (NYSE: XLF), Consumer Staples Select Sector SPDR (NYSE: XLE), Health Care Select Sector SPDR (NYSE: XLV), Consumer Discretionary Selec Sector SPDR (NYSE: XLY) and the Industrial Select Sector SPDR (NYSE: XLI).
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Maryland-based AdvisorShares lists 13 ETFs on its Web site. The firm had $370 million in assets under management as of mid-September 2011.
