DENVER, CO--(Marketwired - January 26, 2017) - Blue Sky Asset Management, an innovative asset manager known for creating sound and intelligent quantitative solutions for portfolio construction challenges, has launched a new suite of ETFs under the "QuantX" brand, it was announced today.
The five ETFs in the QuantX family, all listed on BATS, incorporate various proprietary strategies from the Blue Sky team, developed over the past several years and previously only available to investors in a separate account wrapper.
"Working with advisors has given us a clear window into the challenges they face in building complete portfolios while also mitigating the volatility and downside risk that can so easily wreak havoc on the best laid asset allocation plans," said Keys Tinney, Founder and Managing Partner of Blue Sky Asset Management.
"Investors don't have an infinite time horizon, which is one of the main reasons we find traditional modern portfolio theory-based approaches to be sub-optimal," says David Varadi, a Partner and Director of Research at Blue Sky. "Our dynamic, quantitative approach provides for a more rapid response to changing markets, while filtering out the emotions that can have a negative impact on decision-making. We have built this intellectual property into the indexes underlying the QuantX ETFs."
The five funds launching today fall into two distinct categories:
Dynamic Beta: Here, Blue Sky seeks to create smarter risk exposures relative to a major benchmark, generating an asymmetric risk profile.
- QuantX Dynamic Beta US Equity ETF (XUSA): designed to create smarter risk exposure relative to the FTSE/Russell 1000 Index, this fund and its underlying index use options market data to identify a basket of large cap US equities with the highest upside volatility relative to their downside volatility.
"With XUSA, investors are able to capture key asymmetries in the US equity market, by identifying opportunities for upside participation and lowering downside risk," said Varadi.
Risk-Managed: With these funds, Blue Sky uses their approach to "Dynamic Asset Allocation" to provide exposures to key asset classes, while also optimizing cash and fixed income holdings in an attempt to manage downside risk. The underlying indexes are monitored daily and updated as indicated by Blue Sky's methodology, based on the identification of elevated risks across various exposures. The funds and their underlying indexes have the ability to move the portfolios entirely to cash or fixed income instruments in an attempt to mitigate downside risk.
- QuantX Risk Managed Multi-Asset Income ETF (QXMI): identifies top-performing fixed income and equity ETFs in attempting to maximize income and capital growth; cash and fixed income instruments can also be used in an effort to provide downside protection during times of market stress.
- QuantX Risk Managed Growth ETF (QXGG): identifies top-performing domestic and international equity ETFs in an attempt to maximize capital growth, while cash and fixed income instruments are managed in an effort to provide downside protection during times of market stress.
- QuantX Risk Managed Real Return ETF (QXRR): captures exposure to real returns by investing in inflation-sensitive assets while seeking downside protection.
- QuantX Risk Managed Total Return ETF (QXTR): seeks to provide higher levels of total return from the best-performing asset classes with downside protection.
"While there are other 'risk-managed' approaches already on the ETF market, they tend to operate with a long delay, managing risks after they have already started to have a negative impact on a portfolio," said Tinney. "Our approach is truly dynamic. With volatility an ever present risk for investors of all types, we believe it's time for smarter beta solutions, and we're very excited to be bringing the QuantX ETF family to market."
About Blue Sky Asset Management
Blue Sky Asset Management (BSAM), sponsor of the QuantX family of ETFs, develops and manages a comprehensive suite of adaptive investment solutions designed to cater to institutions and private investors through their financial advisor. BSAM's flagship Dynamic Asset Allocation strategy broadly seeks to enhance risk-adjusted returns in all market conditions by over-weighting risk assets in period of market strength, and over-weighting defensive assets in periods of market weakness. For more information, visit http://www.bsam.com or http://www.quantxfunds.com.
Investors should carefully consider the investment objective, risks, charges and expenses of the QuantX ETFs Funds. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call 866-270-0300. The Fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC and Blue Sky Asset Management, LLC are not affiliated.
Exchange Traded Funds involve risk, including possible loss of principal. There is no guarantee the fund will meet its objective.
As the Funds may not fully replicate the Index, it is subject to the risk that investment management strategy may not produce the intended results. ETFs in which the Fund invests are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in the ETFs and may be higher than other mutual funds that invest directly in stocks and bonds. The Fund does not utilize an investing strategy that seeks returns in excess of the Index. Therefore, it would not necessarily sell a security unless that security is removed from the Index, even if that security generally is underperforming.