Virtus to close two actively managed multi-asset ETFs

Aug 21st, 2017 | By | Category: Alternatives / Multi-Asset

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Virtus ETF Solutions has announced it is to close two of its funds, the Tuttle Tactical Management US Core ETF (Nasdaq: TUTT) and the Tuttle Tactical Management Multi-Strategy Income ETF (Nasdaq: TUTI). Both funds are actively managed and provide multi-asset exposure.

Virtus to close two actively managed multi-asset ETFs

TUTT and TUTI will have their last day of trading on 25 August 2017.

TUTT is a “fund of funds” meaning it invests in other ETFs to gain its targeted exposures, tactically rotating among US equity markets and Treasury bonds depending on momentum signals in the market. The fund uses four different momentum strategies including absolute momentum and relative strength momentum approaches.

The equity funds TUTT will typically invest in track variants of the S&P 500 including smart beta, style and leveraged indices. TUTT’s defensive positions include cash as well as fixed-income securities.

TUTT has a total expense ratio (TER) of 1.06% including acquired fund fees of 0.16%. Despite currently holding over $27 million in assets under management, the fund has still been marked for closure.

TUTI analyses similar trend models to TUTT and is also a fund of funds, but tactically rotates between ETFs tracking dividend paying stocks, REITs, MLPs, and fixed income securities, as well as equity ETFs with a covered call overlay strategy. TUTI’s primary goal is income generation and its secondary goal is capital appreciation.

Among the tactical models used, TUTI has both an “Income Relative Momentum” model and a “Dividend Tactical Fundamental Earning” model based on monthly and weekly returns, respectively. Additionally, there is a “Dividend Counter-Trend” model that goes against the grain of market sentiment using daily returns.

It has a TER of 1.10% and AUM of $4.5m.

The ETFs’ last trading day will be 25 August 2017 after which any remaining proceeds in the ETFs will be liquidated and returned to stakeholders.

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