AdvisorShares Slashes Expenses On GTAA

by on January 19, 2011 | ETFs Mentioned:

AdvisorShares, the Maryland-based sponsor of actively-managed ETFs, announced today that it has reduced the expense cap on its most popular product. The expense cap for the AdvisorShares Cambria Global Tactical ETF (GTAA) will drop from 1.35% to 0.99%, effective February 1. “AdvisorShares and Cambria made a commitment to lower ETF fees as assets grew and operational efficiencies were achieved,” said Noah Hamman, CEO and Founder of AdvisorShares. “In the three months since GTAA launched it has been one of the fastest growing actively managed ETFs, and it has attracted over $72,000,000 in assets as investors have quickly embraced the GTAA investment strategy.”

GTAA debuted in late October, and has already become one of the most popular actively-managed ETFs [see Counting Down The Best New ETFs of 2010]. The fund was born out of a partnership between AdvisorShares and Cambria Investment Management, the firm run by the authors of the influential book The Ivy Portfolio. GTAA is the first truly global asset allocation ETF, investing in a variety of asset classes that may include domestic and foreign equities, fixed income, and real estate, as well as commodities and currencies. GTAA follows a trend-based model across these asset classes, and will either be invested or be defensive through a cash position for each depending on certain metrics. Recently, the fund’s largest holdings were in the EAFE Small Cap ETF (SCZ) and the Vanguard Emerging Markets ETF (VWO).

AdvisorShares has been busy in recent months, rolling out the first active high yield bond ETF (HYLD) and laying the groundwork for a number of additional funds. The firm recently formed a partnership with TrimTabs, suggesting that an ETF based on the market liquidity theories of founder Charles Biderman may not be far off.

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Disclosure: No positions at time of writing.