On this week’s episode of ETF Prime, Ben Fulton, CEO of WEBs Investments joins Nate Geraci to discuss the firm’s suite of defined volatility ETFs. Later, Arthur Nowak, Client Portfolio Manager at Alger, shares the firm’s high-conviction approach to investing in innovation and growth – including the Alger AI Enablers & Adopters ETF (ALAI ).
The episode kicks off with Fulton discussing the launch of the firm’s suite of 13 defined volatility ETFs. These funds are designed to dynamically adjust market exposure based on real-time volatility.
Fulton explains that the ETFs use sector SPDR ETFs such as the Webs Defined Volatility XLK ETF (DVXK ). their underlying holdings and apply a mechanical, rules-based process to adjust exposure daily based on realized market volatility.
Drawing on his experience at PowerShares and Claymore Securities, Fulton highlights the strategy’s tax efficiency. While he acknowledges the risks of sharp market moves, the strategy is built for investors with a multi-year horizon. It aids those looking to complement traditional equity allocations with a more volatility-aware approach.
ETF Prime Discusses Investment Philosophy and Active Management at Alger
Later, Nowack explained how Alger’s investment philosophy is centered on “positive dynamic change.” Today’s innovation-driven environment is fueled by AI, robotics, and digital disruption aligns well with their bottom-up, active management approach.
Nowack also shared insights on market valuations, arguing that today’s elevated levels can still offer long-term opportunities, especially with an active approach that considers intangible assets and future earnings potential. He also stressed the growing importance of due diligence in the crowded active ETF space, urging investors to evaluate ETFs with the same rigor applied to mutual funds — team, process, philosophy, and performance
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