This ETF offers a unique twist on market neutral exposure, offering both long and short positions to U.S. stocks within a single portfolio. Given this objective, RALS can be expected to exhibit a low correlation with traditional asset classes, and as such can be a useful tool for investors looking to smooth overall volatility and who believe that the underlying methodology is capable of generating positive returns over the long run regardless of overall market direction. RALS should be appealing to those who believe that market capitalization weighting is inherently flawed, and that the fundamentals-based RAFI strategy offers a more rational way to achieve exposure to U.S. equities (essentially, that cap weighting has a tendency to overweight overvalued stocks and underweight undervalued companies). RALS essentially calculates the weight of various stocks based on multiple fundamental factors, and establishes long positions in those with a "RAFI weight" greater than their market cap weight (and vice versa). The methodology is sound, making RALS a useful tool for exploiting potential inefficiencies in cap weighted indexes. Investors shouldn't expect huge returns in either direction; as a long/short fund, RALS is unlikely to make significant moves in either direction. One potential drawback is the expense ratio, which creates a material breakeven hurdle, especially considering the nature of the fund's strategy.
The adjacent table gives investors an individual Realtime Rating for RALS on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Long-Short with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This section compares how balanced and deep this ETF is relative to the peer group ETFdb.com Category.
This section compares the cost efficiency of this ETF to peers in the same ETFdb.com Category.
This ETF is currently available for commission free trading on the following platforms: (Charles Schwab)
There are 5 other ETFs in the Long-Short ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
This section compares the fund flows of this ETF to peers in the same ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of RALS relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.