Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. First Trust To Launch Volatility Small/Mid ETF ‘HSMV’
News
Share

First Trust To Launch Volatility Small/Mid ETF ‘HSMV’

Aaron NeuwirthApr 07, 2020
2020-04-07

On Tuesday, First Trust launched a new ETF working as an actively managed strategy seeking to deliver a low volatility portfolio of small and mid-cap stocks.

First Trust Advisors L.P., a leading ETF provider and asset manager, announced the launch of the First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). The fund seeks to provide capital appreciation while attempting to mitigate volatility using a proprietary quantitative and rules-based investment process with a focus on small and/or mid-capitalization companies. The fund invests primarily in common stocks that the fund’s sub-advisor, Horizon Investments, LLC (“Horizon”), believes exhibit low future expected volatility.

“Recent volatility has underscored the importance of strategies designed for investors weathering turbulent markets,” said Robbie Cannon, CEO of Horizon Investments. The investment process focuses on small and/or mid-sized companies that Horizon believes may be less volatile than the broader market. “Our active volatility forecasting experience gives Horizon the opportunity to develop offerings like this that keep an eye on risk and capital appreciation in a variety of market environments,” said Cannon.

First Trust believes active portfolio management provides the ability to make the most of the opportunities the market has to offer, such as mispricing resulting from the murky role of volatility as a stock characteristic and the phenomenon known as the low-volatility anomaly. Economic theory would have you believe that those who take on higher risk should be compensated by the potential for a higher expected return.

The conventional wisdom is that it pays to take chances. However, counterintuitively, history has shown that portfolios of low-beta and low-volatility stocks have produced higher risk-adjusted returns than portfolios of high-beta and high-volatility stocks, in most major markets studied. This phenomenon is known as the low-volatility anomaly.

“Our goal at First Trust is to provide high quality tools for investment professionals. We believe this actively-managed ETF, focused on small and mid-cap stocks with defensive characteristics, such as low volatility, is a compelling strategy for pursuing better risk-adjusted returns,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.

The fund’s portfolio managers include Michael Dickson, Ph.D.; Scott Ladner; and Steven Clark, Ph.D., of Horizon who share responsibilities for the day-to-day management of the fund’s investment portfolio.

About First Trust

First Trust is a federally registered investment advisor and serves as the fund’s investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $138 billion as of February 29, 2020, through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds, and separately managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit https://www.ftportfolios.com..


Content continues below advertisement

About Horizon

Horizon is a registered investment adviser focused on modern goals-based investment management. Founded in 1995, the firm is based in Charlotte, NC, and works in partnership with financial advisors to deliver investment strategies that align clients’ wealth with their life goals. Horizon implements its global and active investment strategies through model accounts, collective investment funds, mutual funds and ETFs. The firm was recognized in 2018 and 2019 as Asset Manager of the Year (< $25B AUM) by Money Management Institute (MMI) and Barron’s, and 2018 Manager of the Year and Strategist of the Year by Envestnet and Investment Advisor Magazine. The firm has also received numerous other industry commendations for its investment management expertise. For more information, visit https://www.horizoninvestments.com/..

This article originally appeared on ETFTrends.com.

» Popular Pages

  • Tickers
  • Articles

May 19

TD Ameritrade: Lara Crigger on Retail & Opportunities

May 19

ETF of the Week: Merk Stagflation ETF

May 19

Relative Sentiment in a MOOD for Tactical Allocation

May 19

Wood Calls Tesla’s S&P 500 ESG Ouster “Ridiculous”

May 19

Troubling Economic Data Boosts Case for Gold

May 19

Biotech and Delisting Risk From China’s Perspective with WisdomTree

May 19

DBMF Offers Managed Futures Hedge Fund Strategies

May 19

Principal Launches Semi-Transparent Real Estate ETF

May 19

Solar ETFs Shine as EU Outlines Plans for Energy Independence

May 19

More Than Just Crypto Will Power This Fidelity ETF

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

XLE

Energy Select Sector SPDR...

WEAT

Teucrium Wheat Fund

ARKK

ARK Innovation ETF

VIG

Vanguard Dividend...

VYM

Vanguard High Dividend Yield...

VTI

Vanguard Total Stock Market...

SCHD

Schwab US Dividend Equity ETF...


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X