THOR Financial Technologies today announced the launch of its first exchange traded fund, the THOR Low Volatility ETF (THLV ), an actively managed low-volatility equity strategy on the New York Stock Exchange. The introduction of THOR’s low-volatility strategy as an ETF brings the firm’s proprietary risk management technology to the masses, seeking to provide investment results that generally correspond, before fees and expenses, to the performance of the THOR U.S. Low Volatility Index.
THOR’s Low Volatility Index is calculated by Solactive and invests in large-cap equities across 10 sector ETFs: financial, industrial, energy, technology, healthcare, materials, utilities, consumer discretionary, real estate, and consumer staples. The ETF rebalances weekly to determine if sectors are risk-on or risk-off, where sector allocations transition into money market funds or cash to minimize negative returns.
“We are thrilled to launch our first publicly traded offering and even more excited about our fund product pipeline,” said Brad Roth, founder and CIO of THOR Financial Technologies, in a news release. “THLV delivers one of our flagship investment strategies in a low-cost vehicle to help meet investor needs as they continue to seek low volatile investments capable of producing alpha.”
Brad Roth and Cameron Roth are the portfolio managers for THLV.
THLV will be competing with such low-vol funds as the Invesco S&P 500 Low Volatility ETF (SPLV ) and the iShares MSCI USA Min Vol Factor ETF (USMV ) to gain investor attention.
“Unlike pre-existing lower-volatility ETFs from iShares and Invesco, THLV takes a sector and not a stock-specific approach,” said Todd Rosenbluth, head of research at VettaFi.
THOR uses a mix of non-traditional sciences to make investment decisions, relying on automated decision making to deploy investments quickly and without bias.
“THLV is an existing strategy from THOR used by many advisors on our model marketplace,” added Kyle Wiggs, co-founder of UX Wealth Partners. “The launch of this model as an ETF is based off of the ongoing advisor demand we’re experiencing for THOR’s low volatility strategies, as well as research through our partnership, to leverage data, analytics and an AI-driven investment engine to help de-risk portfolios.”
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