New Dynamic Tactical ETF From Summit Global Investments

DYTA is a tactical ETF looking for long-term capital appreciation focused on mitigating risk. The fund seeks to participate in rising equity markets, reducing risk when fundamental and quantitative signals identify weakness within various asset classes or sectors. When that happens, SGI will tactically alternate allocations among the underlying securities to seek lower volatility than the S&P 500.

SGI’s CEO and CIO Dave Harden told VettaFi in a phone interview that the fund uses quantitative factors to determine which securities to hold.

“This is trying to be in the right place at the right time,” Harden said. “Instead of trying to keep your long-term right, tactical needs to get the next two weeks right.”

Harden explained that while the fund’s portfolio will hold U.S.-based securities of all classes, sizes, and styles, “It does have some boundaries.”

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Since DYTA is actively managed and semi-transparent, the fund discloses its holdings on a quarterly basis. Appearing on TD Ameritrade’s “The Watch List,” Vettafi’s head of research Todd Rosenbluth said that advisors are becoming increasingly interested in active ETFs.

“What we’re seeing when we talk to the VettaFi advisor base, who we speak with on a regular basis, they’re increasingly interested in actively managed ETFs,” Rosenbluth said, adding that 87% of advisors are either somewhat or very likely to be investing in an active ETF in 2023.

DYTA is structured under Blue Tractor’s Shielded Alpha ETF wrapper, which facilitates active fund management while seeking to help hedge the portfolio manager’s alpha strategy and trading execution.

“Tactical management is a space people are interested in,” Harden added. “There are a few tactical ETFs out there, but I don’t think there’s enough.”

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