GGM Wealth Advisors has launched an active ETF that aims to beat the market through a full economic cycle. The GGM Macro Alignment ETF (NYSE Arca: GGM) seeks long-term capital appreciation by dynamically shifting among sectors and styles best suited for the prevailing macroeconomic environment.
GGM aims to beat the S&P 500 by mapping and measuring current economic variables while maintaining a lower risk profile. It carries an expense ratio of 0.88%.
See more: Macro update: Navigating a unique business cycle
On the fund’s website, GGM likens investing to packing for vacation — it helps to know the destination.
“Skiing in a swimsuit or walking the beach in your snow gear would intuitively seem unpleasant,” according to GGM. “As you can envision, packing the right outfit will certainly lead to a more enjoyable experience. The same can be said for your investments. The economy experiences different climates or ‘seasons’ too, so properly preparing your portfolio for the correct season is important.”
GGM “targets the right outfits (investment sectors and styles) for the current economic climate, and automatically shifts its assets as the economic forecast changes.”
The ETF takes a “fund of funds” approach by investing in the shares of market sector, sub-sector, and style ETFs. Under normal market conditions, the fund will invest its assets in five underlying sectors, sub-sectors, or style ETFs.
The fund’s managers intend to invest in a single ETF to represent a sector, sub-sector, or style. The five underlying ETFs will be equally weighted across three underlying sector ETFs and two underlying sub-sectors or style ETFs.
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