Strategas Asset Management launched an actively managed momentum-focused ETF on Thursday. The Strategas Macro Momentum ETF (SAMM ) looks to benefit from both equity and market momentum trends. It has an expense ratio of 0.66%.
“SAMM is a one-of-a-kind actively managed ETF designed to identify the ‘investable conclusion’ from the often complex and interdependent variables affecting the global economy,” said Strategas Asset Management Chairman and CIO Jason DeSena Trennert.
“This ETF aims to fill a gap for advisors and investors looking to leverage tactical rotation and take advantage of macro and market momentum wherever and whenever it may evidence itself,” he continued.
A Tactical Momentum Strategy
Strategas describes the fund as the “most tactical” ETF in its lineup. SAMM has wide latitude to invest in a range of equity types and vehicles. Its managers use multiple criteria to identify securities that are exhibiting momentum. From there, they use macro, technical, and behavioral data to select the portfolio’s holdings. Ultimately, the fund will hold 20-50 securities, the prospectus said.
According to a fact sheet, the fund will invest in equities exhibiting momentum in risk-on environments. As a result, the fund could see high concentrations in individual sectors. In risk-off environments, it can shift its portfolio toward a more defensive allocation. In those instances, it may invest in Treasuries, cash, or gold-related investments.
SAMM’s lead portfolio manager Chris Verrone says that SAMM is intended to be more sensitive to the existing market regime than Strategas’ other ETFs. Its strategy focuses on “seeking and exploiting the market’s momentum impulse wherever it’s found,” he noted.
SAMM is the issuer’s third ETF. Strategas has $104 million in assets under management, with its largest fund being the $67 million Strategas Macro Thematic Opportunities ETF (SAMT ).
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