On Tuesday, 3EDGE Asset Management debuted a new suite of active ETFs.
This new selection of funds includes the 3EDGE Dynamic Fixed Income ETF (EDGF ), the 3EDGE Dynamic Hard Assets ETF (EDGH ), the 3EDGE Dynamic International Equity ETF (EDGI ), and the 3EDGE Dynamic US Equity ETF (EDGU ).
“3EDGE’s actively managed ETFs are designed to enhance our Core Strategies – Conservative, Total Return and Growth, while maintaining the same proven investment approach. This new suite of ETFs reflects our commitment to innovation and improving the advisor-client experience,” noted Monica Chandra, President of 3EDGE Asset Management. “By leveraging the tax efficiencies inherent in ETFs, we aim to deliver better performance and a more cost-effective solution for our clients while also offering them at no strategist fee on various TAMP platforms including Orion, Envestnet, SmartX, Adhesion and Potomac.”
A Suite of Different Strategies Among Active ETFs
EDGF aims to offer income and capital appreciation for its investors. The fund has a net expense ratio of 0.80%.
The wide majority of EDGF’s investments lie in fixed income securities and other instruments with similar characteristics. These include ETFs or derivatives. However, the fund primarily intends to focus investments in Treasuries and investment grade debt.
EDGH, EDGI, and EDGU each seek to offer capital appreciation for their investors. Additionally, these three funds cultivate portfolios with the intention to mitigate losses during periods of market decline.
EDGH operates with a net expense ratio of 1.01%. The fund primarily invests in instruments that provide exposure to hard assets. The fund may hold exposure to a variety of hard assets. However, EDGH currently intends to hold strong exposure toward gold ETFs.
As the fund’s title implies, EDGI holds strong exposure to international equities. The fund’s net expense ratio currently sits at 1.04%.
In terms of country exposure, EDGI chooses undervalued countries well positioned to positively respond to market movements. Per the fund prospectus, EDGI will be seeking strong exposure to Europe, China, Japan, India, and emerging markets.
Meanwhile, EDGU offers an equity strategy that focuses on U.S. issuers. This fund has a net expense ratio of 0.84%. Much like EDGI. EDGU looks to invest in sectors that the market currently undervalues, yet which remain poised to benefit from economic and market catalysts.
“Active management comes down to the managers making portfolio decisions, and here, 3EDGE brings to the table interesting strategies that leverage their expertise,” noted Cinthia Murphy, VettaFi Investment Strategist. “ From valuation awareness, to global macro conditions to behavioral insights, 3EDGE takes it all into account with ETFs that seek capital appreciation and capital preservation in a single ticker. This is an exciting addition to the universe of active ETFs.”
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting 3edgeetfs.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated investment objectives.
The Funds may trade securities actively, which could increase its transaction costs (thereby lowering its performance) and could increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate.
Because the Funds are new, investors in the Funds bear the risk that the Funds may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Funds being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation.
The Funds are distributed by SEI Investments Distribution Co (SIDCO, 1 Freedom Valley Drive, Oaks, PA 19456) which is not affiliated with 3EDGE Asset Management.
For more news, information, and analysis, visit VettaFi | ETFDB.
