New Efficient Market Portfolio Plus ETF Offers Active Strategy

EMPB is an actively managed fund with a total net expense ratio of 2.21%. The fund looks to offer capital appreciation for its investors. 

NextGen EMP manages EMPB’s portfolio strategy. To generate capital appreciation for its investors, NextGen employs a proprietary algorithm to determine which sectors and asset classes in the economy are best-positioned to outperform the broad U.S. equity market. 

The NextGen algorithm looks to predict where the prices will go for different asset classes and sectors in the market. To do so, NextGen screens historical and real-time market data to get a better idea of trends and price patterns.

By using such a thorough company screening algorithm, EMPB can challenge two different tasks at once. First is to create a portfolio that can stay ahead of the U.S. market in terms of returns. As a second benefit, the fund could mitigate overall risk by avoiding asset classes and sectors that NextGen anticipates will underperform down the line. 

Portfolio allocations for EMPB are done in a mix of long and short positions in ETFs or individual equities. The long positions are held for securities and funds expected to outperform. Meanwhile, the short selection is reserved for sectors and asset classes slated to underperform compared to U.S. equities. 

EMPB typically invests in a range of 12 to 24 different underlying ETFs. ETFs selected by the fund can provide access to a wide variety of asset classes. 

These asset classes include U.S. equities of any cap size, foreign equities, and U.S. Treasury securities, among others. Additionally, EMPB may also hold long or short positions in inverse leveraged ETFs. 

NextGen anticipates EMPB’s portfolio to be tinkered with on at least a monthly basis. While this could lead to a high turnover rate, EMPB’s active management may put the fund in a better position to make opportunistic market calls. 

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