AdvisorShares has launched an actively managed ETF that incorporates technology, automation, and access to unique data into its investment strategy.
The Let Bob AI Powered Momentum ETF (LETB), which began trading on the NYSE on Wednesday, can be used as a core equity position that also seeks to reduce market risk exposure.
LETB invests in U.S. large-, mid-, and small-cap equities through a quantitative, systematic process. Powered by modern artificial intelligence capabilities, LETB’s proprietary methodology blends both fundamental sentiment momentum with technical price momentum to actively manage the portfolio.
The strategy utilizes macro technical analysis to manage risk tactically, which allows LETB to concentrate in a few sectors, industries, or by market capitalization, or lower equity exposure in a downward market and allocate to cash, including up to 100% of its portfolio, according to a statement from the firm.
The new ETF seeks to outperform the Russell 3000 Index on a risk-adjusted basis over a full market cycle with lower volatility than traditional long-only equity strategies, according to regulatory filings.
“We are excited to partner with Anthony Buchanan and Let Bob’s cutting-edge investment technology to deliver this innovative equity ETF to the marketplace,” Noah Hamman, chief executive officer of AdvisorShares, said in a statement. “We feel LETB provides a compelling, risk-managed investment solution for advisors and investors to consider for their equity allocation of an overall portfolio.”
Anthony Buchanan, founder and CEO of Let Bob, LLC, is the portfolio strategist of LETB. Buchanan has extensive experience as a software engineer in the technology industry and the financial sector, where he has been a leader in replacing legacy systems with cutting-edge modern technology.
“Emotions can be the villain story when it comes to risk and delivering on investment objectives,” Buchanan said in a statement. “Technology continues to evolve at breakneck speeds and Let Bob’s modern AI capabilities use a combination of traditional technical analysis and proprietary algorithms — not feelings, which we believe positions LETB to stand out among its peers.”
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