Family Dynasty Advisors has confirmed the launch of the ETF (NYSE Arca: FDAT), an actively managed “fund-of ETFs” that targets ETFs that primarily invest in U.S. equity securities or high-yield bonds. According to the fund’s prospectus, FDAT’s subadvisor Family Dynasty Advisors analyzes both technical and macroeconomic indicators to evaluate both the specific underlying ETFs and broad economic data to forecast market trends to determine which ETFs to target.
If, through its analysis, Family Dynasty Advisors forecasts a rising equity market, it will increase the fund’s holdings in its underlying ETFs and reduce its cash position. Conversely, if it perceives a flat or falling market, it will reduce FDAT’s holdings in its ETFs and increase the fund’s allocation to cash.
Toroso Investments is listed as FDAT’s advisor in the prospectus.
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Family Dynasty Advisors Founder and CEO Mike Caffey, and Toroso portfolio managers Charles A. Ragauss and Qiao Duan will manage the fund.
The fund’s subadvisor may change FDAT’s allocation if it forecasts changes to the broad equity markets, or if it foresees changes in specific submarkets, like small-cap stocks, for example. By adjusting the fund’s cash position in times of forecasted flat or negative market conditions, FDAT expects to reduce to some extent the extent of loss which may be experienced in the broader equity market.
The fund’s ability to actively manage its cash position is intended to reduce the volatility of its returns to below that of the equity markets in general.
FDAT carries an expense ratio of 0.74%.
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