FYI: roducing alpha is the Holy Grail of active investment management, and most people attempt to generate returns exceeding a benchmark index by relying on hands-on stock or bond picking. And when people think of investment alpha, they often dream of achieving outsized returns well above the benchmark.
The folks at Liquid Strategies LLC have a different take on the pursuit of alpha that has nothing to do with active stock or bond selection, or with generating boffo alpha above the benchmark. The Atlanta-based investment management firm this week rolled out the Overlay Shares suite of five actively managed exchange-traded funds that employ an options overlay strategy over a specified benchmark index. The strategy is designed to create additional returns above a benchmark over time with little change in the overall risk profile.
The Overlay Shares ETFs take a minimalist approach to portfolio construction: four of the five funds in the suite contain just one holding in the form of an ETF that tracks a specific index for either stocks or bonds, depending on the fund’s objective. The fifth product has two underlying ETFs. The Overlay Shares roster comprises the following:
• Overlay Shares Large Cap Equity ETF (OVL)
• Overlay Shares Small Cap Equity ETF (OVS)
• Overlay Shares Foreign Equity ETF (OVF)
• Overlay Shares Core Bond ETF (OVB)
• Overlay Shares Municipal Bond ETF (OVM)
Regards,
Ted
https://www.fa-mag.com/news/new-etfs-offer-different-way-to-generate-alpha-51957.html?print
