New trendfollowing ETF planned for Q2 2017

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ochotona
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New trendfollowing ETF planned for Q2 2017

Postby ochotona » Tue Mar 14, 2017 1:44 pm

Its VMOT from AlphaArchitect

http://www.etf.com/sections/daily-etf-w ... nd-planned

It has international and US value and momentum exposure, and accomplishes the trendfollwing risk control by use of options, not by selling the underlying securities.

I think it could be useful in taxable accounts where reducing taxable events is a concern. Also, if a person wants to trendfollow, but doesn't want to trade, this is a buy and hold solution, but underneath it isn't buy and hold. It's not cheap, however.
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foglifter
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Re: New trendfollowing ETF planned for Q2 2017

Postby foglifter » Tue Mar 14, 2017 2:24 pm

Another interesting ETF with even lower ER of 0.25% is Meb Faber's GAA: http://beta.morningstar.com/etfs/BATS/GAA/quote.html

The problem with these niche products is they may or may not gain interest and the bid/ask ratio is high due to tiny trade volume. It'll be interesting to see how VMOT will be doing.
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ochotona
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Re: New trendfollowing ETF planned for Q2 2017

Postby ochotona » Tue Mar 14, 2017 2:27 pm

The thing about GAA is, it's not active. It's passive. GMOM is the active version of GAA.

I'm with you with the low traffic. It's a concern. Some of Meb's ETFs are on the delisting deathwatch, at $10 million in assets or less.
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Re: New trendfollowing ETF planned for Q2 2017

Postby ochotona » Sun Oct 08, 2017 3:27 pm

foglifter wrote:Another interesting ETF with even lower ER of 0.25% is Meb Faber's GAA: http://beta.morningstar.com/etfs/BATS/GAA/quote.html

The problem with these niche products is they may or may not gain interest and the bid/ask ratio is high due to tiny trade volume. It'll be interesting to see how VMOT will be doing.


Thus far, VMOT seems to keep up with other global equity ETFs. It has $41 million AUM already, I think it started much smaller. When it hits $100 million, and after the next big correction, we'll see about buying some. If the trend-following risk management works, I bet it will suddenly become very popular... along with the PP, of course.
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foglifter
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Re: New trendfollowing ETF planned for Q2 2017

Postby foglifter » Sun Oct 08, 2017 8:47 pm

ochotona wrote:
foglifter wrote:Another interesting ETF with even lower ER of 0.25% is Meb Faber's GAA: http://beta.morningstar.com/etfs/BATS/GAA/quote.html

The problem with these niche products is they may or may not gain interest and the bid/ask ratio is high due to tiny trade volume. It'll be interesting to see how VMOT will be doing.


Thus far, VMOT seems to keep up with other global equity ETFs. It has $41 million AUM already, I think it started much smaller. When it hits $100 million, and after the next big correction, we'll see about buying some. If the trend-following risk management works, I bet it will suddenly become very popular... along with the PP, of course.


Interestingly, GAA assets has grown to a similar level - 47mln. I'm still keeping an eye on both VMOT and GAA, would like to see more performance history.
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Re: New trendfollowing ETF planned for Q2 2017

Postby ochotona » Sun Oct 08, 2017 10:08 pm

GAA is not tactical... it's buy and hold. GMOM is tactical.

"The Cambria Global Asset Allocation ETF uses a buy and hold strategy that aims to reflect the market portfolio of investable assets."

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