McElhenny Sheffield Capital Management Launches the McElhenny Sheffield Managed Risk ETF (CBOE: MSMR)

Rhea-AI Summary

On December 9, 2021, McElhenny Sheffield Capital Management launched the McElhenny Sheffield Managed Risk ETF (CBOE: MSMR). This actively-managed ETF focuses on U.S. stocks while employing tactical rules-based strategies to manage risk. The firm has exceeded $400 million in assets under management and has offered client investments since 2000. The MSMR ETF combines two tactical strategies: the Trend Plus and Sector Rotation strategies, which allow flexibility between full equity investment and defensive positions. The ETF began trading on November 17, 2021.

Positive

• Launch of MSMR adds to MSCM's investment offerings.
• Surpassed $400 million in assets under management.
• Tactical strategies aim to manage risk effectively.

Negative

• MSMR is a new fund with no operating history.
• Potential underperformance due to reliance on market indicators.
• Non-diversified status increases exposure to volatility.

DALLAS, Dec. 9, 2021 /PRNewswire/ -- McElhenny Sheffield Capital Management, LLC (MSCM) announces the launch of the McElhenny Sheffield Managed Risk ETF (CBOE: MSMR), an actively-managed exchange-traded fund (ETF) targeting U.S. stocks with a focus on managing risk through tactical rules-based strategies.

The launch of MSMR adds to the firm's growing investment management offerings, as the firm recently surpassed $400 million in assets under management across its direct-client and subadvisory business. McElhenny Sheffield has successfully managed client investments since its founding in 2000, providing full wealth management services to individuals and families as well as sub-advised investment management capabilities to other Registered Investment Advisors and institutional investors. Independent wealth managers have gravitated to MSCM's tactical strategies for their ability to pursue upside while dynamically managing risk and seeking to avoid significant drawdowns.

"We believe our tactical strategies provide a compelling solution for many investors as they look to achieve their investment goals while avoiding the painful drawdowns associated with bear markets." said Bruce Fraser, Founder and Managing Partner at McElhenny Sheffield. "We're proud to have supported our clients and other advisors over the past two decades, and we are excited to extend our tactical investment strategies to the investing public through a tax-efficient active ETF with the launch of MSMR."

"We are excited to partner with McElhenny Sheffield," said JD Gardner, Founder and CIO of Aptus Capital Advisors. "The ETF wrapper offers an accessible way to deliver their active expertise with maximum efficiency."

MSMR combines two separate tactical strategies into one ETF. The ETF is based on a blend of MSCM's Trend Plus trend following strategy and MSCM's Sector Rotation momentum strategy. Both strategies offer a disciplined, rules-based approach that focuses on risk management. The strategies are fully tactical in that they can go from being 100% invested in U.S. equity ETFs to having zero exposure to the stock market (i.e., 100% defensive). Grant Morris, MSCM Partner and Portfolio Manager, said, "We believe all investors can benefit by adding a tactical investment allocation to their existing portfolio due to the low correlation of tactical strategies to more traditional asset allocations." The MSMR ETF provides a simple and tax-efficient way for investors to add an allocation to tactical investment management. MSMR began trading on the CBOE BZX Exchange on Wednesday, November 17, 2021.

Investors can learn more about MSMR at www.mscmfunds.com.

McElhenny Sheffield Capital Management
McElhenny Sheffield Capital Management is an SEC registered investment advisor and serves as the Funds' investment sub-advisor. The funds are distributed by Quasar Distributors, LLC.

Aptus Capital Advisors
Aptus Capital Advisors is an SEC registered investment advisor and serves as the Funds' investment advisor. The fund is distributed by Quasar Distributors, LLC.

An investor should carefully consider the investment objectives, risks, charges and expenses of the ETFs as applicable, before investing. The prospectus of MSMR contains this and other important information and is available free of charge by calling toll-free at 1-800-617-0004 or writing to Aptus at 265 Young Street, Fairhope, AL 36532. The prospectus should be read carefully before investing.

Investing involves risk. Principal loss is possible. The Fund is non-diversified meaning it may concentrate its assets in fewer individual holdings or sectors. Therefore, the Fund is more exposed to individual stock volatility or sensitive to developments that significantly affect those issuers or sectors which could have a greater impact on its performance. The Fund is new with no operating history or track record to base an investment decision upon.

The Fund utilizes momentum and trend-based strategies that use a variety of market indicators and stop levels that seek to identify upward or downward trends in the U.S. equity markets. If an indicator or stop level fails to detect significant downturns in the market, the fund may continue to be exposed to underlying positions that may lose value during such downward periods. Similarly, if the indicators fail to timely identify a reversal of a downward trending market, the Fund may continue to be exposed to defensive ETFs at a time when there is significant appreciation in the equity markets. Either scenario could result in the Fund underperforming other funds that do not employ these strategies. There can be no guarantee the Sector Rotation strategy will correctly or timely identify the industries, sectors, or asset classes that will outperform during a given quarter or that the Trend Plus strategy will correctly or timely identify market trends.

The Fund may invest in other investment companies and ETFs which may result in higher and duplicative expenses. If the Fund invests in U.S. Dollar ETFs, changes in currency exchange rates and relative value of non-U.S. currencies will affect the value of the Fund's investment and the value of Fund shares.

Investments in fixed income securities typically decrease in value when interest rates rise. If interest rates fall certain obligations may be paid off more quickly and the proceeds invested in securities with lower yields.  Changes in an issuer's credit rating or the market's perception of an issuer's creditworthiness may also affect the value of an investment in an issuer.

Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.  Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the current income tax regulations and it is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.

 

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SOURCE McElhenny Sheffield Capital Management

FAQ

What is the McElhenny Sheffield Managed Risk ETF (MSMR)?

MSMR is an actively-managed ETF launched by McElhenny Sheffield Capital Management that focuses on U.S. stocks while managing risk through tactical strategies.

When did the MSMR ETF start trading?

The MSMR ETF began trading on the CBOE BZX Exchange on November 17, 2021.

How much does McElhenny Sheffield Capital Management manage?

McElhenny Sheffield Capital Management has surpassed $400 million in assets under management.

What strategies does the MSMR ETF employ?

MSMR ETF combines the Trend Plus trend-following strategy and the Sector Rotation momentum strategy.