PlanRock Launches Two New Alternative ETFs
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Insights
The introduction of the PlanRock Alternative Growth ETF (PRAE) and the PlanRock Market Neutral Income ETF (PRMN) by PlanRock Investments represents a strategic move to diversify investment offerings. The PRAE aims to achieve growth by actively rotating between different segments of the global equity markets, a strategy that could be attractive during market volatility. Conversely, the PRMN focuses on generating income while neutralizing market risk, which could appeal to conservative investors seeking stable returns.
These ETFs' focus on low correlation with broad markets and hedging strategies indicates an effort to manage volatility and provide alternatives to traditional stock or bond investments. The ability of PRAE to move between long and short positions could benefit investors during market downturns, offering a potential hedge against losses in a traditional equity portfolio. PRMN's use of high dividend equities and equity index futures to achieve market neutrality could attract investors looking for income without the typical market risk.
However, potential investors should consider the management fees associated with these ETFs and the complexities involved in alternative investment strategies. It's important to evaluate how these funds fit within a diversified portfolio and align with an investor's risk tolerance and investment objectives.
Alternative ETFs like PRAE and PRMN are part of a growing trend in the investment landscape, catering to investors who seek to mitigate risk and enhance returns through strategies not typically found in traditional portfolios. The launch of these ETFs aligns with the broader industry shift towards products that can perform in various market conditions, including bear markets.
While the PRAE's strategy of rotating between global equity market segments and its ability to take long and short positions could help in capitalizing on market inefficiencies, it also requires sophisticated analysis to execute effectively. Similarly, PRMN's strategy of investing in high dividend equities and using equity index futures to hedge market exposure demands a robust risk management framework to ensure the desired outcome of low to negative correlation with the bond market.
Investors should note that the success of these strategies is contingent upon the fund managers' ability to accurately forecast market movements and adjust positions accordingly. As such, the track record and expertise of PlanRock Investment Management will be critical factors in the performance of these ETFs.
"We are incredibly excited to announce these strategies," said Stephen Hammers, Founder, CEO and CIO, PlanRock Investment Management. "Our mission is to advance and preserve investor capital by providing investment strategies that may complement stocks or bonds and are designed to provide value during bull or bear markets."
The PlanRock ETFs are offered as a potential replacement or complement to traditional stock or bond portfolios.
The PlanRock Alternative Growth ETF seeks growth by rotating between various segments of the global equity markets and avoiding areas of the equity market that are struggling. The Fund seeks low correlation to the broad global equity markets due to its equity rotation and ability to move between long and short positions while striving for positive returns during bull and bear markets.
The PlanRock Market Neutral Income ETF seeks income and capital appreciation by investing in high dividend global equities for income and neutralizing market risk exposure through a series of equity index futures. Hedging strategies are also utilized to target volatility and potentially achieve added returns over time. The strategy is designed to have a low to negative correlation to the bond market with similar volatility.
About PlanRock
PlanRock Investment Management, LLC is a registered investment advisor headquartered in
PlanRock Investment Management, LLC is a registered investment advisor. Registration as an investment advisor does not imply a certain level of skill or training. Before investing in a PlanRock ETF, you should carefully consider the fund's investment objectives, risks, charges, and expenses. This and other information are in the prospectus and summary prospectus, a copy of which may be obtained by visiting the fund's website at www.PlanRockFunds.com, or by calling 800-677-6025. Please read the fund's prospectus and summary prospectus carefully before investing.
Important Risk Information: Investing involves risk, including loss of principal. There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses. Short sales involve unlimited loss potential since the market price of securities sold short may continuously increase. Investments in derivatives are subject to market risks that may cause their prices to fluctuate over time and may increase the volatility of the Fund. The Fund is an actively managed ETF. The Funds' shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. PlanRock ETFs are distributed by Northern Lights Distributors, LLC. There is no affiliation between Northern Lights Distributors, LLC and PlanRock Investments.
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SOURCE PlanRock Investment Management LLC
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