AdvisorShares Launches Actively Managed Hedged Equity ETF
AdvisorShares has launched the AdvisorShares Alpha DNA Equity Sentiment ETF (Ticker: SENT) on February 3, 2021. This actively managed ETF is sub-advised by Alpha DNA Investment Management, utilizing a quantitative investment strategy aimed at long-term capital appreciation by investing across U.S. large-, mid-, and small-cap equities. SENT employs a systematic options hedging strategy to help mitigate losses during market downturns, while leveraging machine learning to identify investment opportunities. The ETF aims to provide a core equity solution for investors amidst market volatility.
- Launch of AdvisorShares Alpha DNA Equity Sentiment ETF (SENT) enhances the ETF lineup.
- Employs a systematic options hedging strategy to reduce potential losses.
- Utilizes machine learning for superior investment outcomes, aiming for long-term capital appreciation.
- None.
BETHESDA, Md., Feb. 3, 2021 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launch of the AdvisorShares Alpha DNA Equity Sentiment ETF (Ticker: SENT). SENT is an actively managed ETF sub-advised by Alpha DNA Investment Management, a quantitative research-based manager which specializes in a proprietary investment approach that broadens the use of machine learning to create better portfolio outcomes.
SENT employs a quantitative, systematic investment process which seeks long-term capital appreciation by investing in U.S. large-, mid- and small-cap equities. The portfolio manager applies an options hedging strategy to help mitigate losses from market declines and keeps the ETF both invested and always hedged.
Every day, Wall Street analysts forecast company earnings and every quarter there are unexpected surprises. SENT uses proprietary research designed to uncover companies growing faster than Wall Street expectations and seeks to invest in a stock portfolio that can deliver superior returns. The portfolio manager deploys machine learning and alternative data analytics to decode sentiment as a proxy for tailwinds in demand.
"Alpha DNA's highly specialized portfolio management delivered within the benefits of an ETF vehicle adds another dimension to our equity strategy lineup," said Noah Hamman, chief executive officer of AdvisorShares. "We believe SENT offers a compelling, long-term core equity solution for advisors and investors seeking to mitigate portfolio risk and withstand unexpected volatility, especially important in this market environment."
"In managing SENT, we always stay invested to provide equity participation in bull markets and always stays hedged to mitigate downside when markets turn bearish," said Wayne Ferbert, founder and managing director of Alpha DNA Investment Management and portfolio manager of SENT. "Our unique investment approach removes any emotion from decision-making and any need for market timing in an effort to provide SENT shareholders with a peace of mind to stay the course in reaching their investment goals."
AdvisorShares will host an investment webinar on Thursday, February 11th at 4:15pm EST featuring Mr. Ferbert to discuss the SENT ETF, which will explore how Alpha DNA uncovers the digital sentiment of companies within its investment universe and their proprietary quantitative research platform. You may learn more and register for the webinar here.
About AdvisorShares
AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
Foreside Fund Services, LLC, distributor.
Investing involves risk including possible loss of principal. The Sub-Advisor continuously evaluates the Fund's holdings, purchases and sales with a goal of achieving its investment objective, which is not guaranteed, and judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance. Security prices of small and mid-cap companies may be more volatile than those of larger companies and therefore the Fund's share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies.
Options Risk. Selling (writing) and buying options are speculative activities and entail greater than ordinary investment risks. The Fund's use of put options can lead to losses because of adverse movements in the price or value of the underlying asset, which may be magnified by certain features of the options. When selling a put option, the Fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the Fund if the price of the underlying asset is below the strike price by an amount equal to or greater than the premium. Purchasing of put options involves the payment of premiums, which may adversely affect the Fund's performance. Purchasing a put option gives the purchaser of the option the right to sell a specified quantity of an underlying asset at a fixed exercise price over a defined period of time. Purchased put options may expire unexercised, resulting in the Fund's loss of the premium it paid for the option.
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SOURCE AdvisorShares
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