Liquid Alternatives: Formidable Asset Management Launches Liquid Alternatives ETF
The Formidable ETF (FORH) is an actively managed, liquid alternatives portfolio.
Formidable Asset Management, LLC announced the launch of the Formidable ETF (NYSE:ARCA: FORH), the firm’s first ETF product. The ETF is an actively managed, liquid alternatives portfolio diversified among multiple distinct strategies, including tail hedging, inside a single ETF. (ETF Trends)
The Formidable ETF (FORH)
The ETF trades on the NYSE Arca Exchange under the ticker FORH, and closed at $25.27 on Thursday. The fund managers believe that a multi-strategy approach may be an efficient way to provide alternatives exposure.
They describe the ETF as:
- Active: Driven by the firm’s research process, not a passive index.
- Alternative: Multi-strategy approach may complement fixed income or equities.
- Adaptable: Hedging strategies seek to help protect against significant market declines.
The ETF will invest primarily in equities. However, it will pursue a range of investment strategies across asset classes and styles, while applying a dynamic risk management framework.
Further equity selection will be based on a combination of fundamental analysis, valuation, and technical considerations, as well as portfolio risk controls.
The fund has the liberty to deploy hedging strategies to protect against significant market declines. Toroso Investments will act as sub-advisor to the FORH.
The ETF has an expense ratio of 1.20%.
Multi-strategy approach inside an ETF wrapper
“We believe alternatives may play an important role in diversifying a client’s overall asset allocation, and yet we were unable to find funds that met our criteria in this category. Accordingly, we set about designing a multi-strategy approach rooted in our investment process, then decided to offer it as an ETF, which we believe may provide transparency and tax efficiency”, said Will Brown, Chief Executive Officer and Managing Partner of Formidable.
Related Story: Ninepoint Launches A Liquid Alternative Bond Fund
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