The AdvisorShares YieldPro ETF (YPRO), a fund of funds multi-asset income strategy investing primarily in other exchange-traded products (ETPs), has begun trading on the NYSE Arca.
YPRO is sub-advised by The Elements Group (TEG), a California-based SEC registered investment adviser. TEG also sub-advises the AdvisorShares EquityPro.
The fund will aim to allocate the majority of its portfolio to long and short investments across all sectors of income producing securities. In YPRO's structured investment process, TEG will pursue attractive yield and manage volatility through a quantitative approach to risk budgeting, which also includes the use of options to hedge residual equity and interest rate risk as needed. YPRO's combination of portfolio construction, risk budgeting, and hedging seeks to provide less volatility, low correlations to equity market risk, and the flexibility to manage interest rate risk.
"We are pleased to again partner with Josh Emanuel and TEG on a strategy which we believe provides another compelling income offering within our actively managed ETF suite," says Noah Hamman (pictured), chief executive officer of AdvisorShares. "In the current interest rate environment where many investors and advisors actively hunt for the dual goals of yield and mitigation of risk, we feel YPRO may help allow the flexibility to potentially achieve both objectives."
"We feel the desire for a robust income solution that serves as a suitable substitute to traditional bond risk is a significant need across many investor and advisor wish lists," said Joshua Emanuel, chief investment officer of TEG and portfolio manager of YPRO. "By aiming to provide a low volatility, low correlated income strategy based on TEG's rigorous combination of quantitative research and disciplined portfolio construction, we believe that we can deliver an attractive income solution for investors, especially with the attributes of transparency, liquidity and efficiency in its actively managed ETF structure."
