AdvisorShares, a sponsor of actively managed exchange-traded funds (ETFs), has launched the AdvisorShares New Tech and Media ETF (FNG) which began trading on Wednesday, 12 July, 2017.
The ETF will seek to provide a similar return stream to the performance of today’s technology and media equity leaders as popularly characterised by the FANG stocks acronym, representative of the first letters of Facebook, Amazon, Netflix and Google (now Alphabet). FNG is managed by Sabretooth Advisors, LLC, an SEC-registered RIA that features a portfolio management team with a deep expertise and extensive experience in the ETF and capital market industries.
In pursuing its investment objective, the actively managed FNG seeks long-term capital appreciation by investing primarily in U.S. equities, and internationally through American depositary receipts (ADRs), of technology and technology-related companies including social media and internet retail companies within the information technology and consumer discretionary sectors. FNG employs a quantitative process to select equities in the ETF’s portfolio, with a technical analysis overlay for entering and exiting individual positions in the portfolio.
FNG provides a high concentration to the disruptive innovators that drive the marketplace and invests in similar-type companies to those market leaders, providing added diversification benefits as well as a more inclusive price point for investors seeking exposure to this high-growth segment of the equity market. The portfolio manager’s investment philosophy is based on the view that typically these high-performing technology and media leaders drive commerce and can outperform broad market benchmarks, while also recognising those leaders can continue to evolve and change over time. Because the ETF is actively managed, FNG maintains the ability to update its portfolio at any time to ensure that the leading high-growth technology and media securities always remain the primary focus, even as those leaders evolve over time. The fully transparent active ETF’s holdings will be viewable on its webpage, https://www.advisorshares.com/fund/fng.
“We believe the launch of FNG represents a compelling offering that delivers innovation and another industry first to AdvisorShares’ fully transparent, actively managed ETF suite,” says Noah Hamman, chief executive officer of AdvisorShares. “Like how the industrial revolution brought a new era of economic growth and development, these disruptive innovators of FNG’s investment focus exemplifies what is driving economic growth in the modern era. FNG provides efficient, concentrated exposure to one of the fastest growing segments of the equity market while maintaining the ability to adapt to changing leadership in a rapidly evolving world – attributes that we feel investors and advisors alike may find as an attractive investment solution, especially with the advantages of an actively managed ETF structure.”
