Amplify ETFs has launched the Amplify EASI Tactical Growth ETF (EASI), an index-based ETF that seeks to participate in the upside of high quality growth companies during upward trending equity markets while tactically rotating to fixed income in downward trending equity markets.
EASI seeks investment results that generally correspond to the EASI Tactical Growth Index.
“We believe today’s dynamic markets require core investment strategies that participate in the upside while having the flexibility to potentially protect on the downside,” says Christian Magoon, CEO of Amplify ETFs. “We believe EASI offers attractive equity exposure via its quantitative selection criteria which incorporates both stock price behavior and fundamentals. Combining this stock selection approach with the ability to rotate into fixed income exposure can be an attractive combination for investors.”
The initial universe for the equity allocation consists of all securities listed on the New York Stock Exchange and NASDAQ. Constituents are then narrowed by excluding all securities with an average daily volume in the last 50 days of 300,000 or more shares. All remaining companies are scored once a month in two major areas: Price Performance and Fundamentals. The final equity portfolio will invest at least 80 per cent of its total assets in 33-50 holdings, in accordance with the Index.
The determination of the index being weighted 100 per cent to equities or 100 per cent to fixed income is called the “Long-Term Tactical Allocation Signal.” It measures and compares the monthly changes in the price of the equity components using the trailing twelve-month exponential moving average.