Quantitative specialist ETF provider AGF Investments is listing two actively managed multifactor ETFs that use proprietary models to pick stocks.
- AGFiQ Global Infrastructure ETF (GLIF)
- AGFiQ Dynamic Hedged U.S. Equity ETF (USHG)
GLIF will invest in global infrastructure and infrastructure-related companies using a proprietary quantitative model. A company is considered to be infrastructure-related if it makes 50% of its revenues, or devotes 50% of its assets to, infrastructure-related activities. The fund will use sector and country controls to minimise risk and maximise liquidity. The fund will charge 0.45%.
USHG will offer something like a multi-asset fund that offers downside protection with allocations to cash, low beta ETFs and Treasuries when necessary. The make allocations, the fund uses two models: one for the market, one for various sectors. The sector model looks at the sectors’ overarching exposure to various premiums, including size value and momentum. While the market model looks at macro-economic data to help identify the equity risk level. The portfolio managers use the output of both the sector model and market risk model to help determine final allocations.
Image Source: NEO Exchange, AGFiQ lists QIF in Canada.