Huntington, New York-based Strategy Shares has announced that assets under management have increased by more than $250 million since the start of the year, to $330 million, representing growth of around 325%.
Strategy Shares’ AUM has grown around 325% ($250m) since the start of the year.
The ETF issuer, previously branded Huntington Strategy Shares and a division of US-based Huntington Bank, offers three actively managed ETFs.
The majority of the firm’s AUM can be found in the Strategy Shares US Market Rotation Strategy ETF (HUSE US) which has almost $250m in assets.
The fund invests primarily in US equities and is composed of two sleeves: a common stock component and a tactical component.
The common stock component utilizes two proprietary quantitative strategies to identify and overweight market sectors and segments within the S&P 1500 Index that the managers believe to offer the best potential for long-term capital appreciation, while underweighting industry sectors or segments expected to underperform.
The tactical component utilizes three quantitative strategies (trend following, mean reversion, and intermarket analysis) to capture opportunities during market rallies and move into defensive positions during market declines. Investments from this component may include active or passively managed equity ETFs, Treasury and corporate bonds, and volatility and commodity ETFs.
The fund was initially rolled out in July 2012 and comes with an expense ratio of 1.22%.
The fund is up 6.5% year-to-date which is behind the 9.1% return of the benchmark S&P 1500 Index. Its relatively modest performance indicates that the majority of the firm’s AUM growth is attributable to positive net flows into the ETF.
Strategy Shares’ other ETFs include the Strategy Shares EcoLogical Strategy ETF (HECO US) and the Strategy Shares Nasdaq 7HANDL Index ETF (HNDL US), both active strategies.
The EcoLogical Strategy, HECO, uses ecologically focused criteria to identify US and overseas companies that have positioned their business to respond to increased environmental legislation, cultural shifts towards environmentally conscious consumption, and capital investments in environmentally oriented projects. It seeks to provide superior returns to the MSCI ACWI Total Return Index and comes with an expense ratio of 0.95%.
The Nasdaq 7HANDL strategy, HNDL, which launched in January of this year, tracks a first-of-its-kind strategy index that targets a 7.0% annual distribution rate, which may include a return of capital. The underlying Nasdaq 7HANDL Index was developed in partnership with Nasdaq and relative-strength specialists Dorsey Wright, and consists of a well-diversified, multi-asset portfolio of low-cost ETFs targeting US equities, bonds and alternatives. Modest leverage, of an amount equal to 23% of the total portfolio, may be employed. Its expense ratio is 0.96%.