WBI Investments, a New Jersey-based investment manager, has entered the fast-growing exchange-traded funds market with the unveiling of ‘WBI Shares’, a new brand of actively managed ETFs.
WBI Shares actively managed ETFs target an optimal blend of bear market capital presentation with bull market return.
According to a statement from the firm, the goal of WBI Shares ETFs is to provide investors with consistent, attractive returns with potentially less volatility and risk to capital than traditional approaches.
The brand has debuted with the launch of 10 tactical ETFs, which target an optimal blend of bear market capital preservation and bull market returns. They have been listed on the NYSE Acra.
Unlike traditional passive ETFs, WBI Shares do not seek to replicate the holdings of an underlying index. Instead, the ETFs’ security selection process deviates from benchmark constituents and weights based on a computer-driven process to evaluate relevant securities with the aim of uncovering undervalued opportunities.
Once candidates are identified, an overlay of technical analysis confirms the timeliness of any security purchase. If cash is available within the target allocation, the buy discipline systematically adds qualifying securities to the portfolio. Once a security is purchased, a strict sell discipline with a dynamic trailing stop and goal setting process is applied to each position. The system attempts to control the effects of volatility for each invested position and protect portfolio value.
This approach applies to both equity and fixed income securities, domestic or international.
The 10 new ETFs and their basic exposures are as follows:
WBI SMID Tactical Growth Shares (WBIA)
WBIA typically invests in small- and mid-cap securities with improving fundamental growth trends.
WBI SMID Tactical Value Shares (WBIB)
WBIB typically invests in small- and mid-cap securities with consistent fundamentals and strong value characteristics.
WBI SMID Tactical Yield Shares (WBIC)
WBIC typically invests in small- and mid-cap securities which present themselves as undervalued opportunities with attractive dividend yields.
WBI SMID Tactical Select Shares (WBID)
WBID typically invests in small- and mid-cap securities with attractive value characteristics and prospects for financial stability.
WBI Large Cap Tactical Growth Shares (WBIE)
WBIE typically invests in large-cap securities with improving fundamental growth trends.
WBI Large Cap Tactical Value Shares (WBIF)
WBIF typically invests in large-cap securities with consistent fundamentals and strong value characteristics.
WBI Large Cap Tactical Yield Shares (WBIG)
WBIG typically invests in large-cap securities which present themselves as undervalued opportunities with attractive dividend yields.
WBI Large Cap Tactical Select Shares (WBIL)
WBIL typically invests in large-cap securities with attractive value characteristics and prospects for financial stability.
WBI Tactical Income Shares (WBII)
WBII typically invests in income-producing debt and equity securities of foreign and domestic companies.
WBI Tactical High Income Shares (WBIH)
WBIH typically invests in higher income-producing debt and equity securities of foreign and domestic companies.
WBI was founded in 1984 by Don Schreiber, Jr, author of a number of investment books, including ‘All About Dividend Investing’, and manages approximately $3 billion in assets.