AdvisorShares Launches New Actively Managed ETFs Featuring ThinkBetter’s Q Methodology™ Risk Management
AdvisorShares Q Portfolio Blended Allocation ETF (Ticker: QPT) and AdvisorShares Q Dynamic Growth ETF (Ticker: QPX) begin trading today
BETHESDA, MD — December 29, 2020
AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launches of the AdvisorShares Q Portfolio Blended Allocation ETF (Ticker: QPT) and the AdvisorShares Q Dynamic Growth ETF (Ticker: QPX). QPT and QPX are actively managed ETFs sub-advised by ThinkBetter, LLC which utilizes their proprietary Q Methodology™ risk management process in the design and management their portfolios.
QPT is an asset allocation fund that invests across all asset classes and seeks to both maximize total return over the long-term and outperform traditional balanced funds. In pursuing its investment objective, QPT invests in ETFs which include U.S., international, broad market, and sector equities; government, municipal, and corporate fixed income; real estate, gold, and other commodities. QPT’s asset allocation is calibrated to the expected drawdown of a typical balanced fund and is optimized on a regular basis. Asset classes may be added or removed from QPT’s portfolio based on changing risk/reward characteristics.
QPX seeks to achieve long-term growth and targets equity market upside while tactically managing downside risk during abnormal market volatility. In pursuing its investment objective, QPX invests in ETFs featuring a broad variety of equities across market cap, style, and sectors as well as various fixed income categories and commodities to manage risk. QPX seeks to provide broad-market equity-like returns and the manager re-optimizes the portfolio monthly. However, during periods of high market volatility, QPX can allocate to a more defensive portfolio and seek short-term fixed income returns. QPX’s market volatility indicator, the Q Implied Volatility Index™ (QIX), is reviewed daily which may result in mid-month allocation changes. Asset classes may be added or removed from QPX’s portfolio based on changing risk/reward characteristics.
Both ETFs utilize ThinkBetter’s Q Methodology in their investment process. QPT utilizes the proprietary risk management approach to strike a balance between long-term growth and market volatility while seeking to maximize returns. QPX utilizes it to optimally allocate the fund’s assets against a given level of risk.
Additionally, both QPT and QPX feature a fulcrum fee expense structure which further aligns portfolio manager incentive with shareholder interests.
“We’re excited to showcase ThinkBetter’s collective industry experience and established portfolio management expertise in our active ETF suite,” said Noah Hamman, chief executive officer of AdvisorShares. “We believe advisors and investors who conduct due diligence on these alpha-seeking investment solutions will find them as compelling considerations among their respective investment peer groups.”
“Risk management resides at the core of our investment ethos,” said Ron Piccinini, Ph.D., chief investment officer of ThinkBetter. “We believe our proprietary Q Methodology provides ‘better math’ in navigating portfolio management risk and potential returns which ultimately aims to align better investment outcomes for educated advisors and investors.”
About Q Methodology™
Q Methodology™ is a modern quantitative approach to assessing risk/reward and optimizing investment portfolios. The methodology is based on heavy-tail distribution mathematical analysis and focuses on estimating the downside of a portfolio (expected drawdown) under extreme but plausible stress (tail risk). Using high performance computing power, Q Methodology™ generates tens of thousands of portfolio simulations to identify the asset allocation offering the greatest return for a given level of risk. Simply put, ThinkBetter believes Q Methodology™ is “better math” for better investment management.
About the Q Implied Volatility Index™ (QIX)
QIX is a proprietary indicator designed to tactically and unemotionally identify market volatility and to help avoid drawdowns. When QIX indicates normal volatility, QPX will have long equity exposure; when QIX is high, QPX moves to a defensive fixed income portfolio.
AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.