AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL)

Overview

The AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) seeks long-term capital appreciation by investing in a portfolio of U.S. equities while aiming to be market neutral. It uses a quantitative approach to identify and invest in low-beta stocks and short-sell high-beta stocks, aiming to profit from the relative performance difference.

Reputation and Reliability

AGFiQ is known for its quantitative and factor-based investment strategies. It has a solid track record in managing ETFs using sophisticated models.

Management Expertise

The management team has extensive experience in quantitative investing and risk management.

Goal

To achieve long-term capital appreciation by taking long positions in low-beta U.S. equities and short positions in high-beta U.S. equities, while maintaining market neutrality.

Investment Approach and Strategy

Strategy: The fund uses a market-neutral strategy, aiming for returns uncorrelated to the broader market by offsetting long positions in low-beta stocks with short positions in high-beta stocks.

Composition The fund holds a mix of long and short positions in U.S. equities, selected based on their beta coefficients. It does not typically invest in bonds or commodities.

Market Share: BTAL's market share within the alternative strategies ETF category is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 111500000

Key Competitors

• ProShares Hedge Replication ETF (HDGE)
• IQ Merger Arbitrage ETF (MNA)
• RiverNorth Managed Duration Municipal Fund (RMM)
• ProShares Short S&P500 (SH)

Competitive Landscape

The market for alternative strategy ETFs is competitive, with BTAL differentiating itself through its anti-beta strategy. Advantages include potential returns uncorrelated to the market and downside protection. Disadvantages include complexity and higher expense ratios compared to traditional index funds. Competitors employ different strategies, from merger arbitrage to short selling, leading to a fragmented landscape.

Historical Performance: BTAL's performance has varied depending on market conditions, with stronger performance during periods of high volatility or market downturns. [0.0561, 0.0405, 0.0434, 0.0163, 0.0029]

Benchmark Comparison: BTAL does not have a direct benchmark as it aims for market neutrality. Performance is typically compared to the performance of low-beta and high-beta stock portfolios, or broad market indices.

Expense Ratio: 0.29

Average Trading Volume

BTAL's average trading volume is moderate, which may impact the ease of entering and exiting large positions.

Bid-Ask Spread

The bid-ask spread for BTAL is typically moderate, reflecting the ETF's average liquidity.

Market Environment Factors

BTAL's performance is influenced by factors such as market volatility, interest rate changes, and investor sentiment towards risk.

Growth Trajectory

BTAL's growth trajectory is tied to investor demand for alternative strategies and downside protection.

Competitive Edge

BTAL's competitive advantage lies in its unique anti-beta strategy, offering diversification benefits and potential downside protection. Its quantitative approach aims to systematically exploit the difference in performance between low-beta and high-beta stocks. This differentiates it from traditional market-cap weighted ETFs and other alternative strategy funds. The fund's market-neutral structure seeks to isolate beta risk.

Volatility

BTAL's historical volatility can be lower than the broad market due to its market-neutral strategy. The annual standard deviation has been historically within the range of 3-7%.

Market Risk

Market risk is mitigated by its market-neutral strategy, but specific risks include model risk (the potential for the quantitative model to fail) and short-selling risk (unlimited potential losses on short positions).

Ideal Investor Profile

The ideal investor for BTAL is one seeking diversification, downside protection, and a return stream uncorrelated to the broad market. It is suitable for investors with a moderate to high risk tolerance who understand complex investment strategies.

Market Risk

BTAL may be best suited for long-term investors seeking diversification and downside protection, or active traders looking to capitalize on short-term market volatility. It is not a passive index-following fund.

AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) is an ETF designed to provide returns uncorrelated to the broader market by taking long positions in low-beta stocks and short positions in high-beta stocks. It aims to profit from the relative performance difference. While it offers potential diversification benefits and downside protection, it also carries the risks associated with short-selling and quantitative investing. The fund is suitable for investors seeking alternative strategies and a degree of market neutrality within their portfolios. Its market share and growth are moderate compared to competitors in the alternative ETF landscape.

Data Sources:

• AGFiQ Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market conditions can change rapidly, and investments carry risk of loss. Consult with a financial advisor before making investment decisions.