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

Overview

The AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) seeks to provide long-term capital appreciation by investing in a portfolio of U.S. equities, employing a market-neutral strategy that aims to reduce exposure to overall market movements by taking offsetting long and short positions based on beta.

Reputation and Reliability

AGFiQ is known for its quantitative investment strategies and factor-based ETFs, indicating a degree of reliability in implementing its investment approach.

Management Expertise

AGFiQ's management team comprises experienced professionals specializing in quantitative finance and portfolio management, enhancing the credibility of the fund's strategy implementation.

Goal

To provide long-term capital appreciation with reduced exposure to overall market movements.

Investment Approach and Strategy

Strategy: The fund uses a market-neutral strategy that involves taking long positions in low-beta stocks and short positions in high-beta stocks.

Composition The fund invests primarily in U.S. equities, with offsetting long and short positions.

Market Share: BTAL's market share within the low-volatility/market neutral ETF space is relatively small compared to larger players.

Total Net Assets (AUM): 94320000

Key Competitors

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares MSCI USA Minimum Volatility Factor ETF (USMV)
• AGFiQ U.S. Market Neutral Value Fund (CHEP)

Competitive Landscape

The market neutral ETF space is competitive, with larger, more established funds having significant AUM. BTAL's advantage lies in its explicit anti-beta strategy, offering a more direct hedge against market volatility than broad low-volatility ETFs, while disadvantages include smaller AUM and potentially higher tracking error related to short positions.

Historical Performance: Historical performance varies depending on the market environment, with outperformance typically observed during periods of high market volatility. Performance data is dynamically updated.

Benchmark Comparison: The ETF's performance is benchmarked against a market-cap weighted index, although it does not track it due to its shorting strategy. Benchmark comparisons depend on the chosen index and time period.

Expense Ratio: 0.3

Average Trading Volume

The average trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically competitive, reflecting the fund's liquidity and trading efficiency.

Market Environment Factors

Economic uncertainty, interest rate changes, and overall market volatility influence demand for anti-beta strategies.

Growth Trajectory

The growth trajectory of BTAL depends on investor demand for market-neutral strategies and the fund's ability to effectively manage its long and short positions.

Competitive Edge

BTAL's competitive advantage lies in its unique anti-beta strategy, designed to profit from the relative underperformance of high-beta stocks compared to low-beta stocks. This provides a more targeted hedge against market risk compared to traditional low-volatility ETFs. The fund's market-neutral approach reduces overall market exposure. AGF Investments' experience in quantitative investing also contributes to its competitive positioning.

Volatility

The fund's volatility is expected to be lower than the overall market due to its market-neutral approach and anti-beta strategy.

Market Risk

The fund is subject to risks associated with short selling, including unlimited potential losses and the cost of borrowing securities. The fund also bears the risks inherent in market-neutral strategies.

Ideal Investor Profile

BTAL is suitable for investors seeking to reduce market risk, diversify their portfolios with a market-neutral strategy, or profit from anticipated market volatility.

Market Risk

BTAL is best suited for investors with a moderate to high risk tolerance who understand the complexities of market-neutral strategies and short selling.

The AGFiQ U.S. Market Neutral Anti-Beta Fund (BTAL) offers investors a unique way to navigate market volatility with its anti-beta strategy, seeking to profit from the relative underperformance of high-beta stocks. This market-neutral approach provides diversification benefits and reduces overall market risk. While BTAL has smaller AUM compared to major competitors, its targeted hedging strategy makes it an attractive option for risk-averse investors. Investors should carefully consider the risks associated with short selling before investing.

Data Sources:

• AGFiQ official website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

Data is based on available information and may be subject to change. Investment decisions should be made based on individual circumstances and professional advice.