WBI BullBear Yield 3000 ETF (WBIG)

Overview

The WBI BullBear Yield 3000 ETF (WBIL) aims to provide total return by investing in a diversified portfolio of dividend-paying stocks while actively managing market risk using a proprietary tactical allocation strategy. The fund adjusts its exposure to equities based on market conditions, seeking to capitalize on bull markets and mitigate losses during bear markets. Its focus is on income generation and capital preservation.

Reputation and Reliability

WBI Investments has a moderate reputation, known for its risk-managed investment strategies. While not one of the largest ETF providers, they have a consistent track record.

Management Expertise

The management team at WBI Investments has experience in quantitative investing and risk management, employing a rules-based approach to asset allocation.

Goal

The primary investment goal is to provide current income and capital appreciation while managing downside risk.

Investment Approach and Strategy

Strategy: The fund employs a tactical asset allocation strategy, adjusting exposure to equities based on proprietary market risk indicators.

Composition The ETF holds a diversified portfolio of dividend-paying U.S. stocks, with allocation shifts to cash or other defensive assets during periods of high market risk.

Market Share: WBIL has a relatively small market share in the income ETF category.

Total Net Assets (AUM): 22970000

Key Competitors

• SCHD
• VYM
• SPYD
• NOBL
• DVY

Competitive Landscape

The dividend ETF market is highly competitive. WBIL distinguishes itself through its tactical asset allocation, but faces competition from larger, more established funds like SCHD and VYM. WBIL's advantage lies in its risk management strategy, potentially offering downside protection during market downturns. However, its smaller size and potentially higher turnover due to tactical shifts can be disadvantages compared to passively managed competitors.

Historical Performance: Historical performance data is available from inception but is limited. Performance will vary depending on market conditions and the effectiveness of its tactical allocation model.

Benchmark Comparison: The fund is benchmarked against broad market indices and dividend-focused indices. Performance should be compared to both to assess its effectiveness in generating income and managing risk.

Expense Ratio: 1.23

Average Trading Volume

WBIL has a relatively low average trading volume, which may impact execution costs.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing the cost of trading.

Market Environment Factors

Economic growth, interest rate movements, and market volatility can all influence WBIL's performance. The tactical allocation strategy aims to adapt to these conditions.

Growth Trajectory

WBIL's growth trajectory depends on its ability to attract assets by demonstrating consistent risk-adjusted returns. Changes to its tactical model or holdings would be indicative of strategy shifts.

Competitive Edge

WBIL's competitive edge lies in its active tactical asset allocation, which seeks to protect capital during downturns while participating in market upside. This strategy differentiates it from passive dividend ETFs. The fund's rules-based approach aims to reduce emotional decision-making and improve risk-adjusted returns. This may be particularly appealing to investors seeking to mitigate downside risk.

Volatility

The ETF's volatility is expected to fluctuate depending on its equity exposure. The tactical allocation strategy aims to reduce overall volatility compared to a fully invested equity portfolio.

Market Risk

The ETF is subject to market risk, particularly the risk of equity investments. The effectiveness of the tactical allocation strategy in mitigating downside risk is a key factor.

Ideal Investor Profile

The ideal investor is someone seeking income and capital appreciation while prioritizing downside risk management. This may include retirees, conservative investors, or those nearing retirement.

Market Risk

WBIL is best suited for long-term investors who understand and accept the potential for tactical shifts and higher expense ratios in exchange for downside protection.

The WBI BullBear Yield 3000 ETF is a tactical asset allocation fund focused on generating income from dividend-paying stocks while managing downside risk. Its active management and higher expense ratio distinguish it from passive dividend ETFs. Investors should consider the effectiveness of the tactical strategy and the potential for higher turnover. WBIL might be a good fit for those prioritizing capital preservation in volatile markets.

Data Sources:

• WBI Investments 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 investment decisions should be based on individual risk tolerance and financial goals.