As investors struggle to maintain a balanced portfolio in the ever changing markets, AdvisorShares, with Pring Turner Capital Group, has launched an actively managed multi-asset exchange traded fund that seeks to perform in any market condition.
AdvisorShares Pring Turner Business Cycle ETF (DBIZ) recently began trading. The active ETF tries to generate long-term growth from capital appreciation and income with minimal portfolio risk by taking an asset allocation and sector rotation process based on changes in the business cycle, which is broken down into "Six-Stages." DBIZ has a 1.62% expense ratio.
According to Pring, stage one occurs when interest rates peak, or debt turns bullish, while stocks and commodities still drop; stage two happens when stocks rally along with bonds; stage three is when all three markets are in a uptrend; stage four is when bonds are bearish but stocks/inflation remain bullish; stage five is when stocks and bonds are bearish while inflation rises; and stage six occurs when everything is falling.
Allocations include cash 17%, consumer discretionary 4%, energy 5%, financial 9%, high-yield bonds 15%, health care 5%, industrials 5%, information technology 5%, materials 5%, emerging market equities 2%, international equities 21%, telecom 4% and utilities 2%.
Top holdings include AdivorShares Peritus High Yield ETF (HYLD) 5%, PowerShares Senior Loan Portfolio (BKLN) 5%, Guggenheim BulletShares 2015 HY Corporate Bond ETF (BSJF) 5.%, SPDR S&P International Dividend ETF (DWX) 3.1% and Leucadia National (NYSE: LUK) 2.1%.
"We believe DBIZ employs a disciplined strategy that adapts well to cyclical shifts and can build wealth consistently while lessening portfolio risk for the current environment," Pring said in a press release.
"In managing DBIZ, we utilize both a top-down and bottom-up approach that aims to invest in attractive market sectors according to the current business cycle stage," Turner added. "We think it is also important to emphasize quality, value and income generation in selecting individual securities for the portfolio."
Martin J. Pring, Chairman and Investment Strategist at Pring Turner Capital Group, developed the six-stage business cycle research. The portfolio managers include, Joe D. Turner, President, Tom J. Kopas, Chief Executive Officer, and Jim W. Kopas associate portfolio manager.
"All Chartered Market Technicians (CMT) can attest to Martin's depth of knowledge because his book 'Technical Analysis Explained' is required reading for the professional CMT designation," Noah Hamman , CEO of AdvisorShares, said in the press release.
Max Chen contributed to this article.
Additional disclosure: Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates.