AdvisorShares will be closing its actively managed sector rotation ETF SSAM on 14th June. The fund has failed to generate investor interest, losing more than 6% in the year and a half since it launched. SPY is up 20% over that period. Closure of ETFs and ETNs with unsuccessful strategies sets up the industry for smooth long-term growth.
"The AdvisorShares Rockledge SectorSAM ETF (SSAM) seeks to generate stable and consistent annual returns under all market conditions. The Fund seeks to accomplish this by investing primarily in both long and short positions in U.S. sector ETFs that offer diversified exposure to U.S. large capitalization sectors. SSAM is managed by Rockledge Advisors (“Portfolio Manager”).
The Portfolio Manager seeks to achieve the objective by employing an actively managed and diversified, equity sector rotation process. The Fund will be buying (being long) the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling (being short) an equal dollar amount of sector ETFs that they forecast to underperform the S&P 500, based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM). The Fund expects to hold equal amounts long and short, thus creating a dollar neutral portfolio."
See more details on sponsor's website