The exchange-traded fund (ETF) is a short international equity securities portfolio with a tactical overlay. The portfolio management uses a behavioral factor-driven investment process that measures manager behavior, strategy consistency and conviction, and identifies which stocks are held in top and bottom relative weight positions within the equity universe. Short positions are selected from the lowest conviction holdings in the international universe.
Equity manager and investor behavior factors also determine the most attractive markets and capitalization ranges from Athena’s perspective, allowing a tactical overlay that allocates short and cash exposure within the portfolio. The portfolio can range from 50 to 100 holdings and invests in American Depositary Receipts (ADRs) and international company stocks traded on U.S. exchanges.
The fund will be sub-advised by AthenaInvest Advisors LLC, an SEC registered investment adviser.
“We believe that Athena’s behavioral investment process and extensive track record of producing measurable results brings a unique approach to the HDGI strategy,” said Noah Hamman, chief executive officer of AdvisorShares. “With the launch of the first international all-short actively managed ETF, we feel that investors and financial advisers in search of portfolio diversification will find HDGI an important investment option not historically available via a transparent, liquid and efficient active ETF structure.”