AdvisorShares has launched the AdvisorShares Sabretooth ETF (BKCH US) on Nasdaq Exchange.

The ETF provides actively managed exposure to companies globally that are closely linked to the themes of cloud computing and blockchain technology.

Sub-advised by Pennsylvania-based Sabretooth Advisors, the fund provides actively managed exposure to companies globally that are closely linked to the themes of cloud computing and blockchain technology.

Cloud computing refers to shared pools of configurable computer system resources and higher-level services that can be rapidly provisioned with minimal management effort, often over the internet.

Through the delivery of computing services via the internet – from servers, storage, databases, networking, and software – cloud computing has helped fuel technological expansion by enhancing global accessibility and unveiling new ways to grow businesses.

Blockchain, on the other hand, is essentially a network of computers that keep transactions secure in a decentralized database, or digital ledger, similar to a shared spreadsheet, that the network can see and must approve before it can be verified and recorded.

Once recorded, no one person can change it without the agreement of others, and it is nearly impossible to tamper with.

Blockchain is the technology that underpins cryptocurrencies, like bitcoin, but it has many more possible uses with the potential to move data of any kind swiftly and securely. A growing number of industries and institutions are looking to embed blockchain technology into their day-to-day processes.

Investment process

The fund invests in US equities as well as American Depository Receipts (ADRs) of international companies.

Firms must have a minimum market capitalization of $750 million and an average daily trading volume of 200,000 shares to be eligible for selection.

The ETF uses a quantitative process that focuses on company earnings to select stocks with the highest potential for growth.

The manager may also use a technical analysis overlay to identify stocks which are breaking out of their technical patterns, indicating the potential for short-term price appreciation.

The fund will typically not hold more than 40 securities within its portfolio.

Rebalancing occurs on an ongoing basis at the manager’s discretion. The fund also contains a range of technical indicators that act as sell triggers, potentially preventing extended losses when a stock has been performing poorly.

The ETF comes with an expense ratio of 0.85%.