Anfield Capital launches active S&P 500 sector rotation ETF

Dec 17th, 2019 | By | Category: Equities

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Newport Beach-based Anfield Capital, in partnership with affiliated investment advisor Regents Park Funds, has launched a new actively managed ETF in the US providing access to a sector rotation strategy based on the S&P 500 equity universe.

Anfield Capital launches active S&P 500 sector rotation ETF

The fund offers a sector rotation strategy based on the S&P 500 equity universe.

The Anfield US Equity Sector Rotation ETF (AESR US) has listed on Cboe BZX Exchange.

The fund, which is structured as an ETF-of-ETFs, invests in a combination of the SPDR S&P 500 ETF (SPY US), SPDR Select Sector ETFs, and cash to gain its required exposure.

SSGA’s SPDR Select Sector suite comprises a comprehensive range of funds that target each of the 11 GICS-defined sectors of the S&P 500: communication services, consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, and utilities.

According to the fund’s prospectus, the ETF will typically hold eight to ten SPDR Select Sector ETFs, avoiding just a few sectors where the perceived outlook is most negative. The fund may also increase its exposure to cash during periods of heightened volatility across the entire US equity market.

Allocations across the sector ETFs will be determined by Anfield’s proprietary macroeconomic and asset cycle investing methodology which includes an analysis of economic, political, and market conditions. The portfolio will generally be reconstituted and rebalanced on a quarterly basis.

The fund comes with a punchy expense ratio of 1.42%, more than double the 0.70% fee charged on the SPDR SSGA US Sector Rotation ETF (XLSR US), a possible alternative to Anfield’s new fund. XLSR, which is actively managed by SSGA’s Investment Solutions Group (ISG), debuted in April 2019 and has since accumulated $30 million in assets under management.

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