Noah Hamman, Founder & CEO of AdvisorShares met with Julie Cooling, Founder & CEO, RIA Channel to discuss the value of active ETFs in volatile markets.
When Hamman founded AdvisorShares in 2006, active ETFs practically didn’t exist. Seeing the massive opportunity to harness the power of world class active managers into an efficient ETF wrapper, Hamman built the AdvisorShares platform under the principles of transparency, liquidity and outperformance.
Today, AdvisorShares partners with a wide range of managers like Dorsey Wright and DoubleLine, to bring a diverse suite of active ETFs to market.
Over the last decade or so, soaring markets and fee compression trends, have lead to huge flows to passive ETFs, while active funds have somewhat struggled to keep up. But lately, active strategies are making a comeback in a big way. Today’s uncertain market environment reflects the perfect storm of late market cycle volatility, historic low yields, a global pandemic and questions surrounding the 2020 U.S. election. While passive solutions are often tied to an index, only rebalancing monthly or quarterly, active solutions give investors the flexibility to navigate through a rapidly evolving investment landscape. Unlike mutual funds, active ETFs can be traded intraday, on an exchange.
The AdvisorShares ETF lineup includes equity, income, multi-asset, and thematic strategies. Alternative ETFs like the Dorsey Wright Short ETF (DWSH) and Ranger Equity Bear ETF (HDGE) offer downside protection through an hedged equity strategy. For concentrated equity exposure to disruptive themes, AdvisorShares offers pure cannabis ETFs, YOLO and MSOS.
To learn more, head here.