Little Harbour Advisors (LHA) is set to launch an actively
managed equity ETF, tracking the S&P 500 index and VIX index, while using
every tool they have in their toolbox.
The LHA Market State Alpha Seeker ETF (MSVX) seeks to
estimate the direction of the US equity market by using other actively managed
ETFs, inverse and leveraged ETFs, ETNs, options and futures contracts.
MSVX’s position is determined on whether long-term volatility
is forecasted to be greater or lower than short-term volatility.
Leveraged products already have their sceptics and MSVX may
include up to 3x leveraged ETFs in its underlying, according to its prospectus.
Definitely not one for the risk averse.
The strategy relies on volatility analysed by the ETF’s
sub-advisor Thompson Capital Management. The prospectus doesn’t disclose its