Ritholtz Wealth Management has filed to launch its first exchange-traded fund, Goaltender ETF (GTND), which seeks to capture equity market upswings and protect investors from downturns.
The firm's filing with the Securities and Exchange Commission this week didn't specify management fees. Portfolio managers are Ben Carlson, Ritholtz institutional asset management director, and Michael Batnick, managing partner at the $7.6 billion advisory firm.
The ETF principally invests based on signals from a trend-following strategy developed by sub-advisor Ritholtz Wealth Management, which seeks to adjust exposure to U.S. equity markets based on price trends over various periods, typically ranging from six to 10 months, the registration statement says. EA Advisers is the fund's advisor.
"The strategy is designed to maintain equity exposure during sustained market uptrends and to become more defensive during market downtrends. The signals from the strategy are generated monthly as of the last trading day of each month, and updated allocations apply for the following month," the filing states.
Each month, the signals indicate exposure to U.S. stock markets through four sleeves tied to particular equity market price indexes based on their prices relative to their simple moving averages for certain time periods. If at the end of a month, the value of the index for a particular sleeve closes at or below the simple moving average, that sleeve will be allocated in the next month to a defensive position.
While the ETF is new, Ritholtz leaders have discussed their Goaltender tactical strategy for over a decade.
Ritholtz Wealth Management CEO Josh Brown, left, and Chief Investment Officer Barry Ritholtz. Courtesy photo
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