Red Bank, New Jersey-based WBI Shares offers a suite of actively managed ETFs. Let’s take a deeper look at their most popular offering the space, WBII (WBI Tactical Income Shares, Expense Ratio 1.05%).
WBII currently sits at $316 million in assets under management presently, ranking it as the sixth largest “Multi-Asset” fund in that specific category behind ETFs such as MDIV (First Trust Multi-Asset Diversified Income, Expense Ratio 0.67%, $856 million in AUM), AOR (iShares Core Growth Allocation, Expense Ratio 0.24%, $851 million in AUM) and several other iShares “Allocation” funds in spite of seeing some mild outflows year-to-date ($20 million out).
WBII debuted in late August of 2014 so it still falls short of its three year anniversary. Once it hits the three-year mark, the fund will earn a Morningstar ranking, which has proven important in the past in the “Actively Managed” ETF segment, from what we have seen.
WBII is a “Fund of Funds” in the sense that it invests in other ETFs within its investment methodology, as we can see from current fund literature that top holdings in the fund include fixed income ETFs from iShares, Vanguard, PowerShares, SPDRs, and PIMCO for example. Fund literature states that the investment mandate is:
“To provide investors with a wealth-building investment strategy that provides low volatility, low correlation, and an optimal blend of bear market capital preservation and bull market return. The Fund is active in an effort to reduce risk to protect capital, and tactical in an attempt to find the best global investment opportunities. WBII typically invests in income-producing debt and equity securities of foreign and domestic companies.”
Presently we see the asset class breakdown inside of WBII as heavily favoring U.S. Fixed Income securities, with 58% of the portfolio residing there, followed by lesser allocations to U.S. listed equities (16%), International Fixed Income securities (12%), Cash (7%), and Preferred Stocks (6%).
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.