Obviously, identifying winners is the name of the investing game, but there are plenty of examples of avoiding losers being a valid strategy.
What Happened: Some exchange-traded funds make it a point to avoid weak stocks. That group includes New Age Alpha's Avoider ETFs: The AVDR US LargeCap Leading ETF (CBOE:AVDR) and the AVDR US LargeCap ESG ETF (CBOE:AVDG), both of which launched Wednesday.
The concept of loser avoidance isn't new to the ETF space. One of the established funds in the group rapidly developed a track record of topping broader benchmarks and attracting an audience, so the new ADVR and ADVG are entering potentially fertile territory.
Why It's Important: AVDR, New Age Alpha's domestic large-cap solution, filters out the 450 largest domestic equities with the highest human factor scores “resulting in a portfolio that consists of the 50 stocks with the lowest Human Factor that seeks to deliver alpha over existing large-cap benchmarks,” according to the issuer.
The premise is simple: Avoiding high human factor scores can help investors dodge stocks that are richly valued.
“We then rank the components of the universe by Human Factor score and remove 450 stocks with the highest Human Factor scores, the companies we believe are most likely to fail to deliver the growth implied by their stock price,” notes New Age.
That doesn't mean ADVR is a value ETF. Technology, communication services and consumer cyclical stocks combine for over 46% of the fund's weight, giving it a growth feel. Top 10 holdings include Dow components Walt Disney (NYSE:DIS) and Goldman Sachs (NYSE:GS).
What's Next: The AVDR US LargeCap ESG ETF also features a concept that's been tested before, that being avoidance of ESG losers.
AVDG starts with the 600 largest U.S. stocks and removes all but the 50 with the best environmental, social and governance (ESG) scores. Last year, ESG funds outperformed their non-ESG counterparts, confirming that there is something to avoiding ESG losers.
As is the case with many ESG ETFs, the new AVDG is tech-heavy with that sector representing almost a third of the fund's roster. The rookie fund is also top-heavy with Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) combining for almost 29%.
Both AVDR and AVDG charge 0.60% per year, or $60 on a $10,000 investment.
顯然，識別贏家是投資遊戲的主題，但有很多例子表明，避免輸家是一種有效的策略。
怎麼了：一些交易所交易基金(ETF)特別指出，要避開疲軟的股票。該集團包括New Age Alpha的Avoider ETF：TheAVDR US LargeCap領先的ETF(CBOE：AVDR)和AVDR US LargeCap ESG ETF(CBOE：AVDG)，這兩家公司都於週三推出。
避免失敗者的概念並不是ETF領域的新手。該集團中的一隻老牌基金迅速創造了超越更廣泛基準並吸引受眾的記錄，因此新的ADVR和ADVG正在進入潛在的肥沃領域。
為什麼它很重要：AVDR，New Age Alpha的國內大盤股解決方案，篩選出了人為因素得分最高的450只最大的國內股票，“產生了一個由人為因素得分最低的50只股票組成的投資組合，尋求在現有的大盤股基準上提供阿爾法。”根據發行人的説法.
前提很簡單：避免人為因素得分過高，可以幫助投資者避開估值較高的股票。
“然後，我們根據人類因素得分對宇宙的各個組成部分進行排名，剔除人類因素得分最高的450只股票，我們認為這些公司最有可能無法實現其股價所暗示的增長，”New Age指出。
這並不意味着ADVR就是價值型ETF。科技、通信服務和消費週期性股票加在一起，佔該基金權重的46%以上，給人一種成長感。前十大持有量包括道指成分股沃爾特·迪士尼紐約證券交易所代碼：離岸)和高盛紐約證券交易所代碼：GS).
下一步是什麼？：AVDR US LargeCap ESG ETF還具有一個概念以前已經測試過了這就是避免ESG失敗者。
AVDG從美國600只最大的股票開始，除去環境、社會和治理(ESG)得分最高的50只股票之外的所有股票。去年，ESG基金的表現好於非ESG基金，證實了有一些東西可以避免ESG輸家。
與許多ESG ETF一樣，新的AVDG以科技為主，該行業幾乎該基金花名冊上有三分之一的人。新秀基金也是頭重腳輕的微軟(納斯達克：MSFT)和亞馬遜(納斯達克：AMZN)加在一起幾乎佔29%。
AVDR和AVDG每年都收取0.60%的費用，即1萬美元的投資收取60美元的費用。
