Post by yogibearbull on Feb 18, 2021 19:13:31 GMT
www.kitco.com/news/2021-02-18/Gold-market-sees-launch-of-new-adaptive-ETF-Wilshire-Phoenix-s-WGLD.html
".....Wilshire Phoenix announced Thursday the debut of the Wilshire wShares Enhanced Gold Trust (NYSE Arca: WGLD). In a press release, the company said that its new ETF seeks to outperform a stand-alone investment in gold and reduce its volatility without the use of any futures, leverage, or derivatives.....The company added that its proprietary index utilizes an adaptive exposure approach to automatically rebalance physical gold and cash based on changing market conditions. This rebalancing allows for a passive investment vehicle to seek more robust performance and a decreased risk profile when compared to a stand-alone investment in physical gold....."
YBB: Rather than in/out timing, WGLD may change allocation between gold and cash. But gold may be too volatile for periodic index rebalancing. Results may be similar to low-volatility ETFs that were behind/lagged whatever was going on in the markets at any time.
Edit/Add: From prospectus: Monthly rebalancing based on volatilities of gold and SP500; higher gold volatility would lower gold allocation, while higher SP500 volatility would increase gold allocation. Gold allocation range 50-100%. An allocation matrix is shown on pg 41 for gold volatilities of 15%, 20%, 25%; and SP volatilities of 10%, 15%, 20%, 25%. www.sec.gov/Archives/edgar/data/1799858/000138713121002481/wgld-424b3_021621.htm
".....Wilshire Phoenix announced Thursday the debut of the Wilshire wShares Enhanced Gold Trust (NYSE Arca: WGLD). In a press release, the company said that its new ETF seeks to outperform a stand-alone investment in gold and reduce its volatility without the use of any futures, leverage, or derivatives.....The company added that its proprietary index utilizes an adaptive exposure approach to automatically rebalance physical gold and cash based on changing market conditions. This rebalancing allows for a passive investment vehicle to seek more robust performance and a decreased risk profile when compared to a stand-alone investment in physical gold....."
YBB: Rather than in/out timing, WGLD may change allocation between gold and cash. But gold may be too volatile for periodic index rebalancing. Results may be similar to low-volatility ETFs that were behind/lagged whatever was going on in the markets at any time.
Edit/Add: From prospectus: Monthly rebalancing based on volatilities of gold and SP500; higher gold volatility would lower gold allocation, while higher SP500 volatility would increase gold allocation. Gold allocation range 50-100%. An allocation matrix is shown on pg 41 for gold volatilities of 15%, 20%, 25%; and SP volatilities of 10%, 15%, 20%, 25%. www.sec.gov/Archives/edgar/data/1799858/000138713121002481/wgld-424b3_021621.htm