When asked about his reaction to DENT’s success, Fund.com CEO Greg Webster said, “While I had an expectation that the product would be well received, I was pleased to see that the number of creation units were considerably greater for a new product.” Each of the baskets that get traded in ETFs are created by 25,000 shares of ETF stock. Every 25,000 shares acquired in the market establish a creation unit. He continued, “The fact that the existent product was able to achieve an asset level of 15 million dollars so quickly was very satisfying.”
Historically, ETFs are designed to track an index, like the S&P 500. They are passively managed: when the index makes a trade, the ETF makes the same trade without speculation. Operational efficiency, transparency, liquidity and tax efficiency are some of the numerous advantages to ETFs. AdvisorShares’ SEC-granted exemptive relief from the Investment Act of 1940 allows the company to marry the positive features of exchange-traded funds (ETFs) with professional money management, creating a product like the DENT.
As of August, the combined assets of the US ETF market were $656.91 billion with positive asset growth trends. Over the past 12 months, ETF assets increased $70.94 billion, or 12.1 percent. Fund.com, the parent company of AdvisorShares, is looking to open new ETFs and acquire additional feeder funds for their existing ETFs.
Harry S. Dent Jr., one of the managers of the DENT Tactical ETF, will be featured in the upcoming winter issue of EQUITIES Magazine. Affiliates, Officers and or Directors of Equities Magazine own shares of Fund.com (FNDM.BB) To access the winter issue of the magazine and more, sign up for a free one-year subscription to EQUITIES Magazine.
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