AdvisorShares to Introduce Fund of Funds ETF Today

AdvisorShares, the ETF issuer known primarily for its actively managed offerings, will introduce the AdvisorShares ROCKLEDGE SectorSAM ETF SSAM ETF today. The ETF will be buying (being long) the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling (being short) an equal dollar amount of sector ETFs that they forecast to underperform the S&P 500, based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM), according to the AdvisorShares Web site. SSAM is expected to hold equal amounts long and short positions so it will be dollar neutral. The new ETF has an expense ratio of 1.5%. The ETF's current long positions consists of the Materials Selector Sector SPDR XLB, Technology Select Sector SPDR XLK and the Energy Select Sector SPDR XLE. The fund is short the Financial Select Sector SPDR XLF, Consumer Staples Select Sector SPDR XLE, Health Care Select Sector SPDR XLV, Consumer Discretionary Selec Sector SPDR XLY and the Industrial Select Sector SPDR XLI. Maryland-based AdvisorShares lists 13 ETFs on its Web site. The firm had $370 million in assets under management as of mid-September 2011.