iMGP DBi Hedge Strategy ETF
DBEH seeks to replicate the pre-fee returns of forty leading equity long/short hedge funds to deliver equity-like returns over time with less risk.
DBEH: Four Star Overall Morningstar RatingTM among 173 Long-Short Equity funds based on risk-adjusted return for the period ending 3/31/2023.*
The fund seeks long-term capital appreciation. The fund will employ long and short positions in derivatives, primarily futures contracts and forward contracts, across the broad asset classes of equities, fixed income and currencies.
They identify hedge funds with robust data, a long history and strong performance and add back fees to net performance to calculate gross returns and adjust the returns for smoothing/outliers.
Initial screening process
They identify the key drivers of returns and screen factor universe for instruments that are liquid, efficient to trade.
DBi engine¹ analysis
They build what they believe is an optimized portfolio of liquid, exchange-traded instruments and their corresponding optimal weights.
¹The Dynamic Beta Engine is designed to identify the main drivers of performance of a diversified portfolio of the largest long/short equity hedge funds, which are hedge funds that employ fundamental analysis to buy or sell short individual equity securities to achieve their respective investment objectives (“Equity Hedge funds”). DBi has conducted extensive research into the drivers of performance of hedge funds and believes that individual security selection by the target Equity Hedge funds can deliver market outperformance over time through shifts in asset allocation among major equity markets.
How to invest
The iM DBi Hedge Strategy ETF is listed on the U.S. exchange NYSE
Arca, similar to shares of publicly traded companies. Investors can buy
and sell the iM DBi Hedge Strategy ETF through most traditional
brokerage accounts. By using the fund ticker DBEH, your broker can place
a multitude of order types including; limit orders, marker orders, and
stop orders. The iM DBi Hedge Strategy ETF can be traded throughout
normal NYSE Arca trading hours.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and it may be obtained by calling 800-960-0188 or visiting www.partnerselectfunds.com. Read it carefully before investing.
iMGP DBi Hedge Strategy ETF Risks: Investing involves risk. Principal loss is possible. Because the Fund is not a hedge fund, the Fund will be limited in its ability to fully replicate hedge fund strategies due to regulatory requirements, including limitations on leverage and liquidity of the Fund’s investments.
Leverage may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the fund to be more volatile than if leverage was not used.
The Fund should be considered highly leveraged and is suitable only for investors with high tolerance for investment risk. Futures contracts and forward contracts can be highly volatile, illiquid and difficult to value, and changes in the value of such instruments held directly or indirectly by the Fund may not correlate with the underlying instrument or reference assets, or the Fund’s other investments. Derivative instruments and futures contracts are subject to occasional rapid and substantial fluctuations. Taking a short position on a derivative instrument or security involves the risk of a theoretically unlimited increase in the value of the underlying instrument. Exposure to the commodities markets may subject the Fund to greater volatility than investments in traditional securities. Exposure to foreign currencies subjects the Fund to the risk that those currencies will change in value relative to the U.S. Dollar. By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary’s investments. Fixed income securities, or derivatives based on fixed income securities, are subject to credit risk and interest rate risk.
Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
A commission may apply when buying or selling an ETF.
*The Morningstar Rating for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed products monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five, and 10-year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10 year overall rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. iMGP DBi Hedge Strategy ETF (DBEH) was rated against the following numbers of U.S. ETF Long-Short Equity funds over the following time periods as of 12/31/2022: 177 funds in the last three years. With respect to these U.S. ETF Long-Short Equity funds, iMGP DBi Hedge Strategy ETF (DBEH) received a Morningstar Rating of 4 stars.
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The iMGP DBi Hedge Strategy ETF is distributed by ALPS Distributors, Inc.