How does the WBIG ETF work?

When it comes to investing in financial instruments like Exchange-Traded Funds (ETFs), understanding the inner workings of a specific ETF is crucial. In this article, we'll take a close look at the WBIG ETF, also known as the WBI Investments, Inc. ETF. We'll explore its structure, underlying assets, benefits for investors, and important considerations before investing.

WBIG ETF Underlying and Exposure: What Does It Track and How?

The WBIG ETF aims to invest in a diverse range of equity securities, encompassing small-capitalization, mid-capitalization, and large-capitalization domestic and foreign companies. This investment strategy is driven by the expertise of WBI Investments, Inc., the sub-advisor to the fund. They seek out companies that display attractive growth prospects in terms of intrinsic value and other tactical investment opportunities.
Large-capitalization companies, in this context, refer to those with market capitalizations exceeding approximately $10 billion in the primary market. Conversely, small-capitalization and mid-capitalization companies have market capitalizations below this threshold. It's important to note that these thresholds may vary in non-U.S. markets due to differences in the market landscape.
The ETF's portfolio comprises various types of equity securities, such as common stocks, preferred stocks, rights, warrants, convertibles, exchange-traded funds (ETFs), real estate investment trusts (REITs), and master limited partnerships (MLPs). Additionally, the fund includes various debt securities, including corporate debt, U.S. Government securities, foreign debt securities, sovereign debt securities, U.S. Government agency securities, high-yield bonds, ETFs, and exchange-traded notes (ETNs).
The WBIG ETF's investment horizon covers a broad spectrum of maturities, from less than one year to up to thirty years, depending on the portfolio managers' assessment of risks and opportunities along the yield curve.

WBIG overlap How does work the WBIG ETF?

WBIG ETF: Benefits to Invest in This ETF

Investors consider the WBIG ETF for several reasons. Its strategy aims to provide consistent, attractive returns while potentially offering lower volatility and risk compared to traditional approaches. This aligns with the fund's goal of an absolute return approach to investment management.
The ETF employs quantitative computer screening of fundamental information to identify securities with appealing yield characteristics. It also takes into account the quality and consistency of dividend or interest payments as part of the evaluation process. To manage risk effectively, the fund assesses the duration and credit quality of its exposure to debt securities.
One notable aspect of the WBIG ETF is its active management. The Sub-Advisor actively manages the fund's portfolio, resulting in a portfolio turnover rate that exceeds 100% annually. This active approach allows for responsive adjustments to the allocation, potentially safeguarding capital during periods of high market volatility.

WBIG ETF: Considerations Before Investing

Before investing in the WBIG ETF or any financial instrument, it's essential to consider various factors. These include your investment goals, risk tolerance, and time horizon. Additionally, be aware of the fund's specific strategies and the potential for high portfolio turnover, which can impact taxes and transaction costs.
Diversification is a key aspect of the WBIG ETF's investment strategy, but it doesn't eliminate all risks. Keep in mind that all investments carry some level of risk, including the possible loss of principal. It's advisable to consult with a financial advisor or conduct thorough research to determine if this ETF aligns with your investment objectives.

Conclusion

In conclusion, the WBIG ETF offers investors exposure to a diversified portfolio of equity and debt securities with the goal of providing consistent returns and managing risk effectively. Understanding its underlying assets, benefits, and considerations is essential when evaluating its suitability for your investment portfolio.

Disclaimer: This article does not provide investment advisory services. It is for informational purposes only, and investors should conduct their own research and consult with financial professionals before making investment decisions.

For additional information about the Fund's principal investment strategies and the investment process, please refer to "Description of the Principal Strategies of the Funds."

WBIG ETF issuer
WBIG ETF official page

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