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If the ETF had been open from 2001, its method would have beaten the S&P 500 8.76% per year on average between 2001 and 2006. Expenses have been capped at 0.60%, and are rebalanced quarterly.
"It's another in the line of ETFs to take a known active strategy and put it into the form of a quantitative index to capture most of that process," Jim Wiandt, editor of the Journal of Indexes, said. "It's a trend that's driving the industry."
Dorsey said the fund is not highly correlated to the overall market, and will perform best when markets are either clearly rising or falling, but do little in a stagnant market. "It's a tool to use in a well-diversified portfolio to manage trends. This isn't designed as a one-stop type of fund," Dorsey said.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.