Obviously, identifying winners is the name of the investing game, but there are plenty of examples of avoiding losers being a valid strategy.
What Happened: Some exchange-traded funds make it a point to avoid weak stocks. That group includes New Age Alpha's Avoider ETFs: The AVDR US LargeCap Leading ETF (CBOE:AVDR) and the AVDR US LargeCap ESG ETF (CBOE:AVDG), both of which launched Wednesday.
The concept of loser avoidance isn't new to the ETF space. One of the established funds in the group rapidly developed a track record of topping broader benchmarks and attracting an audience, so the new ADVR and ADVG are entering potentially fertile territory.
Why It's Important: AVDR, New Age Alpha's domestic large-cap solution, filters out the 450 largest domestic equities with the highest human factor scores “resulting in a portfolio that consists of the 50 stocks with the lowest Human Factor that seeks to deliver alpha over existing large-cap benchmarks,” according to the issuer.
The premise is simple: Avoiding high human factor scores can help investors dodge stocks that are richly valued.
“We then rank the components of the universe by Human Factor score and remove 450 stocks with the highest Human Factor scores, the companies we believe are most likely to fail to deliver the growth implied by their stock price,” notes New Age.
That doesn't mean ADVR is a value ETF. Technology, communication services and consumer cyclical stocks combine for over 46% of the fund's weight, giving it a growth feel. Top 10 holdings include Dow components Walt Disney (NYSE:DIS) and Goldman Sachs (NYSE:GS).
What's Next: The AVDR US LargeCap ESG ETF also features a concept that's been tested before, that being avoidance of ESG losers.
AVDG starts with the 600 largest U.S. stocks and removes all but the 50 with the best environmental, social and governance (ESG) scores. Last year, ESG funds outperformed their non-ESG counterparts, confirming that there is something to avoiding ESG losers.
As is the case with many ESG ETFs, the new AVDG is tech-heavy with that sector representing almost a third of the fund's roster. The rookie fund is also top-heavy with Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) combining for almost 29%.
Both AVDR and AVDG charge 0.60% per year, or $60 on a $10,000 investment.
显然，识别赢家是投资游戏的主题，但有很多例子表明，避免输家是一种有效的策略。
怎么了：一些交易所交易基金(ETF)特别指出，要避开疲软的股票。该集团包括New Age Alpha的Avoider ETF：TheAVDR US LargeCap领先的ETF(CBOE：AVDR)和AVDR US LargeCap ESG ETF(CBOE：AVDG)，这两家公司都于周三推出。
避免失败者的概念并不是ETF领域的新手。该集团中的一只老牌基金迅速创造了超越更广泛基准并吸引受众的记录，因此新的ADVR和ADVG正在进入潜在的肥沃领域。
为什么它很重要：AVDR，New Age Alpha的国内大盘股解决方案，筛选出了人为因素得分最高的450只最大的国内股票，“产生了一个由人为因素得分最低的50只股票组成的投资组合，寻求在现有的大盘股基准上提供阿尔法。”根据发行人的说法.
前提很简单：避免人为因素得分过高，可以帮助投资者避开估值较高的股票。
“然后，我们根据人类因素得分对宇宙的各个组成部分进行排名，剔除人类因素得分最高的450只股票，我们认为这些公司最有可能无法实现其股价所暗示的增长，”New Age指出。
这并不意味着ADVR就是价值型ETF。科技、通信服务和消费周期性股票加在一起，占该基金权重的46%以上，给人一种成长感。前十大持有量包括道指成分股沃尔特·迪士尼纽约证券交易所代码：离岸)和高盛纽约证券交易所代码：GS).
下一步是什么？：AVDR US LargeCap ESG ETF还具有一个概念以前已经测试过了这就是避免ESG失败者。
AVDG从美国600只最大的股票开始，除去环境、社会和治理(ESG)得分最高的50只股票之外的所有股票。去年，ESG基金的表现好于非ESG基金，证实了有一些东西可以避免ESG输家。
与许多ESG ETF一样，新的AVDG以科技为主，该行业几乎该基金花名册上有三分之一的人。新秀基金也是头重脚轻的微软(纳斯达克：MSFT)和亚马逊(纳斯达克：AMZN)加在一起几乎占29%。
AVDR和AVDG每年都收取0.60%的费用，即1万美元的投资收取60美元的费用。
