Target Positive Returns Globally Under All Market Conditions with This Active ETF

The Noble Absolute Return ETF’s portfolio consists of long and short positions selected based on the Noble Full Cycle Clock. After looking at price behavior and fundamentals on a macro scale, the team takes long and short positions based on sector rotation and equity factors (e.g., buying utilities early cycle or selling high-leverage stocks late cycle).

 

The fund holds primarily mid- to large-cap equities but may use liquid options to fine-tune positions and hedge risk. With its flexible long-short approach, the managers project a 150% maximum long exposure and a -100% maximum short exposure. The fund may also offer a yield in some market conditions (e.g., it currently has a 3% 30-day SEC yield).

Currently, the fund’s top non-cash holdings include:
 

• ProShares UltraShort QQQ
• ProShares Short Bitcoin
• Tesla Put Options
• Exxon Mobil Corp.
• Devon Energy Corp.

In terms of expenses, the fund charges a 0.98% management fee and anticipates paying about 0.84% in dividends on short sales, yielding a total expense ratio of 1.82%. While that’s higher than many other active ETFs, it’s significantly less than the 2-and-20 management fee structure comparable hedge funds charge their shareholders.

The Noble Absolute Return ETF is one of several actively-managed, long-short, absolute return ETFs available to investors.

For example, the First Trust Long/Short Equity ETF (FTLS) takes a similar long-short approach using commodity futures.

Other activel ETFs to consider include:

 

Data as of November 2, 2022

Noble-Impact Capital’s George Noble manages the Noble Absolute Return ETF. With over 40 years of asset management experience, he worked closely with legendary fund manager Peter Lynch in the 1980s at Fidelity Investments. After heading Fidelity’s International Equity Group, he managed two separate $1+ billion hedge funds.

Drawing on this experience, the Noble Absolute Return ETF offers investors a unique hedge fund-like opportunity under an ETF umbrella. With its flexible long-short strategy, the absolute return fund aims to achieve positive returns during any market conditions, making it a compelling choice in today’s market environment.

Take a look at our recently launched Model Portfolios to see how you can rebalance your portfolio.