NEW YORK--(BUSINESS WIRE)--Risk-averse investors have some new tools in the never-ending quest to build portfolios for the long term. Toews Corporation, the investment management firm founded in 1996 by Philip Toews, is bringing its brand of risk-managed investing into the ETF arena. With approximately $1.8 billion in assets under management, Toews Corporation will serve as the adviser to the Agility Shares™ lineup of ETFs, beginning with today’s launch of the brand’s first two ETF products: the Agility Shares™ Managed Risk ETF (MRSK) and the Agility Shares™ Dynamic Tactical Income ETF (THY).
Toews, who also serves as the adviser’s chief executive, says that the ETFs are a natural progression for his firm’s business model. “Over nearly a quarter century of managing money for investors, our focus on downside risk mitigation appears to have been prescient. We think that investors, who have been experiencing ongoing market turmoil, may appreciate the availability of risk managed strategies in ETF form,” asserts Toews.
Agility Shares™ ETFs seek market exposure while attempting to limit risk, utilizing stringent rules-based strategies. Both MRSK and THY are listed on the Chicago Board Options Exchange (CBOE).
The Agility Shares™ Managed Risk ETF (MRSK) seeks to provide index-like returns, with put options to attempt to limit losses in a market downturn through a rules-based methodology:
- MRSK maintains long equity exposure, with the foundation of its allocation in equity index futures.
- MRSK attempts to hedge risk through the implementation of at-or-near-the-money two-year equity index put options, rolled annually.
- The ETF seeks to mitigate costs by writing out-of-the money equity index calls and through put options spreads.
- The management team also seeks to manage interest rate risk through a tactical position in investment-grade bond instruments.
The Agility Shares™ Dynamic Tactical Income ETF (THY) seeks to provide investors with exposure to the high-yield bond market while attempting to manage risk:
- THY primarily utilizes an objective, price-reactive strategy that helps the portfolio management team determine trade execution and asset allocation based on a proprietary algorithm.
- Through this price-reactive strategy, THY seeks market exposure through high-yield bond instruments and attempts to switch to investment-grade bond instruments or cash equivalents during market downturns to potentially limit the risk of losses.
- The primary objective is to provide income for investors, with a secondary objective of attempting to limit the risk of extreme losses*.
“For many investors, recent market volatility is a reminder that risk-managed strategies can play a role in portfolios, but nobody wants to miss out on the rebounds,” remarks Toews. “We want to remove the types of potential restrictions buffer products and other like-kind funds offer while striving to provide the best possible outcome for our investors*.”
* There can be no assurance that our objectives will be met.
About Agility SharesTM:
Agility Shares™ provides risk-managed strategies within actively-managed exchange-traded funds for investors. It strives to offer efficiency, tradability, and transparency. Agility SharesTM is powered by Toews Corporation's research, innovation and expertise in working with investors since 1994.
For more information, please visit www.agilityshares.com.
Important Risk Information:
The Funds are new ETFs with no history of operations for investors to evaluate. Many factors affect the Fund’s net asset value and performance. The Fund will have ETF Risk. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in securities. The Fund will have ETF Structure Risk and as a result is subject to risks including the risk that shares are not individually redeemable and may be redeemed by the Fund at NAV only in large blocks known as “Creation Units.” Trading in Shares on the Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Shares inadvisable, such as extraordinary market volatility.
Buffer ETFs, also known as defined-outcome ETFs, aim to provide investors with a buffer against market losses in exchange for a cap on how much investors can profit on market gains.
There can be no assurance that Shares will continue to meet the listing requirements of the Exchange. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. The net asset value (“NAV”) of the Fund’s shares will generally fluctuate with changes in the market value of the Fund’s holdings. Because the Fund’s investments may include foreign securities, the Fund is subject to risks beyond those associated with investing in domestic securities. The Fund’s use of futures contracts involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The fund may also have options risk. Options are subject to changes in the underlying securities or index of securities on which such instruments are based.
There can be no assurance that Toews will achieve its performance objectives.
An investor should consider the ETF’s investment objectives, risks, charges, and expenses carefully before investing. This and other information about the ETF is contained in the prospectus, which can be obtained by calling 800-511-9270 or by visiting www.agilityshares.com. Please read the prospectus carefully before investing. The Toews Funds Agility Shares are distributed by Northern Lights Distributors LLC, member FINRA/SIPC. Toews Corporation is not affiliated with Northern Lights Distributors, LLC. 2212-NLD-6/8/2020