On this week's episode of ETF Prime, Zeno Mercer, senior research analyst at TMX VettaFi, joins host Nate Geraci to discuss the evolution of healthcare technology.
![]() BDGS 20 Dec 2023 Paid | Other | $0.23 Per Share |
![]() BDGS 20 Dec 2023 Paid | Other | $0.23 Per Share |
NASDAQ (NMS) Exchange | US Country |
The fund is a unique blend, focusing on active management within a domain generally associated with passive investment strategies. This exchange-traded fund (ETF) sets itself apart by aiming to achieve its investment objective through a carefully curated mix of assets. These include passively managed U.S. equity index ETFs, sizable large-capitalization equity securities, and safer cash or cash equivalents. The strategic approach the fund adopts is notable for its selectivity and managed diversification, typically holding between 5 to 20 investments. This strategy is designed to offer investors a balanced exposure to the broad U.S. equity market, spanning from small-cap to large-cap stocks, through a carefully chosen portfolio that seeks to balance growth and risk.
The fund invests in exchange-traded funds which themselves invest in a wide array of U.S. equity indexes. These indexes can range across small-, mid-, and large-cap equity markets, offering diversified exposure to the overall market. The primary draw of these passively managed index ETFs is their potential to track the broader market performance with a low expense ratio, reflecting a cost-effective strategy for exposure to a wide segment of the U.S. equity market.
In addition to ETFs, the fund selectively incorporates large-capitalization equity securities directly into its portfolio. Investing in large-cap stocks is a method to potentially secure stable returns and tap into the growth of established companies within the U.S. These companies are often leaders in their respective industries and can provide a reliable foundation for the fund’s investment strategy.
Understanding the importance of liquidity and risk management, the fund also holds positions in cash or cash equivalents. This allocation is critical for maintaining flexibility, enabling the fund to react to market opportunities or downturns promptly. Cash components can act as a buffer during market volatility, offering a safer, stable asset amidst the other, more variable investments.