In September 2009, the DENT Tactical ETF (NYSE:DENT) traded over one million shares in the first four days of its launch, making it the largest and fastest growing actively managed ETF in existence. DENT is the first product of Advisor Shares Investments, LLC, a majority-owned subsidiary of Fund.com (OTCBB:FNDM).
When asked about his reaction to DENT's success, Fund.com CEO Greg Webster said, "While I had an expectation that the product would be well received, I was pleased to see that the number of creation units were considerably greater for a new product." Each of the baskets that get traded in ETFs are created by 25,000 shares of ETF stock. Every 25,000 shares acquired in the market establish a creation unit. He continued, "The fact that the existent product was able to achieve an asset level of 15 million dollars so quickly was very satisfying."
Historically, ETFs are designed to track an index, like the S&P 500. They are passively managed: when the index makes a trade, the ETF makes the same trade without speculation. Operational efficiency, transparency, liquidity and tax efficiency are some of the numerous advantages to ETFs. AdvisorShares' SEC-granted exemptive relief from the Investment Act of 1940 allows the company to marry the positive features of exchange-traded funds (ETFs) with professional money management, creating a product like DENT.
As of August 2009, the combined assets of the U.S. ETF market were $656.9 billion with positive asset growth trends. Over the past 12 months, ETF assets increased $70.9 billion, or 12.1 percent. Fund.com, the parent company of AdvisorShares, is looking to open new ETFs and acquire additional feeder funds for their existing ETFs.
Harry S. Dent Jr., one of the managers of the DENT Tactical ETF, will be featured in the upcoming winter issue of EQUITIES Magazine. Affiliates, Officers and or Directors of Equities Magazine own shares of Fund.com (OTCBB:FNDM). To access the upcoming winter issue of the magazine and more, sign up for a free one-year subscription to EQUITIES Magazine.
About AdvisorShares
AdvisorShares Investments, LLC is an innovative investment management firm which offers actively managed ETFs through the AdvisorShares Trust. Exchange Traded Funds are one of the fastest growing investment products due to their operational and tax efficient structure, and ease of accessibility. AdvisorShares intends to offer a variety of investment products designed to help investors reach their financial goals. AdvisorShares seeks out topinvestment management firms interested in sub-advisory and product development opportunities, as well as qualified emerging money managers. AdvisorShares Investments, LLC, is a majority-owned subsidiary of Fund.com. Inc. Additional Information about AdvisorShares Investments, LLC is available at www.AdvisorShares.com.
About Fund.com
Fund.com is an online content provider and lead generation platform for the financial services community, including investment funds and the savings and retirement markets. Our objective is to engage individual investors and to match their needs with interested fund product providers. Our www.fund.com website is intended to be approachable by everyday investors and to serve as an educational and research resource.
About HS Dent
For two decades financial professionals and individuals have used HS Dent's independent economic think tank and research team to provide specialized and proprietary economic research, analysis tools and forecasts. HS Dent makes its research available through its Monthly Economic Forecasts and Special Reports, attending Demographics School, by joining the Financial Advisors Network, and by participating in its Online Communities to share techniques and ideas with some of the most successful advisors in the industry.
