The equity and fixed income funds invest in securities showing uptrends, says the firm, which is led by Skip Schweiss.
Ocean Park Asset Management, the firm led by former TD Ameritrade Institutional executive Skip Schweiss, last week introduced its first exchange-traded funds, which follow the firm’s quantitative, rules-based investment process.
The four ETFs — two centered on equities, two on fixed income — focus on trend following, security selection and a trailing stop discipline, Ocean Park said. They each aim to provide total return and limit exposure to downside risk.
- Ocean Park Domestic ETF (DUKQ) can invest in U.S. equity ETFs that exhibit uptrends, including those based on market capitalization, styles, factors, sectors and industries. It also may invest in cash equivalents when U.S. equity ETFs are not in uptrends. Expense ratio after fee waiver: 0.98%.
- Ocean Park International ETF (DUKX) can invest in international equity ETFs, which include emerging market ETFs, that are exhibiting uptrends, and in cash equivalents when international equity ETFs are not in uptrends. Expense ratio after fee waiver: 0.99%.
- Ocean Park Diversified Income ETF (DUKZ) can invest in bond market areas that are exhibiting uptrends, including those that invest in Treasurys, investment-grade and high-yield corporate bonds, investment-grade and high-yield municipal bonds, mortgage-backed securities, developed international and emerging market bonds, convertible bonds, preferred securities and bank loans. It can also invest in cash equivalents when fixed income ETFs are not in uptrends. Expense ratio after fee waiver: 0.99%.
- Ocean Park High Income ETF (DUKH) can invest in higher yielding areas of the bond market that are exhibiting uptrends, including those that invest in high-yield corporate and municipal bonds, emerging market bonds, preferred securities and bank loans. It can also invest tactically in Treasury ETFs and in cash equivalents when high income and Treasury ETFs are not in uptrends. Expense ratio after fee waiver: 1.07%.
“The launch of our first Ocean Park ETFs to complement our mutual fund suite is a direct response to advisor demand for access to Ocean Park’s investment process in an ETF wrapper,” said Schweiss, Ocean Park Asset Management’s CEO.
“The new suite of ETFs will allow individual investors and their financial advisors to create total portfolio solutions tailored to an individual’s objectives,” said James St. Aubin, the company’s chief investment officer.
“While we believe mutual funds still have an important role to play in many portfolios, our ETFs will expand the accessibility of our approach to managing portfolio risk,” Aubin added.
In the fall, all Sierra Investment Management mutual funds will shift to Ocean Park branding, and the Sierra name will be retained only for private client offerings. The Ocean Park brand will be reflected in the firm’s ETFs and mutual funds.
Pictured: Skip Schweiss