ALFA - VanEck Australian Long Short Complex ETF

[divs4ever]

it would be fair to say that 99.99% of market participants would recognise that that is not a viable strategy

well i haven't seen enough detail ( yet ) to consider it as an investment strategy

so time will tell if this succeeds

 

[Bellcose]

some buyers lining up... $20.70ish

yes there's a PDS

ALFA - The first Australian equity long short ETF | Active, alpha strategy

Discover an active, deeply quantitative approach using advanced computations and programmed learning. Learn about ALFA now, the latest in ETF innovation.

www.vaneck.com.au

from brochure, their blurb

Rapid advancements in technology are revolutionising investment management. Systematic approaches are effectively mitigating variability and enhancing the quality of portfolio management decisions.

Harnessing the combination of an agile investment approach and computational power is now critical in giving portfolios an investing edge. With the VanEck Australian Long Short Complex ETF (ASX: ALFA), investors can now access this transformative strategy. ALFA is the next evolution of ETFs and is the first of its kind on ASX. It employs an actively managed, high conviction, benchmark and style-agnostic approach for Australian equities.

Hmm, for sure.

"An actively managed ETF features many of the same benefits of a passively managed exchange-traded fund, like price transparency, liquidity, and tax efficiency, but with a fund manager that can adapt the fund to changing market conditions."

OK so the ETF can change the composition within the ETF as it sees fit using algorithms presumably. What could possibly go wrong?

 

[divs4ever]

Hmm, for sure.

"An actively managed ETF features many of the same benefits of a passively managed exchange-traded fund, like price transparency, liquidity, and tax efficiency, but with a fund manager that can adapt the fund to changing market conditions."

OK so the ETF can change the composition within the ETF as it sees fit using algorithms presumably. What could possibly go wrong?

1. well there is a high probability a computer or software algorithm will be blamed ( no human gets roasted )

2. any major issue is liable to be detected later ( rather than sooner )

3. bad input data going in unnoticed

and i suspect much more like data feeds going down ( while the market is still trading )

 

[wayneL]

I think it's a viable strategy of course, many of us do this on a small scale in our individual accounts.

On a large scale like in an ETF I am totally skeptical, unless they are involving macro factors like some of the true large hedge funds. Even then you're relying on the successful analysis of the fund manager even if it is AI.

Even the large successful hedge funds are highly volatile and can have totally diabolical years along with some spectacularly successful ones. But will Ma and Pa investor tolerate the drawdowns?

 

[divs4ever]

*** Dividend frequency 1 each year ***going to make it a hard sell to me , not even offering 'the magic of compounding '

i will watch but MIGHT be more of a ( mid-term ) trading stock for me , if i dabble at all

 

[qldfrog]

Hmm, for sure.

"An actively managed ETF features many of the same benefits of a passively managed exchange-traded fund, like price transparency, liquidity, and tax efficiency, but with a fund manager that can adapt the fund to changing market conditions."

OK so the ETF can change the composition within the ETF as it sees fit using algorithms presumably. What could possibly go wrong?

Well it is a defacto fund,not an index etf, doing same as i do with my systematic trading but with presumably more time, hardware and skills than i do
Of course it will should be dynamic
I do not know if it is a lemon or not, only results will tell