Miller Value Partners today rolled out its second ETF. The Miller Value Partners Leverage ETF implements a unique strategy, primarily investing in other ETFs offering unleveraged or leveraged exposure to the S&P 500 Index.
The fund has an expense ratio of 1.45%.
MVPL aims to provide investors with capital appreciation, which it does by relying on signals from proprietary models drawn from technical data. The models indicate daily whether the fund should take a position in the unleveraged SPDR S&P 500 ETF Trust (SPY A) or a similar fund, or in the*ProShares Ultra S&P 500 ETF* (SSO A) or a similar fund, which provides 2x exposure to the S&P 500 Index, the prospectus says.
The document further notes that the fund can hold either ETF for more than one day. This matters primarily for SSO, since it resets on a daily basis. The compounding risk that accompanies funds providing daily…
