Ocean Park Asset Management launched its first exchange-traded funds (ETFs) that offer investors the firm’s trend-following investment style in a fund-of-funds package.
The Santa Monica, Calif.-based firm launched the Ocean Park Domestic ETF (DUKQ), the Ocean Park International ETF (DUKX), the Ocean Park Diversified Income ETF (DUKZ), and the Ocean Park High Income ETF (DUKH).
The ETFs are essentially funds of funds, investing only in other ETFs.
“I think we’re just joining the parade of every asset manager out there that has mutual funds and is looking to meet the demand where it is, which is in the ETF space,” said James St. Aubin, chief investment officer at Ocean Park.
The introduction of ETFs comes after the firm has amassed more than $5 billion in assets in its mutual funds.
“We still believe in the mutual fund product and wrapper,” St. Aubin said. “But generally speaking, we want accessibility of our strategy across both wrappers.”
St. Aubin said the firm buys and sells the underlying investments with the objective of participating in market uptrends while limiting exposure to large drawdowns.
The domestic ETF seeks market uptrends and invest in funds based on market capitalization, styles, factors, sectors, and industries.
The international version includes emerging markets ETFs, the firm said.
The diversified income ETF can include investments in ETFs that focus on Treasurys, investment-grade and high-yield corporate bonds, and investment-grade and high-yield municipal bonds,
The high-income ETF invests in even higher-yielding parts of the bond market. Those can include ETFs that focus on high-yield corporate and municipal bonds, emerging market bonds, preferred securities, and bank loans, according to the firm.
The domestic equity ETF has an expense ratio of 98 basis points while the international version’s expense ratio is 99 basis points. The high-income ETF is 107 basis points while the diversified income ETF is 99 basis points. The funds are available through all major custodians and platforms, St. Aubin said.