November 2, 2022 – West Bend, WI – Client First Tax & Wealth Advisors announced it is in the pre-effective stage of launching its first exchange traded fund (ETF); AdaptivTM Select ETF (ticker: ADPV).
Client First, an independent Registered Investment Advisor located in West Bend, Wisconsin, is working with strategic partners US Bank, Exchange Traded Products (ETC), and Quasar Distributors to bring the Momentum-based large-cap stock selection strategy to life within the tax efficient exchange traded vehicle.*
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“As we enter the active ETF space, we are excited about the full roster of strategic experts we are partnering with,” said Paul Zarling, Managing Partner at Client First. “Our partners, such as sub-advisor (ETC), lead market maker, Global Trading Systems (GTS), and fund custodian and administrator (US Bank) are well known in the marketplace. They provide the extreme depth of expertise we were looking for on behalf of our clients. Launching this ETF is no small task. We wanted to find experts and partner with them. We owe that to our clients, and we think they’ll appreciate what we’ve built for them.”
“We are thrilled to have AdaptivTM capabilities within an ETF structure, in order to provide our with the benefits of active management and the tax efficiencies of an ETF,” stated
Partner and Head of Financial Planning, Justin Krueger, CFP®.
Client First manages over $120 million in assets while implementing their TrueHolistic® Planning process for over 400 households.
“Having AdaptivTM active management for selecting individual stocks within a tax-efficient ETF wrapper is something we’ve wanted to do since 2018. We had to be patient, make sure we got the right teams, strategy, and partnerships in place. The AdaptivTM Select ETF took over a year to build and the AdaptivTM team worked hard to make this a reality. The time is now, and our planning team is excited for our clients and the potential this ETF could have on their retirement plan and portfolios.”
The AdaptivTM Select ETF is designed with two main objectives in mind: (1) To identify and own the 25 highest ranked U.S. Large Cap stocks out of a universe of the 1000 largest capitalized U.S. stocks when the broad U.S. market is in an uptrend. (2) To identify when the broad U.S. market is in a downtrend and shift out of the stocks held and into cash and short-term Treasury Bills.
The AdaptivTM Select ETF uses proprietary objective rules-based calculations to try and
accomplish the aforementioned. “There’s really three main features of the AdaptivTM Select ETF,” said Ian McMillan, CMT®, Portfolio Manager and Market Analyst at Client First. “First, when the broad U.S. stock market is in an uptrend, it tries to own the very best stocks using Momentum and Relative Strength as our measuring stick.
Second, when a broad U.S. stock market downtrend is identified using moving averages, it tries to mitigate risk and reduce drawdown by shifting 100% of the ETF into cash and T-Bills.
Third, we don’t wait a full quarter of a year to implement the aforementioned. We make these calculations and reconstitute the AdaptivTM Select ETF weekly. That’s important.”
With the fund now effective, the AdaptivTM Select ETF has a potential launch date this upcoming November and is anticipated to be listed on the New York Stock Exchange (NYSE) under ticker ADPV.
“While we are still in the final stages of getting AdaptivTM Select live and available for trading on the NYSE, we wanted to go public with the great news,” said David Zarling, CMT®, Partner and Head of Investment Strategy and Research at Client First. “This labor of love was done first and foremost on behalf of our own clients. At the same time, we fully realize that other Advisors might appreciate an ETF built by Advisors based on client needs. Advisors and investors have often sought to select individual stocks in order to try and capture both absolute and relative returns. This ETF seeks to capture both of the aforementioned using two investment factors observed consistently across many market time horizons: Momentum and Relative Strength.
Being able to provide the aforementioned stock selection methodology in a more tax efficient wrapper is a win-win proposition for us: Our own clients get the benefit of stock selection within a tax-efficient wrapper. And so do other investors and Advisors if they want the same selection protocol and tax efficiency in their portfolios.”
