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FWDB: Inaugural Portfolio Review

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For the fund’s most recent standardized and month-end performance, please click


FolioBeyond is excited to offer the next generation automated asset allocation solution covering global bond markets.  Our platform leverages over 100 years of combined senior management experience in asset and risk management, as well as advanced quantitative modelling.  Its robust, quantitative asset allocation strategy utilizes best of breed ETFs representing 20+ discrete sub-sectors of the bond markets and provides optimized portfolio solutions. 

We believe that in the current bond marketplace, proper sector allocation is a richer source of alpha than security selection in most of the liquid sectors.  To produce superior risk adjusted returns, proper quantitative tools and methods need to be utilized to reach the optimal point on the efficient frontier.  The dynamics of the recent flattening of the yield curve, credit spread volatility and large swings in implied volatility levels have made it more challenging for traditional asset managers to respond to market changes on a timely basis.

We have encapsulated our methods and analytical tools in a robust optimization framework that allows for a much more efficient way of allocating and rebalancing exposure to the bond markets.  We are leveraging the latest technology and applying institutional methods for assessing value and risk, and the result is a dynamic investment process where models are constantly doing the work for you.

The Bloomberg Barclays US Aggregate Bond Index is somewhat static and dominated by Treasuries and agency mortgage-backed securities.  Our goal is to deliver better absolute and risk adjusted returns than this standard benchmark by systematically optimizing the portfolio across a broader set of investible sectors.

FolioBeyond’s innovative strategy can be thought of as an alpha-maximizing, core bond strategy that is nicely packaged in a fund of ETFs format, bringing the benefits of advanced, automated fixed income models to the growing space of actively managed ETFs.


Yung Lim
CEO of Folio Beyond
AdvisorShares FolioBeyond Smart Core Bond ETF (FWDB) Research Strategist

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.

There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. ETNs have a maturity date and generally, are backed only by the creditworthiness of the issuer. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (e.g., the commodities market), changes in applicable interest rates, and changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the market. Other Fund risks include market risk, equity risk, early closing risk, liquidity risk and trading risk. The Fund will be subject to the risks associated the Underlying ETFs’ or ETP’s investments such as commodity risk, concentration risk, credit risk, fixed income risk, high yield risk, income risk, interest rate risk, and investment risk.

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.

Holdings and allocations are subject to risks and to change.

The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.