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Elkhorn launches first ever Dorsey, Wright & Associates, a Nasdaq company, commodity rotation ETF. No K-1

Thursday, September 22, 2016
Opalesque Industry Update - Elkhorn Investments, LLC, a pioneer of research-based investing, has announced the launch of the Elkhorn Commodity Rotation Strategy ETF (DWAC). DWAC is the first commodity exchange-traded fund (ETF) based on Dorsey, Wright & Associates (DWA), a Nasdaq Company’s, proprietary Relative Strength methodology.

“This is not only the first Dorsey, Wright & Associates-based commodity ETF, but also the first purely tactical commodity ETF in the marketplace,” said Ben Fulton, Founder and CEO of Elkhorn. “Investors looking for a highly selective portfolio of commodities now have a solution.”

The Elkhorn Commodity Rotation Strategy ETF’s commodity exposure is based on a model developed by DWA using their proprietary Relative Strength methodology. The Model evaluates a universe of 21 commodities and provides equal-weighted exposure to the five commodities exhibiting the highest relative strength. The ETF also utilizes an intelligent roll strategy to mitigate the potential negative impact of contango, and invests in a short duration portfolio of highly liquid, high quality bonds.

“I have long been a believer in tactical opportunities within the commodity market,” said Tom Dorsey, Founder of Dorsey Wright & Associates, a Nasdaq Company. “We have built commodity-based models for decades, yet this is the first ETF based on our commodity research. For investors unsure of how to invest in commodities, DWAC’s strategy gives investors dynamic exposure to the commodity marketplace.”

Individual commodities often have unique market cycles, creating an environment where wide dispersions exist across the commodity complex. The tactical nature of DWAC offers investors exposure to the highest relative strength commodities (as evaluated on a monthly basis) as opposed to owning an entire universe of commodities. Additionally, investors will receive a 1099 tax form as opposed to the K-1 forms often associated with commodity ETFs.

This is one of two actively-managed, commodity-based ETFs that Elkhorn is launching today. The second being the Elkhorn Fundamental Commodity Strategy ETF (RCOM). The launch of DWAC adds to Elkhorn’s diverse ETF lineup, which includes the recently launched investment grade only Elkhorn S&P High Quality Preferred ETF (EPRF).

Founded in 2013 by Ben Fulton, a recognized leader and pioneer of the ETF industry, Elkhorn is redefining the relationship between investment strategy and product structure: designing, sponsoring and distributing innovative, research-based investments solutions. At Elkhorn, research drives design and advisors drive structural decisions. Elkhorn has a strategic relationship with Barclays which has increased the capacity of investment solutions offered by Elkhorn. To learn more about Elkhorn please visit www.elkhorn.com.

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