New Age Alpha Files Balanced ETF Built to Avoid Overpriced Stocks

New Age Alpha Advisors filed for an asset allocation ETF that will shift between large-cap equities and fixed income using a proprietary quantitative model, with equity exposure capped at 85% and fixed income generally maintained at no less than 15%. The strategy applies the firm’s “avoid the losers” philosophy and h-factor methodology, which estimates the probability that a company cannot deliver the revenue growth implied by its stock price. The equity sleeve will focus mainly on large-cap stocks, while the bond allocation may include investment-grade, high-yield, government, mortgage-backed, and asset-backed securities. The fund may also use affiliated ETFs and mutual funds, and its active approach could result in frequent trading.