Beacon Capital Management Launches Beacon Tactical Risk (BTR) ETF Based on its Flagship Portfolio
April 14, 2023
The fund is designed to deliver in today’s volatile market conditions, working to capture gains while limiting losses through a mechanical stop-loss measure
April 14, 2023 – Dayton, Ohio – Beacon Capital Management (www.BeaconInvesting.com), a registered investment adviser (RIA) firm that seeks to offer long-term investors innovative portfolio management solutions, announces the launch of its new exchange-traded fund (ETF), Beacon Tactical Risk (BTR), trading on the New York Stock Exchange Arca. With the launch of this ETF, Beacon Capital Management makes its popular investment philosophy accessible to a broad market of investors, working to capture gains while limiting losses in order to deliver consistent returns in today’s volatile market conditions. The first day of trading is set for April 18, 2023.
BTR uses an equal sector allocation across 11 sectors as a first line of defense and a mechanical stop-loss as a secondary defense to limit losses before they become too catastrophic. When the stop-loss is triggered, equity positions are sold, and portfolio assets are repositioned into fixed income. The BTR fund has been designed to deliver on its core objective in both bear and bull market conditions.
“We are thrilled to bring our award-winning investment management approach to more investors through this new ETF,” said Chris Cook, president and Chief Investment Officer of Beacon Capital Management. “In today’s environment where persistent market volatility is now the norm, sharp declines in daily market value are not only more frequent*, but more concentrated as well as powerful. After experiencing a catastrophic loss to their portfolio value, the average investor simply does not have the time often required just to get back to where they started. This is why we designed our investment strategy to have mechanical stop-loss measures—to limit losses before they become too catastrophic.”
At the core of Beacon Capital Management’s investment philosophy are several key fundamental principles, including the belief that investing is a science, not a state of mind. As a research-driven RIA that prioritizes discipline, reactions to changing markets occur only when the firm’s predetermined rules dictate. Utilizing a proprietary index, the Vantage 2.0 Benchmark Index, Beacon’s team determines when traditional diversification may not be enough to protect investors from persistent market downturns. This approach automatically withdraws investors’ funds from equity positions to provide a safety valve helping minimize losses during volatile market periods.
Beacon Capital Management has also made a second ETF available to investors: Beacon Selective Risk (NYSE Arca: BSR). The first day of trading for the BSR fund is also set for April 18, 2023. When fully invested in equities, the BSR fund looks identical to the flagship BTR fund; however, how they respond to volatility differs and means the funds can work well together as a complementary duo. The BSR fund operates with targeted loss-reduction protections at the sector level and has been designed as a supplement to BTR to help capture gains in sideways market conditions. By utilizing both funds together, with BTR typically as the primary holding, investors can add an additional layer of risk management style diversification to their portfolio.
For more information about Beacon Capital Management’s ETF offerings, visit www.BeaconInvestingETFs.com.
About Beacon Capital Management
Beacon Capital Management is a next-generation registered investment adviser (RIA) firm and turnkey asset management program (TAMP) dedicated to fundamentally improving the science of investing. The firm has experienced significant growth in recent years as more investors have become dissatisfied with the emotional rollercoaster of market extremes. With more than $5 billion in assets under management as of December 31, 2022, the firm has been named^ to the CNBC FA 100 list three years in a row now (2020, 2021 and 2022), Financial Advisor magazine’s “Fastest Growing RIAs,” and The Financial Times newspaper’s “Top Registered Investment Adviser”. Beacon Capital Management was founded in July 2000 with the goal of providing long-term investors with innovative portfolio management solutions that work to capture gains while seeking to limit losses from market volatility. In addition to investment management services, the firm seeks to empower advisors with turnkey marketing, operational and account management support. For more information about Beacon Capital Management, please visit BeaconInvesting.com or email [email protected]
* Source: S&P Dow Jones Indices LLC. Data measured from January 1, 1950 through December 31, 2022, demonstrating that the S&P 500® Index has lost more than 2% of its daily value for 272 days since the year 2000, as compared to only 160 days between years 1950 and 1999.
^ The CNBC FA 100 List is based on proprietary methodology developed by CNBC, in partnership with data provider AccuPoint Solutions. The Financial Times’ 300 Top Registered Investment Advisers (FT 300) is an independent listing produced annually by Ignites Research, a division of Money-Media, Inc., on behalf of the Financial Times. Financial Advisor’s (FA) magazine’s RIA Survey and Ranking list is FA’s annual ranking of registered investment advisers (RIAs). The listings are based on data gathered from RIA firms via surveys, regulatory disclosures (e.g., form ADV filings), and research conducted by the listing firms. These listings do not evaluate the quality of services provided to our clients, is not representative of any one client’s experience, and are not indicative of future results. No payment was required for nomination or inclusion in any of these listings.
All investing involves risk, and asset allocation and diversification do not guarantee a profit or protection against a loss. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, might be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks, as well as other risks specific to the particular ETF.
ETF shares are traded on exchanges, and are traded and priced throughout the trading day. ETFs permit an investor to purchase a selling interest in a portfolio of stocks throughout the trading day. Because ETFs trade on an exchange, ETF shares are bought and sold at market price (not NAV). The prices of ETFs may sometimes vary significantly from the NAVs of a ETFs’ underlying securities. Brokerage commissions will reduce returns.
The Beacon Tactical Risk and Beacon Selective Risk ETFs (collectively, “Beacon ETFs”) are offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in each of the Beacon ETF prospectuses, which should be read carefully before investing and can be obtained here or by calling 866.439.9093.
Benchmark indices provide the standards against which investment performance is measured. The Beacon ETFs’ investment objectives and strategies differs substantially from the benchmark indices. The S&P 500® Index is a market-capitalization-weighted equity index tracking the performance of the 500 largest U.S.-traded stocks (by market value), which represent about 80% of all U.S incorporated equity securities. The Vantage 2.0 Benchmark Index is a custom blended index developed by Beacon Capital Management, Inc. and is composed of the following 11 Vanguard sector ETFs, each equally weighted at 9.09% (Percentages may not total to 100% due to rounding): Energy ETF (VDE), Materials ETF (VAW), Industrials EFT (VIS), Consumer Discretionary ETF (VCR), Consumer Staples ETF (VDC), Health Care ETF (VHT), Financials ETF (VFH), Information Technology ETF (VGT), Communication Services ETF (VOX), Utilities ETF (VPU), and Real Estate ETF (VNQ). Benchmark indices are neither managed, nor accessible through direct investment, nor subject to advisory fees, transaction costs or other expenses; it is assumed distributions are reinvested back into the index.
Beacon Capital Management, Inc. is an investment advisory firm registered with the Securities and Exchange Commission. Sammons Financial® is the marketing name for Sammons® Financial Group, Inc.’s member companies, including Beacon Capital ManagementSM