Absolute-Return ETFs Get Timing Right

NEW YORK (TheStreet) -- A few days ago AdvisorShares started the Mars Hill Global Relative Value ETF (NYSE: GRV). The exchange traded fund employs an active long-short strategy with ETFs in pursuit of an absolute return.

It has been a while since there have been any absolute-return ETFs listed. The timing of this one, assuming it can deliver on its objective, could be quite good. The S&P 500 is up 60% from its low in March 2009 and down only slightly from its recent peak. A common practice in the industry is to bring a specialized product at the height of demand. An absolute-return fund offers far more potential after a big move up in the market as opposed to after a big move down.

The makeup of the fund as of July 15 was long 100% and short 100%.

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