The WealthTrust DBS Long Term Growth ETF, Symbol WLTG, an exchange-traded fund listed on the New York Stock Exchange (NYSE) utilizing a floor trader and designated market maker, with 10 market participants, has emerged as a standout performer in the investment landscape.
As of 4/25/2025, WLTG has achieved a Morningstar Performance Ranking in the top 3% out of 1368 strategies with a similar investment category, large cap blend, over the past year, a testament to its sophisticated methodology that combines Artificial Intelligence (AI) Momentum with a robust Quantitative Verification Process.
Actual one year performance for WLTG is 14.80% compared to 8.13% & 10.91% for its category and the Russell 1000 Index, respectively!
The NYSE’s ETF Central recognizes the timeliness of WLTG and states it is the only ETF currently utilizing AI momentum verified by quantitative analysis, underscoring its relevance and innovative edge in today's dynamic market environment.
A Legacy of Quantitative Excellence
WealthTrust Asset Management has utilized quantitative analysis in its investment methodology for the past 25 years. The company’s DBS Strategies are GIPS Compliant, achieving as of 3-31-24, on Morningstar an overall 4- Star Strategy Ranking in the Large Cap Blend Category representing 1272 similar strategies, & three overall 5-Star Strategy Rankings, one in the Moderate Allocation Category representing 684 similar strategies, one in the Moderately Conservative Allocation Category representing 427 similar strategies, and one in the Conservative Allocation Category representing 171 similar strategies. Morningstar Rankings are determined based on risk adjusted returns.
This impressive track record is supported by a proprietary database that screens over 9,000 companies, identifying potential buys through a rigorous quantitative selection process. Once identified, these companies are monitored for their AI Momentum as a double-check, creating a unique dual verification system: AI Momentum is verified by quantitative analysis, and quantitative selections are confirmed by current AI Momentum trends. This disciplined approach ensures that WLTG’s investments are grounded in both solid fundamentals and real-time market performance.
AI Momentum Methodology
WLTG’s strategy begins with its AI Momentum approach, which identifies the top 10% of companies exhibiting the strongest current price momentum. These companies are sourced from three prominent ETFs:
- Russell 1000 IWB ETF: Representing a broad cross-section of large-cap U.S. companies.
- Nasdaq Top 100 QQQ ETF: Focusing on leading technology and growth-oriented firms.
- Vanguard Value VTV ETF: Capturing value-driven companies with strong fundamentals.
This selection process leverages AI to analyze real-time market data, ensuring that WLTG targets firms with significant upward price trends across diverse market segments.
Quantitative Verification Process
What distinguishes WLTG is its rigorous verification of momentum-driven selections and quantitative stock selection. The ETF employs a comprehensive quantitative ranking system that evaluates companies based on a variety of financial metrics, including but not limited to:
- Current research analysts’ quarterly earnings estimate Quant Rankings
- Quality of earnings and dividends
- Price-to-Earnings (PE) ratios (Earnings per Share divided by the Price per Share)
- Analysts’ forecasted earnings estimates
- Price/Earnings to Growth (PEG) ratios
- Price-to-Sales ratios (Sales per Share divided the Price Per Share)
- Debt-to-Capital ratios
- Dividend yields
- Earnings yield
This multi-dimensional analysis filters out companies that may exhibit momentum but lack the underlying financial strength or growth potential, ensuring a portfolio of high-quality investments.
Role of Research Analysts
A key component of WLTG’s methodology is the involvement of research analysts, whose insights enhance the reliability of the quantitative process. These analysts are incentivized through yearly bonuses and star rankings tied to the accuracy of their earnings estimates compared to actual earnings. This alignment of interests reinforces the precision and credibility of the data underpinning WLTG’s investment decisions.
Unique Position in the Market
The recognition from the NYSE ETF Central highlights WLTG’s unique position as the only ETF currently employing AI Momentum verified by quantitative analysis. This distinction emphasizes its cutting-edge approach and sets it apart in the competitive ETF space, offering investors a novel strategy backed by external validation.
Performance and Conclusion
The WealthTrust ETF’s top-tier Morningstar Performance Ranking reflects the effectiveness of its dual-layered approach: AI-driven momentum identification paired with meticulous quantitative verification. By targeting companies that demonstrate both strong price performance and solid fundamentals, WLTG offers investors a disciplined and innovative strategy for navigating today’s dynamic markets. Its blend of proven quantitative methods and advanced AI technology positions it as a compelling option for those seeking superior returns.
For those seeking additional Information, please contact John McHugh at 850 460-8440, email him at John@WealthtrustAM.Com or logon to www.WealthTrustETF.com.
"Morningstar classifies funds into categories based on similar investment objective and strategy. Morningstar percentile rankings are based on a fund's total return compared to its Morningstar Category of exchange-traded and open-end mutual funds. The highest percentile rank is 1 and the lowest percentile rank is 100.
The Fund’s performance depends on the skill of the Adviser in evaluating, selecting, and monitoring the growth rates and values of portfolio assets using tactical trend models and quantitative analysis. There can be no assurance that the use of this methodology will enable the Fund to achieve positive returns or outperform the market. To the extent the Fund invests in ETFs, the Fund will indirectly bear its proportionate share of any expenses as well as risks. Some of these risks are investments in foreign securities which may involve currency fluctuations, political and social instability, and reduced market liquidity. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. The fund may invest in inverse ETFs and the value of such investment will decrease when the index underlying the ETF’s benchmark rises, a result that is the opposite from traditional equity or bond funds. The net asset value and market price of an inverse ETFs are usually more volatile than the value of the tracked index or of other ETFs that do not use leverage. This is because inverse ETFs use investment techniques and financial instruments that may be considered aggressive, including the use of derivative transactions which may be more sensitive to changes in market conditions and may amplify the risk of loss for the Fund.
"The Morningstar RatingTM (“star rating”) is calculated for funds with at least a three-year history. Exchange-traded and open-ended mutual funds are combined into a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each fund category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar RatingTM is a weighted average of the performance figures associated with a fund’s 3-, 5-, and 10-year (if applicable) Morningstar RatingTM metrics/
"The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus or summary prospectus, a copy of which can be downloaded using the links above or by calling 844-444-3863. Please read the prospectus or summary prospectus carefully before you invest. Investing involves risk including the possible loss of principal. The Fund Performance is net of the .77% Annual Fee.
The WealthTrust ETF is distributed by Foreside Fund Services, LLC.
