Active management has evolved, integrating traditional quantitative analysis with advanced algorithmic trend analysis to navigate complex market environments. The WealthTrust DBS Long Term Growth ETF (ticker: WLTG) seeks to combine time-tested methodologies with Algorithmic Trend Analysis to pursue long-term capital appreciation. In an interview with The Wealth Advisor’s Scott Martin, John McHugh, President at WealthTrust Asset Management, discussed how WLTG’s strategy aims to adapt to volatile markets while focusing on consistent performance.
A Distinct Approach to Asset Management
John McHugh was recognized in the 2024 edition of Marquis Who’s Who in the financial services category with a further 2025 recognition as a Distinguished Leader in the Institutional Asset Management Category. Distinguished Leaders represent only a small percentage of the global population.
Link to the Wall Street Journal’s Who’s Who Announcement: press_release_distribution_0521059_216368.jpg (900×851)
John brings extensive experience to WealthTrust’s investment process. His extensive background in financial analysis informs the firm’s disciplined approach to security selection.
Differentiation in Active Management
WLTG distinguishes itself in the crowded ETF landscape by combining third-party algorithmic trend analysis with traditional quantitative methods. Unlike some funds that rely solely on algorithms, WLTG’s approach enhances human decision-making with data-driven insights, analyzing earnings trends, estimate revisions, and fundamental metrics. This integrated methodology aims to provide a balanced investment framework, as with all investment methodologies, it carries inherent risks.
Blending Quantitative Analysis with Algorithmic Trend Analysis
WealthTrust’s investment strategy integrates a 25-year quantitative methodology with Algorithmic Trend Analysis. The quantitative approach focuses on companies with strong earnings and dividend profiles, historically achieving lower earnings miss rate (5–10%) compared to the S&P 500 (25–30%), based on internal data. The third-party algorithmic trend analysis model analyzes momentum trends within the Russell 1000, Nasdaq Top 100, and VTV, Vanguard Value ETF identifying approximately 150 companies at any given time that exhibit aligned earnings estimates, stock prices, and momentum trends.
This dual-methodology approach involves:
- Algorithmic Trend Momentum Analysis: Identifying companies with upward-trending momentum, followed by quantitative verification and fundamentals.
- Quantitative Screening: Evaluating companies for high-probability earnings performance, followed by momentum confirmation for optimal entry and selling points.
This bidirectional process seeks to identify securities with strong fundamentals and favorable market trends, though there is no guarantee of outperformance.
Sophisticated Trading Infrastructure
WLTG operates with a robust trading infrastructure, partnering with GTS, a dedicated market-maker on the New York Stock Exchange, and other participants such as Goldman Sachs and Wells Fargo. This structure aims to enhance liquidity and execution efficiency for investors, though bid-ask spreads may vary based on market conditions. Large trades should be executed via the custodians’ block trading desk.
Tactical Allocation for Flexibility
WLTG employs a two-sleeved approach:
- DBS Core Sleeve (~75% of assets): Focuses on individual equities selected through the combined algorithmic trend analysis-quantitative methodology.
- DBS Tactical Edge Sleeve (~25% of assets): Provides flexibility through passive ETF investments, guided by trend analysis across 14 ETFs covering various asset classes, sectors, and market capitalizations.
Alignment with Separately Managed Accounts (SMAs)
Commitment to Advisor and Client Education
Portfolio Construction
WLTG screens approximately 9,000 global companies using proprietary filters, including price-to-earnings ratios, debt levels, free cash flow, and insider ownership. The Quant Ranking system assigns scores from 1 (Strong Buy) to 5 (Strong Sell), with only securities ranked 1–3 considered for inclusion. The active management approach seeks to reduce exposure to overvalued sectors and capitalize on market opportunities.
Important Considerations for Investors
The fund’s success depends on the Adviser’s ability to select and monitor portfolio assets using quantitative and trend analysis methods, and there is no assurance of positive returns or market outperformance.
Additional risks include:
- ETF Investments: The fund may invest in other ETFs, indirectly bearing their expenses and risks, such as currency fluctuations, political instability, and reduced liquidity for foreign securities.
- Small- and Mid-Cap Companies: These investments may be more volatile and less liquid than larger companies.
- Inverse ETFs: Used in the tactical sleeve, these may increase volatility and result in losses if the underlying index rises.
Investors should carefully review the fund investment objectives, risks, charges, and expenses before investing. Prospectus or summary prospectus available at www.wealthtrustetf.com. Read it carefully before investing
Contact WealthTrust
For additional information or to schedule a consultation, contact John McHugh at 850 460-8440, utilize the calendar link: https://calendly.com/john-8uhu or email: john@wealthtrustam.com.
Important Information
WealthTrust Asset Management, LLC is a registered investment adviser. This material is for educational and informational purposes only and is not an offer or solicitation to buy or sell securities. Investments involve risk and are not guaranteed. Information is believed to be accurate but does not include false or materially misleading statements. For full disclosures, including material risks and conflicts of interest, refer to the adviser’s ADV Part 2A (CRD No. 174901) at adviserinfo.sec.gov.
Past performance is not indicative of future results. Performance data does not reflect the deduction of taxes on distributions or share redemptions. The fund’s use of tactical trend models and quantitative analysis does not guarantee positive returns or market outperformance.
The WealthTrust ETF is distributed by Foreside Fund Services, LLC.
