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Meet ELM ETF: Taking the Best of Active and Passive with Dynamic Indexing®

Elm Wealth introduces the Elm Market Navigator ETF (ELM), a cost-efficient, dynamically managed fund that adjusts stock and bond exposure based on market risks and opportunities.

ETF Central
By ETF Central Team · February 13, 2025
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ELM ETF

Elm Wealth, renowned for its institutional-quality portfolio management, has launched the Elm Market Navigator ETF (

) on the NYSE. This ETF marks the public debut of the firm's Dynamic Index Investing® approach, offering a systematic and cost-effective way to manage risk-adjusted global asset allocation.

The fund, converted from a 13-year-old private investment vehicle, began trading on February 11, 2025, with an expense ratio of just 0.24%.

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How ELM ETF Works

ELM operates as a "fund of ETFs," investing in low-cost index funds to provide broad market exposure. The baseline allocation is approximately 75% global equities and 25% bonds, but the fund actively adjusts these weightings based on a rules-based, systematic strategy.

ELM primarily invests in ETFs covering:

  • U.S. and international equities
  • Real estate
  • Government bonds
  • Treasury Inflation-Protected Securities (TIPS)

Through dynamic rebalancing, ELM aims to enhance risk-adjusted returns, reducing exposure during market downturns while capitalizing on favorable conditions.

Why Investors Should Consider ELM

ELM offers an alternative to traditional passive indexing and active management by blending systematic allocation adjustments with cost efficiency. Victor Haghani, Founder of Elm Wealth, explains:

"A sound investing approach should be eyes-open and responsive to varying risks and returns. Dynamic Index Investing® allows us to systematically adjust portfolios in response to changing market conditions."

Key Advantages of ELM:

  1. Cost Efficiency – With an expense ratio of just 0.24%, ELM is less than half the cost of comparable actively managed funds (according to the firm) while maintaining a data-driven, adaptive investment approach.
  2. Risk-Adjusted Investing – Unlike static index funds, ELM actively modifies allocations to reduce risk during market volatility, helping investors avoid emotional decision-making.
  3. Institutional Expertise – ELM’s strategy was developed by Victor Haghani, a former LTCM and Salomon Brothers executive, and refined over 13+ years of private wealth management before being made publicly available.

At launch, ELM managed $361 million in assets, offering a scalable and tax-efficient investment solution for long-term investors seeking dynamic global diversification.

About Elm Wealth

Founded in 2011 by Victor Haghani, Elm Wealth began as a personal wealth management strategy before evolving into a full-fledged investment firm. Today, it oversees over $2 billion for approximately 500 families, leveraging quantitative research to build globally diversified, cost-efficient portfolios.

By launching ELM as an ETF, Elm Wealth is expanding access to Dynamic Index Investing®, providing a disciplined, systematic alternative to both passive indexing and traditional active management.

For more details, visit the Elm Wealth website.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.    

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