'Bloomberg ETF IQ' (07/03/2019) -‘FLAG’ing An ETF for This 4th of July Weekend

The FLAG ETF uses forensic accounting to evaluate the top 500 U.S. stocks, identifying those with potential accounting or performance issues. Initially a long-only fund, it transitioned to a long-short strategy in 2015, with a 30% short and 130% long allocation. The fund's assets have decreased to $10 million, with notable long positions in JetBlue and Ford, and short positions in Roku and AMD. Despite its high expense ratio of 161 basis points, FLAG's returns have lagged behind the broader market since its 2013 launch. It receives a green light from Bloomberg Intelligence, albeit with a caution on fees.

What is the primary method used by FLAG ETF to evaluate stocks?

• Quantitative easing

• Market sentiment analysis

• Technical analysis

• Forensic accounting

When did FLAG ETF transition to a long-short strategy?

• 2015

• 2019

• 2013

• 2017

What percentage of FLAG ETF's allocation is short?

• 20%

• 30%

• 40%

• 50%

Which of the following companies is FLAG ETF shorting?

• Ford

• JetBlue

• Roku

• PG&E

How does FLAG ETF's expense ratio compare to other ETFs?

• It is in the top 10%

• It is in the top 1%

• It is in the bottom 10%

• It is average