>>> BlackRock Launches Copper Miners ETF in Amsterdam


ETF.com

The issuer aims to benefit from the metal’s role in the energy transition.

by Theo Andrew, Jamie Gordon
|
Jun 26, 2023


https://www.etf.com/sections/news/blackrock-launches-copper-miners-etf-amsterdam


LONDON - BlackRock has extended its thematics range with the launch of a copper miners ETF, ETF Stream can reveal.

The iShares Copper Miners UCITS ETF (COPM) listed on the Euronext Amsterdam on 21 June with a total expense ratio (TER) of 0.55%.

It tracks the Stoxx Global Copper Miners index, providing exposure to companies globally with significant exposure to the copper mining industry via revenue percentage or market share.

Companies in the top 50% of market share of the copper ore mining industry will be selected.

BlackRock said the industry typically offers an attractive dividend yield and high sensitivity to the copper price, making a “liquid and tradable proxy candidate” for direct copper commodity exposure.

It added the industry is set to benefit from the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.

Copper’s role in the transition has fueled huge demand over the past few years, while limited supply and mining challenges have opened up investment opportunities, the asset manager said.

Demand Set to Outstrip Supply

According to JP Morgan, the world will need a 54% larger supply of copper by 2030 on the current net-zero path, with demand set to outstrip supply by six million tons per year by the end of the decade.

Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.

“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy shows a need for increased investment in new copper mine capacity to accommodate continued growth.”

Despite this, the copper price has remained volatile this year reflecting concerns that China’s rebound was not materialising. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.

COPM is the second copper miners ETF in Europe, following the launch of the Global X Copper Miners UCITS ETF (COPX) in November 2021. The ETF has since amassed $58m in assets under management (AUM).

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>>> Equal-Weight RSP Boxing Out SPY, Mag 7


ETF.com

by Jeff Benjamin

March 20, 2024


https://finance.yahoo.com/news/equal-weight-rsp-boxing-spy-160000389.html


While riding a handful of stocks that have been driving market indexes can be exhilarating, there is also a time for tapping the brakes, whether to reduce risk or diversify a portfolio.

That’s the premise behind ETFs like the Invesco S&P 500 Equal Weight ETF (RSP), which has risen more than 3% over the past month.

The fact that RSP has been running evenly with the market-capitalization-weighted SPDR S&P 500 ETF Trust (SPY) over the past 30 days has drawn the attention of both savvy market watchers and trigger-happy traders as a sign that the influence of the Magnificent Seven stocks is waning slightly.

“The broadening of market breadth may make financial advisors feel a bit more at ease,” said Nicholas Codola, senior portfolio manager at Omaha, Neb.-based Orion.

“Generally, it’s a sign of a stronger, more resilient market when the majority of the stock market returns are not explained by seven-to-10 names,” he added. “We’ve all heard the old adage that diversification is the only free lunch.”

RSP's Implications for Long-Term Investors

Indexes weighted to the largest and fastest growing companies have historically had a huge upside, as has been evident recently.

Last year, SPY’s 26.2% gain was nearly double the 13.7% gain by RSP. And so far this year that trend has continued with SPY up 8.2% and RSP up 4.5%.

But longer term, where most retail class investors live, RSP has been a powerful force.

Since its inception, 21 years ago, RSP has produced a cumulative return of 542%, which compares to a 458% cumulative return over the same period for SPY, according to Morningstar.

On an annualized basis, according to Invesco, RSP's index, the S&P 500 Equal Weight Index, has generated an 11.5% gain since inception, which compares to a 10.8% annualized return for the S&P 500 Index over the same period.

“Advisors can tell clients that if and when the rest of the 490-plus companies in the index begin to catch up, investors will be more exposed to those gains with an equal weight approach,” said Jeff Schwartz, president of Markov Processes International in Summit, N.J.

“Additionally, equal-weighted indices have an important quirk where the average or mean return of the portfolio is slightly above the median,” he added. “This means that the investor should expect to have a return that is slightly better than half the companies in the portfolio.”

Paul Schatz, president of Heritage Capital in Woodbridge, Conn., sees equal-weight indexes as the start of a longer-term story.

“The Mag Seven has struggled lately and at the same time the New York Stock Exchange advance-decline line has been chugging higher, which is expressed in RSP finally trying to hold its own against SPY,” he said.

Chuck Etzweiler, senior vice president of research at the advisory firm Nepsis in Minneapolis, said equal-weighted and factor-based indexes are part of the nuance that can make indexed investing “quite confusing to even the most intuitive investor.”

“Equally weighted indexes not only provide a greater level of diversification as they lower concentration risk, (but) their methodology allows for a greater number of companies down the market-cap stream to be included, such as mid and small cap companies,” he said. “And anytime an equal-weight process begins to outperform it usually shows a broadening out of companies achieving higher price appreciation and suggests a near term healthy economic environment."

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>>> Inflows into bullish Nvidia ETF hit record on AI frenzy


Reuters

Mar 7, 2024

By Bansari Mayur Kamdar


https://finance.yahoo.com/news/inflows-bullish-nvidia-etf-hit-155124143.html


(Reuters) - Investors have piled into Nvidia-focused exchange-traded funds (ETFs) this year on the frenzy around AI, with inflows into a bullish fund that tracks the shares of the chip designer hitting an all-time high on Wednesday.

Net daily inflows into the GraniteShares 2x Long NVDA Daily ETF hit a record of $197 million, according to LSEG Lipper data. The assets managed by the ETF have grown to $1.41 billion from $213.75 million at the start of the year.

WHY IT'S IMPORTANT

Risk-averse investors have largely stayed away from leveraged ETFs tracking single stocks that aim to provide returns over extremely short periods.

These ETFs, which made their U.S. debut in 2022, have become popular among speculators looking to bet on the most volatile shares based on earnings and other news.

CONTEXT

Nvidia, which controls about 80% of the high-end AI chip market, has surged nearly 82% since the start of the year after a stellar forecast and amid renewed euphoria around AI.

Leveraged single-stock ETFs seek to amplify the returns of an underlying stock for a single day, generally by two or three times, using financial derivatives and debt as leverage.

KEY QUOTES

"Nvidia has been the hottest stock in 2024 and many investors are eager to seek out higher returns in exchange for added risk," said Todd Rosenbluth, chief ETF strategist at VettaFi.

"We expect to see continued demand for single stock leveraged ETFs as a new wave of must-own companies emerge."

THE NUMBERS

Net monthly inflows into leveraged ETFs tracking Nvidia such as the GraniteShares 2x Long NVDA ETF, the Direxion Daily NVDA Bull 1.5X Shares ETF and the T-Rex 2X Long Nvidia Daily Target ETF hit a record in February.

The GraniteShares ETF has already crossed its net monthly flow record within the first six days of the month.

Assets of the three Nvidia-linked ETFs jumped between five and 11 times since the start of 2024, while their prices are up between 143% and 218% year-to-date, outperforming other ETFs.

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>>> Global X ETFs To Liquidate 19 ETFs


PR Newswire

January 19, 2024


https://finance.yahoo.com/news/global-x-etfs-liquidate-19-213000999.html


NEW YORK, Jan. 19, 2024 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds, today announced the scheduled liquidation of the following ETFs (the "Funds"), based on an ongoing review process of its product lineup to ensure it meets the evolving needs of its clients. The Funds scheduled for liquidation include:

Global X Cannabis ETF
Global X Carbon Credits Strategy ETF
Global X China Biotech Innovation ETF
Global X Green Building ETF
Global X Health & Wellness ETF
Global X Metaverse ETF

Global X MSCI China Communication Services ETF
Global X MSCI China Consumer Staples ETF
Global X MSCI China Energy ETF
Global X MSCI China Financials ETF
Global X MSCI China Health Care ETF
Global X MSCI China Industrials ETF
Global X MSCI China Information Technology ETF
Global X MSCI China Materials ETF
Global X MSCI China Real Estate ETF
Global X MSCI China Utilities ETF

Global X MSCI Next Emerging & Frontier ETF
Global X MSCI Pakistan ETF
Global X MSCI Portugal ETF


Based upon the recommendation of Global X Management Company LLC, the Global X Funds' adviser, the Board of Trustees determined on January 19, 2024 that it was in the best interests of the Funds and their shareholders to liquidate each of the Funds. The Funds represent less than 1% of the assets of Global X ETFs.

Shareholders may sell their holdings in the Funds prior to the end of the trading day on Friday, February 16, 2024, and customary brokerage charges may apply to these transactions. The Funds will cease trading at the end of the trading day on Friday, February 16, 2024. The Funds are expected to liquidate on or around Friday, February 23, 2024. Any person holding shares in the Funds as of the liquidation date will receive a cash distribution equal to the net asset value of their shares as of that date. Global X Management Company LLC will bear all fees and expenses that may be incurred in connection with the liquidation of the Funds and the distribution of cash proceeds to investors, other than brokerage fees and other related expenses.

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features over $40 billion in assets under management.i While we are widely recognized for our Thematic Growth, Income, Commodity and International Access ETFs, we also offer Core, Risk Management, and other solutions to suit a range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $550 billion in assets under management worldwide.ii Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $80bn in assets under management.iii

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>>> 20 Best-Performing AI ETFs for February 2024

Exchange-traded funds are one way to invest in artificial intelligence. THNQ and SPRX are some of the best-performing AI ETFs.


Nerd Wallet

By Sam Taube

Feb 2, 2024


https://www.nerdwallet.com/article/investing/best-performing-ai-etfs


Spear Alpha ETF (SPRX)

59.11%

iShares U.S. Technology ETF (IYW)

51.09%

iShares Expanded Tech Sector ETF (IGM)

47.88%

iShares U.S. Tech Independence Focused ETF (IETC)

47.57%

Clockwise Core Equity & Innovation ETF (TIME)

45.68%

Fidelity MSCI Information Technology Index ETF (FTEC)

41.06%

iShares Global Tech ETF (IXN)

40.36%

Franklin Exponential Data ETF (XDAT)

37.19%

Invesco NASDAQ Internet ETF (PNQI)

36.08%

Global X Artificial Intelligence & Technology ETF (AIQ)

34.33%

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>>> Tap Into the Insurance Industry's Momentum With These ETFs


Zacks

by Yashwardhan Jain

January 23, 2024


https://finance.yahoo.com/news/tap-insurance-industrys-momentum-etfs-212500904.html


The rising frequency and seriousness of potential global challenges, ranging from climate change to cybercrime, secures the insurance industry’s ability to act as a financial cushion. According to Deloitte, insurers realizing the need to proactively prevent losses from occurring in the initial stages is driving the industry’s growth.

After experiencing a positive shift in its trend in the second half of last year, the U.S. property and casualty industry has continued with its robust momentum entering 2024. Significant premium increases, a slowdown in the growth of claims costs and improved investment returns have all had a beneficial effect on the sector, giving a boost to profitability.

The S&P Insurance Select Industry Index has gained 8.54% over the past year, as of 17 Jan 2024, compared to the broader S&P 500 Financials Index, which added about 3.82% over the past year.

Growth in Digits

According to Swiss Re, the industry ROE is estimated to surge to 9.5% in 2024 and reach 10% in 2025, hinting at a substantial increase from the 5% recorded in 2023, backed by robust premium growth and reduced inflationary pressures. Estimates for ROE are supported by solid premium growth expectations of 7% and 4.5% for 2024 and 2025, respectively.

Combined ratio, a comprehensive measure of an insurance company’s profitability, used to evaluate how well the company is operating on a daily basis, is anticipated to improve significantly. The ratio is projected to be 98.5% for both 2024 and 2025, implying a notable improvement from the estimated 103% for 2023. A ratio below 100% signifies that the company is realizing an underwriting profit.

Direct premium written (DPW), which represents the growth of a company’s insurance business during a particular period, is forecast to grow at 7% in 2024, indicating an upward revision from 5.5% in 2023.

Industry’s Anticipated Earnings Success

According to Factset, the insurance industry is expected to be the primary driver of positive year-over-year earnings growth for the financial sector, growing by a staggering 26%. Year-on-year earnings growth at the sub-industry level is led by the property & casualty insurance, growing at 48%, followed by reinsurance (30%) and multi-line insurance (17%).

Seventeen out of the top 20 insurers trading on major U.S. exchanges experienced an uptick in market capitalization during the fourth quarter of 2023, per S&P Global Market Intelligence, with most insurers exhibiting increases of 6% or more.

According to Zacks Earnings Trend, Insurance - Multi Line and Insurance - Property And Casualty have a growth rate of 8.04% and 8.02%, respectively.

ETFs in Focus

Below, we highlight a few insurance ETFs for investors to capitalize on the industry’s continuing momentum.

SPDR S&P Insurance ETF (KIE)

SPDR S&P Insurance ETF seeks to track the performance of the S&P Insurance Select Industry Index with a basket of 48 securities. The fund has amassed an asset base of $738.17 million and charges an annual fee of 0.35%.

SPDR S&P Insurance ETF has a major exposure of 50.43% in property and casualty insurance, followed by life and health insurance, with a share of 24.84% of its assets. The fund has gained 6.78% over the past three months and 12.12% over the past year.

iShares U.S. Insurance ETF (IAK)

iShares U.S. Insurance ETF seeks to track the performance of the Dow Jones U.S. Select Insurance Index, with a basket of 55 securities. The fund has gathered an asset base of $476.5 million and charges an annual fee of 0.40%.

iShares U.S. Insurance ETF has major exposure of 67.88% in property and casualty insurance, followed by life and health insurance, with a share of 24.13% of its assets. The fund has gained 9.67% over the past three months and 11.22% over the past year.

Invesco KBW Property & Casualty Insurance ETF (KBWP)

Invesco KBW Property & Casualty Insurance ETF seeks to track the KBW Nasdaq Property & Casualty Index, with a basket of 26 securities. The fund has amassed an asset base of $200.9 million and charges an annual fee of 0.35%.

Invesco KBW Property & Casualty Insurance ETF has an exposure of 60.09% in large-cap securities. The fund has gained 8.01% over the past three months and 7.06% over the past year.

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>>> Solar stocks poised for comeback in 2024


Yahoo Finance

by Ines Ferré

Dec 8, 2023


https://finance.yahoo.com/news/solar-stocks-poised-for-comeback-in-2024-193803917.html


Solar stocks have gotten decimated this year amid high interest rates spurred by the Federal Reserve to tame inflation. Customers have been reluctant to spend on installations, and companies' investment projects have gotten more expensive.

A policy change that lowered solar energy incentives in California also impacted the industry in the US. The state slashed the subsidy awarded to rooftop panel owners sending excess power to the grid.

The solar and wind energy benchmarks Invesco Solar ETF (TAN) is down 36% year to date, and Global X Solar ETF (RAYS) has lost more than 40% during the same period.

However, Wall Street sees tailwinds next year that could help turn the tide for the clean energy industry.

On Friday Morgan Stanley analysts upgraded First Solar (FSLR), a solar panel maker, to Overweight, raising their price target from $214 to $237 per share.

“After the 20% sell-off in the past three months, we see an attractive risk-reward profile for the stock,” Morgan Stanley equity analyst Andrew Percoco and his team wrote in a note to clients this week.

“We believe First Solar offers one of the strongest risk-adjusted earnings profiles within our US Clean Tech coverage with its sold-out position through 2026,” they added, referring to the thin-film module manufacturer's backlog.

The note also reiterated renewable energy giant NextEra (NEE) and solar company Altus Power (AMPS) as names on their high conviction Overweight list. The analysts have a $76 price target on NextEra and $9 price target on Altus Power. Year to date, those stocks are down 29% and 17%, respectively.

'Improvement in clean energy valuations'

One of the tailwinds for renewables going into 2024 is the market expectation of lower interest rates at some point during the year. Investors are betting the Fed can start to cut rates as inflation eases and the labor market normalizes.

“If rates fall in 2024, as our economists and strategists are predicting, we could see a meaningful improvement in clean energy valuations,” wrote Morgan Stanley's analysts.

The prices of solar panels, battery storage, and inverters, which increased over the last couple of years, are also showing signs of deflation ahead.

“We see some evidence that supports a more optimistic view (for developers) of the cost trend for these technologies moving into 2024,” said the note. “Prices for solar panels and components have declined meaningfully since peak levels in the summer of 2023.”

Citi analysts also recently noted the global solar space is dominated by equipment manufactured in China, but US companies are poised to increase market share next year.

“With rising importance of emission cuts and opportunities from solar equipment production, more countries are implementing trade policy protectionism to ensure local supply," Citi managing director Pierre Lau and his team wrote in a note to clients.

An example is the Inflation Reduction Act (IRA) passed last year, aimed at incentivizing the use of solar power via subsidy support for local manufacturing.

"Our analysis shows that outside of China, the US and India appear the most feasible for solar equipment production,” said the note.

Citi’s Buy recommendations include Altus Power and solar and storage company SunPower (SPWR), which is currently down about 70% year to date.

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>>> Metaverse ETFs to consider


https://www.fool.com/investing/stock-market/market-sectors/information-technology/metaverse-stocks/


Maybe you can’t decide which metaverse stock to buy, or maybe you want broader exposure than a single stock. Consider buying a metaverse-focused exchange-traded fund (ETF). One option is the Roundhill Ball Metaverse ETF (METV -0.1%), which includes all five of the stocks already listed here plus dozens more, providing instant diversification for shareholders.

Another possibility is the ProShares Metaverse ETF (VERS 0.58%). Of the five stocks listed here, Cloudflare is the only one the ProShares Metaverse ETF doesn't hold shares of. It has fewer holdings than the Roundhill Ball Metaverse ETF. But its expense ratio (fee) is a smidge lower, which might make it more attractive to some investors.

Yes, unlike stocks, ETFs are subject to ongoing fees, and these two ETFs are no exception. Therefore, investors need to be sure they know how to invest in ETFs before buying shares.

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>>> Uranium Investors Bet Big On Nuclear Renaissance


OilPrice.com

By Alex Kimani

Sep 24, 2023


https://oilprice.com/Alternative-Energy/Nuclear-Power/Uranium-Investors-Bet-Big-On-Nuclear-Renaissance.html


Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive.

Uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD.

Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

Uranium and the nuclear energy sector are enjoying a renaissance. There has been a palpable shift in support for nuclear power amid the transition to low-carbon fuels as well as a renewed push to enhance energy security after the global energy crisis triggered by Russia’s war in Ukraine.

Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive. And few have been as monumental as Finland's Green Party which voted overwhelmingly in 2022 to categorize nuclear power as a form of sustainable energy after decades of strong opposition. A third of Finland's electricity is generated by nuclear power.

“I am very happy and proud. This is a historical moment in the history of the green movement, as we are the first green party in the world to officially let go of anti-nuclearism.” said Tea Törmänen, a voting member and chair of the Savonia/Karelia chapter of Viite, the pro-science internal group of the party, shortly after the vote.

Other European nations quickly followed suit with Belgium, Spain and Sweden supporting nuclear energy.

Not surprisingly, uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD, better than any other metal and topping $65/lb for the first time in 12 years.

Uranium-based investment vehicles and ETFs have performed even better than the metal they track: Global X Uranium ETF (URA) is up 29.2% in the year-to-date; Horizons Global Uranium Index ETF (HURA.TO) has returned 40.3% while VanEck Uranium+Nuclear Energy ETF (NLR) has gained 28.5%. Uranium miners have not disappointed either: Cameco Corp. (NYSE:CCJ)+75.2%, Uranium Energy Corp. (NYSE:UEC)+40.1% and Consolidated Uranium Inc. (OTCQX:CURUF)+30.7%.

Uranium Shortage Bites

But the biggest bullish catalyst yet for uranium bulls has been supply deficits at a time when demand is surging. Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

The coup in Mali, which produces ~4% of the world's total, and Cameco's falling production due to difficulties at its Cigar Lake mine and Key Lake mill in Canada have also constrained supply. Global supplies remain constrained mainly due to years of under-investment in new production, monopoly of state-owned entities, transportation risks and geopolitical uncertainties.

Meanwhile, in its latest biennial report, the World Nuclear Association has predicted that demand for uranium used in nuclear reactors will surge 28% by 2030 and nearly double by 2040 as governments ramp up nuclear power capacity in a bid to meet zero-carbon targets.

Sachem Cove Chief Investment Officer Michael Alkin has told The Wall Street Journal that the uranium market remains “very tight’’ and prices are likely to move even higher heading into 2024. Alkins says he expects utilities to start ramping up talks for uranium conversion and enrichment through private negotiations during the fall or requests for proposals.

Cameco says the dual agendas of clean energy and energy security have so failed to translate into a stronger primary supply pipeline. According to the uranium miner, the uranium market is still in the "relatively early stages of the cycle as uncovered uranium requirements by utilities remains elevated," and only "sustained long-term uranium demand will ultimately drive the company's future production plans."

Cost and Policy Risk

Like all investment theses, uranium bulls will have to contend with some key risks. First off, over the decades, the nuclear sector has become notorious for huge cost overruns by uranium projects. Unfortunately, project managers, financial planners and financiers do not appear to be any closer to solving this conundrum in this age of AI.

Not only has the cost of building new nuclear plants sky-rocketed in recent years but plants currently under construction are massively exceeding cost estimates. A large 3,200 megawatt (MW) plant planned to be built in southwest England by France's EDF , the world's largest nuclear operator, is now estimated to cost ~$40 billion, or 30% higher than the initial estimate. Smaller projects are not immune to this problem either. NuScale Power’s 462-MW plant under construction has seen cost estimates increase from $58 per megawatt hour in 2021 to $89/MWh in 2023, a more than 50% jump in the space of just two years.

Second, another major nuclear accident like Three Mile Island or Fukushima might rapidly sour the public sentiment and even force a policy shift. A major thorium breakthrough might spell doom for the uranium sector since thorium reactors do not carry the same risk of a catastrophic meltdown inherent in nuclear reactors powered by uranium.

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>>> 6 Best Bitcoin ETFs Of July 2023


Forbes Advisor

by Michael Adams


https://www.forbes.com/advisor/investing/cryptocurrency/best-bitcoin-etfs/


ProShares Bitcoin Strategy ETF (BITO) $889 million

ProShares Short Bitcoin ETF (BITI) $100 million

VanEck Bitcoin Strategy ETF (XBTF) $39 million

Valkyrie Bitcoin Strategy ETF (BTF) $27 million

Simplify Bitcoin Strategy PLUS Inc ETF (MAXI) $21 million

Global X Blockchain & Bitcoin Strategy ETF (BITS) $11 million

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Spot bitcoin ETF - >>> BlackRock CEO Larry Fink Talks Up Crypto Demand From Gold Investors


CoinDesk

by Jamie Crawley

July 14, 2023


https://finance.yahoo.com/news/blackrock-ceo-larry-fink-talks-151613849.html


Larry Fink was in a bullish mood on Friday as he spoke of the increasing demand he is seeing for cryptocurrencies among gold investors.

Appearing on CNBC following his company's second-quarter earnings report, the CEO of $8.5 trillion asset manager BlackRock (BLK) said "more and more" gold investors have been asking about the role of crypto over the last five years, highlighting the role exchange-traded funds (ETFs) have had in democratizing access to gold, as they could do in crypto.

"If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years ... an international crypto product can really transcend that," he said. "That's why we believe there's great opportunities and that's why we're seeing more and more interest. And the interest is broad-based [and] worldwide."

BlackRock filed an application to list a spot bitcoin ETF last month with a surveillance-sharing agreement worked in, which could prove to be the deciding factor in the U.S. Securities and Exchange Commission (SEC) finally approving such a product after rejecting dozens of applications in recent years.

"As with any new markets, if BlackRock's name's going to be on it, we're going to make sure it's safe and sound and protected," Fink added.

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VanEck Inflation Allocation ETF (RAAX) -


RAAX Holdings

Top 9 Holdings (67.64% of Total Assets)


PIT
VanEck Commodity Strategy ETF
21.14%

IGF
iShares Global Infrastructure ETF
12.91%

GDX
VanEck Gold Miners ETF
6.69%

EINC
VanEck Energy Income ETF
5.52%

XLE
Energy Select Sector SPDR Fund
5.43%

VNQ
Vanguard Real Estate Index Fund
4.82%

XOP
SPDR S&P Oil & Gas Exploration & Production ETF
4.35%

MOO
VanEck Agribusiness ETF
3.42%

NURE
Nuveen Short-Term REIT ETF
3.38%

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>>> ESG Funds Could Face 'Tons of Closures'


ETF.com

Shubham Saharan

March 29, 2023


https://finance.yahoo.com/news/esg-funds-could-face-tons-154500155.html


Environmental, social and governance funds may be facing a watershed moment as billions of dollars in assets have cleared out of the segment this year alone.

Once-bullish assets managers are increasingly shying away from the politically charged investment strategy and are stripping the terminology from exchange-traded funds. Some analysts are even predicting a major course correction.

“The demand for ESG ETFs was so grossly overestimated,” said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. “There’s going to be tons of closures coming up.”

Political backlash and trailing returns have investors running for the hills. Domestic ESG-labeled ETFs have collectively lost $5.8 billion year to date, Bloomberg data shows, on top of the $2.1 billion lost in the fourth quarter of 2022.

For comparison, billions of dollars poured into the industry just two years ago, with ESG funds hauling in nearly $32 billion in 2021, Strategas data shows. ESG fund launches also ballooned, as 209 ESG-listed ETFs with $90 billion in assets hit U.S.-listed markets in the last two decades, according to etf.com data.

Among the biggest losers has been the largest ESG index fund, the iShares ESG Aware MSCI USA ETF (ESGU), which has shed nearly $6.3 billion year to date, and recently posted its largest one-day loss of $4 billion, etf.com data shows. BlackRock declined to comment about the movement.

The fund reflects a broader, bubbling anti-ESG sentiment.

“ESG has gathered a lot of baggage, is the word I use,” Balchunas said. “It's political baggage, return baggage. It's just become a political football of a term.”

Political Backlash

The criticism of ESG-focus investment strategy and methodology did not emerge this year, but it has been simmering in recent months.

Several ETF providers have even gone so far as to drop the ESG label. In February, VictoryShares ETFs, which manage almost $8 billion across 25 U.S.-listed products, removed “ESG” from two of their bond ETFs.

In August, Idaho-based Inspire ETFs also shed “ESG” from eight of their fund titles.

“Due to the escalation of leftist intolerance and rancor in recent months, we no longer desire to identify our investment approach as being part of the ESG category,” said Inspire Investing CEO Robert Netzly in a company statement announcing the changes.

It’s not only issuers citing concerns about ESG, Republican-led states have pulled out more than $1 billion from BlackRock, parent of the world’s largest ETF issuer and ESGU’s issuer, iShares.

On the other side of the aisle, Democrats have criticized the firm for not being ESG enough. In September, New York City Comptroller Brad Lander slammed the firm for the “fundamental contradiction between BlackRock’s statements and actions.”

Evolving ESG Tactics

Asset managers are also adjusting their stances on ESG seemingly in reaction to the changing public sentiment. BlackRock CEO Larry Fink has tempered his usual optimistic tone on ESG investing, reframing the issue as investment opportunities as opposed to socially conscious investments in his latest letter to investors.

Vanguard, the second largest ETF issuer, pulled out of the net zero climate effort in December, an investment industry initiative to tackle climate change.

In another telling example, Hypatia Capital launched in January the Hypatia Women CEO ETF (WCEO), bringing a fund to market that specifically focuses on the performance of U.S. public companies with female CEOs. While gender diversity on boards and in executive ranks is a high-profile governance issue, neither of the funds were tagged with an ESG label.

“Now, we believe that ESG in general is an overlay concept,” said Patricia Lizarraga, managing partner of Hypatia Capital, during an Exchange Traded Fridays podcast in March. “We are not picking our stocks for E, for S or for G. We are saying that women CEOs outperform.” (lol)

To be sure, ESG remains a focus for firms as they launch funds. More than a quarter of respondents said they would be most keen to launch a fund with “broad consideration of ESG issues” as compared to any other theme, according to a recent HSBC ESG Sentiment Survey. More than a third of the 422 individuals surveyed also indicated that ESG would be mainstream in a decade.

In the first half of 2022, the number of ESG-labeled mutual funds and ETFs jumped 23%, according to a December report by Cerulli Associates.

“Recent political pressure has not deterred most firms,” said Michele Giuditta, Cerulli’s director of institutional practice, in an interview with etf.com in December. “Managers are committed to ESG, and I don’t think this is going to change their plans.”

Underperformance Weighs on Investors

The underperformance of ESG has also added to the segment’s woes. The funds, which can charge a heftier expense ratio but carry many of the same investments as benchmark index counterparts, is contributing to the problem, said Mark Neuman, CIO of Constrained Capital.

“What happens is, once returns go sour, people start to take notice,” he said in an interview with etf.com. “Guaranteeing promises that everyone wins and nobody loses and everyone does better— that sounds like fantasyland, not like reality.”

Funds like ESGU and the second largest ESG index fund, the Vanguard ESG US Stock ETF (ESGV), have slightly underperformed the benchmark SPDR S&P 500 ETF Trust (SPY) in the trailing 30 days. The funds have dipped 0.8% and 0.7%, respectively, trailing SPY, which has slumped just 0.2% during the same period.

While the difference between the two may seem minimal, those lagging returns are weighing on investors hunting for returns amid whipsawing markets and bank runs, Neuman said.

And while some investors may choose to keep or add ESG products to their holdings in the future, they may not be the core of most portfolios moving forward, said Bloomberg’s Balchunas.

“There'll be a niche,” he said. “ESG ETFs will exist, but they’ll be fringe.”

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>>> Mid-Cap ESG Investing


Investopedia

By CASEY MURPHY

April 15, 2022


https://www.investopedia.com/mid-cap-esg-investing-5225784?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


When it comes to investing, it is natural for investors to seek exposure to themes that support their personal outlook as well as their associated investment goals. Investors commonly align their portfolios with a certain strategy or sector that they think is positioned to do well over the long term. For many, this means that they rarely know or understand the details of the holdings that make up their portfolios. In some cases, investors may want to gain or limit exposure to certain international markets, niche market segments, or even different types of securities, but they never really understand the details of how their portfolio is constructed.

Unfortunately, until recently, many investors never really stopped to consider the type of impact that the holdings of their portfolios have on the environment, society, communities, or the overall well-being of stakeholders. Commonly, profit and gain are primary investment goals, and little thought is given to anything else.

However, given the rise of environmental, social, and governance (ESG) investing and the underlying concerns many investors have about related dimensions, strategies and the types of investment candidates that make it into portfolios are changing. In this article, we take a closer look at how mid-cap investors are taking ESG factors into consideration when identifying candidates for their portfolios.

KEY TAKEAWAYS

ESG investing is becoming a dominant theme for mid-cap investors to consider as part of their overall investment strategies.

ESG scores and related metrics are becoming popular data points that can be found on ETF and company profile pages across financial media. These metrics will help mid-cap investors compare investment candidates through an ESG lens.

The top holdings of a wide variety of ETFs targeted at themes such as clean energy offer investors an interesting array of investment candidates.

ETFs such as the iShares ESG Screened S&P Mid-Cap
ETF offer investors a new way of gaining exposure to a basket of ESG-filtered companies.

Environmental and Sustainable Investing

One of the factors that is a top priority for ESG investors is the overall impact that investments have on the environment. The overarching goal of many ESG-based strategies is to reduce the global carbon footprint in an effort to address the climate crisis.

According to Larry Fink, founder, chairman, and chief executive officer of BlackRock, Inc. (BLK), in his 2022 letter to CEOs, "The next 1,000 unicorns won't be search engines or social media companies, they'll be sustainable, scalable innovators—startups that help the world decarbonize and make the energy transition affordable for all consumers." Fink goes on to say that it will not be only the small companies to pave the way forward, but that many incumbents have an advantage in capital, market knowledge, and technical expertise.

In the spirit of this sentiment, the BlackRock CEO would likely agree that mid-cap companies, or those that currently have a market capitalization of between $2 billion and $10 billion, are also uniquely positioned to make a significant difference in the transition toward net-zero carbon emissions.

Larry Fink is the CEO of BlackRock, which he and seven partners founded in 1988. Fink has been recognized for his leadership by Fortune and other publications. Barron's has named him one of the World's Best CEOs for 15 consecutive years.

From a macro perspective, companies that prioritize the production and distribution of clean energy stand to benefit from government and corporate initiatives, as well as increased consumer demand for the foreseeable future. Each party mentioned above is calling for energy to come from sustainable sources such as wind, solar, and hydro.

Investors who are interested in gaining exposure to clean-tech companies can utilize standard stock screeners and then conduct their own research to narrow down the list of possible candidates. Or more simply, they can look to the top holdings of popular exchange-traded funds (ETFs), such as:


VanEck Environmental Services ETF (EVX)

iShares Global Clean Energy ETF (ICLN)

Global X Lithium & Battery Tech ETF (LIT)

Invesco Solar ETF (TAN)

Invesco WilderHill Clean Energy ETF (PBW)

ALPS Clean Energy ETF (ACES)

Invesco Global Clean Energy ETF (PBD)

VanEck Low Carbon Energy ETF (SMOG)

First Trust Global Wind Energy ETF (FAN)

SPDR Kensho Clean Power ETF (CNRG)


Some "clean" ETFs contain securities from oil and auto companies because these companies devote some of their research to alternative energy. Investors should do their research to determine whether an ETF aligns with their values and investment goals.

ESG Scoring

Those who are new to ESG investing will be interested to know that several firms have established standardized scoring methodologies. ESG scores can serve as a basis for comparing companies and funds across many different metrics, such as a fund's exposure to carbon-intensive companies. In many cases, metrics are all taken together to come up with one total ESG score that can be found for a significant portion of publicly traded funds and securities.

For example, the MSCI ESG rating is designed to measure a company's resilience to long-term industry material environmental, social, and governance risks. The rules-based methodology identifies leaders and laggards based on a scale from AAA through to CCC.

MSCI also has an overall ESG Quality Score between 0 and 10 for ease of comparison.

Aside from MSCI ESG Ratings, other common ESG scoring metrics come from S&P Global ESG Scores, or Refinitiv Lipper, all of which are becoming quite common on the detail pages of many publicly traded ETFs.

iShares ESG Screened S&P Mid-Cap ETF

So far, this article has focused on the environmental and sustainable factors of ESG investing because they are currently the highest priority for most investors. However, dimensions such as exposure to controversial business areas and other governance-related issues are also very important. Though filtering based on specific types of business exposure and governance-related issues is more complicated than filtering based on exposure to broad industries such as wind or solar, it is not impossible for those who are interested.

Conversely, those who do not have the time, experience, or interest to conduct ESG-based screens may be interested in ETFs such as the iShares ESG Screened S&P Mid-Cap ETF (XJH), which utilizes screening techniques to reduce exposure to company involvement in controversies and controversial business activities. In the case of XJH, the fund's managers seek to remove exposure to controversial weapons, small arms, tobacco, oil sands and shale energy, thermal coal, and fossil fuel reserves. The fund has an MSCI ESG Fund Rating of A and an overall ESG Quality Score of 6.4 out of 10.

The Bottom Line

The future of ESG investing is bright, especially when it comes to mid-cap companies that are aligning with government and consumer demand for energy from sustainable sources. Investors are more concerned than ever when it comes to ESG-related topics such as low carbon emissions strategies, reducing exposure to controversial business areas, product quality, worker safety, labor standards, voting rights, executive pay versus employee pay, and long-term sustainability.

ESG scoring metrics are starting to appear on many ETF profile pages as well as on company quote pages in financial media. As ESG continues to grow in prominence, it is natural that the role of scoring methodologies will continue to play an important role in investment strategies, and that we will start to see more ETFs like the iShares ESG Screened S&P Mid-Cap ETF.

What Is ESG Investing?

ESG stands for environmental, social, and governance. Socially conscious investors use a variety of dimensions across these three areas to filter potential investment candidates.

Is Buying a "Clean" ETF Considered ESG Investing?
Certain holdings of "clean" ETFs may not align with the goals and values of an ESG investor. For example, sometimes a holding such as a large-cap oil-and-gas company will be added to a "clean" ETF due to its investments or intentions in the alternative energy space. It is always a good idea to conduct your own research to ensure that investments align with your values and investment goals.

What Is an ESG Rating?

ESG ratings are the comprehensive measures of a company or investment fund's long-term commitment to socially responsible investments and dimensions across environmental, social, and corporate governance. ESG scoring metrics are now available from a variety of companies. One of the most popular is the MSCI ESG ratings.

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>>> Peter Thiel-Backed ETF Takes Aim at ESG


ETF.com

Heather Bell

August 10, 2022


https://finance.yahoo.com/news/peter-thiel-backed-etf-takes-200000512.html


The Strive U.S. Energy ETF (DRLL), a new exchange-traded fund that launched Tuesday, aims to free investors from the “destructive mandates” of traditional environment, social and governance investing.

The fund invests in broad energy stocks via the Solactive United States Energy Regulated Capped Index. Matt Cole, Strive Asset Management’s head of product, said ESG has been a drag on the energy sector—despite the segment’s strengths. “We started with the energy sector for a reason,” he said in an interview with ETF.com. “We think the U.S. energy sector [has] been impacted the most.”

The firm is not denying climate change science, Cole added, but believes the best route to effect change is through political activism. While piecemeal reforms at individual energy companies have relatively little impact, legislation and shareholder advocacy would apply to all.

“Our ETFs are passive right now, but our voter voice will be very active in these companies,” he said, noting that Strive plans to put forth proposals that make sense. “We think it's going to be very hard for a lot of asset managers not to support them, because they're in the best interest of these companies.”

Strive, which was co-founded by Vivek Ramaswamy and often described as “anti-woke,” has the backing of famous names like Peter Thiel and Bill Ackman, and intends to compete with asset management giants like BlackRock Inc., Vanguard Group and State Street Global Advisors.

“We bring a significantly different vote and voice to the table than our competitors,” Cole noted.

While most energy ETFs are already up 30% or more year to date, the company expects stocks in the energy sector to appreciate “multi-fold” in the next two years due to China easing its pandemic lockdown policies and lessening supply shortages stemming from the war in Ukraine.

“The largest U.S. asset managers have shackled U.S. energy companies with so-called ‘scope 3 emissions caps’ and other destructive mandates that contributed to the American energy crisis today,” Ramaswamy said in a press release.

DRLL covers more than 50 energy companies, taking a broad-based approach to the space and spanning both conventional and renewable energy firms. Its underlying index is weighted by modified market capitalization, according to the prospectus. Cole said that the fund has had a 99.7% correlation with large energy ETFs offered by major issuers over the last several years, with very similar risk and return.

The new fund comes with an expense ratio of 0.41% and lists on the NYSE Arca.

The narrower Energy Select Sector SPDR Fund (XLE), the largest ETF in the category, at more than $35 billion, has 21 holdings but comes with an expense ratio of just 0.10%. The much broader $1.45 billion Fidelity MSCI Energy Index ETF (FENY) charges just 0.08%. DRLL’s expense ratio is on par with that of the $2.11 billion iShares U.S. Energy ETF (IYE), which also charges 0.41%.

The firm has four more ETFs in registration covering semiconductors, large cap U.S. stocks, technology and emerging market ex-China.

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>>> Single Stock ETFs Launched, Including a Bearish Tesla Bet


Investing.com

Jul 14, 2022

By Sam Boughedda


https://www.investing.com/news/stock-market-news/single-stock-etfs-launched-including-a-bearish-tesla-bet-432SI-2847305


Single-Stock Exchange-Traded Funds (ETFs) were launched Thursday, giving investors a new way to bet on high-profile stocks.

However, regulators have cautioned investors to take care. AXS Investments has launched eight ETFs enabling investors to make inverse or leveraged bets on single companies that include Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA), Nike (NYSE:NKE), Pfizer (NYSE:PFE), and PayPal (NASDAQ:PYPL). The Tesla and Nvidia ETFs are inverse funds.

The products are already available in Europe but will be the first of their kind in the US.

AXS, which was recently named among the "Top 10 Investment Firms of 2022," said the funds are supposed to be used as short-term trading products and not for investors who don’t plan to actively manage their portfolios.

The funds will utilize derivative contracts to create the leveraged or inverse of the daily returns of the stocks.

"We are thrilled to be the first firm to bring single-stock leveraged and inverse ETFs to U.S. investors," said Greg Bassuk, CEO of AXS Investments. "With the launch of this highly innovative family of ETFs, AXS has once again opened new access for investors, namely to express their high-conviction views on some of the most actively traded single stocks, regardless of whether their sentiment is bullish or bearish."

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>>> Carbon Credit ETFs Nosedive Amid Russia Tensions


ETF.com

by Dan Mika

March 7, 2022


https://finance.yahoo.com/news/carbon-credit-etfs-nosedive-amid-221500943.html


Carbon credit ETFs have been brutalized in the past several days as fears over whether Europe can keep its lights on and its vehicles running without Russian fossil fuel exports have sent energy prices soaring.

The four U.S.-listed ETFs that directly hold carbon credits have all lost at least a quarter of their price year-to-date, with the KraneShares European Carbon Allowance ETF (KEUA) falling more than 31% as of market open on Monday.

KEUA is suffering from the double-whammy of Europe’s reliance on Russian oil and gas, and the European Union’s combined carbon trading system that currently aims to reduce the amount of carbon allowances by 2.2% annually. The trading platform is part of the bloc’s plans to reduce its emissions by 55% by the end of the decade and become carbon-neutral by 2050.

Fears have also compounded in Europe over whether the continent will fall into recession due to a lack of power driving down factory orders. In that case, regulated industries won’t need to buy as many carbon allowances, said John Wilson, co-CEO and managing partner of Toronto-based alternative investments firm Ninepoint Partners.

“There's a ton of concern that Europe is going to go into a deep recession here,” he said. “There's talk about an embargo on Russian oil and gas. That's where a big percentage of Germany's energy needs come from, and they're the economic engine of Europe.

High energy prices in Europe prior to Russia’s invasion of Ukraine have also added to uncertainty about the sustainability of carbon allowance prices, with Poland in particular making noise. The Polish parliament passed a resolution last December calling for the European cap-and-trade market to be suspended, and in February demanded the European Commission kick out financial institutions for allegedly bringing undue speculation into the market.

The disruptions in Europe, which accounted for approximately 90% of the global carbon market in 2020, are pushing down prices for credits across the world, including down to carbon markets with smaller geographic range. The KraneShares California Carbon Allowance Strategy ETF (KCCA) tracks the joint carbon credit market in California and Quebec, and has fallen more than 25% year-to-date.

The short-term drops have sent KEUA and KCCA into all-time loss territory, as both of those funds launched last October, but the space is still a long-term gainer. The iPath Series B Carbon ETN (GRN) and the KraneShares Global Carbon Strategy ETF (KRBN) are up 138% and 81%, respectively, over a two-year period as ESG and climate-friendly investing grew in popularity.

Wilson, whose firm operates its own carbon allowance ETFs on the Canadian NEO Exchange, believes the recent sell-off amounts to short-term repositioning, and expects the segment to be worth trillions of dollars over the next several years as world governments keep aiming to slash emissions.

“We're going to have to get off of Russian energy and maybe produce more domestically, but high energy prices are a driving incentive for more renewables,” he said. “I don't think it delays that transition. If anything, it's a necessary function of making that transition happen.”

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>>> Newcomers Abound In Recent ETF Filings


ETF.com

Heather Bell

May 25, 2022


https://finance.yahoo.com/news/newcomers-abound-recent-etf-filings-180000858.html


While industry stalwarts have made some interesting filings of note, there’s been a lot of filings from brand-new entrants to the industry, like the filings outlined in yesterday’s roundup (part 1) from Strive Asset Management.

Genoa Asset Management, an Ohio-based fixed income manager, filed for 10 fixed income ETFs tracking specific maturities of U.S. Treasury securities:


Genoa Benchmark US Treasury 30 Year Bond ETF

Genoa Benchmark US Treasury 20 Year Bond ETF

Genoa Benchmark US Treasury 10 Year Note ETF

Genoa Benchmark US Treasury 7 Year Note ETF

Genoa Benchmark US Treasury 5 Year Note ETF

Genoa Benchmark US Treasury 2 Year Note ETF

Genoa Benchmark US Treasury 12 Month Bill ETF

Genoa Benchmark US Treasury 9 Month Bill ETF

Genoa Benchmark US Treasury 6 Month Bill ETF

Genoa Benchmark US Treasury 3 Month Bill ETF


The underlying indexes for the proposed funds could include just one or two U.S. Treasury securities at any given time, according to the prospectus. Each has an expense ratio of 0.15%, though tickers and listing exchanges were not included in the document. Notably, 0.15% is the upper end of the price range for existing domestic Treasury ETFs.

Other Newbie Filings

Neos Investment Management has filed for an actively managed strategy based on the S&P 500 Index. The NEOS S&P 500 High Income ETF (SPYI) will combine exposure to S&P 500 stocks with a call options strategy. The fund will look to achieve its high-income goals through the premiums associated with the options strategy and the dividends issued by the stock portfolio.

The Reverb ETF from Distribution Cognizant will generally hold the securities in the fund’s investable universe, which includes the 500 largest U.S.-listed stocks based on free-float market capitalization. The fund will use a market sentiment strategy based on the firm’s in-house Reverberate App. The app will be publicly available and will record users’ feedback on the stocks in the investable universe, with that feedback influencing the weights of the securities in the fund, according to its prospectus.

The EA Bridgeway Blue Chip ETF will be the resulting fund after the conversion of the Bridgeway Blue Chip Fund (BRLIX), a mutual fund with nearly $400 million in assets under management and a net expense ratio of 0.15%. The fund’s strategy targets blue chip stocks but has an ESG overlay that, among other criteria, includes a screen that removes tobacco companies from consideration. The prospectus notes that stocks are selected using a statistical approach, with a focus on maintaining industry diversification. The mutual fund includes such names as Apple Inc., United Parcel Service Inc. and Visa Inc.

Existing Issuers

Don’t count out the established issuers. Some of them have filed for very interesting products.

Advisor Shares has filed for the AdvisorShares MSOS 2x Daily ETF (MSOX), which will list on the NYSE Arca. The fund looks to provide twice the daily total return of the $715 million AdvisorShares Pure US Cannabis ETF (MSOS) via swap agreements. MSOS is an actively managed fund that provides exposure to the domestic cannabis and hemp industries.

Harbor Capital is looking to roll out the Harbor International Compounders ETF (OSEA), a fund that will target non-U.S. securities that are expected to experience long-term sustainable growth and compounded earnings, the prospectus says. The fund is subadvised by C WorldWide Asset Management, which specializes in sustainable investment strategies. The document notes that the portfolio is likely to include 25-30 securities.

Simplify has filed for another ETF to include in its “Volt” series, which features ETFs that pair a fairly concentrated high-conviction equity portfolio targeting a particular theme with an options strategy. The Simplify Volt Work from Anywhere Digital Nomad ETF (NOHQ) will do the same with “work from anywhere” companies and “work from anywhere” real estate. The former focuses on companies that look to support the remote work trend through their products and services, while the latter targets REITs and real estate companies likely to benefit from remote work trends.

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>>> ETFs For A Global Food Catastrophe


ETF.com

by Heather Bell

May 23, 2022


https://finance.yahoo.com/news/etfs-global-food-catastrophe-191500987.html


A global food crisis may be coming, but some ETFs can help successfully navigate the potential fallout.

Russia’s invasion of Ukraine has rattled the world in more ways than one with troubling issues of violence and human rights abuses.

But from a global perspective, Russia and Ukraine are also key sources of agricultural products, and the disruption is having major consequences in terms of food supply and inflation.

Consider that, together, Ukraine and Russia account for 12% of traded calories, including 28% of wheat, 29% of barley, 15% of corn and 75% of sunflower oil, according to an article in The Economist. The disruption to the global food supply is also likely driving inflation.

The Economist article also notes that increased food costs have driven food insecurity up, from affecting 440 million people to affecting 1.6 billion, and it says 250 million are literally on the brink of famine. That suggests food inflation isn’t going anywhere. Hedging away at least part of the threat that food inflation represents to an investor’s personal wealth could be a matter of finding the right ETF.

Equity ETFs To Consider

The simplest way is to find a long-only equity strategy, and there are a few choices in this area, the largest being the $2 billion VanEck Agribusiness ETF (MOO). There’s also the $297 million iShares MSCI Global Agriculture Producers ETF (VEGI) and the $293 million Invesco Dynamic Food & Beverage ETF (PBJ).

MOO comes with an expense ratio of 0.56%, while VEGI charges 0.39%. PBJ is the most expensive, at 0.63%. MOO’s daily average dollar volume at $39.5 million is roughly five times that of VEGI’s. The former is older and more established, having launched in mid-2007, while VEGI rolled out in early 2012. PBJ is the oldest fund, having launched in mid-2005; its average daily dollar volume is $9.28 million.

But MOO has just 56 holdings versus VEGI’s 143. Both have weightings to the U.S. that are close to 60% (58.75% for VEGI and 60.39% for MOO). Canada and Norway claim the Nos. 2 and 3 spots, respectively, for VEGI at 9.39% and 5.42%. Meanwhile, MOO weights Germany at 9.61% and Canada at 6.43%. Whereas Norway has a 5.31% weighting in MOO and is its fourth-largest country, VEGI doesn’t even include Germany in its top 10 countries. PBJ is an exclusively U.S. fund, with just 31 holdings.

Digging into the underlying sectors for these funds shows that process industries is the largest sector, based on the Thomson Reuters classification system, for both MOO and VEGI, with the former weighting the sector at 47% and the latter weighting it at 61%. Process Industries has a weight of 11% in PBJ and is its third-largest sector.

MOO and VEGI have 33 holdings in common but have only five to six in common with PBJ. Among the top 10 holdings of both MOO and VEGI are Deere & Co., Nutrien Ltd., Archer-Daniels-Midland Co., Corteva Inc. and Mosaic Co. Of those, PBJ only includes Archer-Daniels-Midland in its top 10 holdings.

If you look at the factor exposures of the three equity funds, there’s a certain amount of similarity among the leading factors. The top three factor exposures for MOO are momentum at 0.69, low size at 0.22 and low volatility at 0.14. For VEGI, the top three exposures are momentum at 0.88, low size at 0.33 and value at 0.13. PBJ’s top three factor exposures are low size at 0.94, low volatility at 0.89 and momentum at 0.57.

Ultimately, MOO and VEGI represent the production end of the food chain, while PBJ’s holdings more strongly resemble a list of products you’d find in a U.S grocery store.

The global nature of the potential food crisis seems to call for a globally oriented investment product, but PBJ’s domestic focus may also be a way to more directly hedge the impact of inflation on a U.S. investor’s personal consumption. Food inflation in the U.S. was at 9.4%, while the overall CPI was at 8.3%. Both numbers are highs not seen since the early 1980s.

A Commodity ETF Possibility

If you want to get to the roots of what’s going on with rising food prices though, the commodity market may be the way to go. However, commodity futures tend to be volatile, with roll costs and additional tax implications.

The commodity market in general has been on fire, as Russia in particular is a source of many nonagricultural commodities. With the country now excluded from a wide range of markets at the global level, commodities have gotten a major boost. But the biggest bump could ultimately come from agriculture.

The $2.4 billion Invesco DB Agriculture Fund (DBA) comes with an expense ratio of 0.93%, making it significantly more expensive than the equity funds mentioned in this article. Its average daily dollar volume is also significantly higher than that of MOO, at more than $64 million.

There are a number of futures-based agricultural commodity products available, but with 10 separate futures contracts covered, DBA takes the most comprehensive view of the space. Its list of futures contracts includes corn, soybeans, wheat, Kansas City wheat, sugar, cocoa, coffee, cotton, live cattle, feeder cattle and lean hogs.


Performance

Among these four funds, the performance has been somewhat scattered; however, all four have seen significant year-to-date inflows.

DBA has pulled in $1.2 billion in less than five months, while MOO has pulled in $791.8 million and VEGI gained $218.8 million. PBJ took in $195.2 million.

And it’s really DBA that has had the best performance, with a gain of 13.26% year to date and a gain of 22.35% over the past 12 months. VEGI was trailing behind, with a YTD return of 8.77% and a 12-month return of 9.88% during two periods when the broader global equity market was sharply down.

PBJ’s focus on solely the U.S. and MOO’s smaller component list may have put dampers on performance, while VEGI has benefited from its broader range of holdings that still overlaps quite a bit with MOO’s component list (holdings in common with MOO represent almost a quarter of VEGI’s portfolio). PBJ is down nearly 2% year to date and is up less than 5% over the one-year period, while MOO has returned 0.92% and 5.27% for those periods, respectively.

Final Thoughts

VEGI seems like a strong choice for an investor who wants to alleviate the impact of the potential coming global food scarcity issues on their own portfolio or lifestyle.

While DBA is a clear winner in terms of recent performance and focuses on the raw materials of food products, it is still a commodity futures fund, with all the issues that come with that type of product. MOO is certainly the stalwart in the space, but its recent performance, narrower portfolio and higher expense ratio make it a close second to VEGI.

PBJ would be great if you wanted specific exposure to U.S. food and beverage consumption, but given this is a global trend, it seems like it is best captured by a product that focuses on the early stages of the food supply chain at the global level.

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>>> Merk Launches Stagflation Themed ETF


ETF.com

by Dan Mika

May 4, 2022


https://finance.yahoo.com/news/newcomer-merk-launches-stagflation-themed-080000649.html


Merk Investments is making its first solo foray into the U.S. ETF market with a fund that aims to benefit from “stagflation,” or the quandary of an economy that simultaneously experiences high inflation and sluggish growth.

The Merk Stagflation ETF (STGF) debuted on the NYSE Arca on Wednesday with an expense ratio of 0.45%.

STGF follows a Solactive index that holds 55-85% of assets in the Schwab U.S. TIPS ETF (SCHP) and 5-15% of its assets each in the Vanguard Real Estate ETF (VNQ), the VanEck Merk Gold Trust (OUNZ) and the Invesco DB Oil Fund (DBO) based on respective price moves.

The San Francisco-based Merk operates the OUNZ trust, while VanEck manages marketing for the $668.6 million fund.

STGF comes as a combination of decades-high inflation, a hawkish Fed and broader macroeconomic issues like shutdowns in China and the war in Ukraine have sent shivers down markets that are trying to assess the real economy’s post-pandemic recovery.

The fund’s debut also covers the three main phenomena describing monetary policy gone awry. Several ETFs on the market target inflation, such as the VanEck Inflation Allocation ETF (RAAX) and the AXS Astoria Inflation Sensitive ETF (PPI), while the KraneShares Quadratic Deflation ETF (BNDD) is the lone fund on U.S. exchanges that specifically targets deflation beneficiaries by holding Treasurys and options that would benefit in a long-term flattening yield curve.

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>>> Kelly Debuts With Thematic ETFs


ETF.com

by Dan Mika

January 13, 2022


https://finance.yahoo.com/news/kelly-debuts-thematic-etfs-211500679.html


The index provider behind the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) and the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS) is making its debut as an ETF issuer with three of its own funds.

The Kelly Hotel & Lodging Sector ETF (HOTL) and the Kelly Residential & Apartment Real Estate ETF (RESI) launched on the NYSE Arca, while the Kelly CRISPR & Gene Editing Technology ETF (XDNA) debuted on the Nasdaq. HOTL and XDNA carry an expense ratio of 0.78%, and RESI costs 0.68% in fees.

All three funds track their respective industries through indexes made by Kelly Strategic Management. That firm is headed by Kevin Kelly, a former managing director at Horizon ETFs and a developer behind the $6.2 billion Global X Nasdaq 100 Covered Call ETF (QYLD).

The indexes are weighted by float-adjusted market capitalization, rebalance quarterly and target stocks with at least $300 million in market capitalization and $1 million in three-month average daily volume. HOTL and XDNA are limited to developed markets, while RESI is limited to companies in the U.S. and Canada.

In an interview, Kevin Kelly said the underlying indexes are designed to provide targeted exposure to their respective real estate subsectors versus existing ETFs that combine real estate sectors altogether.

HOTL undercuts the AdvisorShares Hotel ETF (BEDZ), the only other U.S.-listed pure-play hotel ETF, by 21 basis points. RESI is the only ETF in the U.S. market that specifically caters to residential real estate companies.

Genomics already has several thematic ETF options in the market. However, Kevin Kelly argues that XDNA’s index is designed to capture exposure to companies that focus exclusively on genomics and gene editing as one-time treatments to replace the existing regime of therapeutics.

“[Existing pharmaceutical] companies will become obsolete when CRISPR and gene editing matures and there are more commercial uses,” he said.

This trio of launches are the first of several sector and thematic ETFs that Kelly has filed. The firm has filed prospectuses for funds addressing logistics, digital payments, the internet of things, technology and gene editing, according to SEC filings. The current plan is to launch two ETFs per quarter this year based on market demand and the performance of the ETFs that were launched previously.

The firm also filed for an ethereum futures ETF in late November, but withdrew that application a week later amid broader distrust from the SEC regarding cryptocurrencies in regulated investment vehicles.

Kelly said while he doesn’t know when regulators may allow ethereum futures to underlie an ETF, he believes ethereum will overtake bitcoin as the world’s largest cryptocurrency by market capitalization later this year and quell concerns over liquidity.

Bitcoin’s market cap was shy of $829.7 billion as of 1:30 p.m. Eastern Time Wednesday, while ethereum was at $398.94 billion.

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>>> This ETF Benefits From Inflation

ETF.com

Todd Rosenbluth

September 8, 2021


https://finance.yahoo.com/news/etf-benefits-inflation-193000165.html


Key Takeaways

Ten ETFs that launched in 2021 have gathered more than $7 billion combined year-to-date, supporting CFRA’s view that investors are not reliant on a three-year track record to assess a fund’s merits.

The Horizon Kinetics Inflation Beneficiaries ETF (INFL) launched in January and was approaching $700 million in assets without the benefit of initial institutional investors at the end of August.

The ETF owns capital-light companies such as Archer-Daniels-Midland (ADM) and Wheaton Precious Metals (WPM) that management thinks can grow revenues during rising inflation without a similar increase in expenses.

Fundamental Context

Investors are not waiting three years before buying a new ETF. In the first eight months of 2021, U.S.-listed ETFs gathered approximately $600 billion in assets, according to CFRA data.

While most of the money has moved into well-established products like the Vanguard Total Stock Market Index ETF (VTI) and the iShares Core S&P 500 ETF (IVV), many products that began trading as new offerings this year have also been popular.

Indeed, excluding funds from Dimensional that converted to ETFs from preexisting mutual funds, 10 new ETFs alone gathered a combined $7.5 billion.

Unlike with a mutual fund, investors can easily look at the securities inside most new ETFs the first day of trading to understand the exposure the fund provides rather than wait to see how it performs over the long term. CFRA provided ratings on just over 2,000 equity and fixed income ETFs at the end of August, with one-third of them sporting less than a three-year track record.

Horizon Kinetics Inflation Beneficiaries ETF

New entrant Horizon Kinetics garnered attention alongside the top providers. ETFs from three of the four largest ETF firms—the BlackRock U.S. Carbon Transition Readiness ETF (LCTU), the Invesco S&P 500 QVM Multi-Factor ETF (QVML) and the Vanguard Ultra-Short Bond ETF (VUSB)—are at the top of the leaderboard for most successful new ETFs thus far in 2021.

While VUSB’s assets climbed steadily throughout 2021, likely aided by Vanguard’s strong ETF presence, LCTU and QVML were jump-started with significant investments by anchor institutional clients on the first day of trading.

About INFL

In contrast, Horizon Kinetics’ $676 million INFL, which gathered $130 million between June and August after gathering more than $500 million as of the end of May, remains the firm’s lone ETF offering.

INFL has also gained more assets than the ARK Space Exploration & Innovation ETF (ARKX) and the VanEck Social Sentiment ETF (BUZZ), both of which launched with greater media presence.

INFL offers a unique, compelling twist on dealing with inflation. As inflation in the U.S. has climbed higher in 2021, investors have gravitated to inflation-protected fixed income ETFs. Indeed, led by the iShares TIPS Bond ETF (TIP) and the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP), the subcategory gathered $25 billion of net inflows in the first eight months of 2021.

Yet James Davolos, portfolio manager of INFL, explained to CFRA in an exclusive interview that with interest rates currently so low and a flat yield curve, the best-case scenario for these fixed income instruments is that the securities preserve capital while everything is collapsing.

Instead, INFL holds shares of global companies that have exposure to hard assets in inflationary end markets with capital-light business models.

According to Davolos, these companies do not need to spend a lot of money to earn their returns, providing them with operating leverage and eliminating the need to make a directional bet on inflation.

While he thinks inflation is going to be structural and not transitory, Davolos noted that the fund has exposure to companies in the agriculture, brokerage, gold and health care industries, which have already reset at higher levels of pricing in 2021.

The ETF’s largest holdings include ADM, Charles River Laboratories (CRL), Marsh & McLennan (MMC) and WPM. While INFL is actively managed, turnover in the fund’s first year has been relatively low.

Conclusion

CFRA has a four-star rating on INFL, believing it has high reward potential in addition to relatively limited risks.

Like INFL investors, we do not think a three-year track record is necessary to assess the fund.

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>>> ETFs & Innovation Go Hand In Hand


ETF.com

by Jessica Ferringer

November 3, 2021


https://finance.yahoo.com/news/etfs-innovation-hand-hand-181500945.html


With the launch of two bitcoin futures ETFs occurring in October, an event that was eight years in the making, its conclusion can lead one to ask “what’s next?” for the ETF industry. After all, it’s not often an entirely new asset class is created.

With so many launches seeming like tweaks on existing ideas, it can be tempting to feel everything worth doing has already been done. Many issuers have resorted to competing on price, a topic about which much ink has been spilled both on ETF.com and elsewhere—see here and here.

But with 2,717 existing U.S.-listed ETFs currently searchable within our Screener & Database, is it even possible to come up with something new and unique anymore?

That’s the funny thing about innovation.

Though the attribution of the saying is dubious at best, Henry Ford is often quoted as saying, “If I had asked the public what they wanted, they would have said a faster horse.”

In other words, it’s difficult for us to imagine what doesn’t exist yet. For innovation to happen, it takes the ability to think outside the box and envision something truly radical.

And this is what’s great about ETFs—the space is filled with radical thinkers.

Big Year For ETF Innovation

With the number of ETF launches this year already outpacing last year’s high watermark of 318, several funds stand out to me as embodying this idea of innovation.

We already have not one, but two ETFs that offer plays on the metaverse. The Roundhill Ball Metaverse ETF (META) launched on June 30, months before Google searches for “metaverse” would peak after Facebook’s name change to Meta.

The search term shot past both “ETFs” and “inflation” in popularity after Facebook signaled a focus on the metaverse. The Fount Metaverse ETF (MTVR) launched on the same day that the Facebook Connect conference was held, where the name change was announced.

Psychedelic ETFs Debut

This year also saw the launch of the first U.S.-listed psychedelics ETF. The Defiance Next Gen Altered Experience ETF (PSY) debuted in late May. A few months later, the AdvisorShares Psychedelics ETF (PSIL) was launched, bringing a global play to the space.

While public perception of psychedelic drugs often calls to mind the counterculture era of the ’60s, these drugs are a growing area of research, showing therapeutic promise for afflictions such as depression, PTSD or even with assisting someone in coming to terms with a terminal diagnosis.

While mainstream acceptance for these treatments is likely still off in the distance, it was less than four years ago that cannabis ETFs hit the U.S. market, with the conversion of the Tierra XP Latin American Real Estate ETF to the ETFMG Alternative Harvest ETF (MJ).

There are now 10 cannabis ETFs and nearly half of the country lives in a state where marijuana is legal for recreational use. Several other states allow medical usage, though the substance remains illegal at the federal level. It is entirely possible that psychedelic drugs could see the same growing acceptance over the next few years.

GameStop Shifts Investor Appetite

Several launches this year were inspired by an event that was largely unthinkable before it happened. GameStop’s surge was painted as a David and Goliath story of small retail traders getting their revenge on hedge funds.

Since then, ETFs that focus on retail investor sentiment have proliferated. The VanEck Social Sentiment ETF (BUZZ), launched in March, two months after GameStop surged from $17 to a high of nearly $350. Though the stock has since fallen from record highs, it’s still up 962% for the year.

BUZZ gathered $280 million in inflows on its first day of trading, and crossed the half billion mark in two weeks. While BUZZ wasn’t the first take on building an investment thesis around retail trader sentiment on social media—an earlier ETF that closed also tracked the same index a few years before BUZZ’s launch—January’s events gave the idea credibility in a way that didn’t exist before.

In late August, Roundhill filed for the Roundhill MEME ETF (MEME), which is arguably the most inspired take on the GameStop saga. The fund is the first to seek to identify companies with a combination of elevated social media activity and high short interest—exactly the factors that took GameStop to the moon. This filing seems obvious now, but wouldn’t have made as much sense to the average investor even a year ago.

I'm reminded of a quote I heard on an episode of ETF Working Lunch. Jillian DelSignore, head of ETFs & indexing for FLX Distribution, said something that summarizes exactly what I feel: “The ETF industry is that corner of asset management where innovation goes to thrive.”

So while there’s no easy answer to the question of what’s next, the versatility and tradability of the ETF wrapper gives me confidence that, no matter what happens, there’ll be an ETF for it.

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>>> BlackRock Releases Megatrends Report


Yahoo Finance

by Heather Bell

December 6, 2021


https://finance.yahoo.com/news/blackrock-releases-megatrends-report-151500682.html


Today, BlackRock’s iShares arm released its report on the megatrend themes it expects to see accelerating in 2022 and beyond. Those three trends include digital transformation, automation and next-generation oncology. Much of that acceleration will be a continuation of trends that emerged during the global COVID-19 pandemic.

iShares has identified five megatrends: technological breakthrough; demographics and social change; climate change and resource scarcity; rapid urbanization; and emerging global wealth. Those five broad trends have driven the launches within iShares’ lineup of thematic ETFs.

That offering includes both actively and passively managed ETFs, which cater to different types of investors.

The active funds are designed for those investors who trust the ETFs’ managers to weight the themes within a broad category. The passively managed ETFs in the suite are for investors with strong convictions about individual themes who want to customize their thematic exposure, according to Jeff Spiegel, iShares’ head of megatrend and international ETFs and the author of the report.

“I would characterize it as a do-it-for-me versus a do-it-myself approach,” he said.

Digital Transformation

With remote work and online retail exploding during the global pandemic, the digital transformation is well on its way, with the cloud, in particular, consolidating its importance. The report by BlackRock indicates that global spending on cloud services is expected to grow from $332 billion this year to $397 billion in 2022, with 70% of organizations already using cloud services expecting to increase their spending in that area next year.

The report additionally notes that the rise of 5G, which is expected to reach 60% of the global population by 2026, will likely further facilitate that transition.

Spiegel says that only 12% of companies have moved their core applications to the cloud, so there is significant room for growth in the category, while the increasing sophistication of hackers and ransomware attacks have crystallized the importance of cybersecurity.

Among the BlackRock ETFs covering this space are the actively managed BlackRock Future Tech ETF (BTEK) and the passively managed iShares Virtual Work and Life Multisector ETF (IWFH), the iShares Cybersecurity and Tech ETF (IHAK) and the iShares Cloud 5G and Tech ETF (IDAT).


Automation

The pandemic continues to provide a major boost to the automation theme identified by BlackRock, with supply chain tangles, wage inflation and manufacturing demand all cited in the report as catalysts for greater adoption of automation and artificial intelligences.

The report notes that 67% of companies have ratcheted up their automation capabilities due to the pandemic, with the size of the robotic process automation market expected to grow from just $2 billion in revenue in 2018 to $14 billion in 2028.

Spiegel also points out supply chain disruptions could continue into 2023.

“As that dawns upon companies, they [know they] have to make their supply chains more resilient. And some of that means bringing production back home. Doing that cost effectively requires automation, especially in a world of wage inflation,” he added.

The report further notes that the increased attention to automation will manifest across all major industries, including the electric vehicles space.

In addition to BTEK, iShares also offers the passively managed iShares Robotics and Artificial Intelligence Multisector ETF (IRBO) and the iShares Self-Driving EV and Tech ETF (IDRV).


Next-Generation Oncology

The genomics space was crucial in developing and launching the mRNA vaccines that are helping to bring an end to the global pandemic, but the area has even greater implications for oncology therapeutics, where immunotherapies can provide what the report calls “precision treatments” that specifically target cancer cells. The report further notes that oncology is already the largest therapeutic area and is likely to reach $250 billion in sales by 2024.

“We think it can be a great year for cancer treatments, and an important reminder that there are a lot of diseases threatening us and that we have to focus on, even in a world where one of them is obviously taking all the headlines,” Spiegel said.

BlackRock offers the actively managed BlackRock Future Health ETF (BMED) as well as the more targeted and passively managed iShares Genomics Immunology and Healthcare ETF (IDNA).

Incorporating Themes In A Portfolio

“If you take a look at the average portfolio, relative to any one of these thematic ETFs, you'll find that thematic ETFs tend to have more of a small- and midcap tilt to them,” Spiegel explained. “They tend to be more global than the average portfolio. They tend to have a little more concentration in technology communication services than the average portfolio.”

Because BlackRock focuses on pure-play exposure in its thematic ETFs, they tend to tilt toward small- and midcap exposures, often excluding more diversified large cap companies. The issuer recommends exposure matching when incorporating thematic ETFs into a portfolio’s equity sleeve, making sure investors’ thematic exposure fits with the amount of small- and midcap exposure they desire.

By doing that, Spiegel says investors can add a 10-20% allocation of thematic exposure to their portfolio’s equity sleeve without affecting the portfolio’s overall market risk, but adding some active risk into the mix.

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>>> VanEck Introduces YUMY: ETF Investing in the Future of Food


Yahoo Finance

December 2, 2021


https://finance.yahoo.com/news/vaneck-introduces-yumy-etf-investing-135600804.html


New fund offers actively managed exposure to the leading innovators and disruptors solving some of today’s most difficult agricultural challenges.


NEW YORK, December 02, 2021--(BUSINESS WIRE)--VanEck today announced the launch of the VanEck Future of Food ETF (YUMY), an actively managed equity ETF that provides exposure to companies engaged in agri-food technology and innovation.

YUMY is the first VanEck ETF to incorporate bottom-up, fundamental company research and will be overseen by portfolio managers Shawn Reynolds and Ammar James.

"The growing global population and the concurrent threats from climate change are driving the need for more sustainable agri-food processes and technologies in order to provide for a future with more affordable, nutritious and safe food for all," said Mr. Reynolds, Portfolio Manager for YUMY. Mr. Reynolds also oversees VanEck’s Environmental Sustainability and Natural Resources Equity Strategies. "We are now in the early stages of a multi-decade agri-food system transformation. Growth opportunities in this space currently exist, but the market remains nascent. A number of private firms appear poised to enter the public markets and several established companies are pivoting their business models to embrace the future of food, so an active approach to stock selection will position YUMY and its investors to capitalize on emerging trends."

To better understand and research the expansive global agriculture and food industry, VanEck has identified three proprietary pillars of the agri-food technology and innovation opportunity set:

Food Technology: alternative proteins, animal feed and nutrition, and sustainable aquaculture.

Precision Agriculture: vertical/indoor farming, robotics and automation, data collection and analysis, water and irrigation.

Agriculture Sustainability: seed genetics, sustainable and safe fertilizer and crop chemicals, and sustainable food preservation and packaging.

VanEck further noted the growing global population is driving the need for innovation as the population is expected to increase by 25% from 7.8 billion today to nearly 10 billion by 2050.1 More people are expected to enter the middle class than any time in history, accelerating anticipated consumption of protein and animal-based foods, which are resource-intensive to produce. By some estimates it may take as much as 70% more food production to feed this larger and wealthier population.2

"These growing needs have to be met with innovation, but they will also have to take into account the demands from both governments and consumers for cleaner, healthier and more environmentally sustainable approaches to feeding the world," added Mr. James, who also serves as an analyst specializing in agribusiness, timber, and paper and packaging research for the firm. "We’re thrilled to be bringing YUMY to the marketplace and look forward to continuing to share our insights and research with investors and advisors around this essential topic and key investment category."

Mr. James recently joined VanEck’s Head of ETF Product Ed Lopez on an episode of the Trends with Benefits podcast, to discuss the future of food, going into more detail on all of the points and trends discussed above.

VanEck has a long history in agriculture and sustainability-focused investing and is a leader in providing investors with solutions focused on relevant themes such as green bonds and the low carbon energy ecosystem. As a signatory of the Principles of Responsible Investment (PRI), VanEck incorporates ESG factors and analysis into their investment processes, and YUMY joins a lineup of sustainability-focused equity solutions that also includes the recently launched VanEck Green Metals ETF (GMET) and VanEck Environmental Sustainability Fund (ENVIX).

YUMY is listed on the NYSE Arca and has a net expense ratio of 0.69%.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of October 31, 2021, VanEck managed approximately $82.2 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

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>>> ProShares Adds 3 Thematic ETFs


Yahoo Finance

by Heather Bell

September 30, 2021


https://finance.yahoo.com/news/proshares-adds-3-thematic-etfs-130000367.html


Today ProShares rolled out three technology-related ETFs that join its growing lineup of thematic ETFs. The funds and their tickers are as follows:

ProShares S&P Kensho Cleantech ETF (CTEX)

ProShares Big Data Refiners ETF (DAT)

ProShares S&P Kensho Smart Factories ETF (MAKX)

Each one comes with an expense ratio of 0.58% and lists on the NYSE Arca.

“Each ETF is designed to offer investors exposure to a rapidly changing industry, from the automation of manufacturing, to enhanced analytics and big data processing, to powering the transition to clean energy,” said ProShares CEO Michael Sapir in a press release.

CTEX tracks the S&P Kensho Cleantech Index, which targets companies globally that generate revenues by providing the technologies, products and services driving the generation of clean energy. This can involve solar, wind, geothermal, hydrogen and hydroelectric energy sources, according to the prospectus.

DAT tracks the FactSet Big Data Refiners Index, which holds companies involved in the management, storage, analysis and usage of large data sets. These can include providers of software, hardware and other equipment. The companies included in the index must generate at least 75% of their revenue from these business activities.

MAKX tracks the S&P Kensho Smart Factories Index, which focuses on the digitalization of factories and the companies that are facilitating this trend. Its scope covers providers of the software, sensors, technology, components and other equipment that support connectivity, environmental sensing and monitoring, conservation efforts and quality control, among other activities.

The three funds join other ProShares thematic ETFs such as the $341 million ProShares Pet Care ETF (PAWZ) and the $880 million ProShares Online Retail ETF (ONLN).

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>>> Infrastructure ETFs Can Lean Cyclical, Defensive


Yahoo Finance

Todd Rosenbluth

August 17, 2021


https://finance.yahoo.com/news/infrastructure-etfs-lean-cyclical-defensive-151500527.html


Key Takeaways

Infrastructure ETFs are in focus, with the U.S. Senate passing the Infrastructure Investment and Jobs Act last week. If enacted, the new law would support revenue growth across various sectors and industries.

The Global X U.S. Infrastructure Development ETF (PAVE) is the largest of these cross-sector thematic funds. The industrials- and materials-focused ETF has recently climbed sharply in value.

The iShares U.S. Infrastructure ETF (IFRA) and the ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) sound like PAVE, yet have incurred less volatility recently due to stakes in more defensive real estate and/or utility companies.

Fundamental Context

The U.S. Senate passed the $1.2 billion Investment and Jobs Act last week, and it could become law by fall. If passed by the full Congress and signed by President Biden, the law would result in investments of approximately $260 billion in transportation and transit, $100 billion in digital infrastructure and infrastructure reliance, $90 billion in clean technologies and $85 billion in water infrastructure, according to analysis by asset manager Global X.

Spending would include repairing and replacing roads and bridges; improving Amtrak and public transit; modernizing airports; investing in smart grid technologies; enhancing water distribution and storage; and boosting broadband speeds for all Americans. The diversity of the potential corporate beneficiaries highlights the merits of looking to ETFs.

However, there are 17 U.S.-listed ETFs with infrastructure in their names managing $17 billion in assets. Global X's PAVE is the largest, with $4.5 billion in assets as of Aug. 13 according to CFRA's ETF data, but there are 10 other ETFs with more than $100 million, including products offered by BlackRock, First Trust, Pacer and ProShares.

Some of the ETFs, such as the First Trust North American Energy Infrastructure ETF (EMLP) and the Pacer Benchmark Data Infrastructure Real Estate SCTR ETF (SRVR), are targeted to one sector, while others provide exposure to multiple, but not all, sectors.

Portfolio Differences

PAVE invests in more cyclical sectors than many of its peers. At the end of July, the ETF had 71% of assets in industrials and 22% in materials, with some of the remainder in consumer discretionary and information technology stocks.

PAVE only invests in stocks of U.S. companies. Within industrials, the ETF holds CSX Corporation (CSX), Deere Company (DE), Jacobs Engineering (J) and Trane Technologies (TT); within the materials sector (23%), the fund owns Martin Marietta Materials (ML) and Steel Dynamics (STLD).

IFRA also only invests in U.S. companies but is constructed differently than PAVE. While industrials (30% of assets) and materials (19%) are well-represented in IFRA, the more defensive utilities sector (44%) is the largest, offsetting the cyclical exposure. American Water Works Company (AWK), Cleveland-Cliffs (CLF), Duke Energy (DUK), NextEra Energy (NEE) and Quanta Services (PWR) are examples of the fund's holdings. There is some overlap; for example, both PAVE and IFRA own CSX.

TOLZ is even more defensively positioned at the sector level and provides a distinct portfolio. TOLZ's largest recent sector was also utilities (36% of assets), but the fund had high exposure to strong cash-flow-generating MLPs within the energy sector (28%), such as Enterprise Products Partners (EPD), and real estate companies (18%), such as broadband supportive communications companies like American Tower (AMT) and Crown Castle (CCI).

Meanwhile, the fund had just 13% in industrials and no materials exposure. TOLZ also holds stakes in non-U.S. companies like Cellnex Telecom and National Grid. Infrastructure spending proposals focused on climate change and digital infrastructure have been prevalent in Europe as well.

Risk/Reward

PAVE has generated higher returns than IFRA and TOLZ recently, but has also incurred more volatility. CFRA does not believe investors should rely on just past performance in choosing an ETF, but track records do matter and help demonstrate the need to look inside.

In the one-year period ended Aug. 13, PAVE rose 60%, stronger than the 45% and 19% gained by IFRA and TOLZ, respectively. While IFRA charges a slightly lower expense ratio than its peers (0.40% vs. 0.47% for PAVE and TOLZ), the performance differences are primarily due to the unique portfolios.

However, PAVE's one-year volatility of 23.4 was modestly higher than IFRA's 20.3, and much higher than TOLZ's 13.4. Investors considering these ETFs should understand the risk/reward trade-offs between the more cyclical PAVE, the more defensive TOLZ and the more balanced of the three, IFRA.

Conclusion

We expect more investors will be focused on the infrastructure-themed ETF universe, with Congress potentially agreeing to spend more money to support transportation, digital and clean energy infrastructure. However, these cross-sector ETFs come in different packages. Before considering one of them, investors need to understand the risk considerations, reward potential and cost factors.

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>>> AdvisorShares Launches Psychedelics ETF (Ticker: PSIL)


Yahoo Finance

September 16, 2021


https://finance.yahoo.com/news/advisorshares-launches-psychedelics-etf-ticker-122700695.html


AdvisorShares Psychedelics ETF delivers focused exposure to invest in a new medical frontier


BETHESDA, Md., Sept. 16, 2021 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launch of the AdvisorShares Psychedelics ETF (Ticker: PSIL). PSIL begins its trading as the first U.S.-listed actively managed ETF to deliver dedicated investment exposure to psychedelics and this emerging equity theme.

PSIL seeks long-term capital appreciation by investing in the fast-evolving psychedelics space, offering exposure to those biotechnology, pharmaceutical and life sciences companies which the portfolio manager views as leading the way in this nascent industry. Ongoing and growing research has shown various psychedelic substances offer promising medical and therapeutic potential for treating mental health issues and neurological disorders. PSIL concentrates its portfolio on companies which derive the majority of their net revenue or devote the majority of their assets to psychedelic drugs.

"We believe that by investing in select companies in the psychedelics space can provide a compelling long-term investment opportunity, however, this is also an area of the marketplace in its early innings," said Dan Ahrens, chief operating officer of AdvisorShares and portfolio manager of PSIL. "We feel that our active management and specialized approach can potentially help investors capture the early growth potential of psychedelics and its prominent promise on therapeutics and medical fields."

Ahrens has an established expertise and track record of actively managing complex areas of the equity markets including as the portfolio manager of AdvisorShares Pure US Cannabis ETF (Ticker: MSOS), AdvisorShares Pure Cannabis ETF (Ticker: YOLO) and the AdvisorShares Vice ETF (Ticker: VICE). He is also portfolio manager for the AdvisorShares Hotel ETF (Ticker: BEDZ) and AdvisorShares Restaurant ETF (Ticker: EATZ) which both launched in June 2021.

"We believe that delivering this strategy in an ETF structure with daily transparency, intraday liquidity and operational efficiency provides an ideal way for advisors and investors to access this burgeoning market," added Noah Hamman, chief executive officer of AdvisorShares. "As we continue to navigate highly specialized areas of the marketplace, we also remain steadfastly committed to providing ongoing investment education for our ETF shareholders, prospective investors and the investment community at large."

AdvisorShares regularly hosts live webinars featuring portfolio managers and leading industry experts. You may learn more and register at the AdvisorShares Event Center for upcoming events sessions on different investment strategies including on psychedelics and PSIL.

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.

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>>> Global X Debuts 2 Renewables ETFs


Yahoo Finance

Dan Mika

September 9, 2021


https://finance.yahoo.com/news/global-x-debuts-2-renewables-141500724.html


Global X launched two ETFs covering the solar and wind energy industries, bringing some concentration to an existing stable of broader clean energy ETFs.

The Global X Solar ETF (RAYS) and the Global X Wind Energy ETF (WNDY) debuted on the Nasdaq Thursday morning, both bearing an expense ratio of 0.50%.

The two funds follow custom indices from Solactive that track global companies involved in producing raw materials for wind turbines and solar panels, or are involved in installing and generating power from those systems. Companies with less than $200 million in market capitalization are excluded, as are companies deemed to be in violation of the United Nations Global Compact.

While a handful of clean energy ETFs tracking the broad industry are already on the market, Global X’s newest offerings only have one direct competitor each. The First Trust Global Wind Energy ETF (FAN) is slightly more expensive than WNDY at 62 basis points and has so far lost 2.8% during the year, while the Invesco Solar ETF (TAN) costs 68 basis points and has lost 16.27% year-to-date.

The timing for RAY’s launch unintentionally coincided with the Biden administration’s release of a plan to expand solar’s size in the U.S. energy mix from 4% today to 50% by 2050, and is the second Global X fund that stands to benefit from the vast policy proposals from the White House.

The other is the Global X U.S. Infrastructure Development ETF (PAVE), which is the largest infrastructure industry ETF on the market at a time when Congress is largely in agreement over a $1 trillion hard infrastructure spending plan but debating a broader $3.5 trillion budget.

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>>> Goldman Hunts for Next 175,000% Stock Rally With New Active ETF


Bloomberg

By Katherine Greifeld

September 16, 2021


https://www.bloomberg.com/news/articles/2021-09-16/goldman-hunts-for-next-175-000-stock-rally-with-new-active-etf?srnd=premium


GTEK tracks tech stocks with market caps under $100 billion
Bank’s asset arm ‘working hard’ to find next rally leaders
Goldman Sachs Asset Management is on the hunt for the Faangs of the future with its latest exchange-traded fund.

The actively managed Goldman Sachs Future Tech Leaders Equity ETF (ticker GTEK) launches Thursday, holding technology companies with market capitalizations under $100 billion from both developed and emerging nations.

Goldman itself intends to invest alongside clients, according to a press release.

With GTEK, Goldman is trying to identify the next tech moonshots to stay on “the right side of disruption and innovation,” according to Katie Koch.

“It’s going to be another company’s chance to be up another 175,000% since its IPO,” said Koch, GSAM’s co-head of fundamental equities. “We’re working hard at finding those companies.”

Large-cap tech ETF has outperformed its mid-cap peer this year

Big tech firms such as Facebook Inc., Apple Inc. and Google’s parent Alphabet Inc. have long dominated the stock market, but their influence soared to new highs during the pandemic amid widespread lockdowns and the work-from-home era. The might of the mega caps remains intact this year even as higher inflation renews concerns over their lofty valuations.

GTEK is launching into a market where bigger still seems to be better. The $195 billion Invesco QQQ Trust Series 1 ETF (QQQ) -- which tracks the large-cap Nasdaq 100 -- has surged over 20% so far this year. By comparison, the $1.2 billion Invesco NASDAQ Next Gen 100 ETF (QQQJ) -- populated by mid-cap tech stocks -- has gained about 11% over that stretch.

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>>> ESG ETFs Of All Shapes & Sizes


Yahoo Finance

November 11, 2020


https://finance.yahoo.com/news/esg-etfs-shapes-sizes-050000355.html


Key Takeaways

What is inside funds like the iShares ESG Aware MSCI USA ETF (ESGU) is different than newer entrants like the iShares ESG Screened S&P 500 ETF (XVV) and TrueShares ESG Active Opportunities ETF (ECOZ).

Some of the 17 clean energy ETFs, such as the Invesco Solar ETF (TAN) and ALPS Clean Energy ETF (ACES), have shined in the past year, but are also positioned to outperform, according to our analysis.

Meanwhile, our corporate governance ETF subcategory includes leadership-focused funds, such as the SPDR SSGA Gender Diversity ETF (SHE) and ownership-focused funds such as the WisdomTree Emerging Markets Ex-State-Owned Enterprises Fund (XSOE).

CFRA rates 112 environmental, social and governance (ESG) ETFs with more than $50 billion in assets, but few are the same. We classify ESG ETFs into one of seven subcategories based on the fund’s focus. The largest subcategory is broad ESG ETFs, which are ETFs that hold companies that meet specific ESG characteristics as determined by the ETF issuer or its index provider. ETFs are classified as broad ESG if the screening criteria spans all three ESG pillars.

ESGU is the largest of the 70 broad ESG ETFs, with $11 billion in assets, but the subcategory also includes the $7 million and actively managed ECOZ, which holds fewer positions than index-based ESGU and incorporated traditional fundamental and valuation metrics such as return on capital and intrinsic value. ECOZ holds less Apple (AAPL) and Microsoft (MSFT) than ESGU, and has Enphase Energy (ENPH) and Square (SQ) as its two largest positions.

The six other subcategories include clean energy, corporate governance and faith-based ETFs.

Breaking Down the ESG ETFs into Objectives

ECOZ is not the only broad ESG to launch in 2020, including XVV and the Vanguard ESG U.S. Corporate Bond ETF (VCEB), both of which came to market in September.

Clean energy ETFs have climbed the highest in 2020. Though ESGU has outperformed the SPDR S&P 500 ETF Trust (SPY) year-to-date through Nov. 6, rising 14% compared to 10%, respectively, many clean energy ETFs have been significantly stronger. CFRA classifies clean energy ETFs as funds holding companies in clean energy businesses such as renewable energy, clean energy technology and energy conservation. These ETFs are distinguished between low carbon footprint funds that hold companies that have a relatively low-carbon emission or a relatively small carbon footprint, as determined by the ETF issuer or its index provider.

TAN and ACES, which were up 145% and 84%, respectively, in 2020 are two examples of the 17 clean energy ETFs. ACES holds some solar companies, but also provides exposure to other renewable energy sources, including wind power and hydroelectricity, and clean technologies such as electric vehicles. For example, Tesla (TSLA) is among the recent top 10 holdings.

There are 10 corporate governance ETFs, but there is disparity among them. For example, the Impact Shares YWCA Women’s Empowerment ETF (WOMN) and SPDR SSGA Gender Diversity Index ETF (SHE) both hold stakes in companies that focus on gender diversity/equality. While SHE has more assets—$142 million compared to WOMN’s $10 million—the smaller fund has performed best. In the one-year period ended Nov. 6, WOMN’s 29% return was triple the 8.5% for SHE. WOMN launched in August 2018 and does not have the three-year record SHE provides.

Meanwhile, the WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) is constructed based on the premise that government ownership may influence corporate decisions that are not necessarily in the best interest of investors. In the three-year period ended Nov. 6, XSOE rose 7.5% on an annualized basis, double the gain for the iShares MSCI Emerging Markets ETF (EEM).

Conclusion

CFRA expects the supply of ESG ETFs to climb in 2021, in response to the strong demand in 2020 and the likelihood a Biden administration plans to make fighting climate change a priority. As the ETF universe becomes more crowded, we think investors will want to dig into certain ESG subcategories to understand their range of choices.

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>>> The 3 Best Low Volatility ETFs


Optimized Portfolio


https://www.optimizedportfolio.com/best-low-volatility-etfs/


Below are the 3 best low volatility ETFs for conservative investors to participate in stock returns while limiting downside risk.


USMV – iShares MSCI USA Min Vol Factor ETF

The iShares MSCI USA Min Vol Factor ETF (USMV) is the most popular fund in this space with over $34 billion in assets. This ETF is unique in that it uses a special algorithmic optimization to hold a basket of low-volatility stocks in aggregate while also attempting to keep factor and sector exposure diversified. The fund seeks to track the MSCI USA Minimum Volatility Index. It has over 194 holdings and an expense ratio of 0.15%.


SPLV – Invesco S&P 500 Low Volatility ETF

The Invesco S&P 500 Low Volatility ETF (SPLV) holds the 100 least volatile stocks of the S&P 500 that comprise the S&P 500 Low Volatility Index. Compared to USMV above, SPLV provides a basket of individual low-volatility stocks as opposed to a low-volatility portfolio in aggregate. SPLV does not run any sort of optimization like USMV does. As such, SPLV’s holdings and sector exposure are considerably different than those of USMV. Historically, USMV has delivered greater returns and lower volatility than SPLV. SPLV has over $8 billion in assets and an expense ratio of 0.25%.


EFAV – iShares Edge MSCI Min Vol EAFE ETF

Those seeking international exposure can use the iShares Edge MSCI Min Vol EAFE ETF (EFAV) to capture low volatility stocks in developed markets outside of North America. The fund seeks to track the MSCI EAFE Minimum Volatility Index. It has over $10 billion in assets and an expense ratio of 0.20%.

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>>> 3 Blockchain ETFs for Q4 2021

BLOK, BLCN, and LEGR are the three blockchain ETFs for Q4 2021


Investopedia

Aug 12, 2021


https://www.investopedia.com/news/3-blockchain-etfs-buy-2018/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


Blockchain exchange-traded funds (ETFs) own stocks in companies that have business operations in blockchain technology or in some way profit from it. Blockchain is made up of complex blocks of digital information and increasingly is used in banking, investing, cryptocurrency, and other sectors. While blockchain is a relatively new technology, many of the companies that operate in the space are well established. Some examples include International Business Machines Corp. (IBM), Oracle Corp. (ORCL), and Visa Inc. (V).

Many investors may be wary of risking an investment in blockchain due to the technology's association with the volatile cryptocurrency market. However, blockchain is not the same thing as cryptocurrency, and blockchain ETFs invest only in stocks of regulated companies, many of which are big blue-chip technology firms, and not in cryptocurrency directly.

KEY TAKEAWAYS

The three blockchain ETFs outperformed the broader market over the last year.

These three ETFs, ranked by one-year trailing total return, are BLOK, BLCN, and LEGR.

The top holdings of these ETFs are class A shares of MicroStrategy Inc., class A shares of Coinbase Global Inc., and Nvidia Corp., respectively.

There are three blockchain ETFs that trade in the U.S., excluding inverse and leveraged ETFs as well as funds with less than $50 million in assets under management (AUM). This list excludes the Bitwise Crypto Industry Innovators ETF (BITQ), which launched in May 2021 and does not have enough trading history to be included in our rankings.1

The three blockchain ETFs have outperformed the broader market over the past 12 months, posting higher total returns than the S&P 500's total return of 34.0%, as of Aug. 10, 2021.2 The best-performing blockchain ETF for Q4 2021, based on performance over the past year, is the Amplify Transformational Data Sharing ETF (BLOK). We examine the three blockchain ETFs below. All numbers are as of Aug. 10, 2021.1


Amplify Transformational Data Sharing ETF (BLOK)

Performance over One-Year: 112.9%
Expense Ratio: 0.71%
Annual Dividend Yield: 1.30%
Three-Month Average Daily Volume: 448,406
Assets Under Management: $1.2 billion
Inception Date: Jan. 16, 2018
Issuer: Amplify Investments

BLOK is an actively managed ETF that invests a minimum of 80% of its net assets in stocks of companies engaged in the development and utilization of blockchain technologies. It follows a blended strategy, investing in a mix of value and growth stocks of various market capitalizations across the world, and is comprised mostly of companies operating within the software & services and diversified financials industries.3

The fund's top three holdings are class A shares of MicroStrategy Inc. (MSTR), a provider of enterprise software platforms; class A shares of Square Inc. (SQ), a financial services and digital payments company; and Hut 8 Mining Corp. (HUT:TSE), a Canada-based bitcoin mining and blockchain infrastructure company.4


Siren Nasdaq NexGen Economy ETF (BLCN)

Performance over One-Year: 38.9%
Expense Ratio: 0.68%
Annual Dividend Yield: 0.63%
Three-Month Average Daily Volume: 55,737
Assets Under Management: $289.1 million
Inception Date: Jan. 17, 20185
Issuer: SRN Advisors

BLCN tracks the Nasdaq Blockchain Economy Index, which gauges the performance of companies involved in developing, researching, supporting, innovating, or utilizing blockchain technology.5 The ETF follows a blended strategy, investing in growth and value stocks, and its top three holdings are class A shares of Coinbase Global Inc. (COIN), the operator of a cryptocurrency exchange platform; class A shares of Square Inc.; and class A shares of MicroStrategy Inc.6


First Trust Indxx Innovative Transaction & Process ETF (LEGR)

Performance over One-Year: 36.4%
Expense Ratio: 0.65%
Annual Dividend Yield: 1.12%
Three-Month Average Daily Volume: 18,962
Assets Under Management: $117.8 million
Inception Date: Jan. 24, 2018
Issuer: First Trust

LEGR tracks the Indxx Blockchain Index, which gauges the performance of companies that either actively utilize, invest in, develop, or have products that are positioned to benefit from blockchain technology. The ETF normally invests a minimum of 90% of its net assets in equity securities that comprise the index and has a total of 100 holdings, excluding cash, most of which operate in the information technology and financial industries.7

LEGR's top three holdings include Nvidia Corp. (NVDA), a graphics processing unit manufacturer; Oracle Corp., a multinational computer technology company; and Advanced Micro Devices Inc. (AMD), a semiconductor manufacturer.8

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>>> ProShares Transformational Changes ETF: Invest in Innovation With ANEW


Investor Place

by John Kilhefner

October 19, 2020


https://finance.yahoo.com/news/proshares-transformational-changes-etf-invest-210137645.html


The novel coronavirus has upended society in ways big and small. The future of work is changing, our healthcare needs are evolving, and the ways we interact with entertainment are quickly shifting. Aside from Covid-19 accelerating these changes, the one common attribute among them is that they each hold huge investment opportunities. Which is why ProShares has launched its Transformational Changes ETF (NYSEARCA:ANEW).

The ANEW ETF, which made its debut on the markets last week, tracks the MSCI Global Transformational Changes Index. It is chockful of investments in spaces including: cloud computing, IoT, bioinformatics, gene editing, esports, social media, and plant-based foods.

I had a chance to discuss the ANEW ETF with Scott Helfstein, ProShares Executive Director of Thematic Investing, about the opportunity ANEW offers investors.

John Kilhefner, Managing Editor, InvestorPlace: How does the Transformational Changes ETF fit within ProShares’ broader universe of exchange-traded funds?

Scott Helfstein, Executive Director of Thematic Investing, ProShares: ANEW is the latest addition to ProShares thematic lineup, which includes funds like ProShares Pet Care ETF (NYSEARCA:PAWZ) in pet care and ProShares Online Retail ETF (NYSEARCA:ONLN) in retail disruption, both of which have had strong years in 2020. Like the existing thematic funds, the emphasis is on powerful macro-level trends that ultimately filter down to individual companies. This fund focuses on transformational changes already underway but accelerated by Covid-19: future of work, genomics & telehealth, digital consumer, and food revolution.

InvestorPlace: As the global automation market surges, what is your expected timeline for organizational and industrial transformation?

ProShares: Most people hear doom and gloom stories about automation such as “a robot is coming for your job”. While there will be dislocation in some industries, the bigger global challenge is the looming worker shortage in the four largest economies. The U.S., Europe, Japan and China will have fewer workers as their populations age. According UN demographic forecasts, that deficit could reach 125 million by 2040. If one robot can do the work of four people, we will need 31 million industrial and commercial robots. Today there are about 3 million in use, so that would be a 12% annual increase. This is probably a multi-decade transition, but already well underway.

InvestorPlace: In what ways will technological transformations such as AI affect the nature of work and the consumer experience?

ProShares: Software such as artificial intelligence, computer learning and big data analysis is a key component in automation. Unfortunately, movies have clouded perceptions of artificial intelligence as an all-knowing computer bent on destroying humans. Most AI is focused on very simple and practical tasks. AI helps power the recommendation engine in your streaming service and makes it possible for people to virtually try on clothes or makeup without leaving home. For the first time, we can automate cognitive tasks that were simply not possible before. That said, much of the technology is not about replacing but augmenting human efforts. AI can supply better data analysis or handle the simple inquiries, freeing up people to solve more complicated problems. We will ultimately be working alongside AI systems.

InvestorPlace: Where do you believe the major opportunities are in healthcare innovation right now?

ProShares: Telehealth is getting a lot of attention now. The technology has been available for years, but adoption was slow as people were hesitant, government policy was not amenable, and insurance was not necessarily supportive. The pandemic has removed many of those impediments and the number of Americans using telehealth services tripled in 2020 to 32% according to a Harris poll. There are several other areas, though, that warrant attention. The first Covid-19 vaccine delivered to the WHO was genomic medicine using RNA, which is the single strand copy of DNA. If approved, this could be the first deployment of genetic treatment at mass scale.

InvestorPlace: In what ways will innovation in diagnostics, genetic treatments and informational management translate to the consumer experience?

ProShares: This could be wrong, but a decade or two from now, I believe that we will look back at the current state of healthcare as though it were middle ages. Genomic medicine has the potential to revolutionize diagnosis and treatment. Many illnesses that come on late in life are tied to degradation in otherwise healthy genetic code. The ability to spot dangerous mutation or deterioration early could mean treating people before they are even symptomatic, like going for one week of chemotherapy to prevent cancer from growing in the first place. Over time, we may well have the ability to splice out bad code and replace it with healthy genes using CRISPR technology. There are over 6,000 illnesses tied to genetics, and more links are continually discovered. This could usher in an era of cheaper, more efficient, and elegant approaches to healthcare.

InvestorPlace: In addition to allocating resources to Covid-19 research and development, which areas of healthcare will benefit from government-prioritized R&D spending? How will this be affected by a Biden or Trump win in November?

ProShares: Much of the Covid spending has been earmarked for hospitals and frontline medical care, but government funding has been a big driver behind basic research like genomic medicine. As of April 2020, National Institute of Health had partnered with 16 companies. I think the pandemic-related efforts in R&D would be similar irrespective of election outcome, but there could be different approaches in areas like testing and contact tracing. Both candidates have talked about lowering drug prices and regulating parts of the healthcare sector, but it is hard to see Congress aggressively moving on this issue during the crisis. Ultimately, there will likely be more regulation around pricing, but this will likely focus on older medications rather than new products. Companies on the cutting edge will probably see little impact.

InvestorPlace: What interests you most about innovation in digital consumerism?

ProShares: Everything tied to experience-on-demand from food delivery to virtual reality is really interesting, especially as we figure out how to enjoy leisure time during the pandemic. Gaming and esports is a good example of innovation colliding with changing consumer behavior. Before the pandemic, 500 million viewers were watching other people play video games. This was super-charged by the pandemic. People watched 1.8 billion hours of video gaming on the Twitch platform in April 2020, a 101% increase over the prior year. To put 1.8 billion hours into perspective, you would have to watch gaming 24 hours day, and it would take 2,740 lifetimes consume that much content. Video games is already a $60 billion industry and will continue growing rapidly.

InvestorPlace: What opportunities will be created from rising digitalization such as increased consumer data flow? Which industries stand to benefit the most?

ProShares: Better data flow, and advances in big data analysis, will allow companies to better serve customers by tailoring the experience while also creating more efficient business models. That said, data use and ownership are a complicated challenge as companies try to drive efficiency while respecting privacy. Ecommerce is one big beneficiary, and people are growing more comfortable buying online. In 2009, online accounted for 4% of total retail sales, growing to 11% by the end of 2019, a statistic that surprises many people. Penetration accelerated rapidly to 16% of total retail in the US as of mid-2020 as people responded to Covid quarantine.

InvestorPlace: Where is the market opportunity for growth in food innovation?

ProShares: This is an underappreciated story. People think about tractors and wheat fields, but the food industry will undergo major transformation across the supply chain from research to food delivery. Between now and 2050, the UN forecasts that global population will expand by 2 billion people, meaning 200,000 new mouths to feed every day. Meanwhile, 50% of the habitable land on earth is already used for agriculture. We must become more efficient, producing more with less. One area for opportunity is research and creation of new types of sustainable food like plant-based protein—Beyond Meat for example has grown at 30% annually. Another is in data analysis such as putting small RFID radio chips in cows to assess their health or identify optimal yields for crop fields. Automation will also play a role as the large tractors of the past get replaced by small self-driving vehicles.

InvestorPlace: Wall Street’s reaction to epidemics has historically been short-lived, but the coronavirus pandemic has been a “burning platform” for innovation to thrive. In what ways has this pandemic changed the ways in which we think about innovation?

ProShares: In the last hundred years, there were three prior pandemics that unfortunately produced a million or more fatalities globally. Markets may have seen big drops, but to your point, recovered reasonably quickly. The years that followed pandemics were pretty good for investors with markets up 30% to 45% over two to three years. The end of Spanish Flu coincided with the start of the Roaring 20s, another period of innovation and prosperity. Innovation was already impacting almost every industry, but companies were forced to reinvent their business models much quicker than many expected. The pandemic has accelerated that process with years of innovation now realized in a matter of months. We saw how creative and nimble companies can be, and that ups the ante on innovation going forward.

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>>> Water ETFs Ride Big Wave Of Returns


Yahoo Finance

by Jessica Ferringer

August 6, 2021


https://finance.yahoo.com/news/water-etfs-ride-big-wave-200000886.html


When it comes to natural resources, none is as critical to our survival as water. Though our dependence on water is occasionally highlighted by events such as the California droughts or the Flint water crisis, access to this resource in America is something we usually take for granted.

But as valuable and necessary water is, it isn’t often considered as an investable idea for your portfolio, with water-related ETFs holding a mere $4 billion in assets under management.

Yet these ETFs can be a tactical play for your portfolio, as there are times when they outperform the broad market.

Year-to-date, the three largest water ETFs have outperformed the SPDR S&P 500 ETF Trust (SPY). Much of the outperformance has occurred in the month of July, with water-focused names boosted by related proposals in the infrastructure package currently working its way through the Senate.

Equities included in water ETFs can fall into several categories. Water utilities and infrastructure providers tend to make up the bulk of the portfolios.

However, funds can also include companies involved in the development of water purification technologies, companies focused on water efficiency, and companies that are involved in providing solutions to global water challenges.

What’s Driving Returns

As part of the Infrastructure Investment and Jobs Act, more than $55 billion has been committed to water-related projects. This represents the largest investment in clean drinking water and wastewater infrastructure in American history.

The funding will be dedicated to replacing lead service lines and pipes in an effort to deliver clean drinking water to up to 10 million American families, according to the White House. In addition, more than 400,000 schools and child care facilities that currently don’t have it, including in tribal nations and disadvantaged communities, would be funded as well.

Extreme Weather Events

This investment in water infrastructure is critical, especially in light of the growing threat of climate change. Extreme “100 year” weather events have become increasingly common, putting a strain on the aging water infrastructure in the U.S.

Of the six water ETFs that are available, two of them focus on the U.S. water segment. The Invesco Water Resources ETF (PHO) is the largest water ETF, at $1.8 billion AUM. This fund tracks a modified liquidity-weighted index of U.S.-listed companies that create products to conserve and purify water.

The First Trust Water ETF (FIW) is the second largest, with $1.2 billion in AUM.

The four other water ETFs take a global view on the theme.

Comparing ETFs

Looking at the two largest water ETFs on the ETF.com ETF Comparison Tool shows that these U.S.-focused water ETFs have some similarities—and a few differences as well.

Though both funds hold more than $1 billion in assets, average daily volume for each ETF is only a few million dollars, leading to higher spreads relative to funds of similar size.

As is often the case with thematic ETFs, both funds are heavily concentrated in the top 10 holdings. PHO holds 61% of the portfolio in the 10 largest names. FIW takes a slightly less concentrated approach, with 43% of the portfolio in the top 10.

Between the two funds, six names overlap within the top 10 names. Each fund has 37 holdings, with 29 of the names being included in both ETFs.

Industrials and utilities are the two largest sector weights in each portfolio. The two sectors make up more than two-thirds of each portfolio. Digging into the sectors, FIW is slightly more tilted toward machinery and construction names, but overall, the portfolios are similar.

This explains why performance has moved in tandem. Over the trailing three years, PHO has gained 82.8%, while FIW has risen by 78.8%.

Both funds have high ESG ratings, though PHO slightly edges out FIW, garnering an AAA rating. There are only 36 U.S.-listed ETFs in total that have received the top ESG rating from MSCI.

Along with more standardized requirements, securities held within the index that PHO tracks must be classified as participating in the “green economy,” as determined by SustainableBusiness.com.

Looking Ahead

With both ETFs providing access to similar portfolios and return streams, either would be well-positioned to take advantage of the infrastructure bill’s proposed water-related spending over the next few years.

First Trust’s FIW has a very slight edge in terms of cost, while Invesco’s PHO is a little better for investors with an ESG focus.

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KFA Global Carbon ETF - >>> KRBN ETF Update: Nobel-Prize Winning Economist, Robert Engle, Named Chairman of Climate Finance Partners Advisory Board as John Kerry Joins Biden Administration


Yahoo Finance

February 11, 2021


https://finance.yahoo.com/news/krbn-etf-nobel-prize-winning-130000165.html


NEW YORK, Feb. 11, 2021 /PRNewswire/ -- Climate Finance Partners (CLIFI), the sub-advisor to the KFA Global Carbon ETF (Ticker: KRBN), announced that Robert Engle has been named Chairman of the Climate Finance Partners Advisory Board.

Robert Engle is the 2003 recipient of the Nobel Prize in Economics and a preeminent expert in volatility measurement within financial markets. He is a thought-leader in climate change risk and sustainable investing and a professor at the NYU Stern School of Business. As the CLIFI advisory board's chairman, Engle will provide market expertise and investor education on the global carbon allowance markets.

Engle assumes the chairman position as his predecessor, 68th Secretary of State of the United States, John Kerry, joins the Biden administration as U.S. Special Presidential Envoy for Climate.

Robert Engle commented, "Experts agree that the best way to curb pollution and save the planet is to put a price on carbon emissions. I believe the Biden Administration rejoining the Paris Agreement, among other factors, will help raise the global price per ton of carbon emissions significantly in the coming years."

Climate Finance Partners has worked with IHS Markit to create the Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), and the Regional Greenhouse Gas Initiative (RGGI).

"We are thrilled to have Robert as the Chairman of the Climate Finance Advisory Board," said Eron Bloomgarden, Partner at Climate Finance Partners. "As a Nobel laureate in financial markets and thought-leader in climate change risk and sustainable investing, Robert's expertise is an invaluable asset to our mission to provide innovative climate finance solutions to address environmental challenges."

Investors can now invest in the global carbon allowance market through the KFA Global Carbon ETF (Ticker: KRBN), which is benchmarked to The IHS Markit Global Carbon Index. The IHS Markit Global Carbon Index returned 31.21% in 2020.

Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. High short term results may not be repeatable. Performance information for the KFA Global Carbon ETF can be found at the following website www.kfafunds.com/krbn.

About Climate Finance Partners

KRBN is sub-advised by Climate Finance Partners (CLIFI). CLIFI delivers innovative climate finance solutions and investment products to address capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with deep experience in the fields of traditional investment and environmental finance.

About KFA Funds - A KraneShares Company

Krane Funds Advisors, LLC is the investment manager for KFA Funds and KraneShares ETFs. The firm believes that investors should have cost-effective and transparent tools for attaining exposure to a wide variety of asset classes. The KFA Funds product suite delivers differentiated, high-conviction investment strategies to global investors through identifying groundbreaking capital market opportunities and developing them into investment vehicles that offer a source of non-traditional diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).

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Equal Weighting + Reverse Indexing the S+P 500 -


>>> S&P ETF Fortunes Reverse In 2021


ETF.com

Jessica Ferringer

June 23, 2021


https://finance.yahoo.com/news/p-etf-fortunes-reverse-2021-163000936.html


While FAANG stocks have lost much of the bite that drove the S&P 500 outperformance last year, that doesn’t mean S&P 500 ETFs are being held hostage by a handful of tech stocks.

ETFs with alternative strategies that don't mirror market cap weighting are outperforming the traditional S&P 500 Index. This reverse indexing, if you will, is having a significant impact on returns this year.

The SPDR S&P 500 Trust (SPY) is the largest ETF by assets under management, with more than $353 billion in assets. One alternative to the market-cap-weighted SPY is the Arrow Reverse Cap 500 ETF (YPS). This fund weights holdings inversely to their market cap, allocating more weight to the smaller members of the index.

What Drives Performance

By using our ETF Comparison Tool, we can see that the difference in weighting schemes can have a significant impact on portfolio characteristics for each ETF.

The market-cap-weighted SPY leans heavily toward technology, at more than 33% of the portfolio. Meanwhile, YPS has the greater exposure to financials, with tech making up just 12% of the portfolio.

The difference in the number of holdings between the two funds can be explained through their investment strategies. Per SPY’s prospectus, “minor mis-weighting generally is permitted” if transaction costs would exceed the expected impact.

YPS has a similar disclaimer within its prospectus, noting that the fund will generally use a replication strategy, but may use a representative sampling strategy. This means the fund can invest in a sample of the securities of the index as long as the fund remains aligned with the risk, return and other characteristics of the index as a whole.

This can lead to a discrepancy in the number of holdings compared to the index, especially for the smallest holdings, with minimal impact on returns.

SPY Vs. YPS 2020

But performance is where the rubber meets the road, and a look at the last two years is a tale of two different return sets. With these differences in portfolio composition, it is not surprising that SPY outperformed YPS in 2020 by more than 10%.

The largest names in the index, such as Apple, Microsoft and Amazon, vastly outperformed the S&P 500.

Financials, on the other hand, underperformed the broad market, as companies such as banks were battered by falling interest rates, punishing YPS more so than SPY because of weightings.

SPY Vs YPS 2021 YTD

However, 2021 has been a different story so far. Compared to YPS, SPY is underperforming this year as tech stocks have struggled. Some of the same companies that led the market last year are this year’s laggards.

Apple Inc. currently the largest holding in the S&P 500, has struggled to eke out a positive return for much of the year even though the broad index is up double digits. And as last year’s tech rally drove up the weighting to these holdings, it has further amplified the negative impact these names had on the portfolio as these companies have struggled.

Market Cap Matters

In addition to sector differences, performance has also been driven by market cap. Midcap names tend to be more sensitive to investor sentiment about the U.S. economy. On the other hand, the larger, multinational companies that make up a large portion of the S&P 500 are more sensitive to global growth expectations.

As the weighted average market cap of YPS is only slightly higher than that of many U.S. midcap ETFs, it stands to reason that this weighting methodology would do well in environments like the one we are in.

The U.S. is reopening faster than international countries, and the expected growth of the U.S. economy is projected to be faster than that of the rest of the world. That benefits midcap and small cap companies that derive the majority of their revenue in the U.S.

Another Way To Skin The S&P 500

In addition to market cap weighting and reverse market cap weighting, another way for investors to play this segment of the market is to use an equal-weight ETF such as the Invesco S&P 500 Equal Weight ETF (RSP) .

As the name suggests, this ETF gives equal weight to all constituents regardless of market cap. This reduces the exposure to the largest cap names but avoids tilting the portfolio toward the smaller cap names. RSP, too, is outperforming SPY.

Performance this year has been in between that of SPY and YPS, which is to be expected, as the weighting methodology ensures that neither larger nor smaller names are given precedence.

The Big Picture

Comparing these three ETFs since common inception, SPY still comes out ahead, even in light of its recent underperformance.

Though certain time periods might prove to be friendlier to alternative weighting methodologies, SPY’s performance so far remains on top over the long term, though data is limited since YPS’ launched less than four years ago.

SPY’s Clear Benefit: Cost

Though each weighting methodology has its pros and cons, SPY’s dominance in terms of AUM gives it one clear benefit. The ETF has an expense ratio of 0.09%—less than half the cost of the other options. And since it is so heavily traded, with an average daily volume of nearly $26 billion, the average spread is essentially 0.00%.

Compare that to YPS, with an expense ratio of 0.29% and average spread of 0.21%, and RSP, with an expense ratio of 0.20% and average spread of 0.01%, and you can see how SPY benefits from its sheer size.

Investors can control cost, which should be as much of a factor in investment selection as last year’s returns.

For more information on S&P 500 ETFs, check out our S&P 500 ETFs channel.

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>>> Oil Spike Lifts Energy ETFs


Yahoo Finance

Dan Mika

June 22, 2021


https://finance.yahoo.com/news/oil-spike-lifts-energy-etfs-150000081.html


The stars are aligning for a bull run in the oil markets, as the world continues to shed its pandemic-induced cabin fever with road trips and flights amid uncertainty over how flexible the supply of the commodity will be in handling that demand.

Prices for the U.S. benchmark West Texas Intermediate recovered from the $40 per barrel mark at the start of the year to hit $70 per barrel earlier in June on the back of massive demand for travel in places where COVID-19 is on the retreat.

The International Energy Agency’s latest projections expect global oil demand to recover to prepandemic levels by the end of 2022, leading to domestic surplus drawdowns and a possible lag in refineries being able to keep up in turning crude into gasoline.

Consider the Invesco DB Energy Fund (DBE), which tracks energy-related futures contracts and has posted year-to-date returns of 38.93%. Let’s compare it to the other largest commodity baskets in the ETF realm.

Invesco DB Base Metals Fund (DBB), industrial metals: 12.98%

Invesco DB Agriculture Fund (DBA), agriculture: 9.54%

Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR), precious metals: -4.26%

Here’s what’s driving oil prices higher, and how ETF investors can get into the market.

Geopolitics & Demand Flip

The crude oil crash last March was driven by both ends of the supply and demand curve. Much of the world went into lockdown to avoid the spread of COVID-19, which kept people from driving and flying, sending demand down substantially.

At the same time, Saudi Arabia and Russia began an oil production war after the latter walked out of OPEC negotiations on how the cartel’s members would react to the pandemic. The spat between the world’s second- and third-largest producers depressed prices further until early April, when the two countries agreed to curtail production.

The world was awash in oil that it didn’t need late last spring, so much so that the price of West Texas Intermediate went negative on April 20 as traders with expiring oil futures were forced to pay buyers to take those contracts on instead of taking delivery of oil they couldn’t store.

Now, the scenario is flipped on its head.

Americans are itching to travel after nearly a year and a half at home, and other countries are opening up to travel as more people get vaccinated.

At the same time, geopolitics in the Middle East could complicate global oil supplies. Iranian President-elect Ebrahim Raisi told reporters on Monday that he would not meet with U.S. President Biden or negotiate on other matters, while demanding the U.S. lift its banking and shipping sanctions on the country.

A hardline approach could scuttle attempts to revive the Iran Nuclear Deal and leave the country unable to export to other countries that move money through American financial institutions.

Tying Investment To Crude Prices

The ETF most closely following the whims of the oil market is the US Oil Fund LP (USO), which holds futures contracts expiring within two months into the future at the latest. Its closest competitor is the Invesco DB Oil Fund (DBO), which is less prone to price swings because it moves its expiring contracts into whatever month is most attractive within the next 13 months on the market.

However, the funds have respective expense ratios of 0.79% and 0.78%, both fairly pricey compared to the broader ETF market. Plus, both funds are structured as commodity pools, so long-term holders could incur greater capital gains taxes.

A less volatile option is the ProShares K-1 Free Crude Oil Strategy ETF (OILK), which splits its exposure equally between contracts that roll each month and contracts that expire semiannually. This fund is structured as an open-ended fund rather than a commodities pool, which keeps investors from having to make a separate filing come tax time, and which an expense ratio of 0.68%.

Producers & Refiners

The simplest way to get exposure to the companies in the oil space is by using the Energy Select Sector SPDR Fund (XLE). The benchmark fund following U.S. energy companies in the S&P 500 has year-to-date returns of 43.98% and an expense ratio of 0.12%.

Alternative options for a broader energy portfolio include the Vanguard Energy ETF (VDE), which has a wider share of holdings, and produced 47.48% returns so far this year. It has a 0.10% expense.

An option with narrowed focus is the VanEck Vectors Oil Refiners ETF (CRAK), the only fund right now that’s solely tracking the companies that turn crude oil into the stuff that goes into gas tanks. However, it carries a relatively pricey expense ratio of 0.60%.

<<<

>>> Best Oil ETFs for Q3 2021

OIL, OILK, and BNO are the best oil ETFs for Q3 2021


Investopedia

By NATHAN REIFF

May 18, 2021


https://www.investopedia.com/news/5-etfs-track-oil-usodbooilucouwti/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


Oil exchange-traded funds (ETFs) offer direct access to the oil market by tracking the price of oil as a commodity. This approach is different from investing in funds that own a portfolio of oil stocks. There is potential for significant returns through investing in the oil sector, but risks remain high amid the COVID-19 pandemic and the resulting massive disruption of economies worldwide. Oil prices historically have been prone to quick, dramatic swings up and down. Oil ETFs provide investors a straightforward way to gain exposure to those price swings without having to buy and store the physical commodity or navigate the complexities of investing in oil futures contracts.


KEY TAKEAWAYS

Oil prices have dramatically outperformed the broader stock market over the past year.

The ETFs with the best 1-year trailing total return are OIL, OILK, and BNO.

The top holdings of the first two ETFs are futures contracts for Sweet Light Crude Oil (WTI), and the top holdings of the third are futures contracts for Brent Crude Oil.

There are currently 6 distinct oil commodity ETFs that trade in the U.S., excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). Oil prices have climbed by 137.2% over the past twelve months, significantly outperforming the S&P 500's total return of 48.7%, as of May 14, 2021.12 The best-performing oil ETF, based on performance over the past year, is the iPath Pure Beta Crude Oil ETN (OIL). We examine the top 3 oil ETFs below. These ETFs focus on oil as a commodity rather than oil company stocks. All numbers below are as of May 17, 2021.3


iPath Pure Beta Crude Oil ETN (OIL)

Performance over 1-Year: 114.5%
Expense Ratio: 0.75%
Annual Dividend Yield: N/A
3-Month Average Daily Volume: 32,369
Assets Under Management: $55.0 million
Inception Date: April 20, 2011
Issuer: Barclays Capital

OIL provides exposure to the Barclays WTI Crude Oil Pure Beta TR Index, which aims to reflect potential returns of futures contracts in the crude oil markets. The fund is structured as an exchange-traded note (ETN), a type of unsecured debt security that is similar to a bond, but trades on an exchange like a stock. The ETF's underlying index may utilize futures contracts of varying expiration dates. The holdings of OIL are futures contracts of Sweet Light Crude Oil (WTI).45


ProShares K-1 Free Crude Oil Strategy ETF (OILK)

Performance over 1-Year: 113.9%
Expense Ratio: 0.68%6
Annual Dividend Yield: N/A
3-Month Average Daily Volume: 28,559
Assets Under Management: $83.3 million
Inception Date: Sept. 26, 2016
Issuer: ProShares

OILK targets the Bloomberg Commodity Balanced WTI Crude Oil Index. Unlike some other oil ETFs, OILK does not aim to track the performance of the spot price of WTI crude oil, and indeed may perform very differently. Rather, like the target index, OILK aims to track the performance of three separate contract schedules for WTI crude oil futures. The fund's holdings are futures contracts of Sweet Light Crude Oil (WTI).67


United States Brent Oil Fund (BNO)

Performance over 1-Year: 105.0%
Expense Ratio: 1.13%8
Annual Dividend Yield: N/A
3-Month Average Daily Volume: 1,142,773
Assets Under Management: $324.3 million
Inception Date: June 2, 2010
Issuer: Concierge Technologies

BNO, a futures-based commodity pool, does not track West Texas Intermediate (WTI), like the two funds above. Rather, BNO tracks the spot price of Brent Crude Oil, the crude oil benchmark for the EMEA region. Because Brent often trades at a different price from WTI, BNO can be a useful way of gaining alternative exposure. The holdings of BNO are futures contracts for Brent Crude Oil.89

<<<

>>> 7 Socially Responsible ETFs to Buy Now


These top ESG funds are for investors concerned about environmental, social and governance issues.

By Jeff Reeves

June 17, 2020

U.S. News & World Report


https://money.usnews.com/investing/funds/slideshows/socially-responsible-etfs-to-buy-now


Socially responsible ETFs to buy:

iShares MSCI KLD 400 Social ETF (DSI)
Vanguard ESG U.S. Stock ETF (ESGV)
iShares ESG MSCI EAFE ETF (ESGD)
SPDR SSGA Gender Diversity Index ETF (SHE)
Invesco Solar ETF (TAN)
SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)
iShares MSCI USA ESG Select ETF (SUSA)


Investors and businesses around the world are expressing growing concerns over social issues such as climate change or diversity in the workplace. While Wall Street is chiefly concerned with profits, many executives understand climate change comes with real financial risks. Furthermore, the recent global protests against racism show that discriminating against certain customers is unacceptable. Many public corporations are now focused on ESG issues – that is, environmental, social and governance characteristics. Meanwhile, some index providers have begun to rank companies based on how ethically they operate, and there are accessible and affordable exchange-traded funds for people who want to invest without sacrificing their principles. Here are seven socially responsible ETFs that allow you to invest with ESG principles in mind.

iShares MSCI KLD 400 Social ETF (ticker: DSI)

At nearly $2 billion in assets, this iShares fund is not just one of the most popular socially responsible investment plays, but it's also a substantial fund across all categories with serious size and volume. Benchmarked to an index of about 400 large U.S. companies that includes Microsoft Corp. (MSFT) and Facebook (FB), this fund is designed to feature companies that post above-average ratings on ESG characteristics. Investors should be aware that this socially responsible ETF is pretty biased toward technology stocks; roughly 45% of holdings are either in information tech or communications. That may be good or bad, depending on your personal goals, but is worth noting.

Vanguard ESG U.S. Stock ETF (ESGV)

Though smaller in size than DSI with about $1.3 billion in total assets under management, this socially responsible ETF from Vanguard is tied to a much larger group of holdings with nearly 1,500 total components. It has a similar focus to the prior fund, as it includes U.S. companies with above-average ESG ratings; however, it includes a bunch of smaller names given the depth of the lineup of stocks. That may appeal to some investors, since top holdings remain old favorites such as Apple (AAPL). But further down the list are a host of relatively unknown stocks across all sectors of the U.S. economy.

iShares ESG MSCI EAFE ETF (ESGD)

This is another solid option as socially responsible ETFs go, but it excludes companies in the U.S. and Canada to take a more global approach to the ESG investing strategy. The result is a diverse group of almost 500 companies across geographies and sectors, including Swiss consumer giant Nestle (SWX: NESN) and Japanese automaker Toyota Motor Corp. (TYO: 7203). Investors should know that some companies in regions like Europe are even more progressive in their environmental, social and corporate governance efforts given greater regulation. For instance, in 2017, the U.K. enacted legislation that requires any business with 250 or more employees to publicly report its gender pay gap.

SPDR SSGA Gender Diversity Index ETF (SHE)

Perhaps best known for its 2016 debut that featured the "Fearless Girl" statue of a ponytailed tyke staring down Wall Street's famous bronze bull, this socially responsible ETF focuses on companies that feature better-than-average female representation on their executive committees compared with others in their industry. This doesn't mean a perfect balance of men and women, however. Top position PayPal Holdings (PYPL) has only four women on its leadership team of 11 people, for instance. That said, this ratio is better than its peers. And as representation of women in leadership continues to improve, so will the gender diversity of constituent stocks in this ETF.

Invesco Solar ETF (TAN)

With more than a decade of trading history, this solar energy ETF is among the oldest options for individual investors looking to invest in a more socially responsible way. With top stocks in this narrow subsector such as First Solar (FSLR) and SolarEdge Technologies (SEDG), TAN is a great way to gain exposure to the solar energy trend without going all-in on a single company. Of course, a laser focus on a group of 28 specialized holdings with basically the same business model is not without its risks. Solar sales are prone to volatility from year to year, and so is this ETF.

SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

If you care about going green but also want a broader range in your portfolio beyond renewable energy stocks, the SPDR S&P 500 Fossil Fuel Reserves Free ETF is a good option. SPYX simply takes all the oil, gas and fossil fuel companies from the list of stocks out of the popular S&P 500. That leaves the ESG investor with about 460 stocks that make up a typical index fund, save for the exclusion of energy giants such as Exxon Mobil Corp. (XOM). It's an interesting approach that incorporates a more diverse group of companies.

iShares MSCI USA ESG Select ETF (SUSA)

This socially responsible ETF is growing fast in popularity because of its "select" strategy, through which it places stricter requirements on components. With only 145 holdings in its portfolio, investors are not simply getting an S&P 500 fund that excludes Big Oil and Big Tobacco – you'll instead find a top cut of the biggest companies that truly take ESG issues seriously. Big tech names such as Apple are well-represented, with about 29% of assets in that sector, but there are also some names that may surprise you. For example, take home-improvement company Home Depot (HD) or consulting firm Accenture (ACN). This gives you a shorter list, but it's a decently diversified one to avoid relying on just the top few holdings alone.

<<<

>>> Simplify Asset Management Launches Two First-of-Their-Kind ETFs


Yahoo Finance

May 13, 2021


https://finance.yahoo.com/news/simplify-asset-management-launches-two-125300662.html


PFIX provides direct and transparent convex exposure to an upward shift in long-dated rates; SVOL is the first-ever VIX income strategy with an option hedge

Simplify Asset Management ("Simplify"), an innovative provider of options-based Exchange Traded Funds ("ETFs"), today announced the launch of two first-of-their-kind ETFs:

The Simplify Interest Rate Hedge ETF (PFIX); and

The Simplify Volatility Premium ETF (SVOL).

PFIX, which listed on Tuesday, May 11th, seeks to provide a hedge against a sharp increase in long-term interest rates. Using over-the-counter derivatives, typically only available to institutional investors, PFIX provides direct and transparent convex exposure to an upward shift in long-dated rates.

At launch, PFIX invests 50% of its NAV into a long-dated option on long-term interest rates. By carefully selecting option strike, time to expiry, and the underlying rate maturity, PFIX attempts to create a low-cost, powerful and highly convex position.

"Portfolios today are too often overexposed to interest rate risk and the impacts from a reemergence of inflation, but hedging portfolios against these risks has long been challenging as traditional hedges, like futures, come with large costs of carry, while more sophisticated approaches, like interest rate derivatives, have only been available to institutional investors," said Harley Bassman, Managing Partner with Simplify. "With PFIX, investors now have a tool that can be used as an explicit hedge against rising rates for all the parts of a portfolio that tend to struggle in a rising rate environment, including high quality long-dated fixed income, real estate, and growth equities."

SVOL, which begins trading today, is designed to capture the volatility premium stemming from imbalanced hedge demand while simultaneously buying call options on the VIX as a means of hedging against adverse spikes in equity market volatility. The fund invests in a short volatility strategy designed to generate substantial income while minimizing volatility drag. It then spends a modest budget on VIX call options that seek to mitigate the short volatility portfolio when the VIX spikes. It is the first-ever VIX income strategy with an option hedge.

"Investors searching for income in today’s market have to navigate the twin challenges of historically low bond yields and highly volatile equity markets. These market conditions do, however, make the volatility risk premium an interesting potential source of income; one made all the more appealing with the approach captured in SVOL which strives to reduce the risk of substantial tail events," said Michael Green, CFA, Portfolio Manager & Chief Strategist with Simplify. "We’re very excited to be bringing this first-of-its-kind strategy to market and see SVOL as a key solution for investors looking for alternatives to the usual high yield approaches, diversifiers for traditional asset classes, and as a tactical vehicle for those times when volatility levels are most attractive."

PFIX and SVOL join a Simplify ETF family that has quickly surpassed the $250 million asset mark since the launch of its initial offerings in late 2020, as advisors, family offices, institutions and the retail investor community have been drawn to the more scientific approach the firm has pioneered in combining equity index exposures with robust options overlays.

"We could not be more excited to be adding PFIX and SVOL to our fund family, and look forward to the conversations that our leadership team, with its unsurpassed background in options, portfolio construction, convexity, and more, will be having with advisors in the weeks and months to come," added Paul Kim, CEO and Co-Founder of Simplify. "ETFs are a great democratizer and we’re thrilled to be making the sophisticated strategies underpinning both of these new funds available to the marketplace."

ABOUT THE SIMPLIFY ASSET MANAGEMENT INC

Simplify Asset Management Inc. is a Registered Investment Adviser founded in 2020 to help advisors tackle the most pressing portfolio challenges with an innovative set of options-based strategies. By accounting for real-world investor needs and market behavior, along with the non-linear power of options, our strategies allow for the tailored portfolio outcomes for which clients are looking. For more information, visit www.simplify.us.

<<<

>>> ‘BUZZ’ ETF: White Noise Or Right Noise?


ETF.com

March 23, 2021


https://www.etf.com/sections/features-and-news/buzz-etf-white-noise-or-right-noise?nopaging=1


Measuring stock market sentiment has been both a pursuit of many—from traders to academia—and a holy grail of sorts. There’s a train of thought that investors are influenced by sentiment, despite fundamentals, and that to bet against investor sentiment can be risky.

Market sentiment indicators are used all the time: VIX, high/low index, bullish percent index, moving averages, etc. And while those give the overall flavor of the market’s tenor—bullish, bearish, lukewarm—selecting individual stocks based on sentiment has been an impossible knot.

Now, thanks to the internet, singular thoughts and idea are more easily captured—a silver or rusted lining depending on your viewpoint. And by screening for stock tickers using hashtags on social media sites like Twitter and Stocktwits, one index provider believes it has built a better sentiment mousetrap as the internet matures into adulthood.

‘BUZZ’ Is Back

This month, the VanEck Vectors Social Sentiment ETF (BUZZ) was launched, and did so with a bang. The fund has gathered $500 million in assets in two weeks, thanks to circuslike environment the fund was launched under.

David Portnoy, founder of Barstool Sports and the newest market gadfly, is one of the financial backers of BUZZ and its index created by Buzz Holdings. And he took to Twitter to pitch BUZZ’s launch in car-salesman style to the delight of his followers and the public, and to the horror of the Wall Street “suits.”

But as the Portnoy publicity circus has died down and a half-billion dollars has been entrusted to the fund to make money for its investors, we thought it was time to sit down with Jamie Wise, CEO of Buzz Holdings, who has been developing BUZZ’s index to measure sentiment on individual stocks.

The first go-round for “BUZZ” was in 2016, with the launch of the Sprott Buzz Social Media Insights ETF (BUZ). It was among the first ETFs to rely on artificial intelligence in its underlying index, but it closed in 2019 with a scant $10 million in AUM after three years. Maybe BUZ was ahead of its time five years ago, or maybe just not having a Portnoy publicity machine made the difference.

But as one of the fastest-growing funds in the history of U.S.-listed ETFs, “BUZZ” looks like it will be circling for a while.

ETF.com: The index behind “BUZZ” (the BUZZ NextGen AI US Sentiment Leaders Index) has been your passion and life’s work. What’s the story?

Jamie Wise: “BUZZ” really started because I saw people on social media platforms [I use]—namely Stocktwits and Twitter—talking about stocks. At first I had a misconception that probably the people talking on Twitter or Stocktwits are only talking about super-risky, high growth, to-the-moon-type stocks.

But then, once I peeled that first layer back, I realized there was real thread of diversity to the conversation, and wouldn't it be interesting to sort of get a read of the temperature of that conversation?

Sentiment has always been something that fascinated me. You’re trained in the investment world to think of sentiment as something contrarian. The problem is, it was never measurable. You have all these polls, and we know the problems with the polling. We have all these proxy indicators that people could point to, whether it was the VIX, or put/call ratios, things of that nature, but that’s more on a macro level.

When it came to stock-specific sentiment, it was really just someone's opinion on CNBC, frankly. I could get on a show, and pick up the microphone, and say, “Sentiment in XYZ stock is high or low.” But really, they have no data to confirm that, other than maybe conversations that person had with their own network, or they're looking at a stock chart, or what have you.

Back in 2014, we started the project to measure sentiment at the individual-security level.

ETF.com Would it be fair to say you're really measuring social media that's focused on stocks?

Wise: Yes. Ten years ago or so, this kind of communication didn't exist. Yes, there were the early online chat boards and message boards. They were very focused on maybe a handful of stocks. And the diversity of people on those things was unbelievably low.

It would have been nice to say, “Yeah, there's 10, 15, 20 years of history, since the internet has been around, there’ve been people talking about stocks on the internet in a broad and diverse way,” but that's just not the case at all.

You don't get any real data until the early part of the 2010s. And even then, it's much, much narrow than it is today. By 2015, though, it was robust. We were looking at 2 million posts a month that our algorithms were processing back when the “BUZ” first launched, which we thought was a lot of data then.

Today we’re looking at more than 20 million posts a month. There’s been just unbelievable growth and message volume, and participants, and diversity of opinions and diversity of trading styles. All of those things help to represent the collective, which just gives a wider lens for us to screen for potential sentiment names.

ETF.com: What were the top 10 holdings when you closed BUZ? And what were the top 10 holdings when you just opened BUZZ?

Wise: They're definitely not going to be the same. And it's not because the models have changed. It's more just the diversity of stocks being talked about.

February 2019 Rebalance - BUZZ Index Constituents

Ticker Weight
AMD 3.00%
TSLA 3.00%
FB 3.00%
CGC 3.00%
AMZN 3.00%
AAPL 3.00%
GE 3.00%
SQ 3.00%
MSFT 3.00%
BA 2.67%
V 2.53%
GOOGL 2.51%
BLK 2.47%
SNAP 2.41%
NVDA 2.23%
TWTR 2.13%
MU 2.03%
BAC 1.98%
DIS 1.96%
ATVI 1.88%
GS 1.86%
SBUX 1.52%
EA 1.43%
IBM 1.31%
BHC 1.29%
GM 1.21%
TWLO 1.18%
PYPL 1.13%
XOM 1.12%
TTWO 1.11%
F 1.10%
XLNX 1.09%
TEL 1.04%
CVS 1.03%
M 1.03%
T 1.02%
SHOP 1.02%
MRK 0.99%
EXEL 0.94%
CSCO 0.93%
WMT 0.93%
NOW 0.92%
INTC 0.90%
EBAY 0.90%
BMY 0.89%
DFS 0.87%
TMUS 0.87%
VZ 0.79%
LRCX 0.78%
AAL 0.78%
GILD 0.77%
C 0.75%
CVX 0.75%
PFE 0.74%
MA 0.71%
UAA 0.70%
MTCH 0.70%
MO 0.69%
GRUB 0.69%
JPM 0.68%
LULU 0.67%
ABBV 0.67%
QCOM 0.67%
LLY 0.64%
JNJ 0.63%
WYNN 0.61%
SWKS 0.60%
REGN 0.60%
UTX 0.59%
DATA 0.58%
KO 0.58%
EXPE 0.56%
CMCSA 0.56%
A 0.55%
LMT 0.54%
100.00%
Company
Advanced Micro Devices Inc
Tesla Inc
Facebook Inc
Canopy Growth Corp
Amazon.com Inc
Apple Inc
General Electric Co
Square Inc
Microsoft Corp
Boeing Co/The
Visa Inc
Alphabet Inc
BlackRock Inc
Snap Inc
NVIDIA Corp
Twitter Inc
Micron Technology Inc
Bank of America Corp
Walt Disney Co/The
Activision Blizzard Inc
Goldman Sachs Group Inc/The
Starbucks Corp
Electronic Arts Inc
International Business Machine
Bausch Health Cos Inc
General Motors Co
Twilio Inc
PayPal Holdings Inc
Exxon Mobil Corp
Take-Two Interactive Software
Ford Motor Co
Xilinx Inc
TE Connectivity Ltd
CVS Health Corp
Macy's Inc
AT&T Inc
Shopify Inc
Merck & Co Inc
Exelixis Inc
Cisco Systems Inc
Walmart Inc
ServiceNow Inc
Intel Corp
eBay Inc
Bristol-Myers Squibb Co
Discover Financial Services
T-Mobile US Inc
Verizon Communications Inc
Lam Research Corp
American Airlines Group Inc
Gilead Sciences Inc
Citigroup Inc
Chevron Corp
Pfizer Inc
Mastercard Inc
Under Armour Inc
Match Group Inc
Altria Group Inc
GrubHub Inc
JPMorgan Chase & Co
Lululemon Athletica Inc
AbbVie Inc
QUALCOMM Inc
Eli Lilly & Co
Johnson & Johnson
Wynn Resorts Ltd
Skyworks Solutions Inc
Regeneron Pharmaceuticals Inc
United Technologies Corp
Tableau Software Inc
Coca-Cola Co/The
Expedia Group Inc
Comcast Corp
Agilent Technologies Inc
Lockheed Martin Corp


February 2021 Rebalance - BUZZ Index Constituents

Ticker Weight
TSLA 3.00%
AAPL 3.00%
SPCE 3.00%
AMD 3.00%
AMZN 3.00%
TWTR 3.00%
FB 3.00%
PLUG 3.00%
F 3.00%
NVAX 3.00%
DKNG 3.00%
NFLX 2.74%
AAL 2.27%
MSFT 2.23%
ZM 2.12%
PFE 2.11%
PINS 2.05%
MRNA 1.90%
BA 1.87%
DIS 1.86%
PENN 1.82%
SNAP 1.57%
SQ 1.54%
ON 1.51%
BHC 1.51%
NVDA 1.46%
INTC 1.45%
GM 1.41%
NKLA 1.39%
GE 1.27%
GOOGL 1.26%
PTON 1.24%
PYPL 1.23%
BYND 1.18%
UBER 1.06%
JNJ 1.04%
CRM 1.02%
JPM 1.02%
GOLD 1.02%
ROKU 0.98%
XOM 0.94%
T 0.90%
QCOM 0.88%
APPS 0.88%
GS 0.84%
SHOP 0.80%
ENPH 0.80%
CCL 0.76%
TDOC 0.75%
COTY 0.74%
BAC 0.72%
WMT 0.70%
FSLY 0.69%
KO 0.68%
ZNGA 0.67%
BLK 0.64%
V 0.62%
MS 0.61%
IBM 0.61%
TGTX 0.58%
WFC 0.57%
ETSY 0.53%
CLF 0.53%
SPG 0.50%
SBUX 0.50%
H 0.49%
NET 0.47%
SRPT 0.46%
CVS 0.45%
CAT 0.45%
CRSP 0.45%
ATVI 0.44%
GILD 0.41%
CHWY 0.41%
STX 0.40%
100.00%
Company
Tesla Inc
Apple Inc
Virgin Galactic Holdings Inc
Advanced Micro Devices Inc
Amazon.com Inc
Twitter Inc
Facebook Inc
Plug Power Inc
Ford Motor Co
Novavax Inc
DraftKings Inc
Netflix Inc
American Airlines Group Inc
Microsoft Corp
Zoom Video Communications Inc
Pfizer Inc
Pinterest Inc
Moderna Inc
Boeing Co/The
Walt Disney Co/The
Penn National Gaming Inc
Snap Inc
Square Inc
ON Semiconductor Corp
Bausch Health Cos Inc
NVIDIA Corp
Intel Corp
General Motors Co
Nikola Corp
General Electric Co
Alphabet Inc
Peloton Interactive Inc
PayPal Holdings Inc
Beyond Meat Inc
Uber Technologies Inc
Johnson & Johnson
salesforce.com Inc
JPMorgan Chase & Co
Barrick Gold Corp
Roku Inc
Exxon Mobil Corp
AT&T Inc
QUALCOMM Inc
Digital Turbine Inc
Goldman Sachs Group Inc/The
Shopify Inc
Enphase Energy Inc
Carnival Corp
Teladoc Health Inc
Coty Inc
Bank of America Corp
Walmart Inc
Fastly Inc
Coca-Cola Co/The
Zynga Inc
BlackRock Inc
Visa Inc
Morgan Stanley
International Business Machine
TG Therapeutics Inc
Wells Fargo & Co
Etsy Inc
Cleveland-Cliffs Inc
Simon Property Group Inc
Starbucks Corp
Hyatt Hotels Corp
Cloudflare Inc
Sarepta Therapeutics Inc
CVS Health Corp
Caterpillar Inc
CRISPR Therapeutics AG
Activision Blizzard Inc
Gilead Sciences Inc
Chewy Inc
Seagate Technology PLC


The most important difference between then and now is the investment industry understands that the social media platforms are a real thing. It's not a gimmicky thing, and it's not a promotional thing.

We heard a lot of, “Why do I care what Sally from Indiana has to say about Microsoft?” And we always champion that answer with, “Sally and the millions of others like her are a lot smarter than you give them credit for. And they have tools and assets to research, and really push each other. And collectively, they can make really good decisions.”

People sort of scoffed at that. That was a long traditional bias of investment professionals. I think that was absolutely the case five years ago. Today people have a much more open mind with respect to understanding that, collectively, these communities are probably a lot smarter than they give them credit for, historically.

ETF.com: Why is GameStop not included in the index? It would seem to be the poster child for this kind of screener.

Wise: As per the index guideline, there is a multistep process to determine if a stock is eligible to be considered for inclusion in the BUZZ Index. The eligibility determination occurs quarterly, and the list of eligible stocks remains in effect until the next quarterly determination, through three monthly rebalances. To be eligible for inclusion, a stock must meet the following criteria:


Security must be a common stock traded on a major U.S. exchange

Security must have a minimum market capitalization of at least $5 billion

Security must have a three-month minimum average daily trading volume of at least $1 million


GME failed to meet the $5 billion market cap on the January eligible universe screen. The next eligible universe screen occurs on April 1. To qualify as eligible, a security must meet a minimum-mentions threshold that incorporates a rolling four-quarter review of “mentions” data.

ETF.com: Who owns this index?

Wise: BUZZ Holdings is the entity that owns the index. We are the creators of the IP [intellectual property]. BUZZ Holdings has the right to license use of that index for investment vehicles. That’s the relationship that BUZZ Holdings currently has with VanEck [and Portnoy].

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>>> Best S&P 500 ETFs for Q2 2021


IVV, VOO, and SPLG are tied for the lowest fees, and SPY has the most liquidity


Investopedia

By NATHAN REIFF

Mar 18, 2021


https://www.investopedia.com/investing/top-sp-500-etfs/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral


The S&P 500 is a market-cap-weighted index of 505 large-cap U.S. stocks, representing approximately 80% of the market value of the U.S. stock market. Often synonymous with "the market" in the U.S., the S&P 500 is the closest thing to a default U.S. stock index. Its largest components by weight are mega-cap stocks such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), class A shares of Facebook Inc. (FB), and class A shares of Alphabet Inc. (GOOGL).1 The S&P 500 was the benchmark of the first index fund, and the first ETF. An S&P 500 ETF is an inexpensive way for investors to gain diversified exposure to the U.S. stock market, though it has been unusually volatile in the past year amid the coronavirus pandemic and massive disruptions in the global economy.


KEY TAKEAWAYS

The S&P 500 is a market-cap-weighted index of 505 large-cap U.S. stocks.

The index has a 69.0% trailing 1-year total return.

The S&P 500 ETFs with the lowest fees are SPLG, IVV, and VOO.

The highest-liquidity ETF is SPY.


There are 4 ETFs tracking the S&P 500 that trade in the U.S., excluding inverse and leveraged funds and those with under $50 million in assets under management (AUM).2 The S&P 500 has provided a total return of 69.0% over the past 12 months, as of March 16, 2021.3 Below, we look at the least expensive S&P 500 ETFs for buy-and-hold investing and the most liquid one for more active traders. There is a three-way tie between the least expensive funds, an indication of just how intense the price war is as ETF issuers compete to both retain and add investors. All numbers below are from ETFdb.com as of March 17, 2021, except where specified.


S&P 500 ETF with the Lowest Fees:

iShares Core S&P 500 ETF (IVV) (Tie)

Expense Ratio: 0.03%
Performance over 1-Year: 68.8%
Annual Dividend Yield: 1.48%
3-Month Average Daily Volume: 4,224,129
Assets Under Management: $260.6 billion
Inception Date: May 15, 2000
Issuer: iShares5


S&P 500 ETF with the Lowest Fees:

Vanguard S&P 500 ETF (VOO)(Tie)

Expense Ratio: 0.03%
Performance over 1-Year: 68.8%
Annual Dividend Yield: 1.45%
3-Month Average Daily Volume: 3,794,725
Assets Under Management: $204.0 billion
Inception Date: September 9, 2010
Issuer: Vanguard


S&P 500 ETF with the Lowest Fees:

SPDR Portfolio S&P 500 ETF (SPLG) (Tie)

Because index-tracking ETFs follow the performance of the S&P 500 index, one of the most important determinants of long-term returns is how much a fund charges in fees.

Expense Ratio: 0.03%
Performance over 1-Year: 68.7%
Annual Dividend Yield: 1.45%
3-Month Average Daily Volume: 2,759,697
Assets Under Management: $9.1 billion
Inception Date: November 15, 2005
Issuer: State Street SPDR7


Most Liquid S&P 500 ETF:

SPDR S&P 500 ETF (SPY)

Liquidity indicates how easy it will be to trade an ETF, with higher liquidity generally translating to lower trading costs. Trading costs are not a big concern with people who want to hold ETFs long term. But if you’re interested in trading ETFs frequently, then it’s important to look for high-liquidity funds to minimize trading costs.

3-Month Average Daily Volume: 76,926,968
Performance over 1-Year: 68.2%
Expense Ratio: 0.09%
Annual Dividend Yield: 1.43%
Assets Under Management: $337.2 billion
Inception Date: January 22, 1993
Issuer: State Street SPDR8

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>>> ProShares MSCI Transformational Changes ETF (ANEW) -


https://www.insidermonkey.com/blog/15-best-innovative-stocks-to-buy-according-to-hedge-funds-917886/


MSCI’s Global Transformational Changes Index tracks the performance of “a set of companies that are expected to derive significant revenue from one or more of four themes: Future of Work, Digital Consumer, Genomics & Telehealth and Food Revolution.” This Index of innovative stocks returned 38.7% in 2020 and outperformed the S&P 500 Index by more than 20 percentage points. Broad market index funds give investors only a small exposure to technologically innovative stocks. That’s why MSCI’s Global Transformational Changes Index was able to beat the market by a very large margin last year.

ProShares MSCI Transformational Changes ETF (ANEW) tracks the performance of MSCI’s Index by investing in the same companies using the same weights utilized by MSCI’s index. As of January 27th ANEW had more than 150 stocks among its holdings and its two biggest holdings were Alnylam Pharmaceuticals, Inc. (ALNY) and Apple Inc (AAPL). Both of these stocks had a weight of 2.15% in the ETF. The top 50 holdings of ANEW accounted for 74% of the ETF.

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>>> Thematic ETF-Of-ETFs Launches


Yahoo Finance

by Heather Bell

January 29, 2021


https://finance.yahoo.com/news/thematic-etf-etfs-launches-144500576.html


Today, Main Management rolled out its second ETF. Like the $682 million Main Sector Rotation ETF (SECT), the Main Thematic Innovation ETF (TMAT) is actively managed and invests primarily in other ETFs in order to capture the theme of disruptive innovation.

TMAT comes with an expense ratio of 1.65% and lists on Cboe Global Markets, the parent company of ETF.com.

Main Management is, at its core, a firm driven by fundamental investment principles and seeks out growth at a reasonable price across its strategies, according to Director of Research Alex Varner. He notes that the strategy underlying the ETF has been available through Main Management via a separately managed account since June 2020.

“A lot of what we’re seeing now is technology driven. It’s that application of technology across the sectors that’s exciting,” Varner said.

Investment Approach

TMAT looks to target disruptive and innovative themes with large market demand, seeking out those that seem to have been mispriced or underestimated by the market, the prospectus says, noting this is a common occurrence with disruptive innovation.

According to the document, the fund managers set price targets for different positions that may be frequently revised upwards and holds those positions until that price target is achieved or the opportunity dries up. It points out that the targeted themes may take years to develop, meaning some positions potentially can be held for decades. The portfolio is rebalanced as needed.

The investment process involves assessing the big picture to uncover disruptive themes, looking at macroeconomic fundamentals, growth forecasts, drivers of growth and consumer behavior. The themes under consideration currently include everything from genomics to artificial intelligence to cloud computing to pet care, the prospectus says.

The portfolio generally holds five to 15 different ETFs, according to the fund document. However, right now, Varner says that there are 11 holdings in the portfolio. Those include the likes of the ARK Genomic Revolution ETF (ARKG), the ARK Fintech Innovation ETF, the ProShares Online Retail ETF (ONLN), the VanEck Vectors Video Gaming and eSports ETF (ESPO) and the Global X Robotics & Artificial Intelligence ETF (BOTZ).

Varner notes that the entire portfolio offers exposure to roughly 350 different company names, with a heavy tilt toward midcap stocks. He adds that the median market cap for those names in TMAT is at $6 billion, while the Nasdaq-100 has a median market cap of $50 billion. Further, typical FANG names are less than 5% of the whole portfolio, and although Amazon is the largest single stock exposure, it represents less than 2.5% of the portfolio, he says.

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

TMAT can also implement option strategies in the form of covered calls and covered puts in order to smooth out performance or enhance returns, according to its prospectus.

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>>> Goldman Folds 5 ETFs Into 1


Yahoo Finance

October 27, 2020


https://finance.yahoo.com/news/goldman-folds-5-etfs-1-180000089.html?.tsrc=fin-srch


Goldman Sachs is reorganizing five ETFs originally launched in 2019 around Motif indexes—a company Goldman acquired last year—into a single fund, according to FactSet. The changes will take effect Nov. 6.

GBUY has $77 million in assets under management. The 119-holding portfolio tracks a market-cap-weighted index of companies that are capitalizing from new consumer trends, including products and infrastructure.

GDAT has $55 million in assets. The 116-holding portfolio tracks an index of companies involved in the data business from processing to delivering it to analyzing it.

GDNA has $63 million in assets. The 112-holding portfolio tracks an index of companies involved with cutting-edge development of treatments and tech in the health care industry.

GFIN has $48 million in assets. The 119-holding portfolio tracks an index of companies that are reshaping financial services, including blockchain and asset management disrupters.

GMAN has $51 million in assets. The 118-holding portfolio tracks an index of global companies disrupting manufacturing through technology.

According to Goldman Sachs, the new Innovate ETF will track the Solactive Innovative Global Equity Index, which combines these five themes in an equal-weighted basket. The new ETF will be a thematic fund that captures the “what’s next” across various industries, and the drivers of growth. No ticker has been announced for the new fund.

Goldman Sachs is behind 27 ETFs with nearly $20 billion in combined assets.

More Launches From New Issuer

Redwood Investment Management has doubled its ETF lineup under its LeaderShares brand this week with the launch of two new funds:

LeaderShares Activist Leaders ETF (ACTV)

LeaderShares AlphaFactor Tactical Focused ETF (LSAT)

The company is still relatively new to the ETF market, and it’s carving a niche as a smart beta ETF provider that, through its AlphaFactor methodology, analyzes smart beta factors beyond traditional price-driven metrics, and incorporates them as sources of alpha.

LeaderShares is behind the LeaderShares AlphaFactor U.S. Core Equity ETF (LSAF), with about $80 million in assets, and the recently launched LeaderShares Equity Skew ETF (SQEW), which has amassed $61 million in assets since its debut in May.

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Invesco NASDAQ Next Gen 100 ETF (QQQJ) - >>> Newest ETFs in the Invesco QQQ Innovation Suite Generate $1 billion in Assets Under Management


Yahoo Finance

January 14, 2021


https://finance.yahoo.com/news/newest-etfs-invesco-qqq-innovation-140000378.html


Milestone reached after only three months since launch

ATLANTA, Jan. 14, 2021 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading provider of exchange-traded funds (ETFs), announces today that the Invesco NASDAQ 100 ETF (QQQM) and Invesco NASDAQ Next Gen 100 ETF (QQQJ) together have gathered $1 billion in assets under management (AUM)i. The two ETFs celebrated 3 months of history yesterday, as they were launched on October 13, 2020 as part of the Invesco QQQ Innovation Suite. The Suite offers investors a variety of investment structures and exposures that access the NASDAQ-100® Index and NASDAQ Next Generation 100 Index®.

"The Invesco QQQ Innovation Suite was launched to provide clients with more ways to access the growth fueled by the innovative companies listed on the Nasdaq Stock Exchange," said John Hoffman, Americas Head, ETFs & Indexed Strategies, Invesco. "We are pleased to see that the strong performance of the QQQM and QQQJ ETFs has resonated with investors and generated solid demand that allowed us to hit a $1 billion AUM milestone in just three months."

The Invesco NASDAQ 100 ETF (QQQM) offers investors access to the global growth companies included in the NASDAQ-100 Index, the 100 largest non-financial companies listed on the Nasdaq Stock Exchange, at 5 basis point less than the Invesco QQQ ETF (QQQ).ii The Invesco NASDAQ Next Gen 100 ETF (QQQJ) extends this concept further by offering access to the "next 100" non-financial companies listed on the Nasdaq, outside of the NASDAQ-100 Index, offering a mid-cap alternative to the large-cap NASDAQ-100 Index.

"Companies included in the NASDAQ-100 Index have historically shown a consistent commitment to reinvesting back into their business through Research & Development, often reinvesting a greater proportion of their sales to develop new technology that capitalizes on transformative, long-term themes in the marketplace," explains Hoffman. "Perhaps this is the reason why many of the positive technology-enabled solutions and medical advancements during the current crisis have been generated by companies included in the NASDAQ Indexes. Innovation has never been so important than at this period in time."

Including the Invesco QQQ Innovation Suite, the Invesco US ETF line-up of 226 ETFs currently has over $300 billion in AUMi.

For more information about Invesco ETFs, please visit the dedicated website: https://www.invesco.com/us-etf/en/innovation-suite.html

About Invesco Ltd.

Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in 25 countries, Invesco managed $1.2 trillion in assets on behalf of clients worldwide as of September 30, 2020. For more information, visit invesco.com.

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QQQJ, QQQM - >>> How To Buy All The Nasdaq's Top Stocks For 25% Off


Investors Business Daily

by MATT KRANTZ

10/15/2020


https://www.investors.com/etfs-and-funds/etfs/top-stocks-how-buy-all-nasdaq-qqq-25-less/?src=A00220


QQQ stock (QQQ) is a popular ETF for good reason: You can own 100 of the Nasdaq's top stocks in one trade. But now, you have another way to do it — for less.

Investors can now own all the same stocks on the Nasdaq 100 at a much lower fee with a new ETF. It's the Invesco Nasdaq 100 ETF (QQQM). Like the Invesco QQQ Trust, it owns all 100 of the largest non-financial companies on the Nasdaq. But it does it for 0.15% a year, or 25% less than the 0.2% the QQQ charges.

Plus, there's another new ETF that lets you own Nasdaq up-and-comers even before they crack the 100. The Invesco Nasdaq Next Gen 100 ETF (QQQJ) owns the next 100 largest non-financial companies following the 100 largest in the QQQ. This ETF opens mid-sized companies to your portfolio.

"QQQ is likely to remain among the 10 largest ETFs in the near term given its liquidity and the strong affinity growth investors have gained over the past decade," said Todd Rosenbluth, head of ETF and mutual fund research at CFRA. "However, we expect some investors to find the lower-cost QQQM alternative and more moderately sized companies inside QQQJ to be appealing."

Top Stocks Make QQQ A Raging Success

It's easy to see why Invesco (IVZ) wants to extend and protect its QQQ stock franchise. It's one of the greatest success stories for investors.

Shares of QQQ — powered by outsize holdings in stocks like Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) and Alphabet (GOOGL), skyrocketed more than 175% in the past five years. That's more than double the S&P 500's 5-year 75% rise.

And QQQ stock did even better during the Covid-19 pandemic. Mega-cap technology stocks, which dominate the QQQ, are pulling ahead in both stock price and profit. Just this year, QQQ stock is up more than 35%, while the S&P 500 has risen just 7.8%.

Keep in mind, too, Tesla (TSLA) is 3.4% of the Nasdaq 100. But this leading electric car maker worth $430 billion isn't even in the S&P 500 yet. That hurts if you consider Tesla stock is up more than 400% this year. No wonder it's millennials' favorite stock.

Strong performance begets money flows. QQQ stock reached $137 billion in assets in September, a six-fold increase in 10 years, Rosenbluth says. It's now the fifth largest ETF and narrowing the gap with the largest ETF, SPDR S&P 500 ETF (SPY), with roughly $300 billion in assets.

Owning The QQQ For Less

Moving money from QQQ stock to the new QQQM is a no-brainer for many individual investors. Nasdaq 100 stocks are leaders.

The Nasdaq 100 is heavy on top stocks in technology, with the sector holding 48.1% of the portfolio. And that heavy concentration has been a boon as tech stalwarts dominate. Apple accounts for 13.3% of the Nasdaq 100 and Microsoft 10.8%.

But communication services is close behind at 19.1%. Facebook (FB) is the big player there making up 4.3% of the Nasdaq. And the 18.9% weight in consumer discretionary is mostly due to Amazon.com's 11% weighting.

QQQ stock is a better choice than QQQM for large investors making million-dollar trades. QQQ moves more than 60 million shares daily on average.

But investors should go with the "cheaper version ... unless you need institutional liquidity," said Dave Nadig, chief investment officer at ETF Flows. If you invest $50,000 in QQQM instead of QQQ, you'll save 5 basis points or $25 in just the first year. "I wouldn't expect the liquidity (of QQQM) to ever match the (QQQ), but most of us don't need to execute millions of dollars in seconds," Nadig said.

Going Broader With Top Stocks Than The Nasdaq 100

Giant technology stocks are hijacking the Nasdaq 100 and driving more of its profits. But smaller companies are on the rise.

The QQQJ owns the No. 101 to No. 200 most valuable Nasdaq stocks. This fills in some smaller companies like Dunkin' Brands (DNKN), F5 Networks (FFIV) and Okta (OKTA), Rosenbluth says. Technology is weighted slightly lower in QQQJ than the QQQ at 46%. Health care, though, is No. 2 at 19.4%.

Investors can use the new ETF to easily own "the next generation of innovative companies ... before they graduate to the Nasdaq 100," said John Hoffman, Invesco's Head of Americas, ETFs & Indexed Strategies. Since 2011, 54 companies graduated from the Nasdaq Next Generation Index to the Nasdaq 100, he says. That include companies such as Tesla, Netflix (NFLX) and DocuSign (DOCU).

"Given the success of the (Nasdaq) 100, it seems totally reasonable to have some (capitalization) spectrum versions," Nadig said. "Do I expect it to pull in billions instantly? No. But do I expect a certain class of investors to be excited by the next 100 stocks related to the Qs? Absolutely."

Rise Of The QQQ

The Invesco QQQ Nasdaq 100 ETF is the top performer among the fastest-growing funds

ETF Symbol 1-Year Price % Ch. 1-Year Flows ($ Billions) Assets ($ Billions)

Invesco QQQ Trust (QQQ) 52.8% $18 $137

SPDR Gold Trust (GLD) 26.8% 20 79

Vanguard Total Stock Market (VTI) 18.2% 23 170

Vanguard S&P 500 (VOO) 17.6% 25 166

iShares iBoxx $ Investment Grade Corporate Bond (LQD) 6.9% 17 56

Sources: CFRA's First Bridge, S&P Global Market Intelligence; Assets through Oct. 9 and stock change through Oct. 14

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>>> 4 Top Advisor ETF Picks For 2021


Yahoo Finance

December 18, 2020


https://finance.yahoo.com/news/4-top-advisor-etf-picks-203000030.html


Financial advisors are in the trenches when it comes to making sense of markets and finding the right investment solutions for various client investment goals.

With that in mind as we approach a new calendar year, we ask some of them what’s top of mind in their ETF universe.

Here, three advisors share some of their top ETF picks and best investing ideas for 2021.

Sam Huszczo, founder and investment advisor, SGH Wealth Management, Southfield, Michigan

Top Pick: Invesco S&P SmallCap Quality ETF (XSHQ)

We view the quality factor in small cap stocks as a modern refresh to the size factor in the making of Fama-French 2.0.

The empirically verified size factor, which refers to mid- and small cap stocks generally outperforming large cap stocks, has been disappearing since the early ’90s due in part to increased competition. This dilution is seemingly restored if one can control the junkiest of the junk through screening for metrics like earnings quality and leverage.

By avoiding the “lottery ticket” equities in the small cap space, the robust size premium is present across more historical periods, across different industries and different measures of size. This, along with 2020 being all about the mega cap stock, gives us confidence that small cap stocks will continue the progress they made in Q4 2020, and further close the gap with large caps moving forward.

Matt Carvalho, chief investment officer, Cardinal Point Wealth Management, in San Jose, California

Top Pick: ARK Innovation ETF (ARKK)

Coming out of the carnage of Q1 2020, we wanted to introduce a satellite component to our clients’ holdings, which focused on some areas that could see exponential change from what we saw as dramatic shifts to our economy. Last April, we added ARKK as a holding for several reasons.

Looking at an economy rapidly in flux, we felt adoption rates may quickly increase in areas like ecommerce, telemedicine and blockchain technologies—these are some of the main areas of focus in the fund.

Beyond the Tesla headlines the fund is well known for, what has been remarkable to watch is the growth in firms like Moderna, Square and DocuSign. None of those four firms were included in the S&P 500 Index up to this point, so investors who thought they were well-diversified may have missed out on their performance.

Secondly, we felt comfortable with a high conviction fund as a smaller complement to our core broad market allocation. This fund has the potential to move the dial in terms of performance, and is not a watered-down exposure to these themes.

Finally, we value that the fund’s portfolio manager, Cathie Wood, has built a diverse group of managers and analysts, and has been very transparent with their research and thinking; all elements we hope to see more of from the industry going forward.

It will be tough to continue the magic of 2020 for this fund, but when you look at their track record and the unique holdings, the potential is at least there.

Marguerita Cheng, CEO, Blue Ocean Global Wealth, Gaithersburg, Maryland

Top ETF Picks: First Trust Capital Strength ETF (FTCS) and First Trust NASDAQ Cybersecurity ETF (CIBR)

FTCS is large cap core fund that invests in companies with the strongest balance sheets. These are quality stocks. This is a core holding.

CIBR invests in cybersecurity. We need to have cybersecurity to allow individuals to access information in a safe and secure manner. This is an opportunity holding.

Cybersecurity is the protection of internet-connected systems such as hardware, software and data from cyberthreats. The practice is used by individuals and enterprises to protect against unauthorized access to data centers and other computerized systems. CIBR allows clients to access cybersecurity companies with diversification and transparency.

Big Picture Themes For 2021

Andrew Musbach, co-founder & financial advisor, MD Wealth Management in Chelsea, Michigan

The biggest theme heading into 2021 is around small cap and value stocks. Historically, small cap value as an asset class has produced the highest long-term average returns. Of course, the caveat is that you’ve had to be extremely patient to capture these higher returns, including enduring long periods of underperformance interspersed with periods of outperformance.

Remember that the reason small cap and value stocks tend to perform better over time is because of two relatively simple concepts: First, the idea that risk and reward are correlated. If you take on more risk (i.e., investing in “riskier” smaller companies), you should be compensated with a higher return. Second, the idea of buying stocks at a discount. If you buy a stock when it’s “on sale” (value) and pay a relatively cheap price for it, you should realize higher subsequent returns.

Regarding the first point, if you think about lending money to a company, would you rather lend it to Amazon or a small company that you’ve never heard of? Most people would pick Amazon, and because of that, investors need to be enticed to choose the alternative. Risk and reward tend to be correlated, and the market needs to reward investors who take on more “risk” by investing in smaller companies.

Regarding the second point, people often confuse investing in a good company with realizing a good investment return. In other words, people discount how the price at which they buy an investment impacts their subsequent return. Just like you would have realized better investment returns in 2020 if you invested when the market was temporarily down 30% or more from its high, the same holds true with buying stocks at a relatively lower valuation.

Over the past decade, U.S. large growth and tech companies, as a group, have had the best relative outperformance. This has created an opportunity whereby valuations have made small cap value companies particularly attractive on a relative basis moving forward. We’ve already seen the prior trend begin to reverse since the market bottom on March 23, and based on current relative valuations, along with the historically higher expected returns for small cap value, there should continue to be a great opportunity in the space.

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>>> Here’s how trendy ETFs can do double-duty in your portfolio


MarketWatch

Dec. 15, 2020

By Andrea Riquier


https://www.marketwatch.com/story/heres-how-trendy-etfs-can-do-double-duty-in-your-portfolio-11607954528?siteid=yhoof2


Think global, act… thematic?

For a portfolio that spans the globe, look no further than some of the thematic ETFs that have been popular throughout 2020.

Borders may be closed and travel plans relegated to bucket lists for now, but there’s never been a better time for investors to be thinking globally.

After a years-long streak of outperformance by U.S. equities, many analysts say it’s time to seek out better returns abroad. Luckily, there may be an easy way to accomplish that, while also investing in some of the most compelling themes of 2020 and the future.

An analysis by Todd Rosenbluth, head of mutual fund and ETF research for CFRA, finds that many of the exchange-traded funds and ETF categories that are hot right now have exposure that’s more global in nature than many investors may realize – more global, in fact, than popular benchmarks. That makes some of these ETFs a two-fer, Rosenbluth believes: they offer strong investment theses and diversified exposure.

“There’s no border for great companies,” Rosenbluth said in an interview. “There’s no border for great ideas or themes. A compelling investment theme makes sense globally.”

Rosenbluth’s analysis compares the widely-tracked MSCI All-World Index, which has a 57.7% weighting of U.S. stocks, with several popular strategies.

Clean energy ETFs, which have gotten a boost over the past few months on expectations of a Democratic, and thus climate-friendly, administration, have broad international exposure, Rosenbluth found. The Invesco Solar ETF TAN, +3.23% allocates only 45% of its portfolio to U.S. companies, a metric which falls to 32% of the portfolio of the iShares Global Clean Energy ETF. ICLN, +1.37% In the iShares fund, the second-largest represented country is New Zealand, a country Rosenbluth said he was surprised to see weighted so heavily.

“The research of these ETF managers means they’re finding the leaders within these investment themes regardless of where they’re domiciled even if someone like me wouldn’t have thought of them,” he said.

His research found similar patterns across different themes. The Global X Robotics & Artificial Intelligence ETF BOTZ, -0.36%, for example, has its biggest geographic concentration from Japan, at 45%, with the U.S. in second place at 35%.

That’s not to be confused with BETZ, the Roundhill Sports Betting & iGaming ETF, BETZ, -0.61% which MarketWatch profiled when it launched in June. BETZ has only 34% exposure to U.S. stocks, followed by Britain and Australia. In a sign investors believe in its thesis, the fund has pulled in $178 million in its six months of existence.

It’s ultimately up to each investor to decide what kind of geographic exposure he or she wants, but Rosenbluth argues that “the long-term trend is favorable” for the themes represented here. The coronavirus pandemic may have sped up adoption of some high-tech lifestyle transitions, and the 2020 presidential election goosed interest in clean energy, but all these technologies are here to stay, he said.

“Investors will likely continue to show interest in these in the future because the themes make sense,” he said.

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