There’s a new way to play the trade war: a dedicated exchange-traded fund.
M-CAM International is starting an ETF that will invest in companies it calculates are best able to withstand a trade rift, regulatory filings show. The Innovation Alpha Trade War ETF, which will hold about 120 global large- and mid-cap stocks, is set to start trading on Wednesday under the ticker TWAR, according to David Martin, M-CAM’s chief executive officer and chairman.
Many investors have been derailed by the ebb and flow of U.S. trade tensions with countries including China, Mexico, India and Canada. M-CAM will look at a company’s contracts with the U.S. or an international government to determine which stocks could outperform during a trade war thanks to state support. These companies will comprise the fund’s benchmark, but only firms with strong intellectual property — as defined by M-CAM — are eligible.