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This ETF Has FOMO in Mind: Portfolio Products

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What You Need to Know

  • The ETF invests in a variety of products including SPACs and volatility ETFs.
  • Also, O'Shaughnessy Asset Management has expanded ESG SMA offerings on its custom indexing platform.
  • JPAM announced splits of six ETFs.

Tuttle Tactical Management has filed a registration statement with the Securities and Exchange Commission for an exchange-traded fund that targets investors’ fear of missing out during rallies.

The aptly named FOMO ETF is an actively managed ETF that invests in securities that reflect current or emerging trends. It uses a proprietary tactical model to track and purchase securities that are increasing in value while avoiding those securities that are losing value.

The ETF offers a kitchen sink worth of securities including U.S. foreign and emerging market stocks of any market capitalization, special purpose acquisition companies (SPACs), equity and fixed income ETFs and volatility and inverse volatility ETFs and exchange traded notes (ETNs). The ETF can also invest in leveraged and inverse ETFs and ETNs that seek the inverse performance of stock indexes, Treasury bonds and volatility indexes.

Frequent trading is expected, “resulting in a high portfolio turnover rate,” according to the SEC filing. Matthew Tuttle is the ETF its portfolio manager and the management fee is 0.80%, according to the SEC filing.

Tuttle is also the portfolio manager for another actively managed ETF included in the SEC filing called the Fat Tail Risk ETF, which refers to the risk of a portfolio moving more than three standard deviations from the mean. The two ETFs are part of the Collaborative Investment Series Trust.

The Fat Tail ETF will invest in cash and U.S. government bonds, ETFs that invest in gold-related derivatives, U.S.  stocks and Treasuries, volatility and inverse volatility ETFs, ETNs and leveraged and inverse ETFS gold-rated ETFs that seek the inverse performance of stock indices, treasury bonds, and volatility ETFs

Like the FOMO ETF, the fund may engage in frequent trading of its portfolio, which will result in a higher portfolio turnover rate, and has a 0.80% management fee.

O’Shaughnessy Asset Management Expands SMA ESG Offerings

O’Shaughnessy Asset Management LLC (OSAM), a quantitative asset management firm, has expanded its environmental, social and governance (ESG) and socially responsible investing (SRI) offering on its custom indexing platform.

More than 50 ESG and SRI screens are now available on the Canvas platform. supporting a diverse array of causes, issues, and values. In addition, more than 15 % of client accounts on the platform have incorporated ESG and SRI screens into custom portfolios.

“The popularity of sustainable investments is accelerating,” said Patrick O’Shaughnessy, CFA, Chief Executive Officer of OSAM, in a statement, noting that “pooled funds … are often less effective for investors in terms of performance and tax management than direct ownership of individual stocks… Customization according to individual principles of ESG and SRI lends itself particularly well to separately managed accounts.”

Canvas provides an SMA platform that is scalable and allows tax loss harvesting as well as ESG/SRI overlays that satisfy clients’ individual goals and values.

Sustainable investment funds accounted for nearly one fourth of overall flows into U.S. funds in 2020, with total assets under management reaching $236 billion, according to Morningstar. A record 71 new funds were launched last year.

ASYMmetric Launches a Hedge Fund-Like ETF

ASYMmetric ETFs, the firm founded by seasoned ETF and hedge fund manager Darren Schuringa, has introduced its first ETF, the ASYMshares ASYMmetric 500 ETF (ASPY).

The ETF uses rules-based quantitative long/short hedging strategy designed to provide protection against bear market losses and to capture the majority of bull market gains. Its goal is a low-volatility, uncorrelated, asymmetric investment option.

According to the firm’s SEC filing, the ETF captures the upside of a bull market through investment in large-cap equity securities that have the lowest volatility relative to the market,  sorted according to industry sector and pares back its net exposure during periods of heightened market uncertainty to preserve capital. It protects against downturns through short sales of SPY, State Street’s SPDR S&P 500 ETF.

The strategy dynamically manages the index’s net exposure in three market risk environments: Risk On, when market prices are trending up and realized volatility is low; Risk-Elevated, when prices are trending down and realized volatility is low; and Risk-Off, when prices are trending lower and realized volatility is high. The index’s net exposure to its market ranges between 100% long and -25% short where net exposure is the difference between the index’s long equity positions and its short sales positions. The expense ratio is 0.95%.

Defiance ETFs Introduces a Hydrogen ETF

Defiance ETFs has launched the Defiance Next Gen H2 (HDRO), the first hydrogen ETF listed in the U.S. The ETF invests in companies involved in the development of hydrogen-based energy sources and fuel technologies.

It tracks the BlueStar Global Hydrogen & Next Gen Fuel Cell Index, which follows the performance of a group of globally listed equities of companies that generate at least 50% of their revenue from their involvement in the development of hydrogen-based energy sources, fuel cell technologies and industrial gases. Ten stocks account for about three-quarters of its holdings.

“We’re already starting to see hydrogen take on a larger role as a viable energy source,” Defiance ETFs President Paul Dellaquila said in a statement. “We believe that as governments and corporations continue to demand renewable energy sources and adopt more environment-friendly policies, Hydrogen will be a pivotal resource to help fuel a cleaner economy.”

The ETF has an expense ratio of 0.30%.

J.P. Morgan Asset Management Announces Stock Splits of 6 ETFs

J.J.P. Morgan Exchange-Traded Fund Trust has approved a reverse 1:2 share split for each of the following six ETFs: JPMorgan BetaBuilders 1-5 Year U.S. Aggregate Bond ETF (BBSA), JPMorgan BetaBuilders Canada ETF (BBCA), JPMorgan BetaBuilders Developed Asia ex-Japan ETF (BBAX), JPMorgan BetaBuilders Europe ETF (BBEU), JPMorgan BetaBuilders Japan ETF (BBJP) and JPMorgan U.S. Aggregate Bond ETF (JAGG). All but JAGG are listed on the Cboe; JAGG is listed on the NYSE.

The effective date of the reverse splits will be prior to market open on April 12, when the funds will begin trading at their post-split price under the same ticker symbols but new CUSIP numbers.

Mairs & Power Launches Its First ETF

Mairs & Power, a St. Paul, Minnesota RIA that serves financial advisors as well as individuals and families and manages three mutual funds as well as individual accounts, has launched its first ETF, a Minnesota Municipal Bond ETF (MINN).

The firm says it is the only ETF in the country that invests primarily in Minnesota munis. The ETF trades on the Cboe and has an expense ratio of 0.39%.

— Check out last week’s portfolio product roundup hereHere’s When DFA Will Convert 4 Mutual Funds to ETFs: Portfolio Products

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