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EventShares closes political ETFs and launches policy ETF


ETF provider EventShares, which focuses on ETFs designed to give investors exposure to major multi-factor government policy-driven events and themes, is combining the strategies from its three initial ETFs into a new, broad-based policy fund.

The EventShares US Tax Reform Fund (TAXR), will be renamed the EventShares US Policy Alpha ETF (BATS: PLCY).  In addition, the firm is announcing the liquidation of the EventShares Republican Polices Fund (GOP) and the EventShares Democratic Policies Fund (DEMS), effective April 27, 2018, with policy catalysts from those portfolios to be incorporated into PLCY.
“It has been our view from the start that policy is an investable leading indicator, and we have seen that thesis play out in the outperformance of GOP and DEMS since launch, with both market prices as of April 18, 2018 exceeding the returns of the S&P 500 since inception and through some turbulent market conditions,” says Ben Phillips, chief investment officer at EventShares. 
“At the same time, however, GOP and DEMS were never intended as vehicles to express a political point of view, though they were viewed by some investors and advisors in that light.  They were designed to provide exposure to the policies of the two major parties, regardless of an investor’s political affiliation.  With the Policy Alpha fund, we’ve created an investment vehicle that we believe provides access to our best ideas, giving investors the opportunity to get exposure to policy without suggesting a political commitment,” Phillips says.
PLCY will look to combine the ‘best ideas’ from the three predecessor ETFs to provide exposure to companies and sectors impacted by a wider range of U.S. government policies and regulations. The firm writes that while tax reform and related policies will continue to play a significant role in the fund, there will be other drivers as well, including trade, defense, healthcare, education, border security, and environmental concerns. The fund will continue to be actively managed.

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