The SPAC and New Issue ETF (SPCX), the first actively-managed ETF that gives investors direct exposure to the disruptive capital markets theme of Special Purpose Acquisition Companies (SPACs), is now trading on the New York Stock Exchange (NYSE).
“The SPAC market has traditionally been hard to access for all but a small group of institutional investors,” says Matthew Tuttle, Chief Executive Officer and Chief Investment Officer of Tuttle Tactical Management LLC (“TTM”), which serves as the Advisor to SPCX. “As there is limited information on publicly-traded SPACs, selecting the right SPAC in which to invest can seem like a daunting task. SPCX offers investors a broad portfolio of SPACs within the familiar liquid and tax-efficient wrapper of an ETF.”
As an alternative to the traditional initial public offering (IPO) process, SPAC IPOs have witnessed an acceleration in popularity in 2020. Through 8 December, there have been 217 SPAC IPOs year-to-date, with gross proceeds exceeding USD74 billion. That compares to 59 SPAC IPOs in 2019 representing USD13.6 billion in gross proceeds.
“Although the increased number of SPAC issuances has helped to fuel investor appetite in the space, we are encouraged not only by the larger deal sizes we’ve seen in 2020 but by the number of experienced and high-profile managers that have raised capital via the SPAC route this year,” Tuttle says. “While the IPO pipeline looks robust for 2021, the SPAC market is one of rapid change and opportunity. As a result, we feel the most appropriate strategy for managing a portfolio of SPACs is through active management as it can be more flexible in reacting to market events. This is no place for an index fund based on a rigid set of rules.”