Five new ETF offerings were launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager.
Harbor Capital Advisors, Inc. launched the Harbor Corporate Culture Small Cap ETF. The launch of this new mandate builds on the firm’s human capital investing suite, which reflects the Human Capital Factor as a distinctive investment factor capable of measuring corporate culture and its connection to future equity performance. The ETF seeks to provide investment results that correspond, before fees and expenses, to the performance of the CIBC Human Capital Factor Small Cap Index. The index consists of a modified cap-weighted portfolio of equity securities of approximately 200 U.S. companies.
Global X ETFs launched the Global X PropTech ETF, which provides exposure to companies positioned to benefit from innovations in property technology. Global X is forecasting that the global property technology market could triple by 2030 from 2022. By providing exposure to the companies that are positioned to benefit from the technology that optimises the way people buy, sell, rent, design, construct, manage, research, and market residential and commercial properties, the ETF can help investors capitalise on this growth.
Beacon Capital Management launched two complementary solutions, Beacon Tactical Risk ETF and Beacon Selective Risk. The Beacon Tactical Risk ETF uses an equal sector allocation across 11 sectors as a first line of defense and a mechanical stop-loss as a secondary defense to limit losses before they become too catastrophic. When the stop-loss is triggered, equity positions are sold, and portfolio assets are repositioned into fixed income. Conversely, Beacon Selective Risk operates with targeted loss-reduction protections at the sector level and has been designed as a supplement to Beacon Tactical Risk ETF, helping capture gains in sideways market conditions.
Using the Vantage 2.0 Benchmark Index, Beacon’s team determines when traditional diversification may not be enough to protect investors from persistent market downturns. This approach automatically withdraws investors’ funds from equity positions to provide a safety valve helping minimise losses during volatile market periods.
Elevate Shares, the parent brand to the YieldMax and RoundHill ETFs, launched the YieldMax APLY Option Income Strategy ETF. The ETF is an actively managed solution that seeks to generate monthly income by selling/writing call options on Apple (AAPL) stock. To achieve its investment objectives, APLY uses a synthetic covered call strategy. The fund’s options contracts provide exposure to the share price returns of AAPL, current income from the option premiums, and a limit on the fund’s participation in gains, if any, of the share price returns of AAPL.
Toroso Investments is the fund’s investment adviser, and ZEGA Financial is its sub-adviser. APLY’s managers will employ its investment strategy regardless of market conditions and won’t take temporary defensive positions during periods of adverse markets or economic downturns.