Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Off the beaten trackers: five ETFs following an alternative path

Citywire Selector takes a closer look at five thematic ETFs and explores their offbeat areas of investment.

On alternative paths

In the past year a whole host of thematic ETFs have been launched, whether it’s short duration treasuries or green bond ETFs, if you can think of it, it has probably been launched. Over a year ago, Citywire Selector tracked down five niche ETFs, which included a cyber security ETF and a restaurant tracker to showcase the offbeat ideas coming to makret.

One year on and following this spate of new strategies, Citywire Selector has tracked down five new funds offering something different from your average global equities ETF.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Backing the bosses

The Global X Founder-Run Companies ETF was launched in February this year, and seeks to generate alpha over the broad market by offering exposure primarily to US mid and large-cap companies which are led by their founders.

As of July 31, the fund held 204 shares of Netflix, which is still managed by co-founders Reed Hastings and Marc Randolph. Other holdings include financial services and mobile payment company Square Inc, as well as American food company Hain Celestial Group.

The fund currently has no more than 2% invested in any one single stock and has recently added 0.35% to Kite Pharma, a publicly-held, clinical stage biopharmaceutical company, which is engaged in the development of novel cancer immunotherapy products.

In the three months to the end of July 2017, the Global X Founder-Run Companies ETF returned 3.63% in US dollar terms. This compares with a 4.14% rise by its broad based index, the S&P 500 TR, over the same time period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

ETF of ETFs

Citywire currently tracks 69 fund of funds and 58 fund managers in the space, but for investors wanting the same concept but in a passive wrapper, Exchange Trade Concepts launched an ETF of ETFs.

The ETF Industry Exposure & Financial Services ETF was launched in April and offers investors access to companies and providers driving growth in the ETF industry.

The fund seeks to provide investment results that, before fees and expenses, track the total returns performance of the Toroso ETF Industry Index. As of the end of June 2017, the fund held ETFs from companies such as Invesco, WisdomTree, BlackRock and Charles Schwab.

In the three months to the end of July 2017, the ETF Industry Exposure & Financial Services ETF returned 9.46% in US dollar terms. This compares with a 4.14% rise by its broad based index, the S&P 500 TR, over the same time period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Fancy a tipple

Almost eight years ago Spanish firm March Gestion de Fondos launched the Vini Catena fund. While back in 2010 Grapevault Wine Investments launched the Grapvault Wine fund to tap into the wine industry’s value chain.

But what if you don’t like wine but still want to tap the drinks industry? The ETF industry has an answer, with the launch of the Spirited Funds/ETFMG Whiskey and Sprits ETF by US group ETF Managers. Data from May 2017, shows the fund currently holds top positions in companies such as Pernod Ricard, Davide Campari Milano and LVMH Moet Hennessy Louis Vuitton.

The fund aims to invest at least 80% of its total assets in securities, ADRs (American depositary receipts) and GDRs (global depositary receipts) of whisky and spirit companies.

Over the three months to the end of July 2017, the Sprited Funds/ETFMG Whisky & Spirits fund returned 16.85% in US dollar terms. This compares with a 9.51% rise by its broad-based index, the S&P 500 TR, over the same time period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Conservative bets

Earlier this year, Columbia Threadneedle teamed up with UK bank Gatehouse Financial to launch a Sharia-compliant strategy.

Prior to that fund houses such as Mirae and Franklin Templeton created Sharia-compliant products. However, we have yet to see an actively managed fund which represents Christianity.

In March, US Company Inspire launched the Inspire Global Hope ETF, using a methodology designed to score a security based on alignment with biblical values. Companies excluded from the fund include those that profit from alcohol and gambling, as well as companies that support an LGBT lifestyle.

Over the three months to the end of July 2017, the Inspire Global Hope ETF returned 3.63% in US dollar terms. This compares with a 6.47% rise by its broad-based index, the MSCI EAFE NR USD.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Priceless picking

The mobile payments industry is expanding, with estimates from US research firm Forrester suggesting digital payments could hit $283 billion by 2022. This is up from an estimated $112 billion at the end of 2016.

In order to offer investors exposure to this ever-growing market, PureFunds launched the ISE Mobile Payments ETF. The ETF invests in companies at the forefront of the mobile, electronic and digital payments industry.

The fund’s top holdings include big companies such as Paypal, Visa, Mastercard and Worldpay. The fund recently added to its position in Square Inc, while reducing its position in Fidelity National Information Services. The fund is close to full investment and has just 0.08% of its holdings in cash and other assets.

Over the one year to the end of July 2017, the PureFunds ISE Mobile Payments ETF returned 27.71% in US dollar terms. This compares with a 16.04% rise by its broad based index, the S&P 500 TR, over the same time period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015