New ETFs are constantly popping up; 32 new ETFs hit the markets in May 2021 alone. But, of course, not all months are quite that busy, and most of the news ETFs in the month didn't really represent "new" opportunities for investors since most of the new ETFs were similar to what is already available to investors, just by a new issuer.
However, a few ETFs introduced in May are a little different from the run-of-the-mill option and may be worth considering for your own portfolio. So let's take a look and see if any of them interest you.
The first one is something we all suffer from, from time to time, FOMO ETF (FOMO). This ETF is an actively managed fund that seeks long-term capital appreciation by holding all size equities, SPAC's, fixed income, volatility, and inverse volatility ETFs and ETNs. The fund managers will decide what to own based on the "fear of missing out" concept of buying what is currently "in favor" with retail, individual, and institutional investors. As a result, the fund managers have a wide range of where and how they can invest and complete control over investment timeframes. This fund will likely have high churn and potentially be rather volatile, but time will tell. FOMO has an expense ratio of 0.90%.
Next, we have the Bitwise Crypto Industry Innovators ETF (BITQ). This ETF invests in a modified market-cap-weighted index of global companies that support the crypto-asset-enabled decentralized economy. This fund is passively managed but still has an expense ratio of 0.85%. The ETF does not hold cryptocurrency itself, just a group of 30 companies worldwide that operate in that crypto industry in one form or fashion. Many would consider this ETF a back-door investment into the land of crypto-currency investing because it's likely that if crypto's rise in value, these companies will also see an increase in their share price.
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Another one is the Defiance Next Gen Altered Experience ETF (PSY). This ETF invests in companies legally operating in the medical field with business activities around marijuana, psychedelics, and ketamine. Defiance has posted information indicating that 30% of depr4ession patients don't respond to any currently approved treatments. However, some believe the medical use of marijuana, psychedelics, and ketamine could help these suffering patients. Of course, not everyone, investor, or doctor believes these drugs should be used for these treatments, but some do, and now those who do, have an opportunity to invest with their beliefs. PSY has an expense ratio of 0.75%.
One more new interesting ETF is the ProShares NASDAQ-100 Dorsey Wright Momentum ETF (QQQA). This ETF tracks an equal-weighted index of 21 non-financial stocks included in the Nasdaq-100 Index that has been identified with the highest price momentum. Per the ETFs prospectus, each company in the index is analyzed and ranked using the Dorsey Wright Nasdaq-100 Point & Figure Matrix - a proprietary measurement that uses point & figure relative strength charts for ranking securities by momentum. The main goal of this system is to find stocks that will outperform others based solely on current price momentum. The stocks will be reconstituted and weighted quarterly In January, April, July, and October of each year.
And finally, we have the SoFi Weekly Dividend ETF (WKLY). This ETF tracks a market-cap-weighted index of dividend-paying companies, which shows a high probability of strong dividend sustainability. Sounds like another run-of-the-mill dividend-paying ETF? Wrong, because WKLY is the first ETF that is designed to pay a weekly dividend to its shareholders. WKLY plans to pay a dividend every Thursday. The idea of weekly income is certainly appealing to a number of investors, but most certainly those living in retirement who need income consistently. Since it is new, we don’t have a ton of information on the fund, but we know that the expense ratio is 0.49%, and the fund will hold mid and large-cap stocks with high dividend yields.
Perhaps none, some, or all of the ETFs mentioned above are appealing to you, regardless do your own research before buying any of them. And maybe even given them a few more weeks or months before jumping in since we still have a lot to learn about all of them.
INO.com Contributor - ETFs
Follow me on Twitter @mthalman5513
Disclosure: This contributor did not hold a position in any investment mentioned above at the time this blog post was published. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation (other than from INO.com) for their opinion.
One thought on “A Few New ETFs That You Need To Know About”
next will be ETFs name FUBAR and SNAFU
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