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April 6, 2021, 9:19 a.m. EDT

ETF Wrap: Putting your money where your mouth is, and we have a winner(s)!

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Andrea Riquier

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As stellar as JENX was, the ETF chosen as runner-up also spoke to Nandakumar.

Its creator, La Juana (LJ) Chambers Lawson, is also an amateur investor who loves learning about the process. Professionally, she’s founder & CEO of Tacit Growth Strategies and the best-selling author of “Master Grant Writing: A Project Manager’s Guide.”

“My ETF idea is out-of-the-box because it is an investment in freedom, localized control and justice,” Lawson wrote in her entry. “It’s an idea rooted in human rights that is for the sort of ESG investing that helps minority communities by empowering them to create, own and sustain for generations.”

The ETF would seek to fund U.S.-based ethnic minority and women-owned LLCs, with a primary interest in Black and Indigenous business owners lacking known familial ties to nations outside of the U.S., knowledge-based and/or professional service US SBA certified Minority Business Enterprises. Its ticker, appropriately, would be MBE.

Nandakumar applauded the fund’s set-up. It would employ “ESG practices that seem to be more specific and stringent than what seems to currently be available in ETF form, such as board diversity targets, equal pay reports and supplier diversity programs,” she said.

“It would also offer exposure to a select group of minority- and women-owned business enterprises [official MBEs] that have already been vetted and are receiving support by the fund’s sponsors separately. While one could argue that this represents two separate fund ideas, the exposure to established firms could help reduce the volatility from the exposure to the smaller enterprises, which is why I could see this potentially working in one fund.”

Exchange-traded sundries

MarketWatch will explore what digital tokens and bitcoin mean for your wallet in  a two-day event , Investing in Crypto , April 7 and 14 at 1 p.m. Eastern. MarketWatch and Barron’s journalists will convene top experts, including Galaxy Digital’s Michael Novogratz; Securities and Exchange Commissioner Hester Peirce; Sheila Warren, deputy head of C4IR at the World Economic Forum; and more. Register now !

Innovator Capital Management, pioneers of the “defined outcome” ETF strategy, announced a new flavor of funds launching April 1. The Innovator Accelerated ETFs seek a multiple of upside return of a reference asset, up to a cap, with one downside exposure. For example, the Innovator U.S. Equity Accelerated ETF — April will seek double the upside performance of SPY /zigman2/quotes/209901640/composite SPY +0.06% , to a cap, with single exposure to it on the downside, over a one-year period.

Alternative-investment managers AXS Investments on Wednesday announced the hire of ETF pioneer Ben Fulton as managing director for global business development. Fulton has been in the industry for more than 35 years and is known for his time with PowerShares, during which he oversaw product development and later ran the global ETF business for Invesco. 

Is there an ETF for that?

By now you’re probably familiar with the idea of crowd-sourced investment strategies: you’d have to be living under a rock, or perhaps a custom basket, to have missed the splashy rollout of one of that space’s new entrants.

But it’s not a new idea, and the adviser to one fund that has used the strategy quite successfully for the past two years would like you to know what makes it different.

The SoFi 50 ETF /zigman2/quotes/212244029/composite SFYF +0.61% tracks an index of the 50 securities that are held most frequently, and in the greatest dollar weight, in SoFi brokerage accounts. It’s a “more intelligent” way to crowd-source investments than simply relying on social-media chatter, said David Dziekanski, portfolio manager at Toroso, SFYF’s adviser. “What we say to the world and what we do can be two very different things.”

Those two screens, which Dziekanski describes as selecting for both breadth and conviction, produce a diverse list of investments, what he calls “a unique yin and yang.” Tesla Inc. /zigman2/quotes/203558040/lastsale TSLA -0.18% has long been “a stalwart,” but there are also growthy names like Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN -1.06% and NVIDIA Corp. /zigman2/quotes/200467500/composite NVDA +1.91% , as well as cyclicals like Ford Motor Co. /zigman2/quotes/208911460/composite F +1.44% and Southwest Airlines /zigman2/quotes/201071949/composite LUV +0.31% .

The index rebalances monthly, which means it’s “not always rotating into the craziest names that are just at the top of the news cycle,” Dziekanski said. Waiting just a bit until the hottest fad has proven its staying power adds momentum to breadth and conviction, he notes.

In the year to date, the fund is up 8.1%, better than the S&P 500’s /zigman2/quotes/210599714/realtime SPX +0.06% 5.8%, and over the past 12 months has returned 99.5%. Year-to-date performance may be somewhat influenced by the presence of some of the Reddit crowd’s favorite meme stocks, such as GameStop Corp. /zigman2/quotes/203755179/composite GME +0.99% and BlackBerry Ltd. /zigman2/quotes/202784246/composite BB +4.11% .

The fund charges a 29-basis-point fee, and has $16.2 million in assets, according to FactSet data.

Visual of the Week

Weekly rap

Top 5 gainers of the past week
First Trust Nasdaq Retail ETF 9.3%
VanEck Vectors Rare Earth/Strategic Metals ETF /zigman2/quotes/205602686/composite REMX 9.1%
Invesco S&P SmallCap Consumer Discretionary ETF /zigman2/quotes/208181660/composite PSCD 9.1%
Invesco S&P SmallCap Value with Momentum ETF /zigman2/quotes/205361459/composite XSVM 8.1%
VanEck Vectors Steel ETF /zigman2/quotes/206568157/composite SLX 7.7%
Source: FactSet, through close of trading Wednesday, March 31, excluding ETNs and leveraged products
Top 5 losers of the past week
AdvisorShares Pure US Cannabis ETF /zigman2/quotes/220307682/composite MSOS -9.7%
iShares Evolved US Media and Entertainment ETF -5.8%
Roundhill Streaming Services & Technology ETF -5.8%
Global X Education ETF /zigman2/quotes/219501598/composite EDUT -4.9%
Sprott Junior Gold Miners ETF /zigman2/quotes/202791963/composite SGDJ -4.7%
Source: FactSet, through close of trading Wednesday, March 31, excluding ETNs and leveraged products

MarketWatch has launched <STRONG>ETF Wrap,</STRONG> a weekly newsletter that brings you everything you need to know about the exchange-traded sector: new fund debuts, how to use ETFs to express an investing idea, regulations and industry changes, inflows and performance, and more. Sign up at this link to receive it right in your inbox every Thursday.

/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 407.92
+0.24 +0.06%
Volume: 58.79M
Dec. 1, 2022 3:40p
loading...
/zigman2/quotes/212244029/composite
US : U.S.: NYSE Arca
$ 23.36
+0.14 +0.61%
Volume: 716.00
Dec. 1, 2022 11:55a
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/zigman2/quotes/203558040/lastsale
US : U.S.: Nasdaq
$ 194.34
-0.36 -0.18%
Volume: 73.12M
Dec. 1, 2022 3:40p
P/E Ratio
59.89
Dividend Yield
N/A
Market Cap
$614.81 billion
Rev. per Employee
$753,983
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 95.52
-1.02 -1.06%
Volume: 54.98M
Dec. 1, 2022 3:40p
P/E Ratio
87.42
Dividend Yield
N/A
Market Cap
$984.87 billion
Rev. per Employee
$312,308
loading...
/zigman2/quotes/200467500/composite
US : U.S.: Nasdaq
$ 172.47
+3.24 +1.91%
Volume: 39.63M
Dec. 1, 2022 3:40p
P/E Ratio
73.21
Dividend Yield
0.09%
Market Cap
$416.31 billion
Rev. per Employee
$1.27M
loading...
/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 14.10
+0.20 +1.44%
Volume: 37.27M
Dec. 1, 2022 3:40p
P/E Ratio
6.35
Dividend Yield
4.27%
Market Cap
$55.88 billion
Rev. per Employee
$829,158
loading...
/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 40.04
+0.13 +0.31%
Volume: 3.62M
Dec. 1, 2022 3:40p
P/E Ratio
31.42
Dividend Yield
0.00%
Market Cap
$23.70 billion
Rev. per Employee
$411,851
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,082.59
+2.48 +0.06%
Volume: 0.00
Dec. 1, 2022 3:40p
loading...
/zigman2/quotes/203755179/composite
US : U.S.: NYSE
$ 26.47
+0.26 +0.99%
Volume: 7.14M
Dec. 1, 2022 3:40p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.98 billion
Rev. per Employee
$505,408
loading...
/zigman2/quotes/202784246/composite
US : U.S.: NYSE
$ 5.07
+0.20 +4.11%
Volume: 7.25M
Dec. 1, 2022 3:39p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.78 billion
Rev. per Employee
$212,030
loading...
/zigman2/quotes/205602686/composite
US : U.S.: NYSE Arca
$ 93.32
-1.25 -1.32%
Volume: 400,615
Dec. 1, 2022 3:34p
loading...
/zigman2/quotes/208181660/composite
US : U.S.: Nasdaq
$ 84.36
-0.40 -0.47%
Volume: 2,373
Dec. 1, 2022 3:37p
loading...
/zigman2/quotes/205361459/composite
US : U.S.: NYSE Arca
$ 50.01
-0.22 -0.44%
Volume: 41,151
Dec. 1, 2022 3:36p
loading...
/zigman2/quotes/206568157/composite
US : U.S.: NYSE Arca
$ 62.30
-0.70 -1.11%
Volume: 41,996
Dec. 1, 2022 3:38p
loading...
/zigman2/quotes/220307682/composite
US : U.S.: NYSE Arca
$ 12.10
+0.16 +1.30%
Volume: 1.72M
Dec. 1, 2022 3:40p
loading...
/zigman2/quotes/219501598/composite
US : U.S.: Nasdaq
$ 7.27
-0.09 -1.22%
Volume: 320.00
Dec. 1, 2022 10:35a
loading...
/zigman2/quotes/202791963/composite
US : U.S.: NYSE Arca
$ 31.04
+1.34 +4.50%
Volume: 141,119
Dec. 1, 2022 3:39p
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