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ETF-INVESTMENT

The weirdest ETFs for the year

Whether you’re new to investment markets or are already a seasoned investor, you are likely to have heard, at least once, about exchange-traded funds (ETFs) and some of its most-known representatives in the likes of MSCI World or MSCI All Country.


Those products act as a base layer for many investors’ all-weather portfolios. They sound boring, but will provide any investor with a well diversified portfolio that needs little taking care off. You just need to be patient and leave your money in them for long enough. In addition to this, you can use the so-called satellite approach, where you add to your base portfolio a thematic trend, such as sustainability or robotics.


Now, if you want to spice things up a little, you will often be tempted to turn to stocks, crypto or maybe even derivatives. What if we tell you that you can do this as well with ETFs?

Let’s have a look at the quirkiest and most unusual ETFs we have come across so far.


1. Lyxor MSCI Millennials ESG Filtered 👶

This product aims to represent companies whose business model is targeted towards the millennial generation. In addition, it’s filtered for ESG criterias. Simply put, it has companies such as dating app Match Group, JD.com, Carrefour and of course Facebook. Question is when will Bumble and Airbnb be added!


2. RIZE Sustainable Future of Food 🌱

The stability of our food system is one of the world’s most pressing challenges. With dwindling natural resources, the challenge of providing healthy, affordable and nutritious food to a growing and ageing population, while at the same time reducing carbon emissions and our footprint on this planet, is intensifying. This ETF provides investors with exposure to companies that are innovating across the food value chain to build a more sustainable, secure and fair food system for our planet. Among it’s coverage you will recognize known companies such as Beyond Meat and more niche players such as O-I Glass, which is a producer of glass bottles.


3. MVP ETF 🏆

You are an avid  sports-fan? Well good news for you is that you can as well invest now in sports. The MVP ETF consists of 36 sports-related holdings including sports teams, leagues, media companies, and even sports-related SPACs. It’s the first ETF dedicated to professional sports teams and leagues. Some of its holdings include Manchester United, Juventus, Under Armour or even Ferrari. Interestingly it’s an actively managed ETF.


4. YOLO ETF ✌️

If by now you are not convinced that ETFs can have cool names as well, then we cannot help you further! It’s official name though is the AdvisorShares Pure Cannabis ETF, and it seeks long-term capital appreciation by investing in both US and non-US cannabis stocks. Similar to the above product, it is an actively managed ETF, that can bring more an alpha-seeking complement to a broad-based equity allocation.


5. The BUZZ ETF 🎤

The next one on the list is not for those who believe in the “fake news” phenomenon … or maybe it is, depending on how you look at it. It aims to scrape websites like Reddit, StockTwits, and Twitter to determine which stocks are garnering the most positive attention online. The Buzz ETF, or VanEck Vectors Social Sentiment ETF seeks to track, as closely as possible, the performance of the 75 large-cap U.S. stocks that exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources including social media, news articles, blog posts and other alternative datasets.


6. The UFO ETF 🛸

We wrap this one up with another great name: UFO, or otherwise known as The Procure Space ETF. It tracks mainly companies that receive at least 50% from their revenues from a segment of the space industry. Wondering how this is defined? Well the space begins at the Kármán line which is 100 kilometers (62 miles) above the Earth’s surface. This is approximately the point where there is not enough air to provide lift to a winged vehicle.
But back to this ETF, its founder Andrew Chanin said he wants the public to realize the importance of space discovery not only in daily things such as communicating, but also in more far-looking reasons such as military and economic advancements.


Whether you decide to invest in one of the above, or in any other thematic ETF, it’s always important to remember that those products usually come with a higher management fee, have lower fund volume and contain a much smaller amount of companies that come from a similar sector. This latter resulting in a limited diversification potential compared to the ETFs you usually come across.

However, the upside is that most of those ETFs include small to medium caps companies and other emerging names that may advantage developing innovations and have larger growth potential than more established companies.

You wish to have some more research or content provided one the above topics? Then feel free to drop us a quick note on info@getquin.com 😊