Here is an idea for a new exchange traded fund that could be worth toasting to. ETF Managers Group, which specializes in private label ETF solutions, is considering launching an ETF that tracks the bourbon and whiskey industry.
The new ETF would be known as the Spirited Funds ETFMG Bourbon & Whiskey Economy ETF and track the Spirited Funds ETFMG Bourbon & Whiskey Economy Index.
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The initial universe of Bourbon and Whiskey Companies is determined based on proprietary research and analysis conducted by the Research and Advisory Committee of the Adviser and Spirited Funds, LLC (together, the “Index Provider”). The Index Provider uses a variety of independent, third-party resources for such analysis, including industry databases, regulatory agency public records, academic institution reports, and financial services applications and data sets to determine whether a company is a Whiskey Company and to acquire the information used to weight the Index constituents,” according to a filing with the Securities and Exchange Commission.
[related_stories]Sales of distilled spirits topped $72 billion in 2015.
“A thirst for bourbon, Tennessee whiskey, and rye whiskey at home and abroad helped to boost the overall supplier sales for spirits up 4.1%, said the Distilled Spirits Council in a statement. American whiskeys outpaced the industry with a 7.8% growth from the previous year to revenues of $2.9 billion,” according to Fortune.
Only vodka has a larger share of the U.S. distilled spirits market than whiskey.
The ETF’s “Index tracks the performance of the exchange-listed equity securities (or corresponding American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”)) of companies across the globe (including in emerging markets) and across a wide variety of industries that are involved in the overall “Bourbon and Whiskey Economy,” defined as (i) bourbon or whiskey production; (ii) the provision ofingredients used in the production, distillation, storage, or aging of bourbon or whiskey Bourbon and Whiskey Ingredients”); (iii) crop establishment, management, and harvesting with respect to Bourbon and Whiskey Ingredients; (iv) by-product management with respect to Bourbon and Whiskey Ingredients; (v) distribution, sales, and marketing of bourbon or whiskey; and (vi) consumption of bourbon or whiskey (collectively, “Bourbon and Whiskey Economy Companies”),” according to the SEC filing.
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