Rebalancing occurs quarterly. At each rebalancing, core companies have a weight of at least 4.9% of the index, and no single Non-Core company will exceed 4.9% weight.
WSKY currently has 23 holdings, with top components including a hefty 23.1% tilt toward Diageo Plc (NYSE: DEO), along with 10.9% Pernod Ricard (EPA: RI) and 6.5% Thai Beverage (SGX: Y92).
“We believe we’re at year 5 of a 25-40 year supercycle that could see continued growth in consumer demand for whiskey and spirits, much like what has occurred with craft breweries over the past two decades,” David Bolton, President and CEO at Spirited Funds, said in a press release. “Our new Exchange-traded Fund is the first to provide exposure to this global industry – with the overall alcohol industry boasting sales of more than $1 trillion per year – and is intended to play a complementary role in a diversified investment portfolio through exposure to a targeted segment of the consumer discretionary sector.”
Bolton also argued that whiskey and spirits companies have provided investors with some mitigation in down markets due to consumer behavior and the commodity-linked nature of the components.
For more information on new fund products, visit our new ETFs category.