A Toast to the New Whiskey and Spirits ETF

Today, investors are raising their glasses to the first whiskey and spirits-themed exchange traded fund that focuses on distilleries, breweries, vintners and anyone else involved in the alcohol business.

ETF Managers Group has partnered with Spirited Funds to launch the Spirited Funds/ETFMG Whiskey and Spirits ETF (NYSEARCA: WSKY) on Wednesday. WSKY has a 0.75% expense ratio.

WSKY tries to reflect the performance of the Spirited Funds/ETFMG Whiskey & Spirits Index, which is comprised of companies that are whiskey and/or spirit distilleries, breweries, and vintners and related luxury goods companies engaged in the sale of whiskey or the production and sale of mixers for use with premium spirits, according to a prospectus sheet.

The universe of applicable companies are broken down into so-called Core and Non-Core holdings where Core components include those that operate a whiskey distillery and are primarily engaged in the production of whiskey or spirits, whereas Non-Core components are companies not categorized as Core companies but are involved in luxury goods and sale of spirits or mixers. If the underlying index’s aggregate weight of Core companies fall below 85%, additionally components are taken from Non-Core companies based on market capitalization.

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