ETF Trends
ETF Trends

There are plenty of broad middle capitalization-weighted index exchange traded funds, but there weren’t any that specifically targets market sectors until now.

According to a press release, Elkhorn Investments on Friday launched the industry’s first suite of mid-cap, sector-based ETFs, including:

  • Elkhorn S&P MidCap Consumer Discretionary Portfolio (Bats: XD), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Consumer Discretionary Index.
  • Elkhorn S&P MidCap Energy Portfolio (Bats: XE), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Energy Index.
  • Elkhorn S&P MidCap Financials Portfolio (Bats: XF), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Financials Index.
  • Elkhorn S&P MidCap Health Care Portfolio (Bats: XH), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Health Care Index.
  • Elkhorn S&P MidCap Industrials Portfolio (Bats: XI), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Industrials Index.
  • Elkhorn S&P MidCap Information Technology Portfolio (Bats: XK), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Information Technology Index.
  • Elkhorn S&P MidCap Materials Portfolio (Bats: XM), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Materials Index.
  • Elkhorn S&P MidCap Consumer Staples Portfolio (Bats: XS), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Consumer Staples Index.
  • Elkhorn S&P MidCap Utilities Portfolio (Bats: XU), seeking investment results that generally correspond to the price and yield of the S&P MidCap 400 Capped Utilities Index.

The ETFs components are all taken from the broader S&P 1500 Index’s subset of S&P MidCap 400 Index stocks.

Potential investors should keep in mind that the mid-cap information technology sector ETF also includes telecommunications exposure, along with its tech holdings.

Additionally, the financial sector ETF includes some real estate investment trust exposure. REITs have been officially split away from the financial sector, becoming the newest sector under the Global Industry Classification Standard.

“We are excited to bring to market what may be the last frontier of beta exposure to an important area of U.S. equities, midcap sectors,” Graham Day, Senior Vice President, Head of Product and Research, at Elkhorn Investments, said in a press release. “Midcaps are commonly referred to as a ‘sweet spot’ for equity investing given their long-term outperformance of both large and small caps and we believe the Elkhorn S&P MidCap Sector ETFs will provide ETF investors better tools to access this space.”

For more information on new fund products, visit our new ETFs category.