Clockwise Capital has launched a thematic ETF that will provide exposure to 5G-enabled opportunistic investing.
The Clockwise Capital Innovation ETF (CWC) was listed on the NYSE on January 28. The actively managed fund will invest in domestic equity securities of companies that are relevant to the fund’s investment theme of 5G-enabled opportunistic investing, as well as fixed income securities on an opportunistic basis, according to regulatory filings.
The fund offers exposure to companies that best leverage the proliferation of 5G internet and cloud-based products and services, including companies focusing on artificial intelligence and machine learning, robotic and smart manufacturing, cryptocurrency and digital payments, electric vehicles and self-driving vehicles, preventative health and remote surgery, and big data and data security.
The investment thesis focuses on the meaning of time and the role it plays in people’s lives, believing that the essence of a successful investment resides in the ability of a company to save their customers time, according to regulatory filings.
The firm believes that those companies that best leverage the proliferation of 5G internet and cloud-based products and services will experience the greatest increases in labor productivity, fulfilling technology’s essential purpose of improving people’s time, thus positioning the companies for positive long-term growth.
CWC will invest in assets that the advisor believes will be capable of delivering a 100% return over a five-year investment cycle, or 15% average annual compound returns.
The fund will invest in approximately 10–20 companies, applying a 5%–20% conviction-driven weighting to each portfolio investment. New positions in the fund will generally start at 25% to 30% of their target weights. The advisor’s highest-conviction investment ideas are those that it believes may present the best risk-reward opportunities.
As part of its investment strategy, the fund aims to minimize sector concentration across the securities held in the portfolio, but expects from time to time to be concentrated in certain sectors: communications, consumer discretionary, consumer staples, industrials, information technology, real estate, or utilities.
CWC will provide exposure to companies of all market caps, with the advisor focusing on companies with market caps greater than $1 billion.
The fund is actively managed by Ryan Guttridge and James Cakmak and carries an expense ratio of 125 basis points.
For more information, visit Clockwise Capital.
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