Rosemont, IL-based asset manager TrueMark Investments launched the first two ETFs in its True-Shares actively managed ETF lineup on Monday: the TrueMark Technology, AI and Deep Learning Fund (LRNZ) and the TrueMark ESG Active Opportunities Fund (ECOZ).
LRNZ, an artificial intelligence ETF, and ECOZ, an ESG ETF, seek to provide active, targeted exposure guided by expert industry specialists.
“We’re very excited to bring the True-Shares investment approach to the market,” said Mike Loukas, CEO of TrueMark Investments. “We believe the nascent asset classes of the New Economy— such as Artificial Intelligence and ESG—represent generational growth opportunities that are well-suited to active management, which is exactly why we created True-Shares. We intend to provide investors with the ability to navigate these exciting new sectors of the economy utilizing ETFs helmed by highly credentialed, industry-specific investment experts.”
As noted, LRNZ seeks to provide access to a concentrated portfolio of technology companies that are significantly involved in the burgeoning application of artificial intelligence, targeting companies with leading-edge AI, machine learning, or deep learning technology platforms. “We believe AI has reached a tipping point,” said Sam Kim, the portfolio manager for LRNZ and founder of Black Hill Capital Partners, the fund’s sub-advisor. “With the intersection of big data, ever-increasing computational power, and more sophisticated AI algorithms, we have already started to see changes in the way businesses fundamentally operate. With LRNZ, we hope to provide investors with transparent, affordable access to this rapidly evolving landscape.”
Additionally, ECOZ seeks to provide access to a diversified portfolio of large U.S. companies with attractive investment profiles that also meet certain quantitative and qualitative environmental, social, and governance (ESG) standards, with a particular emphasis on carbon footprint. The fund’s proprietary evaluation process includes an evaluation of Environmental, Social and Governance characteristics within sector context, which seeks to more accurately identify the most sensitive and relevant ESG categories in each industry.
Investments Aligning With Value
“An increasing number of individuals and organizations are demanding investments that align with their values,” said Linda Zhang, Founder, and CEO of Purview Investments, the fund’s subadvisor. “ECOZ aims to provide investors with an environmentally resilient and sustainable portfolio, offering exposure to large U.S. companies that are champions in their respective industries’ transition toward improved environmental, social and governance practices, while avoiding those enterprises that may carry long-term risks to the global community.
LRNZ will have an expense ratio of 0.68%, and ECOZ will have an expense ratio of 0.58%.
“LRNZ and ECOZ are just the first steps,” said Ralph Rudolph, CMO at TrueMark Investments. “With our True-Shares lineup, we’re looking forward to providing investors with true access to new economy asset classes for years to come.”
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