It is publicly traded on the OTC, or pink sheet markets, which is why most other ETFs and institutional investors cannot trade the security. Since it is not an ETF, the company cannot create or redeem shares intraday. This limitation causes GBTC to trade at a substantial premium to the underlying bitcoin held by the company. We are not endorsing GBTC, but it is one of the most interesting Easter Eggs in an ETF.
2. Our second discovery is a basket of ETF Easter Eggs: YieldShares High Income ETF (YYY)
This ETF yields over 8% through a basket of Closed End Funds (CEF), and there are about 30 Easter Eggs in this fund. The world of CEFs is known for two things: Yield and Discounts. The index behind YYY reconstitutes after a tax loss harvesting season to target the CEFs trading with the juiciest yields and biggest discounts. The process is like looking for the plastic egg with the most cash inside.
3. To find the eggs, one must look in unique places like QuantX Risk Managed Multi-Asset Total Return ETF (QXTR)
”The QuantX Risk Managed Multi-Asset Total Return ETF tracks an index of global securities. QXTR aims to provide exposure to the best performing asset classes while mitigating downside risk. The fund has wide latitude to invest in stocks, bonds, commodities and real estate, with no restrictions on geography, cap-size, maturity, or credit rating.” –ETF.com
QXTR expresses these asset classes through other ETFs. This fund is full of great ETF hidden gems like ANGL from Van Eck which is an intelligent alternative to traditional high yield-focused ETFs. Another one of our favorites is PUTW from WisdomTree. PUTW is another great example of ETF innovation as an industry growth factor because the fund democratized access to the institutional practice of Put Option Writing. A third egg hidden in QXTR is DGL from Invesco. DGL provides exposure to Gold using futures. This is interesting because owning gold directly in a traditional fund can cause serious tax issues. DGL avoids many of these tax problems through replication futures.
Related: ETF Issuer March Madness
We are interested to know what other Easter Eggs ETF Nerds know about! Join the discussion on our Think Tank site to learn and engage with other ETF Nerds like us!
This article was written by Toroso Asset Management, a participant in the ETF Strategist Channel.
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