Innovation has sparked great changes in the global economy, but defining it precisely is a crucial prerequisite to any subsequent analysis. Which companies separate the wheat from the chaff to lead new investing paradigms?
In the upcoming webcast, Beyond Meme Stocks: Finding Sustainable Innovation, Kim Arthur, Chief Executive Officer & Chief Investment Officer, Main Management, LLC; Zachary Hill, Global Macro Strategist, Horizon Investments; Matthew Bartolini, Head of SPDR Americas Research, State Street Global Advisors, will sit down with ETF Trends to explore innovation across sectors to help financial advisors target the opportunities of tomorrow, today.
For example, the actively managed Main Thematic Innovation ETF (TMAT) tries to outperform the MSCI ACWI Index in rising markets while limiting losses during periods of decline through a dynamic thematic rotation strategy.
Main Management focuses its research primarily on identifying emerging, disruptive, and innovative themes that have a large market demand, or “addressable market.” The fund rotates among the themes ranging from nascent technologies to those on the cusp of widespread adoption, and it buys securities of ETFs investing in those themes. TMAT is a type of “fund of funds”, a theme-based investment strategy based on ETFs.
“As we have seen in the past from other disruptive technologies, the market often does not initially price a theme appropriately, or even for several years, as the market’s response to the theme is often underestimated,” states Main Management ETF Advisors. “Disruptors must continually reinvest in their future and expand their reach as they grow and these moves are hard for markets to accurately price, resulting in the potential for appreciation.”
For example, TMAT includes a 10% tilt toward the SPDR S&P Kensho New Economies Composite ETF (NYSEArca: KOMP), which tracks the S&P Kensho New Economies Composite Index.
The underlying S&P Kensho New Economies Composite Index utilizes artificial intelligence and a quantitative weighting methodology to pursue the potential of a new economy fueled by innovative companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics, and automation.
Financial advisors who are interested in learning more about sustainable innovations can register for the Monday, April 19 webcast here.