2. PLCY: The EventShares U.S. Policy Alpha ETF is an actively managed fund that takes long and short positions in US companies that the advisor expects to change in value due to US government regulations, trade policies, and fiscal spending.
These are very different approaches with very different portfolios and returns. MAGA is passive and assumes performance can be gathered from political contributions. PLCY is active and changes dynamically to capture returns from subsectors where government policies are deregulating or expanding resources.
Innovations like these are the key to continued ETF growth. We encourage all investors to be diligent in your research and understand what is under the hood in ETFs. ETF investing is about weighing the merits of theme, an index construction, or an active manager. Your allocation is your vote and should only be made after the ETF has been weighed. Thanks for reading, now get out there and vote!
This article was written by the team at Toroso Asset Management, a participant in the ETF Strategist Channel.
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