EventShares launched Tuesday a trio of actively managed ETFs designed to give investors exposure to major multi-factor political, economic, and policy-driven events and themes.
The two flagship ETFs – the EventShares Republican Policies Fund (BATS: GOP) and the EventShares Democratic Policies Fund (BATS: DEMS) – seek to construct portfolios expected to be positively affected by each respective party’s policies. Both seek to provide capital appreciation by unlocking value from policy-driven events and themes. Neither fund seeks to replicate the performance of a specific index.
EventShares Chief Investment Officer Ben Phillips said government policies can have a significant impact on the markets in both the short and the longer-term.
“Our funds are the first to provide a broad-based vehicle for investing in these themes as embodied by the policies of the two major American political parties, which often have divergent views on healthcare, infrastructure, and defense, among other areas,” Phillips said. “Our research looks to identify winners and losers on a company-level, based on specific policy outcomes, and to build portfolios accordingly.”
The EventShares research process includes both a qualitative component that reviews current and prospective policy initiatives and their potential impact on specific sectors and stocks, and a quantitative process that screens for a set of proprietary metrics used to define the investable universe and manage portfolio risk. Based on this process, positions in the funds’ portfolio holdings are re-positioned quarterly.