Vident Financial rolled out three new ETFs on Wednesday, two of which target companies that display economic strength though intellectual property, and a third which is similar, but goes a step further targeting companies that follow a trade war index.
With China and Mexico trade wars with the U.S. dominating headlines in recent weeks, the Innovation Alpha Trade War ETF (TWAR) seeks exposure to companies that are more likely to thrive in today’s economic climate. TWAR follows the Martin Global Innovation Equity (MGIE) Trade War Index. The index tracks the returns of 120 large and mid cap companies based not only on the strength of their IP but also the ability to outperform during a trade war due strong government contracts.
The Innovation Alpha United States ETF (INAU) and Innovation Alpha Global ETF (INAG) are similar, both tracking the returns of exchange-listed equity securities of predominantly large-cap companies based on innovation ability, for US and global companies respectively. Innovation ability, according to information about funds from the SEC, is determined by assessing the economic strength of a company’s worldwide intellectual property; for example patents, trademarks, and copyrights and other intangible assets such as contracts, licenses, designs, and permits.
INAU holds 100 companies, whereas INAG holds 120.
Learn about more about recently launched ETFs.