Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Of The “Strangest" ETFs That Need to Be on Your Radar

These strange exchange-traded funds offer investors potential for significant gains

 

Exchange-traded funds (ETFs) have taken the investing world by storm in recent years. According to research firm ETFGI, there are 5,024 ETFs trading globally, with 1,756 based in the U.S. alone.

It’s no surprise then that ETF managers are doing all they can to make their funds stand out from the rest of the crowd, whether that means giving it a “strange” name or investing in a “strange” industry.

But first let’s ask, what exactly is an ETF?

In short, an ETF is a security that tracks stock indices, commodities, bonds, or baskets of other assets, but trades like a common individual stock.

There are various types of ETFs available to individual investors and traders that can be used for either income generation or to hedge risk in an investor's portfolio.

So without further ado, here are the three ETF’s we found to be the “strangest” that offer investors and traders potential for significant gains.

Remember: Like beauty, “strange” is in the eye of the beholder.

In case you like “strange” investments…

UFO

The Procure Space ETF (Ticker: UFO) of 30 companies gives market players a way to invest in the burgeoning space economy.

The fund, launched on April 11, includes everything from satellite communications firms – such as Iridium Communications, Inmarsat, Viasat – to industrial manufacturers – Garmin, Airbus, Honeywell International Inc (NYSE:HON)  – and more.

According to Andrew Chanin, co-founder, and CEO of ProcureAM, UFO focuses as much as possible on “pure play” space companies, with around 80% of the constituents deriving most of their revenue from space businesses.

“UFO provides, compared to other types of investment vehicles, a relatively low cost and diversified away to invest in this specific theme,” Chanin said.

UFO is up nearly 4% since its inception.

Chart: Michael Sheetz - Source: S-Network Global Indexes

YOLO

The AdvisorShares Pure Cannabis ETF (Ticker: YOLO) is an actively managed marijuana-themed exchange-traded fund with nearly $15 million assets under management.

The ETF, which made its trading debut on April 17, is backed by BNY Mellon. It will typically hold between 20 and 40 stocks and focus on mid- and small-cap companies involved either directly or tangentially in the cannabis space, such as Aurora Cannabis, Canopy Growth, and Tilray.

The fund "seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities", according to Maryland-based AdvisorShares. "YOLO is designed to fully-invest for pure cannabis exposure under the guidance of a deeply experienced portfolio management team navigating the emerging cannabis marketplace."

It might be too soon to judge the performance of this ETF — YOLO has gained roughly 1% since it began trading.

Yolo

IPO

The Renaissance IPO ETF (Ticker: IPO), with $37 million in assets under management, is designed to provide investors with exposure to a portfolio of U.S.-listed newly public companies ahead of their inclusion in core equity portfolios, according to Renaissance Capital.

The fund holds the largest, most liquid newly-listed U.S. publicly-traded companies. "Sizable" IPOs, such as the recently-listed Pinterest Inc (NYSE:PINS) and Zoom, are added on a fast entry basis. Companies are then removed from the ETF two years after their initial trade date when they become seasoned equities.

Its top holdings include Elanco Animal Health, VICI Properties, Okta, and Spotify Technology SA (NYSE:SPOT) Technology.

ETF Companies

IPO is up around 51% since it began trading back in October 2013.

What all this means to you…

When taking all of the above into consideration, some of these so-called “strange” ETFs are definitely worth a look and should be on your radar. Just be sure to do your research beforehand and are fully aware of the risks as well as the potential rewards of making such an investment.

No matter what, you can be sure of one thing: any investment that’s as unique as some of these are could be fun to follow.

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email