A new trend on Wall Street is leading to the creation of increasingly risky and specialised exchange-traded funds (ETFs). Some, like the Tuttle Capital Management UFO Disclosure ETF, bet on advanced technologies related to unidentified aerial phenomena.
A wave of innovation is transforming the ETF market on Wall Street, with a significant increase in the creation of specialised funds. According to expansion.com, in the first half of this year, 466 new funds were launched, representing a growth of 16% compared to the same period last year. These funds have attracted over 62 billion dollars (54.486 billion euros).
The new ETFs have seen their management fees multiply by 20, reaching an annual average of 0.69%. Notable unusual products include the Tuttle Capital Management UFO Disclosure ETF, which invests in companies that could benefit from the disclosure of advanced technologies by the U.S. Government related to spacecraft. This fund, launched in February, currently manages about two million dollars.
Another notable example is the Nicholas Bitcoin and Treasuries AfterDark ETF, which invests in bitcoin only during the hours when the U.S. stock market is closed. Its strategy is based on analyses indicating that bitcoin price increases often occur outside of market hours. This fund charges a fee of 0.97% and must reorganise its portfolio twice a day.
The rise of these ETFs reflects increasing competition in the sector, where financial creativity is driving the creation of ever more unique and risky funds, seeking to capture the attention of retail investors in an increasingly diversified market.
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