On Tuesday, Tuttle Capital Management introduced two new ETFs intended to capture current market sentiments. While the Fat Tail Risk ETF (FATT) aims to protect investors from considerable market downturns, the FOMO ETF (FOMO) targets equities that are trending in thematic ETFs.
The FOMO ETF, based on the acronym for “fear of missing out”, has received considerable attention from retail investors planning to invest in the most popular securities, including trending stocks, SPACs or even cryptocurrencies. It comes with an expense ratio of 0.9% and lists on Cboe Global Markets.
Both ETFs will be managed by Matthew Tuttle, CEO of Tuttle Capital Management, who highlighted that “the problem with most thematic ETFs is they only invest in one area of the market, they don't rebalance frequently enough to stay in harmony with what is going on in markets, and they tend to be too highly concentrated.”
He continues by noting that “FOMO can shift exposure to whatever happens to be trending at the time, it rebalances weekly so it can stay in harmony with market trends, and it weights holdings appropriately”, hence addressing this very issue.
Ironically on the same day the FOMO ETF debuted, retail investors have touted some of the most discussed stocks among retail investors, pushing them to new highs. While GameStop (NYSE: GME) has soared over 16% to its highest levels since March 17, AMC Entertainment (NYSE: AMC) gained 20%.
What do you think could the FOMO ETF outperform S&P 500 index funds?