Alternative Investments: Disruptor-Focused, Hyper-Concentrated ETFs From Volt Equity
The four new thematic ETFs cover robocars, fintech, cloud and cybersecurity, and pop culture.
Volt Equity, the boutique investment firm based in Silicon Valley, has joined with Simplify Asset Management to launch a new class of ETFs that are highly concentrated in their exposure and come with an inbuilt options strategy. These ETFs allow investors to “bet big” on companies that are disruptors in their field, or are creating new industries, yet also offer a cushion against downsides. The target audience for these ETFs is Robinhood-era bull investors. (BusinessWire)
The four new ‘disruptor’ ETFs
- Robocar Disruption & Tech ETF (NYSEARCA: VCAR) [“Leader of autonomous driving technology.” Hyper-concentrated on: Tesla (NASDAQ: TSLA)]
- Fintech Disruption ETF (NYSEARCA: VFIN) [“Disruptive fintech companies that are on the forefront of cashless payments.” Hyper-concentrated on: Lemonade (NYSE: LMND) and Square (NYSE: SQ)]
- Cloud & Cybersecurity Disruption (NYSEARCA: VCLO) [“The most disruptive companies in cloud infrastructure and cybersecurity.” Hyper-concentrated on: Crowdstrike (NASDAQ: CRWD) and Cloudflare (NYSE: NET)]
- Pop Culture Disruption ETF (NYSEARCA: VPOP) [“Media platform leaders across streaming, social and internet of things.” Hyper-concentrated on: Snapchat (NYSE: SNAP) and Spotify (NYSE: SPOT)]
A cocktail of stocks and options
“This new class of hyper-concentrated ETFs does the hard work of blending stocks and calculated call options that lets bullish investors bet big on just 1-2 names while also potentially hedging with a sizable allocation to a diversified tech index and strategically chosen put options,” Volt Equity said in a statement.
“We believe that concentrated, professionally managed ETFs are an attractive alternative to single stock or options for many investors,” said Paul Kim, co-founder of Simplify Asset Management.
VCAR – The fund is concentrated 25% across Tesla stock and Tesla call options.
VFIN – The fund aims to invest close to 25% across Square stock and Square call options while also targeting 25% in Lemonade stock and Lemonade call options.
VCLO – The fund aims to invest close to 25% across Snowflake stock and Snowflake call options and close to 25% in Crowdstrike stock and Crowdstrike call options.
VPOP – The fund invests close to 25% across Spotify stock and Spotify call options and up to 20% in Snap and Snap call options.
All four Volt Equity ETFs incorporate a modest put option overlay designed to help mitigate against sharp market crashes.
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