A new ETF is pushing thematic investing into unusual (or rather, extra-terrestrial) territory.
The Tuttle Capital UFO Disclosure ETF (BATS:UFOD), an actively managed fund issued by Tuttle Capital, bets on companies that could profit if governments eventually confirm the existence of non-human intelligence and related advanced technology.
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The idea clearly resonates with increased levels of overall attention to Unidentified Anomalous Phenomena, or UAPs, more commonly known as UFOs. The U.S. Congress has held hearings within the past few years, along with testimony from former intelligence officials about unexplained aerial sightings, which have helped bring the topic into mainstream discussion, even if definitive evidence remains absent.
Betting On A Hypothetical “Disclosure Day”
Its strategy involves speculation around something called “Disclosure Day,” which, theoretically, is an openly acknowledged future date in which governments reveal the presence of intelligence outside of humans. People at UFOD anticipate positive spillovers of new government expenditures in defense, new energy, advanced materials and sensors.
Significantly, it also does not assume that companies already have alien-derived technology. It is actually focusing on companies that might have something to gain from such funding shifts or technology advancements if such disclosure were to occur.
According to the prospectus, the fund uses an AI-driven ranking system to score companies based on their likelihood of benefiting from, or being disrupted by, advanced technologies. The portfolio can take both long and short positions, including bets against legacy energy or propulsion companies that might struggle in a scenario involving disruptive technological advances.
A Conventional Portfolio (For Now)
The actual holdings, despite the headline-grabbing theme, look fairly traditionally positioned.
The fund comes with an expense ratio of 0.99%.
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