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(Bloomberg) — Engine No. 1’s newest exchange-traded fund will give attention to corporations looking for to deliver their operations nearer to house after the pandemic upended international provide chains.
The Engine No. 1 Rework Provide Chain ETF (ticker SUPP) will start buying and selling on Wednesday, in response to a press launch, bringing the agency’s lineup to 3 funds. SUPP is an actively managed fund and fees 75 foundation factors yearly.
The ETF invests in corporations that may assist make provide chains extra resilient via the “relocalization of producing, automation and innovation” after Covid-19 snarled the logistics of the worldwide economic system, the discharge mentioned. The majority of the portfolio can be made up of North American corporations in industries from railroads to semiconductors to software program corporations.
“We’ve skilled first-hand how fragile our provide chains have grow to be,” Eli Horton, SUPP’s lead portfolio supervisor, mentioned in a cellphone interview. “As an investor, you look to be early, and the way in which I take into consideration this portfolio is the companies we’re investing in are the beneficiaries and enablers of this theme.”
SUPP’s “concentrated” portfolio will maintain between 20 to 40 corporations, Horton mentioned. Its prime holding is Martin Marietta Supplies Inc., a constructing supplies provider primarily based in Raleigh, North Carolina.
Engine No. 1 made its title as an activist investor by successful a marketing campaign to exchange three seats on the board of Exxon Mobil Corp. in 2021. Since then, it launched the $419 million Engine No. 1 Rework 500 ETF (VOTE) in June 2021, which seeks change at large-cap corporations via proxy voting, adopted by the actively managed $95 million Rework Local weather ETF (NETZ) in February 2022.
“What we’re making an attempt to realize with this suite of merchandise is offering entry to traders to long-term secular themes which can outline the funding panorama in many years to come back,” Yasmin Dahya Bilger, Engine No. 1’s head of ETFs, mentioned in a cellphone interview. “We’re being very deliberate and curated on these exposures.”
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