(Bloomberg) — The high-profile ache suffered by Cathie Wooden’s flagship technique over the previous two years isn’t stopping rivals from stealing a web page from her playbook.

BNY Mellon is seeking to launch an exchange-traded fund centered on the crowded innovation area, changing into the newest in a line of issuers who’ve sought to faucet into the large demand loved by Wooden’s ARK Innovation ETF (ticker ARKK).

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The BNY Mellon Innovators ETF will search “long-term capital development,” in line with a submitting Monday that didn’t specify administration charges or a ticker. The product will spend money on innovation-driven firms, that are thought of to be “modern” companies because of their mental property, ground-breaking in addition to superior services and products that may be disruptive to current enterprise fashions. 

“That is more likely to be an aggressive development ETF — however innovation is a ‘sexier’ identify,” mentioned James Seyffart at Bloomberg Intelligence. 

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Nonetheless, it’s necessary to needless to say these companies had been “completely crushed in 2021 and 2022,” he added. BI estimates that there are round 20 innovation or innovation-adjacent ETFs, the best-known of which is Wooden’s fund, which trades beneath the ticker ARKK. 

That product gained large prominence through the early part of the pandemic, hovering nearly 150% in 2020, although it has suffered since as its high holdings — tech firms that mission development far out into the long run — buckled amid the Federal Reserve’s financial tightening marketing campaign. 

These kind of companies, among the many most beaten-up final yr, have loved in rebound in January, with the Nasdaq 100 up about 9% because the finish of December, in contrast with the S&P 500’s practically 5% achieve. ARKK has superior 23% in what’s turning out to be its greatest month since November 2020.

“There are various different ETFs that attempt to mannequin disruption and innovation,” mentioned Jane Edmondson, co-founder of EQM Indexes, which helped develop the index for the XOUT ETF that’s a part of the class. “I do agree that business innovation and disruption are necessary and that buyers are sluggish to grasp the affect of those modifications, which creates funding alternative.”