Tuttle Launches Actively Managed SPAC ETF
The SPAC and New Issue ETF (NYSE: SPCX) starts trading on the New York Stock Exchange on Dec. 16, 2020. SPCX is the first actively-managed ETF that gives investors direct exposure to the disruptive capital markets theme of Special Purpose Acquisition Companies (SPACs).
Fund management is headed up by Matthew Tuttle, CEO and CIO of Tuttle Tactical Management.
Tuttle and his team perform research and due diligence on SPAC sponsors, evaluating a range of factors including the history of the sponsor’s management team in allocating capital and securing financing, their record managing public companies, and the extent of any relevant experience and domain knowledge in the industry in which the SPAC is searching for a deal.
Commenting on the launch, Tuttle said: “As there is limited information on publicly-traded SPACs, selecting the right SPAC in which to invest can seem like a daunting task. SPCX offers investors a broad portfolio of SPACs within the familiar liquid and tax-efficient wrapper of an ETF.”
He added: “The SPAC market is one of rapid change and opportunity. As a result, we feel the most appropriate strategy for managing a portfolio of SPACs is through active management as it can be more flexible in reacting to market events. This is no place for an index fund based on a rigid set of rules.”
The fund has total annual fund operating expenses of 0.95%.
It becomes the second SPAC-related ETF to hit the market following the launch of the Defiance Next Gen SPAC Derived ETF (SPAK) in September. SPAK is referenced to the Indxx SPAC & NextGen IPO Index, a passive rules-based index that tracks the performance of newly listed SPACs and IPOs derived from SPACs over the preceding 36 months.