Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 New ETFs To Profit From Growth Themes

By Investing.com (Tezcan Gecgil/Investing.com )ETFsFeb 02, 2022 04:54AM ET
www.investing.com/analysis/2-new-etfs-to-profit-from-growth-themes-200616710
2 New ETFs To Profit From Growth Themes
By Investing.com (Tezcan Gecgil/Investing.com )   |  Feb 02, 2022 04:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

In 2021, Wall Street saw over 350 new exchange-traded funds (ETFs) become listed, amounting to a total of 2,570 ETFs stateside by Dec. 31. Globally, there were over 1,330 funds launched last year, twice the number of new ETF listings in 2020.

Today’s article introduces two of these US-listed new funds. We should remind readers that they are small ETFs with little trading history. Therefore, interested investors need to do further due diligence before committing their capital.

1. Hartford Longevity Economy ETF

  • Current Price: $26.87
  • 52-week range: $24.19 - $28.36
  • Dividend yield: 2.10%
  • Expense ratio: 0.44% per year

According to the US National Institutes of Health (NIH):

“In 2006, almost 500 million people worldwide were 65 and older. By 2030, that total is projected to increase to 1 billion—1 in every 8 of the earth’s inhabitants.”

Metrics also suggest that by the end of this decade 20% of Americans will be over 65. Such a demographic shift understandably affects and even challenges national economies, productivity levels, consumption patterns, as well as health care services.

Our first fund, the Hartford Longevity Economy ETF (NYSE:HLGE), gives access to businesses that aim to benefit from the buying power of the aging population. It was first listed in March 2021.

HLGE Weekly
HLGE Weekly

HLGE, which currently has 346 holdings, focuses on robust companies with low valuation and high price momentum. The top 10 holdings account for close to 10% of net assets of $25.4 million.

In terms of the sub-sectors, we see information technology (29%), health care (23%), consumer discretionary (15%), communication services (12%), and financials (11%).

Health benefits group Anthem (NYSE:ANTM); computer and printer manufacturer HP (NYSE:HPQ); biopharma heavyweights AbbVie (NYSE:ABBV) and Amgen (NASDAQ:AMGN); computing storage name Seagate Technology (NASDAQ:STX); and media and Internet company IAC/InterActiveCorp (NASDAQ:IAC) lead the stocks on the roster.

HLGE started trading close to a year ago at an opening price of $24.95. Then a month ago, on Jan. 4, it hit a record high of $28.36. Since then, it has come under pressure and lost 5.0% year-to-date.

Nonetheless, the fund has returned over 7% since inception. Its P/E and P/B ratios are 15.9x and 3.4x.

We like the diversity of the fund and believe it deserves further research by those who regard aging as one of the key demographic trends to invest in, in the coming quarters.

2. Global X AgTech & Food Innovation ETF

  • Current Price: $18.42
  • 52-week range: $17.30 - $25.00
  • Dividend yield: 0.43%
  • Expense ratio: 0.50% per year

Recent research by Deloitte suggests:

“The agricultural industry is about to be disrupted and will transform into a high-tech industry.”

As a result, how food is produced, processed, and distributed will evolve in the coming years.

The Global X AgTech & Food Innovation ETF (NASDAQ:KROP) invests in global businesses at the center of agricultural technology (AgTech) and innovations. Such firms might work on agricultural automation and biotechnology, vertical farming, developing dairy alternatives, as well as reducing food waste.

KROP Weekly
KROP Weekly

KROP, which has 29 holdings, tracks the Solactive AgTech & Food Innovation Index. The fund started trading in July 2021.

The leading 10 names account for close to three-quarters of net assets of $5.2 million. In other words, it is a top-heavy fund, and large moves in these names could affect the price of KROP.

Consumer staples (45.0%), materials (35.6%), and industrials (13.1%) are the heavyweight segments in the portfolio.

Notably, over half the fund’s stocks come from the US. Next in line are those from Canada (15.5%), China (10.6%), Sweden (7.8%), and the UK (4.8%), among others.

Corteva (NYSE:CTVA), which provides seed and crop protection solutions; Canada-based Nutrien (NYSE:NTR), which distributes crop nutrients and protection products; Beyond Meat (NASDAQ:BYND), which offers plant-based foods; and Swedish oat milk company Oatly (NASDAQ:OTLY) are among the leading names.

In July 2021, KROP began trading at an opening price of $24.88, and saw a record high of $25 in August. However, since then, companies in the fund have come under pressure, and the ETF has lost about 27% of its value.

P/E and P/B ratios are 28.19x and 2.12x. Those investors who believe technological developments, such as highly digitalized food products and supply chains, artificial intelligence (AI)-based farming, increased consumption of vegetable meat, and digital agronomy, will grow in the years ahead could consider buying the dip in KROP.

2 New ETFs To Profit From Growth Themes
 

Related Articles

Tim Knight
If You’re Right…… By Tim Knight - Jun 28, 2022

I’d like to trot out our old friend IYR (real estate ETF) once again as a prospective short-sale candidate (or, in my case, long puts, as I did acquire those today). The little...

2 New ETFs To Profit From Growth Themes

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email