Innovation is a product that is gaining attention in today’s market.
Direxion made a big bet on the idea when it was announced last November. Moonshot Innovator ETF (MOON) is a fund aimed at providing investors with “exposure to the 50 most innovative US companies.” That website..
Direxion screens companies in two ways. The amount of money spent on research and development in comparison to sales and peers, and the frequency with which terms related to corporate filing innovation are used in comparison to peers.
This will help the company “identify the history of innovation,” Direxion product manager David Mazza told CNBC. “ETF Edge” this week.
“When thinking about Moonshot innovation, it’s not just based on finding the next meme stock,” he said in an interview Monday. “Now, historically, of course Amazon, Tesla, Apple Everything would have been part of the portfolio, but we deliberately focused only on small businesses. “
Currently, about 40% of MOON’s portfolio is small, 30% is the name of Microcap, and the remaining 30% is medium-sized, Mazza said.
The biggest sub-themes represented by MOON are genetic engineering over 19%, cybersecurity close to 17%, clean technology close to 10%, digital community just under 8%, and drones about 6%.
“These are names that some people aren’t familiar with, but they’re doing something really exciting … miniatures used in 3D displays from companies dealing with smart glasses for telemedicine and warehouses. Everything, from the laser-focused MicroVision, “Mazza said.
Another event, ImmunityBioProvides customized cancer and disease treatments based on an individual’s personal health profile, he said.
“These are the challenges companies are tackling today and will change the world next year, five or ten years,” he said. “”[They’re] All in their cycle, very very early in their profit cycle, and now consider adding some of these names and adding ETFs like this so you can still focus on growth It’s time to get started, but you just do it in a different way than megacap producers. “
The· COVID-19-The adjusted economy could provide innovators with more runways, ETF Trends CEO Tom Rydon said in an interview with the same “ETF Edge.”
“What Covid’s situation has taught us is that growth and innovation happen really quickly,” he said. “It’s almost speeded up, so you can guarantee your portfolio in the future, at least for your kids and your grandchildren, if not for you. I want to make sure I have some. “
MOON fell 1% on Thursday.
Moonshot Innovators ETF Manager Breaks His New Fund Strategy
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