Kimberly Yip Woon Sun is ETF analyst at Inovestor Inc.
A new ETF issuer joined the industry during May with a suite of alternative ETFs.
Accelerate Financial Technologies’ mission is to “democratize alternative investments by offering institutional-caliber hedge fund and private equity strategies in low-cost, liquid and easy to use ETFs accessible by any investor.” Instead of charging a management fee, each ETF has a performance fee over their high-water mark or its respective benchmark.
The Accelerate Private Equity Alpha Fund (ticker: ALFA) invests primarily in listed equity securities that are expected to outperform the US equity market, while entering into short positions in respect of US-listed equity securities. ALFA uses derivatives to gain exposure to its short portfolio and borrows cash to increase its long equities portfolio.
The Accelerate Enhanced Canadian Benchmark Alternative Fund (ATSX) seeks to achieve a superior risk-adjusted return relative to the broader Canadian equity market and uses a long-short overlay portfolio to add positive absolute return.
The Accelerate Absolute Return Hedge Fund (HDGE) seeks to achieve a superior risk-adjusted return relative to the broader Canadian equity market. HDGE seeks to outperform the Canadian equity market over the long term with lower volatility by investing primarily in listed equity securities that are expected to outperform this market, while selling short certain listed equity securities expected to underperform this market.
Horizons ETFs introduced a two-times leverage cannabis ETF, the BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU), and an inverse cannabis ETF, the BetaPro Marijuana Companies Inverse ETF (HMJI). HMJU provides two times multiple of the daily performance of the North American MOC Marijuana Index (NTR) while HMJI provides the inverse (opposite) of the daily performance of the North American MOC Marijuana Index (TR).