'Everybody Likes Underdogs. Why Not Buy The Rejects?:' 'Godfather Of Smart Beta' To Launch Index For Companies That Didn't Make It To S&P500 And Russell 1000
Portfolio Pulse from Benzinga Neuro
Rob Arnott, known as the 'godfather of smart beta', is launching the Deletions ETF (NIXT) to invest in companies removed from major indices like the S&P 500 and Russell 1000. This ETF aims to capitalize on the potential rebound of these 'rejects', which historically have shown a 5% annual return. The launch aligns with the growing popularity of ETFs over mutual funds.
September 04, 2024 | 12:45 pm
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POSITIVE IMPACT
The Deletions ETF (NIXT) by Rob Arnott targets companies removed from major indices, betting on their potential rebound. Historical data suggests these stocks can yield a 5% annual return.
The launch of NIXT is significant as it targets a niche market of companies removed from major indices, which have historically shown potential for rebound. This aligns with the growing trend of ETFs gaining popularity over mutual funds.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Invesco QQQ Trust (QQQ) was down 0.65% in pre-market. The introduction of NIXT may not directly affect QQQ but indicates a growing interest in alternative ETFs.
QQQ's mention is in the context of ETF market trends. The launch of NIXT doesn't directly impact QQQ but highlights a shift towards alternative ETF investments.
CONFIDENCE 80
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
SPDR S&P 500 ETF Trust (SPY) was trading 0.38% lower in pre-market. The launch of NIXT may not directly impact SPY but highlights a trend of investors seeking alternative ETF options.
While SPY is mentioned in the context of ETF trends, the direct impact of NIXT's launch on SPY is minimal. However, it reflects a broader shift in investor preferences towards diverse ETF options.
CONFIDENCE 80
IMPORTANCE 30
RELEVANCE 20