Monday, March 27, 2023
Hometrader talkThe 'fear of missing out' fund shows there really is an ETF...

The ‘fear of missing out’ fund shows there really is an ETF for everything

Do you have fear of missing out on all this wild trading going on this year? Would you buy a FOMO fund if someone offered it to you?

Some investors are betting you will.

Investing in the stock market these days is like having a bowling alley installed in your brain. Every day, your head gets scrambled.

One day, tech is back, the next it's reopening sectors including materials and industrials and banks. Then there are the Reddit names, and the "thematic" tech sectors like clean energy and cybersecurity.

What's an active investor to do? If you're in the ETF space, the answer is innovate even more.

A FOMO ETF is coming

The last few weeks have seen a flurry of ETFs that are attempting to capitalize on the dizzying rotations that have characterized the markets in 2021.

In the latest effort, Collaborative Investment Series Trust has announced that it has a FOMO (fear of missing out) ETF in registration. It says it will track "securities that reflect current or emerging trends." What does that include? Apparently just about everything: stocks anywhere in the world, as well as SPACs, other ETFs, derivatives, volatility products and both leveraged and inverse ETFs.

Matthew Tuttle, CEO of Tuttle Tactical Management and the man who runs the actively managed fund behind FOMO, says he is trying to answer a crying need in the market: "You have SPACs, you have Cathie Woods stuff, GameStop stuff. If you are an average investor, you can try doing it yourself and look at many different products, but there is nothing that pulls it all together. We are going to be in social media, hedge funds, SPACs, ETFs, and stocks."

If that sounds a bit daunting, Tuttle is undeterred. The registration notes the ETF will use "multiple investment models that combine market trend and counter trend following."

How is that going to happen? What exactly does his trend-following model follow, and what is "counter-trend following?"


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