- (0:45) - Government Policy As a Powerful Investment Tool: Impact on Stock Price
- (4:00) - Event Shares U.S Policy Alpha ETF: Policy Themes
- (8:45) - PLCY: Company Selection and Weighting
- (10:45) - Reason Behind Event Shares Liquidation of GOP, DEMS, TAXR
- (12:50) - How Frequently is PLCY Rebalanced?
- (15:00) - Episode Roundup: Podcast@Zacks.com
In this episode of ETF Spotlight, I talked with Ben Phillips, chief investment officer at EventShares.
EventShares is the sponsor of U.S. Policy Alpha ETF , which is designed to benefit from government policies and regulations.
First off, we discussed why policy is a powerful leading investment indicator and catalyst for companies. Ben talked about the “policy” factor and four sub-factors that can significantly impact business models and stock prices but have largely been ignored by the investors.
Some of these policies drive stock prices over the longer-term and thus create excellent investment opportunities.
We then talked about some of the key policy themes this ETF focuses on as of now. Ben explained how they identify changes in policies and which companies are going to benefit the most from those changes.
Smaller companies are more impacted by policies as they have less diversified business models and more concentrated revenue streams. In fact, the ETF mostly holds mid and small cap companies.
The ETF typically owns 30-50 stocks, which are equally weighted. Ben explained the rationale for equal weighting. The ETF can also short companies that are expected to be negatively impacted or to manage the portfolio’s beta.
PLCY actually combines EventShares’ three initial ETFs--Tax Reform Fund (TAXR), Republican Policies Fund (GOP) and Democratic Policies Fund (DEMS)--into one broad-based policy fund. Ben explained why EventShares decided to liquidate those ETFs and instead have one ETF.
The ETF is actively managed; we discussed why and how frequently changes are made in the portfolios. Please listen to the podcast for details.
If you want to learn more about this ETF please visit eventsharesfunds.com
And please visit the ETF section of zacks.comfor more information on this and many other ETFs.
Please make sure to tune in for our next podcast. If you have any comments or questions, please email podcast@zacks.com.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Image: Bigstock
Can This ETF Profit from Trade, Tariff and Tax policies?
In this episode of ETF Spotlight, I talked with Ben Phillips, chief investment officer at EventShares.
EventShares is the sponsor of U.S. Policy Alpha ETF , which is designed to benefit from government policies and regulations.
First off, we discussed why policy is a powerful leading investment indicator and catalyst for companies. Ben talked about the “policy” factor and four sub-factors that can significantly impact business models and stock prices but have largely been ignored by the investors.
Some of these policies drive stock prices over the longer-term and thus create excellent investment opportunities.
We then talked about some of the key policy themes this ETF focuses on as of now. Ben explained how they identify changes in policies and which companies are going to benefit the most from those changes.
Smaller companies are more impacted by policies as they have less diversified business models and more concentrated revenue streams. In fact, the ETF mostly holds mid and small cap companies.
The ETF typically owns 30-50 stocks, which are equally weighted. Ben explained the rationale for equal weighting. The ETF can also short companies that are expected to be negatively impacted or to manage the portfolio’s beta.
PLCY actually combines EventShares’ three initial ETFs--Tax Reform Fund (TAXR), Republican Policies Fund (GOP) and Democratic Policies Fund (DEMS)--into one broad-based policy fund. Ben explained why EventShares decided to liquidate those ETFs and instead have one ETF.
The ETF is actively managed; we discussed why and how frequently changes are made in the portfolios. Please listen to the podcast for details.
If you want to learn more about this ETF please visit eventsharesfunds.com
And please visit the ETF section of zacks.comfor more information on this and many other ETFs.
Please make sure to tune in for our next podcast. If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>