Supply chain transformation ETF prepares to hit the market – Seeking Alpha
Supply chain management issues were among the key focuses of 2022, as the global economy continued to deal with the aftershocks of the pandemic shutdowns. Engine No.1 ETFs intends to offer investors a way to capitalize on this market segment, filing with regulators for a new exchange traded fund targeting the group.
The firm has filed with the U.S. Securities and Exchange Commission for the Engine No.1 Transform Supply Chain ETF, which it expects to trade under the ticker symbol SUPP. The fund will be actively managed with a 0.75% expense ratio.
According to the prospectus, supply chain transformation is defined as companies that are transforming their own or others’ supply chains by “bringing jobs closer to point of sale, stabilizing manufacturing capacity, reducing disruption and geopolitical risks, enhancing sourcing transparency and increasing emissions and environmental impact standards.”
SUPP will find itself competing for market share against other supply chain-focused exchange traded funds. These include the ProShares Supply Chain Logistics ETF (SUPL) which is supported by key holdings in Union Pacific Corp (NYSE:UNP), CSX Corporation (CSX), FedEx (NYSE:FDX), United Parcel Service (NYSE:UPS), Canadian Pacific Railway (NYSE:CP), and C.H. Robinson Worldwide (CHRW).
Furthermore, SUPP will join other offerings from the company, like the Engine No.1 – Transform 500 ETF (VOTE) and the Engine No.1 Transform Climate ETF (NETZ).
In broader financial news, the major market averages opened trading lower on Tuesday for the holiday-shortened week.
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