Funds

ETF Files: God, weed, and wheat funds come to market

Bet the farm

Invesco has launched the Invesco Agriculture Commodity Strategy No K-1 ETF.

The ETF will have the ticker PDBA and will invest in a range of 11 different grain, livestock and soft commodities by tracking the DBIQ Diversified Agriculture index. 

It will be overseen by Peter Hubbard, head of equities and director of portfolio management; David Hemming, head of alternative portfolio management; and Theodore Samulowitz, senior portfolio manager.

‘Agriculture may be one of the most important sectors of the global economy,’ said Kathy Kriskey, product strategist, commodities and alternatives ETFs at Invesco, in a press release from the company.

‘Recent geopolitical events coupled with climate change and extreme weather have created supply constraints and price volatility, directly impacting the global grains trade.’

PDBA is structured as a 40 Act fund, which issues a Form 1099 tax form rather than a Schedule K-1. It is designed to complement the existing Invesco DB Agriculture ETF, ticker DBA, which is a 1933 Act commodity pool and issues a Schedule K-1 form.

Faith in factors

Christian asset manager Inspire has launched a multi-factor fund that also scores holdings on their biblical values. 

The fund, the ninth ETF from the $2bn Boise, Idaho-based shop, is called the Inspire Fidelis Multi-Factor ETF (FDLS) and will follow the Fidelis Multi-Cap Multi-Factor index managed by South Carolina-based Wallick Investments. 

The index is made up of 100 companies already screened by Inspire and selected for their strong alignment with biblical values. This screen excludes companies involved in a long list of activities, including abortion, gambling, and ‘LGBT promotion.’ 

These 100 stocks are then scored and weighted by Wallick based on their quality, value, and momentum characteristic. The 16 criteria used to score stocks for quality include conventional measures such as profitability and growth, as well as less mainstream metrics, like biblical values.  

The fund will have an expense ratio of 0.85%. 

Twice the high

There unlikely to be many investors buying both FDLS, which excludes stocks involved in cannabis cultivation and processing, and our next offering today, the AdvisorShares MSOS 2x Daily ETF, which invests exclusively in firms which do just that. 

The ETF, which has the ticker MSOX and an expense ratio of 0.95% is a leveraged fund that aims to offer twice the total daily return of the AdvisorShares Pure US Cannabis ETF (MSOS), the first US-listed active cannabis ETF, which was launched in 2020.

Both funds are managed by Pure US Cannabis ETF and portfolio manager Dan Aherns, a veteran in cannabis and vice-related investments. 

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