FIRE Funds has debuted two actively managed ETFs offering goal-oriented investment solutions aimed at the Financial Independence, Retire Early (FIRE) community.

Michael Venuto, Portfolio Manager at FIRE Funds.

The FIRE Funds Wealth Builder ETF (FIRS US) and FIRE Funds Income Target ETF (FIRI US) have been listed on NYSE Arca.

The FIRE movement centers on achieving financial independence through disciplined saving, strategic investing, and intentional living. Followers of FIRE aim to reduce expenses, build wealth, and prioritize long-term financial goals, often with the aspiration of retiring early or pursuing fulfilling work.

FIRE Funds’ new ETFs are designed to align with these principles, providing tools to support financial independence and intentional living.

FIRE Funds Wealth Builder ETF

FIRS adopts an ETF-of-ETFs structure, dividing its portfolio equally across four distinct economic regimes: Prosperity, Recession, Inflation, and Deflation.

• Prosperity: Consists of equity and options-based ETFs that aim to participate in the market’s rally while managing risk or hedging against downside exposure.
• Recession: Low-volatility, long-short, and alternative ETFs for stable returns and uncorrelated performance.
• Inflation: Investments in commodities, real estate, and other assets that tend to benefit during inflationary periods.
• Deflation: Fixed income securities and other deflation beneficiaries.

The portfolio is constructed using a rigorous qualitative and quantitative ETF selection process to optimize exposure within each regime. This diversified framework is designed to help investors navigate varying market conditions while fostering long-term wealth accumulation.

FIRS comes with an expense ratio of 0.48%.

FIRE Funds Income Target ETF

FIRI also utilizes an ETF-of-ETFs structure but employs a barbell strategy to balance income generation with risk management.

• High-Yielding Assets (represents between 30-70% of the total portfolio): Represented by ETFs focusing on dividend-paying stocks, bonds, and leveraged instruments, with selections based on criteria such as yield, credit quality, and duration.
• Cash Equivalents (also between 30-70%): Consists of low-volatility ETFs, money market funds, or cash for stability and liquidity, enabling tactical adjustments when market conditions shift.

FIRI’s dynamic strategy is optimized to maintain a minimum 4% annual income target, adjusting allocations as needed to achieve stable income while preserving capital. The portfolio, consisting of 10-25 ETFs, is evaluated daily to ensure alignment with performance and income objectives.

FIRI has an expense ratio of 0.70%.

Michael Venuto, Portfolio Manager at FIRE Funds, commented: “FIRS and FIRI are designed to offer a flexible investment framework for those pursuing financial independence. ETFs are an appropriate vehicle for this community, providing transparency, tax efficiency, and low costs—important features for investors seeking to manage their wealth over time. We are excited to provide these tools that aim to support investors as they work toward their financial goals.”