Gabelli launches actively managed financial services ETF

May 16th, 2022 | By | Category: Equities

Gabelli Funds, a division of Mario Gabelli’s GAMCO Asset Management, has launched its fourth actively managed semi-transparent ETF, an equities fund that seeks alpha within the global financial services sector.

Gabelli launches actively managed financial services ETF

The ETF seeks out leading firms within the financial services sector.

The Gabelli Financial Services Opportunities ETF (GABF US) has been listed on NYSE Arca with an expense ratio of 0.90%.

Gabelli will waive the ETF’s management fee over the next year for the first $25 million invested.

The fund seeks long-term capital appreciation by investing in financial services firms considered best positioned to benefit from long-term economic trends such as greater demand for wealth advisory and asset management services.

Eligible companies include those that are building and providing the next-generation of payments infrastructure as well as firms that are leveraging technology to lower client acquisition costs, improve operating efficiency, and drive higher customer engagement from digital applications.

Gabelli will also consider a company’s brand strength, recurring revenues, and addressable markets when selecting individual holdings.

The ETF makes distributions to investors on an annual basis.

The fund harnesses the ActiveShares semi-transparent ETF model developed by Precidian Investments to avoid disclosing daily portfolio holdings while maintaining the tax efficiency, liquidity, and lower costs typically associated with ETFs.

The model masks an ETF’s holdings by inserting a blind trust, known as a ‘confidential account’, between the fund and its authorized participants. These trusted agents are privy to portfolio holdings and perform creations and redemptions on behalf of authorized participants.

Official portfolio holdings need only be disclosed on a quarterly basis.

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