Gabelli launches aerospace & defense ETF

Jan 10th, 2023 | By | Category: Equities

Gabelli Funds has unveiled a new actively managed equity ETF targeting companies operating in the aerospace and defense industry.

Gabelli aerospace and defense ETF

The ETF invests in companies operating in the aerospace & defense industry.

The Gabelli Commercial Aerospace & Defense ETF (GCAD US) has been listed on NYSE Arca with an expense ratio of 0.90%.

The ETF utilizes a semi-transparent structure that shields daily portfolio holdings in order to protect the fund’s intellectual property and eliminate the risk of front-running.

According to Gabelli, investing in aerospace and defense companies is one of the firm’s core competencies. Day-to-day management of the ETF is led by Lieutenant Colonel G. Anthony Bancroft, USMCR, who joined Gabelli Funds in 2009 after serving as an F/A-18 Hornet fighter pilot with the United States Marine Corps.

The fund seeks to deliver a high total return with an emphasis on income by investing in common or preferred stock of US-listed companies as well as American Depository Receipts.

Eligible firms include manufacturers, assemblers, and distributors of aircraft and aircraft parts, as well as producers of components and equipment for military aircraft, radar technology, and weapons.

As with Gabelli’s previous ETF launches, the first $25 million of the fund’s assets under management will incur no fees and expenses.

The fund will compete with several passive ETFs dedicated to the aerospace and defense industry including the $4.7bn iShares US Aerospace & Defense ETF (ITA US), which comes with an expense ratio of 0.39%; the $1.4bn SPDR S&P Aerospace & Defense ETF (XAR US), which has an expense ratio of 0.35%; and the recently launched First Trust Indxx Aerospace & Defense ETF (MISL US), which costs 0.60%.

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