Kelly ETFs debuts with trio of funds providing pure-play exposure to specialized themes

Jan 14th, 2022 | By | Category: Equities

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Kelly ETFs, a newly established issuer based in Denver, Colorado, has unveiled a trio of funds that provide pure-play exposure to specialized investment themes.

Kevin Kelly Kelly ETFs

Kevin Kelly, Founder and CEO of Kelly ETFs.

Kelly ETFs was founded by Kevin Kelly, who serves as its CEO. Kelly also serves as the CEO of Kelly Benchmark Indexes, the real estate index provider behind a pair of successful funds offered by Pacer ETFs.

The company’s debut funds target returns attributable to the investment themes of CRISPR & gene editing, hotels & lodging, and residential & apartment real estate.

The funds are passively managed, tracking indices developed and maintained by Strategic Indexes, an associated company of Kelly ETFs.

Each index comprises a concentrated portfolio of 60 or fewer stocks delivering high-conviction, pure-play exposure to the underlying theme.

Eligible securities must have market capitalizations of at least $300 million and average daily traded values greater than $1m.

Companies are initially identified by industry and sector and are then further reviewed on the basis of operations. Only firms that generate the majority of their revenue or profits from business activities linked to relevant sub-themes will be included.

Chosen constituents are weighted by float-adjusted market capitalization subject to maximum and minimum security weights of 10.0% and 0.25%, respectively.

Commenting on the launches, Kevin Kelly said: “At Kelly ETFs, we believe investors deserve access to strategies handcrafted with a deep and nuanced understanding of the forces driving the trends and transformations happening every day.

“We are particularly excited about the promising innovation occurring in CRISPR and gene-editing technology. Scientific understanding of DNA is significantly more advanced today than even a few years ago, and we’re thrilled to be in on the ground floor.”

CRISPR & gene editing

The Kelly CRISPR & Gene Editing Technology ETF (XDNA US) tracks the Strategic CRISPR & Gene Editing Technology Index which consists of 23 developed market companies specializing in DNA modification systems and technologies.

A limited number of constituents may be drawn from each of the index’s three eligible sub-themes which include CRISPR & gene-editing technology (capped at 42 stocks), gene editing development solutions (nine stocks), and gene editing sequencing solutions (also nine stocks).

The fund has been listed on Nasdaq and comes with an expense ratio of 0.78%.

Hotels & lodging

The Kelly Hotel & Lodging Sector ETF (HOTL US) tracks the Strategic Hotel & Lodging Sector Index which measures the performance of 39 developed market companies involved with the sub-themes of hotel and lodging management and operations, lodging platform services, and timeshare properties.

The fund has been listed on NYSE Arca and also comes with an expense ratio of 0.78%.

Residential & apartment real estate

The Kelly Residential & Apartment Real Estate ETF (RESI US) is linked to the Strategic Residential & Apartment Real Estate Sector Index which tracks 27 US and Canadian companies specializing in the sub-themes of single-family residential homes, apartment buildings, student housing, and manufactured homes.

The fund has also been listed on NYSE Arca. It comes with a slightly cheaper expense ratio of 0.68%.

According to regulatory filings, Kelly ETFs has a number of other products in the pipeline including strategies targeting e-commerce & logistics, fintech & digital payments, technology & e-commerce, and the internet of things.

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