The funds rebalances every month based on which stocks the company's algorithm says has the highest scores in terms of positive sentiment. The ETF isn't overly risky as its holdings are currently made up of fairly safe investments, including big names like Apple (NASDAQ:AAPL), Walt Disney (NYSE:DIS), and Amazon (NASDAQ:AMZN), which account for three of the fund's top five holdings.
It promises to tap into emerging trends and will involve higher-risk investments, including SPACs and even inverse ETFs. That aggressiveness will come at a cost, however, as Matthew Tuttle, who manages the fund, admits there will be lots of trading and rebalancing will occur on a weekly basis,"We want to ride momentum, but also whatever has had its butt kicked, we want to buy into that as well. Having countertrend methodologies smooths out sudden moves in the other direction."