Tuttle/Rex Files to Launch 44 Single-Stock ETFs

The combo of Rex Shares and Tuttle seeks to own the single-stock ETF market.

The partnership between Rex Shares and Tuttle Capital Management filed to launch 44 single-stock ETFs, half of which are leveraged long and half of which will offer inverse exposure to the underlying stocks.

The collaborative effort for the branded suite of ETFs known as T-Rex represents the most aggressive push into the single-stock ETF market since it was created less than two years ago with the Securities and Exchange Commission's approval.

The T-Rex suite, which launched four single-stock ETFs in October and three more in January, has attracted more than $1 billion.

Outside the partnership, Tuttle manages about $50 million and Rex Shares manages more than $4 billion, mostly in exchange-traded notes.

The latest flight offerings run the gamut from technology and brokerage platforms to streaming services and cannabis producers.

Chasing Single-Stock ETF Market Share

Matthew Tuttle, chief executive of Tuttle Capital Management, said the objective is to identify stocks that are and will be attractive to active traders.

“When I look at single stock ETFs, I look at it from a couple different aspects,” he said. “What’s popular today, what are retail traders buying, but I also want to look at what they are likely to be talking about tomorrow.”

Tuttle acknowledged that the T-Rex suite is going after the active-trader and not necessarily longer-term buy-and-hold investors. Some of the single-stock ETFs might have shorter shelf lives than others, he said.

“Tesla is one of our big names, but let’s say (Chief Executive Officer) Elon Musk leaves Tesla and it just becomes like another car company,” he said. “Without Elon Musk, who gives a crap about Tesla.”

The 44 ETFs filed with the SEC on June 18 each have an expense ratio of 1.05%. As trading vehicles, the assets are expected to turnover on a near daily basis. But Tuttle said the ETFs become profitable at about $15 million.

According to the SEC filing, T-Rex plans to offer 200% long and 200% inverse exposure to the following 22 companies: AMC Entertainment Holdings, GameStop Corp., Robinhood Markets Inc., Super Micro Computers Inc., Trump Media & Technology Group Corp., Marathon Digital Holdings Inc., Roblox Corp., Palantir Technologies Inc., Viking Therapeutics Inc., Arm Holdings Plc and Shopify Inc.

The remainder are Advanced Micro Devices Inc., Netflix Inc., Boeing Co., Snowflake Inc., Broadcom Inc., Palo Alto Networks Inc., Tawain Semiconductor Manufacturing Company Ltd., Block Inc., Tilray Brands Inc., C3.ai Inc. and Coinbase Global Inc.