Daily ETF Watch: Pointbreak Plans Funds

The firm started by John Hyland, former chief investment officer of United States Commodity Funds, has filed for four new ETFs covering very different areas of the market. The funds are as follows:

• Pointbreak Cyber Security Index Fund (PBCS)
• Pointbreak US Internet Index Fund (PBIT)
• Pointbreak India Index Fund (PBIN)
• Pointbreak China Large-Cap Index Fund (PBCI)

Each fund will track an index provided by Solactive.

The cybersecurity ETF will take a global approach, targeting companies of at least $200 million in market capitalization that have their primary operations in the cybersecurity space. The prospectus notes that its underlying index will hold 30-40 companies, with each company’s weight capped at 5% of the index.

The Internet fund will target U.S. companies operating in a wide range of Internet-related fields, ranging from e-commerce to Internet access to website design. Companies must meet liquidity requirements and have at least $200 million in market capitalization. The underlying index will hold 35-50 components and apply a 10% cap on individual component weights.

The India fund’s underlying index will include 50-70 of India’s largest stocks based on free-float market capitalization. Components must be listed on the National or Mumbai stock exchanges. Individual weights are capped at 4.5% of the index.

The China fund will include H-Shares, N-Shares, P-Chips and Red Chips. Its underlying index is designed to represent the 80 largest companies that are “freely available” to investors outside of China, the prospectus said. That means no A-shares, a portion of the market that has been the topic of discussion as China has moved to loosen its restrictions on foreign investors. Individual component weights are capped at 20% of the index.

One thing all of the indexes have in common is a cap on the aggregate weight of companies with individual weightings of 4.5% or higher. Those holdings are limited to a total market cap of 45% of each index.

The filings did not include tickers or expense ratios, but they did note that the funds will list on the BATS exchange.

Pointbreak also has a stock-split ETF and a commodity ETF in registration, so these latest filings bring the number of the firm’s total funds in registration to six.

Contact Heather Bell at [email protected].