GAMCO Investors, Inc., also known as Gabelli Funds, launched an exchange-traded fund Wednesday focused on aerospace and defense, as its industry-focused peer funds have outperformed broader markets.
The Gabelli Commercial Aerospace & Defense ETF (GCAD) charges an expense ratio of 0.9% and trades on the NYSE Arca. The new fund will aim to invest “at least 80% of its net assets in income producing equity securities including securities in the aerospace and defense sectors,” according to a filing with the Securities and Exchange Commission.
Sector-specific ETFs have done well in the space in recent months: The iShares U.S. Aerospace & Defense ETF (ITA) and the SPDR S&P Aerospace & Defense ETF (XAR) were up 23% and 20%, respectively, in the last three months of 2022, according to ETF.com data. Comparatively, the S&P 500 slipped nearly 20% last year, marking the index’s worse performance since 2008.
The new fund also seeks to capitalize on one of Gabelli’s research competencies. Lieutenant Colonel Tony Bancroft, who has served in the U.S. Marine Corps as an F/A-18 Hornet fighter pilot and has covered the aerospace industry for the firm, will serve as the fund’s portfolio manager, according to the statement.
GCAD, which is the fifth ETF from Gabelli, will not publish its holdings daily, but will provide a verified intraday indicative value during trading hours, according to the statement. The new fund will also offer a “loyalty program”; investments made within the fund’s first $25 million in assets under management will not be charged fees or expenses. The fund currently has $2.5 million in AUM.
Currently, Gabelli ETFs collectively have $23.83 million in assets, according to ETF.com data, the largest of which is the $12 million Gabelli Love Our Planet & People ETF (LOPP).
Contact Shubham Saharan at [email protected]