NightShares Debuts Mixed Daytime/Overnight ETF

The fund will be the firm’s first that tracks stocks during regular trading hours.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

NightShares, whose exchange-traded funds seek profits by betting on stock price moves after markets close, has issued a third ETF, one with a slightly different approach than its existing securities. 

The NightShares 500 1x/1.5x ETF (NSPL) offers long exposure to the performances of 500 large cap U.S. securities during standard trading hours. It provides 1.5x exposure to the stocks’ performance in after-hours trading.  

NSPL comes with an expense ratio of 0.67%, including a 10 basis point fee waiver, and lists on the NYSE Arca. 

NightShares’ first two ETFs, the NightShares 500 ETF (NSPY) and the NightShares 2000 ETF (NIWM) track the overnight performance of large cap and small cap stocks, respectively, using futures contracts and total return swaps. The premise underlying both funds is that stocks tend to perform better in after-hours trading for a variety of reasons.  

The fund may achieve its goals through holding a combination of the actual securities, related ETFs, futures and total return swaps, the prospectus says.  

NightShares’ funds are the only ETFs that focus on the performance of equities in after-hours trading. 

 

Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.