Tuttle Capital Management’s latest ETF seeks to give investors exposure to the S&P 500, but with a reweighting strategy designed to respond to changes in the economic climate.
The Revere Sector Opportunity ETF (RSPY) launched on the NYSE Arca Tuesday, with an initial expense ratio of 1.05% that will rise to 1.15% at the end of August 2022.
RSPY is a fund-of-funds that will buy ETFs representing all 11 sectors of the S&P 500, but shift its weightings based on proprietary models from the fund’s subadvisor Revere Wealth Management. The model incorporates economic and markets data to estimate which sectors should be overweighted, underweighted or weighted proportionally to the S&P 500 to maximize returns.
Tuttle will actively manage the fund, and can override the weightings suggested by the model, according to the fund’s prospectus. The model resets every day, week and month based on new technical factors, meaning this fund may be subject to high turnover costs.
RSPY is the 11th fund from Tuttle, which has a total of $161 million in assets under management.