Actively Managed Funds Dominate Best New U.S. Equity ETFs

Nominees for the best new U.S. equity ETF include funds that launched or converted in 2023 and were selected for a range of criteria, including outstanding performance, innovative qualities and impact in the U.S. equity market. This award highlights funds that have displayed exceptional capabilities in tracking, managing or investing in U.S. equities. 

Many of this year’s nominees for best new U.S. equity ETF include actively managed funds that offer alternatives to traditional ETFs. 

Finalists in this and 16 other diverse categories will be announced at the 2024 etf.com Awards ceremony, held at Tribeca Rooftop in New York City on April 17, 2024. 

The Astoria US Quality Kings ETF (ROE) is an actively managed fund that seeks to provide long-term capital appreciation by investing in 100 high-quality, large- and mid-cap U.S. stocks across all sectors within the S&P 500.  

The fund management uses proprietary screens to select holdings with fundamental factors such as return on equity (ROE), hence its ticker, as well as return on investment (ROI), price-earnings ratio (P/E), dividend yield and earnings momentum. 

ROE’s assets under management are $76 million and its expense ratio is 0.49%. 

The Fidelity Disruptive Technology ETF (FDTX) is an actively managed fund that targets long-term capital growth by investing in innovative businesses believed to have the potential for market disruption. Following this core strategy, fund management seeks companies engaged in artificial intelligence, machine learning, cloud computing, cybersecurity, ecommerce, battery technology and more. 

The portfolio is constructed using fundamental analysis factors focusing on financials, industry position, and market and economic conditions. FDTX was converted from a mutual fund called Fidelity Disruptive Technology Fund in 2023. 

Assets under management for FDTX are $135 million and its expense ratio is 0.50%. 

The GMO U.S. Quality ETF (QLTY) in an actively managed fund seeks total return by investing in high-quality U.S. companies of any market capitalization. These companies are identified as having established business that can deliver significant returns on investment, effectively use cash flows, or return cash to shareholders through dividends or share buybacks. 

The fund’s investment strategy employs a range of selection factors like profitability and leverage, as well as prospects for future profitability and growth prospects. Management may also use various valuation methodologies, price-to-earnings and other valuation metrics in its selection process. The fund may also invest in the GMO U.S. Treasury Fund, and money market funds.  

QLTY’s assets under management are $270 million and its expense ratio is 0.50%. 

The ProShares S&P 500 High Income ETF (ISPY) seeks to track the performance of the S&P 500 Daily Covered Call Index, meaning that the fund attempts to generate a high level of income combined with the performance returns of the S&P 500 Index over the long term. 

To achieve the fund’s strategy, long exposure consists of equity securities represented in the S&P 500 Index or index futures and the short side consists of out-of-the-money S&P 500 Index call options having one day to expiration when sold. 

ISPY’s assets under management are $53 million and its expense ratio is 0.55%. 

The REX FANG & Innovation Equity Premium Income ETF (FEPI) is an actively managed fund that seeks to generate income through stock dividends and options premiums. The fund invests in the securities comprising the Solactive FANG Innovation Index while writing call options on them. 

FEPI employs a covered call strategy, attempting to achieve a balance of income generation and capital growth within the technology sector. This approach can also provide a buffer against declines, although limiting some of the potential stock gains.  

FEPI’s assets under management are $91 million and its expense ratio is 0.65%. 

The Roundhill Magnificent Seven ETF (MAGS) is an actively managed fund that offers highly concentrated equal weight exposure to the “Magnificent Seven” stocks—Alphabet Inc., Amazon.com Inc., Apple Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp. and Tesla Inc.  

MAGS, at the time of its 2023 rebranding and launch, was the first U.S.-listed ETF to track the Mag 7. The fund is rebalanced to equal weight on a quarterly basis, ensuring consistent exposure to the leading tech giants in a single ticker. 

MAGS’ expense ratio is 0.29% and its AUM is $141 million.