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A New ETF Named FOMO Targets Everything From SPACs to Volatility

The ETF from the Collaborative Investment Series Trust intends to invest in “securities that reflect current or emerging trends.”

(Bloomberg) -- A new ETF wants to tap into the fear of missing out among investors desperately chasing the everything rally.

A filing this week with the U.S. Securities and Exchange Commission seeks to create the FOMO exchange-traded fund, named for the famous acronym associated with countless bubbles and market manias.

The ETF from the Collaborative Investment Series Trust intends to invest in “securities that reflect current or emerging trends,” according to a registration statement. The fund, advised by Connecticut-based Tuttle Tactical Management LLC, will select its holdings based on a “proprietary tactical model,” the filing says.

Actively managed FOMO will target everything from stocks across both developed and emerging markets to SPACs, other ETFs, derivatives, volatility products and both leveraged and inverse funds. The filing notes that its tactical approach and frequent trading may result in a “high portfolio turnover rate.”

“This ETF was pretty inevitable given the market we are in and features one of the longest ‘risks’ sections I’ve seen in a prospectus in a long time,” said Eric Balchunas, ETF analyst for Bloomberg Intelligence. But “it may simply have too much going on to have a breakout.”

If it comes to market, FOMO will be the latest in a series of ETFs appealing to the runaway risk appetite sweeping across assets. The VanEck Vectors Social Sentiment exchange-traded fund (ticker BUZZ), which aims to buy the stocks most loved by investors online, had one of the strongest debuts on record last week after it was promoted by Barstool Sports Inc. founder Dave Portnoy.

If FOMO sounds a bit risky, Collaborative Investment is also planning something that might serve as a hedge. The same filing covers the Fat Tail Risk ETF, which will range across a similarly broad swath of assets, but focuses on gold, volatility and Treasuries.

--With assistance from Sid Verma.

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