Here's How The Winner Of The 2021 Newcomer ETF Fund Of The Year Is Looking At The Markets In 2022

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At TrueMark Investments, active portfolio management takes precedence over its passive counterpart.

“There are many areas where passive investing makes sense, but the burgeoning new economy has created a class of nascent economic segments that are just beginning to progress up the maturation curve,” according to the company. 

TrueMark believes that within these nascent segments of the New Economy lie market inefficiencies – the winners and losers – that can be leveraged through active investment to yield superior market returns.

But this feat is easier said than done. Active fund managers are notorious for underperforming the market. Even as 2020 and 2021 presented some of the most volatile markets in decades, reports by MorningStar and S&P Global showcase that of the 3,000 active funds surveyed, only 47% survived and outperformed their average passive counterpart in a 12-month period.

Despite the plethora of data showing the difficulty in active fund success, a few outliers prove that it’s possible to not just beat the market but to beat it by a significant margin. The Baron Partners Retail Mutual Fund BPTRX, for example, yielded a yearly return of 148.52% compared to the SPDR S&P 500’s SPY 18.4%. It’s one of many actively managed funds that beat the S&P 500 in 2021.

It arguably takes that extra something to beat the market, and it looks like TrueMark’s active approach may fit into that category. The Mutual Fund Industry & ETF (exchange-traded funds) Awards crowned the company with the Newcomer ETF Firm Of The Year for its 2021 performance.

“We need to keep looking past the big names and towards stocks that will offer generational opportunities,” TrueMark Principal and CEO Michael Loukas said.

While acknowledging that passive investing makes sense in certain market areas, Loukas says TrueMark's “job is to find the category killers that are going through their hyper-growth phase and, years from now, will be household names” and to capitalize on these companies via an active investment approach. 

A Look At TrueMark ETFs

TrueMark has five core offerings that provide investors with an active investing medium. TrueShares Structured Outcome ETFs and TrueShares Low Volatility Equity Income ETF DIVZ are several examples.

Acting as a form of active investment, the Structured Outcome ETF uses a “buffer protect” options strategy that seeks to provide investors with returns that track those of the S&P 500 index while seeking to provide an 8% to 12% downside buffer for a 12-month investment period. ETFs in this category vary on a month-to-month basis. For example, the JANZ ETF JANZ begins on Jan. 4, 2021, and resets exactly 12 months later, while the DECZ ETF begins on Dec. 1 and resets exactly one year later. 

Similarly, TrueMark’s DIVZ ETF provides a capital-appreciation medium centered around the dividend payments of 25 to 35 favorably valued companies that portfolio managers expect to grow over time. TrueMark currently has $49 million allocated to this ETF.

On the more-aggressive side, TrueMark offers investors the TrueShares ESG Active Opportunities ETF ECOZ and the TrueShares Technology, AI, and Deep Learning ETF LRNZ. The former seeks to provide total return by actively managing a diversified portfolio of large U.S. companies with attractive investment profiles that meet proprietary environmental, social, and governance (ESG) standards. The ETF includes Tesla Inc. TSLA, Nvidia Corp. NVDA, and Enphase Energy Inc. ENPH among others. 

The LRNZ ETF represents TrueMark’s bet on the active investing methodology. Its portfolio comprises four critical segments within the artificial intelligence (AI) industry: data, hardware, software/algorithms, and sophisticated users. TrueMark believes these may be the “generational opportunities” that many will look back upon. CrowdStrike Holdings Inc. CRWD, Unity Software Inc. U, and Roblox Corp. RBLX all make the cut. 

Click here to keep up with the TrueMark story.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.