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Exclusive: New SPAC ETF Creator On SPACs, Management Teams, Top Holdings

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Exclusive: New SPAC ETF Creator On SPACs, Management Teams, Top Holdings

A new actively managed SPAC ETF from Tuttle Tactical Management launched on Wednesday. 

The SPAC ETF: Tuttle launched the SPAC and New Issue ETF (NYSE: SPCX). The ETF is the first actively managed one that gives investors exposure to SPACs.

“The SPAC ETF we wanted to do because we see SPACs an entirely new asset class,” CEO Matthew Tuttle told Benzinga.

Through Dec. 8, 217 SPACs have launched year-to-date, raising $74 billion. 

Why Active Management? Combining assets that don’t move at the same time is the goal of the ETF, Tuttle said.

The fund manager likes the idea of SPACs having a $10 floor, with the opportunity for a large pop on a deal announcement.

“SPACs are an ever-evolving market,” he said.

New SPACs are issued nearly every day, which makes it hard not to actively manage the holdings in an ETF like this one, Tuttle said. 

Related Link: Chamath Palihapitiya Launches Three More SPACs: IPOD, IPOE, IPOF

ETF Holds 100% SPACs: The goal of the ETF is not to give stock exposure, which means the fund could sell holdings after a deal is announced or completed.

This would be done on a case-by-case basis, Tuttle said. 

Unlike a peer SPAC ETF, this fund does not hold any former SPACs. The ETF will hold units, common shares and possibly warrants.

The fund manager told Benzinga he has no problem holding warrants and would do this on a case-by-case basis.

What’s Next For SPACs: The number of SPACs issued could taper off, Tuttle said. 

“I don’t think it’s a fad or a trend.” 

When gains are harder to come by in normal stocks, he said people could shift into SPACs.

Investing In Management Teams: Similar to what other fund managers and analysts, Tuttle is betting on the management teams behind the SPACs that have not announced deals.

“We’re looking at it the same way an active stock manager looks at it,” Tuttle said.

Investors don’t want to buy something at $10 and have it stay at $10, so they want good management teams that are going to make good deals, he said. 

“It comes down to the management team.”

SPAC Holdings: The ETF holds 42 SPACs as of its first day of trading. The top 10 holdings in the SPAC are:

Churchill Capital Corp IV (NASDAQ: CCIV): 6.7%

Foley Transimene Acquisition (NASDAQ: WPF): 4.4%

Social Capital Hedosophia Holdings VI (NASDAQ: IPOF): 4.1%

Dragoneer Growth Opportunities Corp (NASDAQ: DGNR): 3.4%

Social Capital Hedosophia Holdings V (NASDAQ:IPOE): 3.3%

CC Neuberger Principal Holdings II (NASDAQ: PRPB): 3.0%

Apollo Strategic Growth (NASDAQ: APSG): 2.9%

Redball Acquisition Corp (NASDAQ: RBAC): 2.9%

E.Merge Technology (NASDAQ: ETAC): 2.9%

Avanti Acquisition Corp (NASDAQ: AVAN): 2.9%

Find the full ETF holdings here.

Tuttle Tactical Management CEO Matt Tuttle. Courtesy photo. 

 

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