On Tuesday, Gabelli Funds’ launched a new fund on the NYSE. The Gabelli Funds’ Growth Innovators ETF (NYSE: GGRW) is an actively managed ETF seeking to invest in businesses both enabling and benefiting from digital acceleration.
Advanced technologies, such as AI, machine learning and data analytics, have been historically reserved for only the most technologically sophisticated organizations. Limited accessibility, high cost, and complexity have inhibited more widespread adoption.
Today, those constraints have been lifted, and technology is becoming democratized. The pandemic served as a force function for adoption, pushing consumers into digital channels and forcing enterprises to accelerate their digital transformation agendas. As technology percolates throughout every corner of the economy, it has the potential to contribute to global productivity growth.
The Gabelli Growth Innovators ETF seeks to surface the portfolio management team’s best ideas exposed to these secular tailwinds. Unlike traditional ETFs, these ETFs will not tell the public what assets they hold each day. This may create additional risks for your investment. For example:
- Investors may have to pay more money to trade an ETF’s shares. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information about the underlying holdings.
- The price investors pay to buy ETF shares on an exchange may not match the value of an ETF’s portfolio. The same is true when investors sell shares. These price differences may be greater for the ETFs offered under this Prospectus compared to other ETFs because these ETFs provide less information to traders concerning the underlying portfolio holdings.
- These additional risks may be even greater in bad or uncertain market conditions.
The differences between these ETFs and other ETFs may also have advantages. By keeping certain information about an ETF secret, the ETF may face less risk that other traders can predict or copy its investment strategy. This may improve an ETF’s performance. However, if other traders can copy or predict an ETF’s investment strategy, this may hurt the ETF’s performance.
For more information, visit www.gabelli.com/funds/etfs/intro.
This article originally appeared on ETFTrends.com.