During the past month, the ETF market has seen a wave of excitement surrounding a concentrated group of companies. While investors still want exposure to the tech giants that have dominated the past few years, the successful launch of SpaceX in early June created widespread anticipation for planned IPOs like Anthropic and OpenAI. In response to the excitement numerous firms have filled for “MANGOS” ETFs, which includes holdings across Meta, Anthropic, Nvidia, Google, OpenAI, and SpaceX.
Key Takeaways
- Investor focus is shifting from the Magnificent Seven toward the MANGOS basket. This prioritizes companies specializing in artificial intelligence and commercial space technology.
- Numerous asset managers have filed for various MANGOS ETFs, including Corgi, Yorkville America, ProShares, and T-REX.
- The structure of these funds range from equally weighted exposure across the group to inverse leveraged exposure, seeking -2x daily investment results.
The market’s focus has shifted from the Magnificent Seven tech giants (AAPL, MSFT, GOOGL, AMZN, NVDA, META, TSLA) that dominated the U.S. market the past few years to the MANGOS companies. This shift reflects a change in investor preferences. It is moving from legacy hardware and consumer platform giants to pure AI and commercial space-technology companies. A few firms look to capitalize on this investor demand by filing for various MANGOS funds.
Firms Position for MANGOS Demand
A week after the SpaceX IPO, Corgi filed for the Corgi MANGOS ETF. This actively managed strategy provides concentrated exposure to six core companies. The four publicly traded companies will be held through a combination of investment in common stock and derivatives. Meanwhile special purpose vehicles will be used to gain exposure to privately held companies including Anthropic and OpenAI. Additionally, Corgi has filed for a Corgi MANGOS 2X Daily ETF, which seeks investment results that equal 2x the underlying Corgi MANGOS ETF performance on a daily reset.
Yorkville America filed for 2 ETFs, the Yorkville American MANGO Plus ETF and the Yorkville American MANGO Plus Premium Equity Income ETF, designed to generate current income through options writing.
Along with the core holdings, the Yorkville funds will also invest in seven additional companies known as the “Parabolic Seven”: SNDK, MRVL, MU, INTC, DELL, AMD, and AVGO. This allows for broader exposure to companies involved in semiconductor and AI-hardware development.
Other MANGOS Funds
ProShares has filed for four different MANGOS funds over the course of three days. Filings include the ProShares MANGOS ETF, the ProShares Short MANGOS ETF, the ProShares Ultra MANGOS ETF, and the ProShares UltraShort MANGOS ETF.
The ProShares MANGOS ETF will provide equally weighted exposure to the six companies. The other three funds will offer leveraged exposure to the same underlying companies. The ProShares Ultra MANGOS ETF seeks double the daily investment results of the same exposure. It aims for this primarily through investment in derivatives. Meanwhile, the ProShares Short MANGOS ETF seeks to provide -1x inverse daily investment results. The ProShares UltraShort MANGOS ETF aims for -2x inverse results.
Similar to the leveraged ETFs from Corgi and ProShares, the T-REX 2X Long MANGOS Daily Target ETF aims to capture double the performance of an index tracking the MANGOS stocks. This fund comes in with an expense ratio of 150 basis points.
High Stakes in a High-Growth Market
The influx of filings marks a decisive point in market sentiment as investors look to rotate from legacy tech giants into the pure AI and commercial space sectors. However, investors should be aware of the volatility risk that comes with investment in such a concentrated portfolio of holdings. The extreme price volatility seen following the SpaceX IPO serves as a reminder of the risk inherent in concentrated portfolios, especially those that are leveraged.
Anthropic and OpenAI have filled S-1 paperwork with the SEC to go public. It is likely that Investor anticipation for these products is only going to intensify further.
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