A Roundup of June’s Most Notable ETF Launches

• Following the historic SpaceX IPO, numerous firms launched single-stock leveraged products to meet investor demand for amplified price exposure.
• Investor momentum for AI continued to drive demand for products focused on AI infrastructure, particularly within the memory semiconductor ecosystem and data center supply chains.
• Corgi Funds accounted for a record 95 of the month’s ETF launches. The firm balances high-volatility 2x leveraged ETFs with risk-managed buffer ETFs.

On the first day of the month, Defiance launched the Defiance Autism Impact ETF (ASD). This fund is the first of its kind, built entirely around companies tied to autism care. The fund tracks the VettaFi Autism Impact Index (VASDX), which is composed of the biotech, education, and technology companies tied to the autism ecosystem. 

Defiance Chief Executive Officer Sylvia Jablonski explained in an episode of the ETF Prime podcast that the inspiration for this fund grew out of the experience of the firm’s founder, Matthew Bielski, and general counsel Gabriela Zahn-Bielski. Their son has profound autism and the couple has dedicated their lives to supporting him. 

Jablonski cited that approximately one in 31 children are diagnosed with Autism. The lifetime cost averages about $3 million per individual, a nationwide cost of $461 billion. ASD aims to invest in the companies working on groundbreaking advances, education, therapies, or services that benefit the greater neurodivergent and autistic society. 

The fund also has a philanthropic feature. Defiance will donate 100% of ASD’s net profits to autism-focused nonprofits for the first two years. After that period, the firm will continue to donate at least 50% annually.

The historic SpaceX IPO earlier this month captured significant investor attention. The company’s highly volatile price movements prompted substantial investor demand for products that provide amplified exposure to these price fluctuations. To capitalize on this demand, numerous firms launched single stock leveraged funds for higher exposure to SpaceX (SPCX). 

Among the various launches, Kurv debuted the Kurv SpaceX Enhanced Income ETF (XSHP), which seeks to provide current monthly income through investment in equity and derivative instruments of SpaceX. For short-term investors seeking daily investment results, funds such as the Direxion Daily SpaceX Bull 2X ETF (LOFF) seek to provide 200% of the daily investment results of SpaceX. 

The artificial intelligence momentum that has carried the market over the past year continued in June, with memory components emerging as a critical chokepoint in the AI infrastructure buildout. Companies that specialize in memory components have outperformed recently, driving investor demand for ETF products that capture this growth.

One of the strongest examples of investor demand for exposure to the memory component industry is the Roundhill Memory ETF (DRAM). The fund has become one of this year’s most successful ETFs. It boasts inflows of $18.3 billion and returns of 152% since its inception in April. For portfolio inclusion, DRAM requires companies to generate at least 50% of their revenue from memory semiconductor development and manufacturing. It also requires a minimum market capitalization of $10 billion and a minimum average daily trading volume of $5 million. DRAM’s success prompted the launch of the Roundhill T-REX Long DRAM Daily Target ETF (RAM), which provides leveraged exposure to the highly concentrated DRAM portfolio, seeking to replicate 2x the daily performance of DRAM. 

Taking a slightly broader approach to memory, Tuttle Capital premiered the Tuttle Capital Concentrated Memory Stack ETF (HBMX). This fund aims to provide exposure to pure-play memory stack companies in the rapidly expanding memory semiconductor ecosystem. Allowing for investment regardless of market capitalization or trading volume, it operates with a lower memory-related revenue threshold of 25%. 

Covering a wider scope of AI infrastructure, VanEck launched the VanEck Data Center Supply Chain ETF (RACK), providing exposure to companies involved in the AI data center buildout. The fund tracks the MarketVector Data Center Supply Chain Index, requiring companies derive at least 50% of their revenues from data center supply chain activities.

Out of the 214 funds that launched in June, Corgi Funds accounted for 95 of them. The AI-driven fintech firm set a precedent for mass ETF rollouts, headlined by a record-breaking single-day launch of 35 ETFs early in the month. 

The vast majority of the launches were 2x Daily Leveraged ETFs. These funds provide high exposure to a range of underlying assets, from single-stock funds to emerging markets. One of the notable Corgi leveraged ETF launches this month is the Corgi All World 2x Daily ETF (WX), which looks to capture double the daily performance of the Vanguard Total World Stock Index Fund ETF (VT A+).

Corgi also launched a series of buffer ETFs. These use options strategies for exposure to upside returns. They also use a built-in buffer to protect against downside risk over a specific period. The funds offer various downside cushions, from 10% to 100%, across a variety of markets. For example, the Corgi U.S. Equities 10% Structured Buffer ETF (JUNC) provides investors with price returns from the S&P 500, while protecting against the first 10% of market declines over a defined outcome period. On the other hand, the Corgi U.S. Equities 100% Structured Buffer ETF (HJUN) provides protection from all price declines in the S&P 500, in exchange for a growth cap over a one-year outcome period.

Corgi’s strategy takes a barbell approach. The firm provides hyper-focused volatility tools for investors seeking amplified exposure to specific themes and markets through their leveraged funds. Meanwhile, it also offers risk-managed capital preservation tools through buffer ETFs for investors seeking downside protection.

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VettaFi LLC (“VettaFi”) is the index provider for ASD, for which it receives an index licensing fee. However, ASD is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ASD.