The Tuttle Capital Heavy Assets Low Obsolescence ETF (HALX) June index rebalance saw very notable changes in exposure. HALX offers diversified exposure to U.S. firms linked to critical infrastructure, essential services, or major physical assets, while deliberately avoiding purely digital or intangible business models. It has an expense ratio of 75 basis points.
Key Takeaways
- The June rebalance introduced seven new additions to HALX’s index, headlined by the inclusion of SpaceX (SPCX) as the fund’s new top holding.
- HALX exited six positions during the index rebalance.
- The modified equal-weight strategy employed by HALX’s index, upon rebalancing, saw previous top holdings trimmed down to lower portfolio weights.
The fund tracks the Tuttle Capital Heavy Asset Low Obsolescence Index (HALX). This index selects 40 companies with ‘HALO’ qualities from the VettaFi US Equity Large-Cap 500 Index (SNR500). HALO qualities are attributed to companies with physical assets, low obsolescence, and lower AI risk. The fund uses a modified equal-weight strategy to reduce concentration risk in any single company or sector.
Portfolio Additions Led by SpaceX
The June rebalance introduced seven additions to the index including SpaceX (SPCX) at 3.46%, Royal Gold (RGLD) at 2.65%, Chipotle (CMG) at 2.62%, American Electric Power (AEP) at 2.51%, Ross Stores (ROST) at 2.46%, Cheniere Energy (LNG) at 2.39%, and SBA Communications (SBAC) at 2.31%.
The most significant change to the fund’s holdings is the addition of SpaceX, now the largest holding in HALX’s index. SpaceX’s orbital data center program, which positions the company among the physical infrastructure assets powering the growing AI economy, drives its inclusion in the fund.
Prior to the rebalance, SpaceX also saw inclusion in the VettaFi Space Index (SPACE), which serves as the underlying index for the Procure Space ETF (UFO ).
Among other notable additions, RGLD was added to the fund based on the company’s precious metals and royalty business. This addition aligns with the fund’s heavy-asset focus. It provides exposure to precious metal reserves that generate reliable cash flows independent of traditional operational risks.
Through its metal streaming operations, RGLD supplies mining operators with upfront capital. In exchange, it secures the right to purchase a portion of the produced precious metals at a fixed discount or receives a share of the mine’s total revenue.
HALX Exits and Rebalancing Moves
The fund removed six holdings including CoreWeave Inc. (CRWV), Packaging Corporation of America (PKG), Kimberly-Clark Corporation (KMB), Dollar Tree, Inc. (DLTR), Ameren Corp. (AEE), and American Tower Corporation AMT.
The most notable of the dismissed holdings is the exit of CRWV. Prior to the June rebalance, it had a 3.54% weighting. The company originally claimed a spot in the index due to its physical data center operations and its computing assets. Both the operations and assets provide critical infrastructure to the expanding AI sector. However, CRWV was removed from the fund in the June rebalance following a surge of insider selling and missed earnings expectations.
Given the modified equal-weighting methodology of HALX’s index, the largest holding prior to the rebalance, Devon Energy Corporation (DVN) was trimmed from a 4.51% weighting down to 2.38%. The second-largest holding at the time with a 3.44% allocation, West Pharmaceutical Services (WST), saw a decline to 2.50%.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for HALX and UFO, for which it receives an index licensing fee. However, HALX and UFO are 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 HALX or UFO.
