There's Now a Trade War ETF You Can Invest In
- M-CAM International’s new product will trade under ‘TWAR’
- The fund will buy companies that have government contracts
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Playing the trade war usually means betting against companies that are likely to suffer, such as those in the tech sector or with Chinese revenue.
Not so for a new exchange-traded fund from M-CAM International that’s trying to identify the winners with an approach that could surprise some investors. The Innovation Alpha Trade War ETF, which started trading on Wednesday under the ticker TWAR, plans to buy companies that have government contracts, calculating that state support could buoy these stocks if tensions escalate. Only firms with strong intellectual property -- as defined by M-CAM -- are eligible for the fund.