Introduced in November 2020, the fund is linked to the S&P Kensho Moonshots Index. Its portfolio of 50 U.S. companies are screened and scored according to their level of innovation; the top holdings include Asana, Crispr Therapeutics and Virgin Galactic Holdings.
Compared with actively managed peers like ARKK, MOON has done better in 2021. Since the start of the year, the fund is ahead by 3.75%, whereas the ARK fund has suffered a 5.90% loss.
In the end, multi-theme ETFs offer advisors another way to enhance performance returns while limiting under-diversification risk.