Roundhill Investments has launched the Roundhill HALO ETF (NYSE:LOHA), a new ETF focused on companies considered less vulnerable to disruption from artificial intelligence.
The "HALO" concept — short for "heavy assets, low obsolescence" — was coined by Josh Brown, CEO of Ritholtz Wealth Management, and focuses on businesses with significant physical infrastructure, entrenched logistics networks and hard-to-replicate operations.
The ETF comes as investors increasingly look beyond AI-driven technology trades for more durable businesses. Roundhill cited Goldman Sachs estimates indicating that nearly 45% of the S&P 500 is now tied to AI-related companies, potentially leaving portfolios exposed to disruption risk.
LOHA seeks to counterbalance that exposure with companies operating in sectors tied to industrial infrastructure, transportation, mining and essential services.
Key Highlights Of LOHA
- Strategy Focus: "Heavy Assets, Low Obsolescence" companies
- Index Tracked: Akros US Heavy Assets Low Obsolescence Index
- Portfolio Size: 100 U.S.-listed companies
- Weighting Method: Equal weighted
- Rebalancing Schedule: Quarterly
- Expense Ratio: 0.35%
- Universe Screened: Largest 3,000 U.S.-listed companies
- Investment Thesis: Companies with durable physical assets, regulated frameworks, essential demand and long-term contracts
- AI Angle: Targets businesses viewed as more insulated from generative AI disruption
Top Holdings As Of May 14
Photo: Shutterstock
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