As artificial intelligence (AI)-driven trades continue to dominate markets, Tuttle Capital Management takes a different route with the Tuttle Capital Heavy Asset Low Obsolescence ETF (BATS:HALX). The actively thematic fund debuted on May 19 and aims to provide exposure to companies with strong tangible assets and durable cash flows that may be less vulnerable to rapid technological disruption.

HALX tracks the Tuttle Capital Heavy Asset Low Obsolescence Index, which focuses on businesses exhibiting what the firm calls "HALO" characteristics — heavy assets, low obsolescence, and lower exposure to AI-related disruption. The fund currently carries sizable allocations to the energy, industrials, and utilities sectors, areas often viewed as beneficiaries of physical infrastructure demand rather than software-led innovation cycles.

Matthew Tuttle, CEO and chief investment officer of Tuttle Capital Management, said the traditional investing playbook favoring asset-light companies is shifting as demand rises for firms tied to the "physical backbone of the modern economy," including utilities, freight networks, industrials, materials, and energy producers.

Key Features Of HALX

  • The ETF carries a 0.75% expense ratio.
  • Tracks the returns of the Tuttle Capital Heavy Asset Low Obsolescence Index.
  • Selects 40 equally weighted companies from the VettaFi US Equity Large-Cap 500 Index that fit the HALO framework.
  • Focuses on firms with tangible assets and persistent cash flows.
  • Targets companies considered less exposed to AI disruption and rapid technological obsolescence.
  • Major sector exposure includes energy, industrials, and utilities.
  • Designed as a diversified alternative to tech-heavy and AI-focused investment strategies.

Tuttle Capital has increasingly rolled out niche thematic products across emerging market trends. Among them is the Tuttle Capital Space Industry Income Blast ETF (BATS:SPCI), which is gaining from the latest buzz around the impending SpaceX IPO and the consequent rally in space-themed ETFs. As of April 30, SPCI's NAV had climbed 25.58% over the previous month, and is up almost 10% on Tuesday.

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