Bigger Isn’t Always Better Part I: 3 “Boutique” ETF Issuers to Watch

Amplify ETFs

First up is Amplify ETFs, which recently celebrated a significant milestone by surpassing $10 billion in AUM. Led by CEO Christian Magoon, Amplify launched five new strategies in 2024, spanning AI, treasuries, small/mid-cap equity, covered calls, and even weight-loss drug thematics.

The firm’s flagship fund is the Amplify CWP Enhanced Dividend Income ETF

, managing $3.9 billion in assets. This highly unique covered call ETF stands apart from competitors in several ways.

Unlike passive strategies, DIVO uses an actively managed, concentrated portfolio of just 20-30 holdings and writes calls discretionarily on individual stocks.

This strategy has proven successful, earning DIVO a five-star Morningstar rating in the “Derivative Income” category, indicating superior risk-adjusted returns compared to its peers.

Amplify’s next two largest offerings lean heavily into tech themes: the Amplify Cybersecurity ETF

and the Amplify Transformational Data Sharing ETF

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+6.72%

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Harbor Capital

While the “big five” ETF issuers have expanded their active ETF lineups in recent years, smaller issuers have also stepped up with impressive results. A prime example is Harbor Capital, which has made waves with its innovative offerings.

The firm’s standout product is the Harbor Long-Term Growers ETF

, managing $713 million in AUM. This actively managed ETF holds a portfolio of 70 large-cap growth stocks, offering investors access to Jennison Associates’ flagship large-cap growth strategy.

WINN exemplifies how ETFs have democratized access to strategies that were once confined to separately managed accounts (SMAs) and mutual funds.

Another notable product is the Harbor Commodity All-Weather Strategy ETF

. This K-1-free ETF holds 24 commodity futures from the Quantix Commodity Index, specifically screened for inflation sensitivity and managed to optimize roll yield.

So far, HGER has delivered on its objectives. Despite its 0.68% expense ratio—comparable to index-tracking commodity ETFs—it has significantly outperformed. Since inception, the fund has returned an annualized 7.57%, far exceeding the 0.61% return of the Bloomberg Commodity TR Index.

KraneShares

KraneShares is best known for its flagship KraneShares CSI China Internet ETF

, a $5.26 billion fund often described as the QQQ of Chinese tech stocks.

KWEB provides targeted exposure to China’s largest internet and e-commerce companies, making it a staple for investors seeking to capitalize on the growth of Chinese technology.

Another standout in their lineup is the KraneShares Bosera MSCI China A 50 Connect Index ETF

. This ETF is one of the few available to U.S. investors that tracks coveted and hard-to-access Chinese A-shares.

KBA is particularly unique in its ability to hedge with futures, improving liquidity and narrowing bid-ask spreads, a key advantage for investors in this segment.

In recent years, KraneShares has broadened its lineup to include strategies beyond China and emerging markets, catering to a wider range of investor needs.

For instance, the KraneShares Sustainable Ultra Short Duration Index ETF

offers ESG-conscious investors a cash management solution with a 0.30% expense ratio.

The firm also offers the fourth-largest carbon credit ETF by AUM, the KraneShares Global Carbon Strategy ETF

. KRBN tracks the S&P Global Carbon Credit Index, providing exposure to cap-and-trade carbon allowances via the most liquid futures markets.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.