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Investors look to 'AWAY' ETF as tech companies focus on global tourism

Yahoo Finance’s Alexis Christoforous and Kristin Myers discuss the travel sector with Sam Masucci, CEO of ETF Manager Group.

Video transcript

KRISTIN MYERS: And it's time now for our ETF report, brought to you by Invesco. We're joined now by Sam Masucci, CEO of ETF Manager Group. Sam, you might have to unmute here so that we can hear you throughout this interview.

Sam, I want to start on Coinbase and what we've been seeing today, really bouncing off of its highs of $430 a share, now at $354. If you want to get exposed to cryptocurrency, is ETFs the best way to do that right now?

SAM MASUCCI: Unfortunately, there is no way to get exposure to cryptocurrency through ETFs. There have been several filings. The SEC has yet to approve any. And I'm not sure at what point they would be available. So at this point, I guess, Coinbase or some of the private trusts that have been launched probably are the best way for people to get access.

ALEXIS CHRISTOFOROUS: You know, a lot of people are saying it's not if but when we get an ETF that's based on cryptocurrencies. When that day does come, do you expect to see a lot of the demand coming from institutional investors, retail investors? Who do you think's going to want to get in on that in a big way?

SAM MASUCCI: I would expect that it would be pretty broadly based when it comes to investors. I mean, when you think about the way new markets are opened up with ETFs, some of the early adopters tend to be the institutions. There's generally a lot of pent-up retail demand. That's certainly what we saw when we launched our MJ Fund, giving people a first access to cannabis. So I would expect it to be very broad based.

KRISTIN MYERS: And Sam, I want to ask you going forward where do you see some of the biggest opportunities in the market, especially as we have this growth versus value debate, and how folks really should start positioning some of their portfolios going forward in 2021, especially as we keep hearing folks talk about volatility. What do you see as the best way to mitigate some of those risks going forward?

SAM MASUCCI: Without being a retail portfolio manager, where we're seeing a lot of interest through advisors and RIAs, and ultimately retail, is through a lot of the themes that are very, very popular now. AWAY is that a theme that we launched. That is the travel technology fund. It's grown from $60 million this year, from the beginning of the year, to almost $350 million. People really looking to take advantage of the travel industry opening back up, people getting out of their homes. I think similar opportunities, like I said, have been shown in MJ and opportunities going on in the cannabis space, with huge movements in legalization around the country.

I think thematic ideas will be a great way for people to play particular themes. And while they do it, they are impacted by overall market volatility, what we have seen by targeted thematic ETFs is they tend to gather assets in both up and down markets as people are really taking a longer term bet on a particular theme.

ALEXIS CHRISTOFOROUS: What about interest in the infrastructure play? I mean, now we do at least have a blueprint for President Biden's infrastructure plan, $2.3 trillion. We saw a lot of interest in those themed ETFs leading up to the release of that plan. What are you seeing now since it's been out?

SAM MASUCCI: I think ETFs will be a great way for people to play infrastructure. And there are a lot of different ways to do that. Clearly, there are direct ETFs that are focused on things like industrial solutions, capital structures around things like roads and bridges and things like that, or even some of the ancillary things. Like we have a shipping ETF, BDRY. And a lot of the goods and materials that will be used in infrastructure are going to be shipped from other areas. And so shipping is one way to play it.

So I think that there will be greater opportunities in the commodity space and infrastructure plans will certainly help with that. Silver, industrial silver and steel and other opportunities that people can really get exposure through an ETF in a very cost effective and tax effective manner.

KRISTIN MYERS: All right. Sam Masucci, CEO of ETF Manager Group, thanks so much for joining us today.