SAN FRANCISCO--(BUSINESS WIRE)--Today, Engine No. 1 announced the launch of its second actively-managed ETF, the Engine No. 1 Transform Supply Chain ETF (Ticker: SUPP). SUPP, the latest in Engine No. 1’s line of thematic ETFs, invests in companies that will drive supply chain resiliency and long-term value creation through relocalization of manufacturing, automation and innovation, and transportation and logistics management. SUPP lets investors participate in this large-scale transformation and benefit from Engine No. 1’s distinct approach to and perspective on it.
Eli Horton, who recently joined Engine No. 1’s investment team from Maverick Capital, will serve as the fund’s lead portfolio manager. While at Maverick, he invested in a broad range of industries, including industrials, for its hedge fund. He brings deep fundamental expertise to expand Engine No. 1’s capability to offer alternative asset management experience to the ETF market.
“It has never been more important for companies to make their supply chains more resilient, while also relocalizing manufacturing and jobs to North America,” said Horton. “We will invest in the companies that will drive and benefit from the ongoing supply chain transformation – creating long-term economic value and meaningful social and environmental impacts.”
“We believe the entire supply chain system is changing and that transformation presents a once-in-a-generation opportunity for investors,” said Yasmin Dahya Bilger, Head of ETFs at Engine No. 1. “We’re building a portfolio that capitalizes on the transition from old technologies to new ones, from short-term expediency to long-term value creation, and away from the low-cost-at-all costs thinking of the last 30 years towards a more resilient and modern American economy that is a leader in global competitiveness and that creates well-paying jobs here at home.”
We believe that companies that lead during this transition will benefit from increased market share, higher perceived quality of goods, and dynamic cost management, resulting in increased shareholder value. The $3.5 trillion in global income eliminated by disruptions associated with the COVID-19 pandemic further demonstrated the need for companies to rethink their supply chains.1 Additionally, U.S. companies were on a record pace to relocalize 350,000 jobs in 2022.2 Bringing manufacturing, transportation, and warehousing jobs to the U.S. creates a 5.1x employment multiplier.3 This shift in corporate priorities also benefits ongoing energy transition initiatives.
The ETF has a fee of 0.75% and will be managed by Eli Horton with assistance from Molly Landes and Christopher James. To learn more about Engine No. 1 Supply Chain ETF (Ticker: SUPP), visit.
About Engine No. 1
Engine No. 1 is an investment firm that identifies and pursues value creation opportunities in once-in-a-generation economic sector transitions. Its years of experience identifying and responding to large-scale changes uniquely positions it to drive value for its investors. The firm is focused on the investment themes of the future, like the transition to zero emissions and the relocalization of supply chains. For more information, please visit: www.engine1.com.
Important Information
© 2023 Fund Management at Engine No. 1 LLC. All Rights Reserved.
Before investing you should carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus, a copy of which may be obtained from https://etf.engine1.com. Please read the prospectus carefully before you invest.
Investing involves risk, including the possible loss of principal. Shares of any exchange-traded fund (ETF) are bought and sold at market price (not net asset value (NAV)), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
The Fund is advised by Fund Management at Engine No. 1 LLC. Distributed by Foreside Financial Services, LLC.
Investing involves risk. Principal loss is possible. The fund is subject to the following risks: Supply Chain Risks. Companies supply chains are generally subject to risk such as legislative or regulatory changes; adverse market conditions and/or increased competition; technological developments and changing technology; cyberattacks that may compromise a company’s operations or business; occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements, exchange rate movements, and insurance costs; pandemics, natural disasters or other crisis; boarder and/or import controls; pent-up /increased demand; mobility restrictions; shortages of product and labor; dependence on intellectual property rights, and potential loss or impairment of those rights; research and development costs; and rapid product obsolescence. Global, regional, or local events, such as changes to trade relations, trade restrictions, and/or military conflict, may materially disrupt or indefinitely impair the operations of these companies. Securities of these companies may be cyclical and occasionally subject to sharp price movements. Activism Risk. An activist investor uses an equity stake in a corporation to put public pressure on a company’s management team and board in order to achieve certain objectives such as the increase of shareholder value through changes in corporate policy or financing structure, or reduction of expenses. Non-Diversification Risk. Although the Fund intends to invest in a variety of securities and instruments, the Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. Limited History of Operations Risk. The Fund is a new fund with no history of operations for investors to evaluate. Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector or asset class. Sustainability Investing Strategy Risk. The Fund intends to incorporate the Adviser’s sustainability investment insights and analysis into its portfolio construction process. Emerging Markets Risk. Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments. Micro Capitalization Companies Risk. Micro cap companies may be newly formed or have limited product lines, distribution channels and financial and managerial resources.
1 The Resiliency Compass: Navigating Global Value Chain Disruption in an Age of Uncertainty. July 6, 2021. World Economic Forum.
2 U.S. Companies on Pace to Bring Home Record Number of Overseas Jobs. WSJ
3 Updated employment multipliers for the U.S. economy. EPG
