Emles launches two new ETFs
Gabriel Hammond’s brand new ETF provider, Emles Advisors, has launched two new ETFs, the Emles Protective Allocation ETF (DEFN) and, just in time for holiday shopping, the Emles Luxury Goods ETF (LUXE).
Former Alerian founders, Gabriel Hammond and Dave Saxena, reunited in October 2020 to launch a suite of ETFs under the umbrella of Emles Advisors.
The Emles Protective Allocation ETF (DEFN) invests and diversifies across asset classes that have historically preserved capital in periods of stress, aiming to provide investors competitive returns in benign market environments while seeking to protect portfolios in periods of extreme market stress.
The Emles Luxury Goods ETF (LUXE) aims to provide high growth potential through exposure to companies that may stand to benefit from increased consumption of luxury goods.
Hammond says: “We would argue that for a long period of time most investors don’t like to acknowledge uncertainty in the environment. Some people have viewed protection as a market call that things are going to fall, whereas there should be an acknowledgement of an uncertain environment – you want to be positioned where you don’t give up the upside but are protected in a wide variety of different outcomes.”
The firm’s LUXE product sits in a sector that Hammond believes has a number of macro forces behind it.
“This is one of those products that I am surprised doesn’t already exist,” he says. “Over the last five years you have seen luxury margins remain incredibly high, and it’s a function of burgeoning wealth in India and China.”
Hammond believes that these two ETFs are strategic tools for financial advisers. “People are beginning to understand the power in this environment and the risk and reward we offer. I am focused on the unit of risk we take for every unit of reward we get.”