Pass on this ETF

Article Excerpt

EVOLVE INNOVATION ETF $20.85 (Toronto symbol EDGE; Market cap: $8.2 million) invests in companies that its managers see as having the potential to disrupt established industries such as automobile manufacturing, retail and health care. Evolve has previously launched similar ETFs including Evolve Automobile Innovation ETF (Toronto symbol CARS) and the Evolve Cyber Security ETF (Toronto symbol CYBR). The Innovation ETF invests in these two ETFs and selected other companies. The CARS ETF makes up 18% of the assets and the CYBR ETF another 17%. Other major holdings are Qualcomm (2.0%), Broadcom (1.9%), Alphabet (1.9%), Celgene (1.8%) and Fanuc (1.8%). The ETF launched in May 2018 and so far has attracted assets of just $8.2 million. CARS ETF has an asset base of $6.2 million and the CYBR ETF has $21 million. Both of these funds have been active for almost a year and have so far failed to attract substantial inflows. Evolve Innovation charges an MER of 0.40%. Its investments in the other ETFs also carry management…