Roundhill Investments launches HALO ETF targeting heavy asset companies

Roundhill Investments launched the Roundhill HALO ETF (LOHA) on May 14, targeting U.S. companies with heavy physical assets and low technological obsolescence risk. The exchange-traded fund carries an expense ratio of 0.35%.

The ETF tracks the Akros US Heavy Assets Low Obsolescence Index, which screens the largest 3,000 U.S.-listed companies for businesses whose value is based on tangible physical assets and established infrastructure. The index holds 100 equally weighted companies, rebalanced quarterly.

The HALO concept, originally coined by Josh Brown, CEO of Ritholtz Wealth Management, stands for "heavy assets, low obsolescence." Brown describes these as companies with substantial physical assets and infrastructure networks that cannot be easily disrupted by new technology.

"These are companies with heavy physical assets, entrenched infrastructure, and logistics networks that took generations to build and cannot be disrupted by the next wave of technology," Brown said.

Top holdings as of May 13 include Cummins Inc (CMI), AutoZone Inc (AZO), TFI International Inc (TFII), Lennox International Inc (LII), and Newmont Corp (NEM). The fund includes companies across sectors such as machinery, specialty retail, ground transportation, building products, and metals and mining.

According to the press release, Goldman Sachs estimates roughly 45% of the S&P 500 consists of AI companies. Dave Mazza, CEO of Roundhill Investments, said the ETF was designed to help investors build portfolios as AI disruption continues.

Roundhill Investments, founded in 2018, is an SEC-registered investment advisor. The company states its team has collectively launched more than 100 ETFs.

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