- Companies
June 16 (Reuters) – Just days after SpaceX (SPCX.O), opens new tab wrapped up its record $75 billion initial public stock offering and ignited another burst of enthusiasm among traders for all things AI, two asset managers disclosed plans to launch exchange-traded funds linked to the new AI-stock acronym that is all the buzz on Wall Street.
In what ETF market analysts described as the latest example of “concept investing,” Yorkville America, the company that manages the Truth Social ETF franchise, and ETF industry newcomer Corgi Securities both filed late on Monday with the U.S. Securities and Exchange Commission for permission to roll out new funds pegged to the “MANGOS” moniker that sprang to life on X and other social media sites ahead of the SpaceX IPO.
The phrase — vying to replace the Magnificent 7 as a way for investors and speculators to view market-leading growth companies — is intended to refer to the collection of four public companies, Meta Platforms (META.O), opens new tab, Nvidia (NVDA.O), opens new tab, Alphabet’s (GOOGL.O), opens new tab Google, and SpaceX and two private ones, Anthropic and OpenAI, all of which have hefty exposure to artificial intelligence.
“This tells you just how rapidly the product development cycle is moving in the ETF industry right now,” said Dan Sotiroff, an analyst at Morningstar. “This is going to be even more concentrated than the Magnificent 7, and just as important, it’s going to be heavily exposed to the big IPOs of the year.”
Yorkville did not respond to requests for comment.
In its filing for the Mango Plus ETF, as well as a variant that would generate additional income for investors, the firm said it would build a portfolio from some combination of the core “MANGOS” stocks as well as seven other companies that include Micron (MU.O), opens new tab and SanDisk (SNDK.O), opens new tab, which it believes also will benefit from AI adoption, and which it dubbed the “Parabolic 7.”
According to its filing, Corgi plans to invest only in the six core MANGOS stocks. Ed Rumell, head of ETF distribution for the firm, declined to comment on its plans, citing SEC restrictions on discussing an active filing.
Both ETFs could make their debut by the end of August, according to SEC rules.
Read more BMW lowers profit outlook due to China downturn, Iran war double whammy
Read more G7 leaders discuss ‘trusted partners’ access to cutting-edge US AI models, sources say
Read more US senators ask for review of Tesla’s ‘Full Self-Driving’ safety data, citing Reuters report
