Leverage Craze Brings New ETF Targeting the SPAC Market
- RiverNorth, TrueMark fund invests in pre-merger SPACs
- ETF issuers rush to offer leveraged funds in saturated market
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A new exchange-traded fund is looking to make leveraged bets on one of the worst-performing corners of the US equity markets this year, as the craze of amped-up strategies sweeps the ETF industry.
The RiverNorth Enhanced Pre-Merger SPAC ETF (ticker SPCZ) launched last week, investing in so-called special purpose acquisition companies before they merge with their targets. There are at least eight other exchange-traded funds in the US focused on blank-check companies, but this new fund would be the first that uses leverage, according to RiverNorth Capital Management Chief Executive Officer Patrick Galley.