Parabla, a nascent issuer, launched its first exchange-traded fund (ETF) called the Parabla Innovation ETF (LZRD) on the Nasdaq. The fund is actively managed and aims to achieve long-term growth by investing in U.S. exchange-listed companies involved in developmental, disruptive, scaling, and refining innovation.
Phillip Hanks, the founder, CEO, and CIO at Parabla, described the fund as an “innovation fund” similar to Cathie Wood’s approach, but with a focus on four types of innovation. Developmental innovation refers to new technologies with the potential to disrupt but have not yet made a significant impact. Disruptive companies are those currently making a big impact in sectors like electric vehicles. Scaling companies are increasing production numbers and affecting a larger audience. Lastly, refining innovation includes large-cap companies like Apple that iterate on successful products and generate substantial profits.
The Parabla Innovation ETF has a U.S. bias, invests across various market capitalizations and sectors, and typically holds between 24 and 69 companies. To be considered for inclusion, holdings must have been publicly traded on a U.S. exchange for at least six months and have a market capitalization exceeding $1 billion at the time of initial investment. Hanks stated that he aims to be prudent and avoid early-stage non-profitable companies, even if it means potentially missing out on some early opportunities.