David Mazza is the managing director and head of product at Direxion, a well-known provider of ETFs and mutual funds. He leads the research and development of new products for the company in addition to working on product management and strategy at the firm, which have recently been highlighted as an innovator in the realm of automatic ETFs.
On this week’s episode of Opto Sessions, Mazza explained the elements that make up the Direxion Moonshot Innovators ETF [MOON], which Mazza suggests is intended to be at the leading edge of long-term disruption.
Listen to the interview:
“A lot of companies and investors think they have exposure to innovation, and they might, that doesn't mean Apple, Amazon and Google aren't innovative. But I want to potentially find the next one,” Mazza stated.
The Moonshot Innovators ETF of 50 stocks, he says, is just that.
“We're doing two things. We're looking at whether companies themselves are talking about innovation in their financial statements in a material way, in a way that's more material than their peers,” Mazza explained
“But that's just talk. We also want to confirm that they are innovative by the fact that they're spending considerable portions of their total revenue on research and development.”
“We also want to confirm that they are innovative by the fact that they're spending considerable portions of their total revenue on research and development"
The largest holding in the fund is Chinese EV maker Nio [NIO]. Mazza highlights how this is a great example of a company innovating through its battery-as-a-service offering, which aims to do away with waiting at charging stations, as people can simply swap out used batteries for charged ones.
“These are names that some traders may have latched on to because they've been moving, but they really are intended to be truly transformative,” Mazza said. “Some of them might not pan out, but a lot of them historically have based on the research that we've done.”
To hear more on what products Mazza has been developing and why, listen to the full episode here.
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