Group 1: New ETF Launches - In December, 128 new ETFs were launched, expanding the range of investment options available to investors [1] - Three notable ETFs include the Harbor AI Inflection Strategy ETF (EPAI), Man Active Trend Enhanced ETF (MATE), and AOT Software Platform ETF (AOTS) [1][8] Group 2: Harbor AI Inflection Strategy ETF (EPAI) - The EPAI ETF, launched by Harbor Distributors and Earnest Partners, focuses on AI equities and charges an 88 basis point fee [2] - The strategy emphasizes companies involved in AI infrastructure, cost reduction, and second-order beneficiaries from the AI revolution [3] - The investment approach is based on strong business fundamentals, revenue growth, and cash flows, applying a bottom-up investment process [4] Group 3: Man Active Trend Enhanced ETF (MATE) - MATE, introduced by Man Group Plc., charges a 97 basis point fee and combines U.S. equity exposure with a global futures overlay [5] - The strategy employs a systematic, trend-following approach using leverage to achieve 100% exposure across its substrategies [6] Group 4: AOT Software Platform ETF (AOTS) - AOTS, launched by AOT Invest LLC, tracks an index of software-driven firms and charges a 49 basis point fee [7] - The ETF focuses on enterprise software and cloud infrastructure, requiring firms to have a positive price-to-earnings ratio for inclusion [7] - The index weights companies with over 50% software revenue more heavily, incorporating factors like cost of goods sold relative to revenue [7] Group 5: Investment Implications - The new ETFs, particularly AOTS and EPAI, provide diverse tech exposure, which can mitigate concentration risk associated with large-cap tech firms [8] - MATE offers a unique perspective on equities by integrating futures and U.S. equity focus, contributing to the expanding ETF universe [8]

Core Insights - AOT Invest has launched the AOT Software Platform ETF (AOTS), which utilizes quality metrics rather than solely market capitalization to weight its holdings [1][2] - The ETF tracks the AOT VettaFi Software Platform Index (SOFT), focusing on profitability measures and excluding unprofitable companies [3][6] Fund Structure and Strategy - AOTS charges a management fee of 0.49% and ranks companies based on three equally weighted factors: cost of goods sold to revenue, earnings-to-price ratio, and return on invested capital [1][2] - The fund includes 50 companies that derive at least 20% of their revenue from software-driven activities and have positive price-to-earnings ratios [6] Holdings and Diversification - Top holdings include Nvidia Corp. (NVDA), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), and Alphabet Inc. (GOOGL), which together represent 32.9% of the fund [5] - The fund also includes payment processors Visa Inc. (V) and Mastercard Inc. (MA), accounting for 10.5% of the total [4] Market Positioning - The ETF aims to provide exposure to software-oriented companies across various sectors, enhancing diversification and potential returns [2] - The strategy is designed to capitalize on software platforms that operate with near-zero marginal costs and generate recurring subscription revenue, positioning them well for artificial intelligence adoption [3][6]