Aztlan North America Nearshoring Stock Selection ETF

NRSH

Market cap $31.5M

Investors on the lookout for potential break out candidates among ETFs can look for a few key factors in charts, global trends, and momentum. Trends, too, can guide investors and advisors to ETFs able to break out.

The Aztlan North America Nearshoring Stock Selection ETF offers targeted exposure to small companies benefiting from the nearshoring trend in the US, Mexico, and Canada. The ETF uses a rules-based strategy, focusing on eight industry categories and a 6-factor fundamental model to select and weight 30 stocks. Onshoring efforts could revitalize US industrial capacity, but the process is complex, costly, and time-consuming.

It's early days into the earnings season, and FactSet data shows that results reported so far put the S&P 500 on track for its seventh consecutive quarter of growth. The S&P 500, however, is sitting at about a 10% loss year-to-date, struggling to find a lot of upside amid ongoing concerns about international trade.

It's been a rocky August so far for U.S. investors. They have been yet again reminded markets don't only move in one direction.

The pandemic was a wake-up call for many companies, highlighting the fragility of their supply chains. After the pandemic, nearshoring, or the act of moving business production closer to home to neighboring countries, has become an important disruptive theme.

Azltan is looking to capitalize on the trend of nearshoring with the launch of its latest fund on the New York Stock Exchange. The Aztlan North America Nearshoring Stock Selection ETF (NYSE Arca: NRSH) invests in North America-based stocks that directly benefit from the nearshoring phenomenon.