In a world where the go-to buzzword is “disruption,” one new ETF is doubling down on the established players.

Strategy Shares, in conjunction with Rareview Capital LLC, debuted the Monopoly ETF (BATS:MPLY) on May 16, a thematic fund focused on firms with deep market roots, or to use the parlance of the fund, “monopolistic attributes.”

Since its launch, the fund’s offering has been hit with a mix of curiosity and goal-oriented focus. Whereas most money is pursuing innovation, growth-at-all-costs, or the next breakout theme, MPLY pursues safety in dominance instead.

Its investment thesis relies on four characteristic attributes:
• Established brand dominance
• Regulatory exclusivity
• High entry barriers
• No direct competition or limited direct competition.

That is to say, businesses that don’t merely compete but effectively set the rules of the game.

Also Read: Palantir Among Key Picks As BlackRock Launches Active Defense Industrials ETF

Structure And Strategy

MPLY will have 75 to 125 holdings, diversified among sectors and sizes, with some degree of diversification despite focusing on monopolistic characteristics. Per the guidelines of the fund, the portfolio will not include regulated utilities, presumably a tip of the hat to the avoidance of price-control-subject sectors that may limit returns regardless of monopolistic market position.

A Defensive Play In A Volatile Market

Rareview Capital CIO Neil Azous highlighted the fund’s possible status as a “core solution” within equity portfolios.

“MPLY can be a core solution and a potential replacement for a portion of a portfolio's stock market exposure. The Fund seeks to capture market upside, but may act more defensive on the downside,” Azous said.

“The companies the fund invests in generally have sustainable competitive advantages, tangible barriers to entry, and defensive earnings streams. As a result, they typically have the potential to generate high returns on invested capital that may compound over long periods,” Azous added.

That means the type of reliability investors seek amid uncertainty in markets: high returns on capital, compounded over time.

Essentially, MPLY is not merely about market dominance, it’s about foresight in an increasingly story-oriented market. By focusing on long-term moats instead of short-term momentum, the fund offers a defensive growth approach that might appeal to institutional investors as well as individual investors hesitant to overexpose themselves to story stocks.

Beyond The Buzz

While the marketing of the fund emphasizes a compelling mix of defense and innovation, invoking “Monopoly” as a branding gimmick is interesting. The label brings to mind the classic board game, as well as a genuine economic entity, so exposed to regulators. Still, the managers are sensitive to delineate their holdings as companies with “monopolistic qualities,” but not as so-called monopolies, a semantic, but possibly regulatory, distinction.

The true test will come in the doing: whether MPLY can balance its audacious thesis with strong performance through market cycles. For now, it presents a sharp proposition, betting not on something trendy and new, but on something big that is already dominating the board.

Read Next:

• Nvidia, AMD And The AI Arms Race: 3 Explosive ETFs To Watch Right Now

Photo: Shutterstock