‘FIRE’ ETFs Catering to Retire-Early Strivers Make Their Debut

A typical person thinks they need $1.5 million to retire — about 17 times more than the $88,400 savers set aside on average — one study showed.

And some ETF experts are skeptical given the mixed performance of thematic strategies. Investment approaches based on acronyms tend to have poor track records on delivering returns for investors, according to Ben Johnson, head of client solutions at Morningstar.

“The connection between these funds’ investment strategies and the FIRE acronym seems to be more a marketing tactic than a fundamental input into their investment processes,” he said. “The Wealth Builder fund appears to be a rebranded riff on risk parity.”

FIRS would be a fund of funds, holding other ETFs that target four categories: prosperity with a focus on stocks, recession with a bent toward gold assets, inflation concentrating on short-term Treasurys and also deflation targeting bonds, according to a filing.

Johnson was also skeptical of the FIRI product, an actively managed fund that targets a 4% yield. That, Johnson said, may be “a really risky strategy in an environment where interest rates or dividend yields on quality assets trend below its target payout rate.”

Tidal’s Venuto defended the products saying “our intent is to give people options, alternatives and to professionally manage it.”

Another feature may also appeal to investors: Tidal is not charging a fee for either product.

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