Tuttle Capital launches HBMX memory-stack ETF

Tuttle Capital launched the Tuttle Capital Concentrated Memory Stack ETF (HBMX) on Cboe on June 2. The actively managed ETF charges 95 basis points, targets roughly 20 to 35 companies and requires that at least 25% of a holding’s revenue come from memory-related activities.

HBMX seeks exposure to companies across the memory ecosystem, including development, manufacturing, packaging, testing and commercialization of memory technologies. The fund primarily invests in equities and related instruments and maintains a concentrated portfolio of about two dozen names. It permits holdings of any market capitalization or trading volume, allowing inclusion of smaller or less liquid firms that meet the revenue threshold.

A concurrent entrant in the market, the Roundhill Memory ETF (DRAM), applies stricter rules: a minimum of 50% of revenue from memory, a $10 billion minimum market capitalization and an average daily trading-volume floor of $5 million. DRAM held fewer than a dozen positions in early June and exceeded $14 billion in assets under management within two months of its launch.

Matthew Tuttle, chief executive officer and chief investment officer of Tuttle Capital Management, commented on the fund’s rationale: “The first is AI and what it is going to destroy,” adding that some software companies will be harmed while others may benefit. He also described capacity constraints as a factor: “The second is the bottleneck. For AI to reach its full potential it is going to encounter bottlenecks along the way, one such bottleneck is memory.”

Tuttle Capital says HBMX aims to capture gains from rising memory demand tied to AI and to reflect capacity constraints in parts of the technology chain. The fund’s fee of 95 basis points is above many passive ETFs and is within the range typical for actively managed, niche-sector funds.

Investors considering HBMX should note the fund’s concentrated sector exposure and specific risks, including cyclical demand for memory chips, supply-chain dynamics and changes in memory architectures. The allowance for any market-capitalization holdings may increase volatility compared with large-cap-only strategies.