The ETF ecosystem welcomed more than 50 new launches in February according to ETF Database data. The February 2026 crop of funds, with inception dates between February 1 and 28, added to the burgeoning income and nuclear ETF segments, for example. With the ETF wrapper’s adaptability and ease of use, it offers a great deal of white space for innovation — so which funds should advisors take note of from February’s new ETF launches?
The VanEck Communication Services TruSector ETF (TRUC)
Major asset manager VanEck added to its stable of funds with the VanEck Communication Services TruSector ETF (TRUC). TRUC charges a 14 basis point (bps) fee to actively invest in communications services-related firms in media, telecommunications, and entertainment.
TRUC picks securities based on factors like operating performance, competitive positioning, scale, and more. Its managers lean on established market leaders therein, applying a framework that emphasizes leadership compared to simple market-cap weighting.
Active ETFs have risen in prominence in recent years thanks to the flexibility and focus on fundamentals they offer. In TRUC’s case, its exposure to recognizable names in communications provides an opportunity for its managers to find outperformance in a key segment. Especially as market volatility rises, the fund’s relatively low fee and adaptability could make it an intriguing building block for a broader U.S. equity portfolio.
The ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF)
ETFs also offer even more hyper-targeted exposures than a broad economic sector. The ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF), for example, provides exposure to the increasingly critical nuclear tech space. SMRF takes an active approach for a 65-bps fee, combining global nuclear supply chain exposure with a dash of AI equities and a call and put strategy for additional income.
Specifically, SMRF looks to provide both income and capital appreciation visits investments. It uses covered and naked call and put strategies, providing distributions while also offering price appreciation upside. It may carve out a particular niche thanks to its limited but not insignificant exposure to AI combined with nuclear stocks. The nuclear value chain overall may benefit from ravenous energy demand from those aforementioned AI names.
Together, that may make SMRF an intriguing offering to fill the satellite tech role in portfolios. The combination of two somewhat related but nonetheless hot areas, and some income, presents an appealing opportunity.
The NEOS Boosted Nasdaq-100 High Income ETF (XQQI)
February’s new ETF launches also saw new additions to one of the fastest growing ETF segments, income ETFs. The NEOS Boosted Nasdaq-100 High Income ETF (XQQI) charges a 98-bps fee to actively invest in stocks and options on the Nasdaq-100 index. Together, its managers aim to provide high income via tax-efficient securities.
It aims for monthly distributions via stock dividends and call option premiums. The fund’s managers use both synthetic and traditional covered call strategies to do so. It does end up limiting upside in the underlying Nasdaq-100 equities with some of those income strategies. Still, it joins as a competitive option in the important capital appreciation and income ETF space.
Together, these new ETF launches provide some useful options to add to investor portfolios. With their competitive fees and easy tradability, advisors can toggle between funds like these to act as building blocks towards a broader goal of delivering on investor goals.
Originally published on Advisor Perspectives
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VettaFi LLC (“VettaFi”) is the index provider for SMRF, for which it receives an index licensing fee. However, SMRF is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SMRF.