- Economist Nouriel Roubini has entered the ETF arena with the Atlas America Fund for stable, low-risk returns.
- The new ETF will invest in a mix of US bonds, real estate, equities and gold to minimise market correlation and increase financial stability.
OUR TAKE
Nouriel Roubini, often called “Dr. Doom” because he predicted the 2008 financial crisis, is now jumping into the ETF game with his new Atlas America Fund. He’s one of the fund’s managers, and they’re aiming to keep it pretty stable and low-risk. They’re investing in a bunch of stuff—US bonds, real estate, stocks, and even gold. Right now, the markets are pretty wild, and Roubini is using his know-how to try and keep things on an even keel. He’s designed this ETF to shield investors from big economic troubles like crazy inflation, environmental disasters, and social unrest. It’s a good pick for folks who want to play it safe but still hope to grow their money.
—Heidi Luo, BTW reporter
What happened
Economist Nouriel Roubini has launched the Atlas America Fund, marking his entry into the rapidly expanding ETF market. Known for his prescient warnings ahead of the 2008 financial crisis, Roubini aims to bring his expertise in economic forecasting to the ETF industry.
The fund will be actively managed by Roubini and two other portfolio managers, with a focus on generating stable returns with low volatility, according to a recent filing with the US Securities and Exchange Commission.
The Atlas America Fund plans to diversify its investments across a range of assets, including US government, corporate and municipal bonds, real estate, equities and gold. This strategy is designed to limit correlation with broader equity markets and provide protection during periods of financial market stress.
“ETFs are becoming an increasingly central part of asset management, attracting a wide range of market participants looking to expand their investor base and increase their revenues,” says Todd Sohn, ETF strategist at Strategas.
However, he warns that success in the ETF market is not automatic, but must be earned through effective strategy and management.
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Why it’s important
Nouriel Roubini, head of Roubini Macro Associates, is a professor of economics at NYU and the bestselling author of MegaThreats. He joins a growing list of respected economists and investors, such as Tom Lee of Fundstrat and Katie Stockton of Fairlead, who have launched their own ETFs.
He has also been vocal on financial policy, recently accusing the US Treasury of manipulating debt issuance to artificially lower borrowing costs, a claim strongly denied by US Treasury Secretary Janet Yellen.
In addition to his role at Roubini Macro Associates, Roubini co-founded the Atlas Capital Team, where he develops investment strategies designed to mitigate the risks of serious economic threats such as rampant inflation, climate change and social unrest.
Atlas Capital Team’s leadership includes seasoned professionals from prestigious institutions such as the International Monetary Fund, the World Bank, Goldman Sachs, Binance and BlackRock, demonstrating the depth of expertise that guides the firm’s strategic direction.
