A new exchange-traded fund (ETF) has entered the financial market, distinguishing itself by seeking out instability rather than shying away from it. This fund, a collaboration between Emerald Advisers and F/m Investments, is designed to identify and profit from companies experiencing significant transitions, offering a novel approach to investment in an era dominated by passive strategies.
Disruptive Investment Strategy: The F/m Emerald Special Situations ETF (SPIT)
In a bold move that challenges conventional investment wisdom, Emerald Advisers, in partnership with F/m Investments, has introduced the F/m Emerald Special Situations ETF, trading under the ticker SPIT. Launched on October 14, 2025, this fund is explicitly benchmark-insensitive, meaning it does not follow the performance of major indices like the S&P 500. Instead, SPIT focuses on companies undergoing significant and often turbulent transformations, such as leadership overhauls, major business shifts, regulatory changes, or mergers and acquisitions. These are the very situations that typically make Wall Street investors uneasy but can present lucrative opportunities for those willing to embrace idiosyncratic risks.
David Volpe, President and Portfolio Manager at Emerald Advisers, emphasized that SPIT is tailored for investors seeking unique opportunities that are not tethered to overcrowded strategies or heavily concentrated mega-cap holdings. This philosophy stems from Emerald’s three decades of experience in uncovering overlooked growth stories, supported by an impressive track record of approximately 2,000 company interactions annually. Stephen Amsterdam, another portfolio manager and senior research analyst at Emerald Advisers, metaphorically described SPIT as a “gas pedal” within an investment portfolio, providing true diversification beyond standard holdings.
The timing of SPIT’s debut is particularly noteworthy, coinciding with a period of what some market observers call “passive exhaustion.” With passive ETFs experiencing record inflows and market concentration risks reaching multi-decade highs, active managers are increasingly advocating for genuine diversification. SPIT represents the second joint venture between Emerald Advisers and F/m Investments, following the successful F/m Emerald Life Sciences Innovation ETF (LFSC) launched the previous year. While many ETFs tend to follow the prevailing market trends, SPIT is positioned to chart its own course, aiming to capitalize on disruption and forge a unique path in the investment landscape.
This innovative ETF offers a compelling perspective on how investors can navigate volatile markets. By actively seeking out companies in flux, SPIT encourages a shift from stability-seeking to opportunity-finding. It underscores the idea that significant value can be unlocked in situations where others perceive only risk, promoting a more dynamic and less conventional approach to portfolio management. The success of SPIT could signal a growing appetite among investors for differentiated strategies that challenge the status quo and provide genuine diversification benefits.