Hedgeye Asset Management Launches ADDS, an Active ETF Designed to Target Companies Before They Enter Major Indexes

New ETF seeks to systematically position ahead of expected forced buying from index funds when companies are added to major U.S. equity indices

STAMFORD, Conn., May 28, 2026 /PRNewswire/ -- Hedgeye Asset Management today announced the launch of the Hedgeye Index Adds ETF (NYSE: ADDS), an actively managed ETF seeking long-term capital appreciation by systematically positioning ahead of expected forced buying from index funds when new constituents are added to major U.S. equity indices.

ADDS is designed to provide investors with differentiated exposure to a market inefficiency rooted in index reconstitution. When companies are added to widely followed benchmarks such as the S&P 500, S&P 400, S&P 600 and Nasdaq 100, index funds and other benchmark-tracking vehicles are often required to purchase shares of those companies. ADDS seeks to identify these potential additions before they occur, then exit positions at the market-on-close on the day a company is added to its target index.

"ADDS reflects exactly what we're building at Hedgeye Asset Management: strategies that are disciplined, differentiated and rooted in repeatable process," said Keith McCullough, Founder and CEO of Hedgeye Asset Management. "This is not another generic equity product. It is a focused strategy designed to pursue a specific source of return that many investors either overlook or cannot access systematically."

The Fund is managed by Hedgeye Asset Management portfolio manager Brooks Cutright, whose 19-year career in index-event trading includes buy-side portfolio management roles at DRW and ExodusPoint, Head of ETF Trading, Americas, at Deutsche Bank plus risk portfolio trader at BofA Merrill Lynch.

ADDS uses proprietary machine learning models to generate probabilistic forecasts of companies likely to be added to the indices it tracks. The portfolio typically holds approximately 40 U.S. equities that either currently meet, or are expected to soon meet, the eligibility requirements of major U.S. equity indices.

By rule, ADDS never holds a current S&P 500 constituent. The Fund also maintains a 20% per-name cap, follows a monthly rebalance cycle and applies a disciplined liquidity profile.

"The opportunity we are targeting is simple to understand but difficult to execute well," said Brooks Cutright, portfolio manager of ADDS. "Index additions can create meaningful demand from passive vehicles. Our goal is to anticipate those events with discipline, size positions responsibly and exit when the flow catalyst is realized."

ADDS is designed to serve as a complement to a core equity allocation by pursuing a source of return rooted in flow timing rather than traditional security selection. The strategy reflects Hedgeye Asset Management's broader commitment to building actively managed investment solutions that combine research, process and risk management.

"We believe investors deserve access to strategies that are both intuitive and rigorously executed," McCullough added. "ADDS is built to do one thing, do it systematically and do it with the level of risk discipline investors should expect from Hedgeye."

For more information on HAM or ADDS please email [email protected] or visit our website https://hedgeyeam.com and HAM's official page on X: https://x.com/hedgeyeam.

About Hedgeye Asset Management

Hedgeye Asset Management is an investment management firm focused on delivering differentiated, actively managed strategies built on Hedgeye's research-driven investment process, risk management discipline and commitment to transparency.

Media Contact
Dan Holland
[email protected]

Index Definitions

S&P 500 Index: The S&P 500 is a stock market index that tracks the stock performance of 500 of the largest companies listed on stock exchanges in the United States.

S&P 400 / S&P 600 (MID / SML): S&P's MidCap and SmallCap indices. Companies migrating from the 400 into the 500 produce the cleanest pre-inclusion drift in the strategy's dataset.

NASDAQ-100 (NDX): Modified-market-cap-weighted index of 100 of the largest non-financial companies listed on Nasdaq.

Important Information

Before investing in the fund, the investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectus contains this and other important information about the fund. Copies of the fund's prospectus may be obtained by visiting https://www.hedgeyeam.com/adds or calling +1 (888) 711-8292. Read it carefully before investing.

Investing involves risks including the risk of principal loss. The Adviser is newly formed and has not previously managed an ETF. Accordingly, investors in the Fund bear the risk that the Adviser's inexperience may limit its effectiveness. 

Diversification neither ensures a profit nor guarantees against loss in a declining market.

The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

As an actively managed investment portfolio, the Fund is subject to the Adviser's investment decisions about individual securities impact on the Fund's ability to achieve its investment objective. There is no guarantee that the Adviser's investment strategy will meet it's investment objective or produce the desired results. Large cap companies may be less able than mid and small capitalization companies to adapt to changing market conditions. Investments in stocks of mid-capitalization companies may be subject to more abrupt or erratic market movements

The Fund's investment strategies may employ quantitative algorithms and models that rely heavily on the use of proprietary and non-proprietary data, Models may also have hidden biases or exposure to broad structural or sentiment shifts. There can be no assurance that use of a quantitative model will enable the Fund to achieve positive returns or outperform the market.

When the Fund uses derivatives, there may be imperfect correlation between the value of the underlying instrument and the derivative, which may prevent the Fund from achieving its investment objective.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.

Non-Diversification Risk. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in a particular issuer than a diversified fund. Non-diversification increases the risk that the value of the Fund could go down because of the poor performance of a single investment or limited number of investments.

In addition, the fund's principle risks include derivative risk, options risk, levering risk, counterparty risk, depositary receipts risk, securities lending risk, and short-term treasury and cash holding risk. For additional information about these and other fund risks, please refer to the "Principal Investment Risks" section of the prospectus.

The Distributor is Foreside Fund Services, LLC.

SOURCE Hedgeye Asset Management