The Free Markets ETF is an actively managed fund that selects US-listed stocks expected to benefit when changes in the regulatory environment support free-market dynamics. Rather than mechanically tracking a particular index, it considers policy and industry-specific regulatory conditions together.

It suits investors who want to take a long-term view of how shifts in policy and the regulatory environment may affect corporate earnings and industry structure.

It is an ETF run with an active management approach by Tidal Investments.

The management team selects investments by weighing the likelihood of deregulation, the regulatory burden on each industry, and companies' adaptability and competitiveness. Beyond individual stocks, it can use other ETFs that fit the theme or commodity-related exposure, so its management structure differs from products that track a specific index.

• Uses the potential to benefit from regulatory changes as a selection criterion
• Actively reviews companies across multiple industries that fit the theme

Assets under management (AUM) stand at $10.0M, and the expense ratio is 0.76% per year.

The products in the peer comparison table use different approaches, such as factor rotation, theme rotation, innovation themes and small- and mid-cap exposure. Because the FMKT ETF centers on the selection criterion of benefiting from regulatory change, it is worth comparing not only returns and fees but also how well the investment theme fits you.

The performance trend of the FMKT ETF can be influenced by expectations of deregulation, policy direction and changes in profitability in the industries where its holdings operate. In areas where regulatory debate has a large impact, such as financial services and energy, share prices can become more volatile when market expectations shift, so it is more appropriate to check whether the investment thesis still holds than to focus on short-term moves.

Fund flows into thematic actively managed products can vary depending on how much weight the market places on policy change and on risk appetite. Unlike broad market indexes, the FMKT ETF uses the regulatory environment as a selection criterion, so when interpreting inflows and outflows, you should look not only at general equity market trends but also at industry-specific institutional changes and the durability of its selection criteria.

The clarity of its theme, selecting companies that benefit from regulatory change, is a strength, while volatility stemming from policy expectations and active management decisions is a factor to watch.

In the comparison table, the DYNF ETF promotes factor-rotation active management, while the THRO ETF takes an actively managed approach based on theme rotation. The ARKK ETF stands out for its focus on innovation themes, and the JMEE ETF and PSC ETF differ in how they use small- and mid-cap exposure. The FMKT ETF centers on thematic selection built around benefiting from regulatory change, so the basis for its investment decisions differs from these products.

Before investing, you should first consider whether the deregulation theme fits your investment horizon and risk tolerance. The FMKT ETF does not mechanically track the broad market as a whole, so you need to check its selection criteria and thematic concentration separately from general index products.

Changes in the regulatory environment can unfold differently than expected depending on policy debate, industry interests and economic conditions. The FMKT ETF reflects such changes through active management, but if that judgment proves wrong or volatility rises in the sectors it holds, its performance trend may differ from that of broad market indexes.

The Free Markets ETF takes the effects of easing regulatory burdens and market liberalization on corporate conditions as its investment theme. It can be a candidate for investors who favor the theme of benefiting from regulatory change over broad market exposure, and it calls for an approach that weighs costs, dependence on policy and the judgment risk of active management together.