The "no commercial purpose" restriction is going to create a lot of regulatory push-back on any ETF marketed that way. Part of me thinks a sufficiently motivated group could mount a legal attack on that rule, but that would be expensive unless you got some public interest group on your side.
Since the STOCK Act was passed, the alpha in these trades has basically evaporated [1]. I think if you looked carefully, you could find some alpha in the industry tilts, as trades in sector ETFs attract far less scrutiny and laws have a tendency to affect industries as a whole. I haven't checked myself.
The "no commercial purpose" restriction is going to create a lot of regulatory push-back on any ETF marketed that way. Part of me thinks a sufficiently motivated group could mount a legal attack on that rule, but that would be expensive unless you got some public interest group on your side.
Since the STOCK Act was passed, the alpha in these trades has basically evaporated [1]. I think if you looked carefully, you could find some alpha in the industry tilts, as trades in sector ETFs attract far less scrutiny and laws have a tendency to affect industries as a whole. I haven't checked myself.
[1] https://onlinelibrary.wiley.com/doi/10.1111/fire.12180