This is just Rickshaw's underhanded way of promoting his "buy the index futures at cash close, sell at open" propaganda. It works great in a positive uptrending market, but terrible in a downtrending market, like all of 2022. Don't believe the hype.
i looked at their affiliated website nightetfs.com and they have 3 ETFs - NSPY, NIWM and NSPl. Then I looked at each of the ETF's underlying component. For all 3 ETFs all they have are a single futures contract, and handful of cash equivalents.
On top of that you are (in the US) paying short-term CG rates on your winnings. Doesn't really seem worthwhile.
They say they also use swaps, but who is on the other side of those swaps then ? They also had to do transaction to hedge their swaps. So the only viable tradable option to replicate the night effect is trading the futures which is also the most cost effective solution. And the market on close volume for futures is very limited except S&P Futures. But here (on SP500 Futures) you also cannot trade more than 40000 contracts or ca. $8 billion in value (for this overnight effect). Funny is also that they could not explain it better why the overnight anomaly exists.? I would expect more and better explanations here.
On any week without a holiday normal trading hours are only 19.34% of the week. Stock investors are simply checking infrequently to see what the value of their assets are. The people working hard to propel the growth in asset values work on a much wider range of hours. So it would be weird if half or more of the growth in asset values happened during 19.34% of the week. It's interesting how whatever domain people are working in they tend to think the universe should revolve around their own domain.
It's the cheapest most cost-effective way to lift the markets. Gap up on open equals free markup for exchange floor specialists. Can you imagine the amount of capital required to open each day exactly where it left off. The financial media always points to the stock indexes. The indexes are the benchmarks.