Roundhill Streaming Services & Technology ETF
SUMMARY & ANALYSIS
- SUBZ invests in companies that stream video or audio over internet. The universe of stocks SUBZ is allowed to invest in is large, covering global small, mid, and large cap names.
- This is a timely launch given the year-long COVID confinements have permanently altered people's entertainment consumption habits globally, with on-demand and at-home content the obvious choice of channel.
- The expense ratio of 0.75% is a little on the high side for what is essentially an all-world equities strategy. However, there are no pure play competitors at the moment, except tangentially ARKW which has a higher expense ratio of 0.79%. Alpha Architect did file for a streaming & gaming ETF last week, but it won't be effective for the next 3 months and thus giving SUBZ a great head start.
Ticker: SUBZ
Exchange: Cboe BZX
Expense ratio: 0.75%
Original filing date: November 20, 2020
Effective date: February 3, 2021
Listing Date: February 10, 2021
CUSIP: 53656F441
Active: Yes
Index: Not applicable.
Investment Objective: Capital growth.
Investment Strategy: Investing in companies that develop, manufacture, distribute, or sell products or services related to the delivery of data or media content (audio and video) over the internet.
Constituents: Global small, mid, and large cap companies.
Adviser: Roundhill Financial Inc.
Sub-Adviser: Exchange Traded Concepts, LLC
Prospectus is here.
Principal Investment Strategy
The Fund is an actively-managed exchange-traded fund (“ETF”) that pursues its investment objective by investing in companies that develop, manufacture, distribute, or sell products or services related to the delivery of data or media content (audio and video) over the internet (“Streaming Companies”). Streaming Companies reflect the modern integration of traditional technology, telecommunications, media, and internet businesses through activities including:
•offering video, audio, and gaming services that are communicated by a provider to an end user over the internet.
•operating a website or application which primarily derives revenue from streaming multi-media such as audio, video, video games, sporting events, health and wellness, and live content involving a streamer or group of streamers broadcasting content.
•providing the technology, infrastructure, and/or platform for businesses to engage in streaming over the internet (such as content delivery networks).
•providing streaming analytics and market research to end users and companies engaged in streaming activities.
•manufacturing equipment and peripherals such as audio equipment, keyboards, headsets, cameras, virtual reality headsets, and other devices which have applications in live streaming.
Roundhill Financial Inc. (the “Adviser”), the investment adviser to the Fund, uses qualitative and quantitative factors to identify a universe of Streaming Companies by determining a company’s thematic relevance to streaming. Based on this analysis, the Adviser selects and assigns weightings to each Streaming Company selected for the Fund with the intent to create a portfolio that reflects companies that contribute a variety of streaming-related products and services (e.g., companies that produce the equipment needed for streaming and companies that utilize such equipment).
The Fund’s portfolio is expected to consist of equity securities of U.S. and foreign issuers of any market capitalization, which may include common stocks and depositary receipts representing interests in foreign securities (from both developed and emerging market countries). The Fund may also invest in Streaming Companies that have recently made an initial public offering (“IPO”) and special purpose acquisition companies (“SPACs”) that have announced their intention to merge with or acquire a Streaming Company. The Fund may invest in small-, mid-, and large-capitalization companies.
Under normal circumstances, at least 80% of the Fund’s net assets, plus borrowings for investment purposes, will be invested in Streaming Companies that receive a majority of their revenue or profits from, or invest a majority of their assets in, operations in the communication services and/or technology sectors.
The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).
No comments:
Post a Comment