ETF Managers Group in partnership with PureFunds today debuted, begun trading two new ETFs, the PureFunds Solactive FinTech ETF (Nasdaq: FINQ) and the PureFunds ETFx HealthTech ETF (Nasdaq: IMED) on Wednesday, August 31, 2016.
Here is a synopsis of the new ETFs:
FINQ Closed 07/31/2017
|Symbol: FINQ||Exchange: NASDAQ|
|Name: PureFunds Solactive FinTech ETF||Net Expense Ratio: 0.68%|
The PureFunds Solactive FinTech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive FinTech Index.
The Solactive FinTech Index tracks the performance of the exchange-listed common stock (or corresponding American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs) of companies across the globe at the intersection of finance and technology that are principally engaged in the development or use of software solutions to create or deliver financial services products and services (FinTech Companies).
FinTech Companies are typically technology services companies that principally derive revenue from the sale of financial-related information, financial data analysis services, financial services software tools or platforms, or web-based financial services. The initial universe of FinTech Companies is determined based on proprietary research and analysis conducted by Solactive AG (Index Provider). Solactive uses a variety of publicly available resources for such analysis, including financial statements and other reports published by issuers to identify companies in the professional services or software and services industry groups that are FinTech Companies. FinTech Companies are then screened for investibility (e.g., must not be listed on an exchange in a country which employs certain restrictions on foreign capital investment), a minimum market capitalization of $200 million, and liquidity. Each remaining FinTech Company is equally weighted at the time of each reconstitution of the Index. As of August 16, 2016, the Index had 33 constituents, 10 of which were foreign companies.
The Index has a quarterly review in March, June, September, and December of each year at which time the Index is reconstituted and rebalanced by Solactive. Component changes are made after the market close on the third Friday of March, June, September, and December and become effective at the market opening on the next trading day. Changes are announced on the Index Provider’s publicly available website prior to their effective date.
The Index is owned, calculated, and maintained by Solactive. Solactive is independent of the Fund and the Fund’s investment adviser.
Fund Top Holdings (08/30/16):
|SQUARE INC – A||3.99%|
|ON DECK CAPITAL INC||3.70%|
|FAIR ISAAC CORP||3.47%|
|IHS MARKIT LTD||3.42%|
|BLACK KNIGHT FINANCIAL SERVICES INC||3.41%|
|ELLIE MAE INC||3.38%|
|SS&C TECHNOLOGIES HOLDINGS INC||3.36%|
FINQ Home Page
|Symbol: IMED||Exchange: NASDAQ|
|Name: PureFunds ETFx HealthTech ETF||Net Expense Ratio: 0.75%|
The PureFunds ETFx HealthTech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and
yield performance of the ETFx HealthTech Index.
The ETFx HealthTech Index tracks the performance of the exchange-listed common stock (or corresponding American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs) of companies across the globe at the intersection of technology and the allocation, delivery, and management of healthcare services and products (HealthTech). Specifically, the Index tracks the performance of companies (HealthTech Companies) principally engaged in one of the following HealthTech sectors:
• Healthcare Informatics – companies that are principally engaged in providing information technology services to health care providers and facilitating such providers’ interactions with their patients/consumers. Healthcare Informatics includes the provision of application, systems and/or data processing software, advanced visualization software, internet-based tools, and information technology consulting services to doctors, hospitals, or businesses operating primarily in the health care field.
• Medical Instruments – companies that are principally engaged in the design and sale of instruments that assist medical providers with medical procedures and treatments, as well as with patient care and recovery. Examples of such instruments include bio-surgery products, vaccines, products for blood collection, and processing and storage products and technologies for transfusion therapies.
• Medical Appliances – companies that are principally engaged in the development and sales of devices used in the treatment of certain medical conditions. Examples of such devices include implantable biomedical devices such as defibrillators and pacemakers, spinal implant devices, and drug delivery systems.
The initial universe of HealthTech Companies is identified by ETFx Investment Partners, LLC (ETFxIP – Index Provider) based on screening companies in the Healthcare sector for investibility (e.g., must not be listed on an exchange in a country which employs certain restrictions on foreign capital investment), a minimum market capitalization of $500 million, and liquidity. ETFxIP then screens the remaining companies using a variety of publicly available resources, including financial statements and other reports published by issuers, to determine whether a company is principally engaged in one of the above HealthTech Sectors.
The Index is reconstituted (i.e., HealthTech Companies may be added or removed from the Index according to its rules) semi-annually in each March and September and rebalanced (i.e., Sector and company weights are reset according to the Index rules) quarterly in each March, June, September, and December.
Exposure to each Sector at the time of each rebalance is weighted based on ETFxIP’s proprietary fundamental analysis of each Sector. Within each Sector, each HealthTech Company is equally weighted at the time of each rebalance of the Index, provided that, at the time of each rebalance, no single stock may represent more than 20% of the weight of the Index and the cumulative weight of all stocks with an individual weight of 5% or greater may not exceed 50% of the weight of the Index. Component changes are made after the market close on the next-to-last business day of each March, June, September, and December and become effective at the market opening on the next trading day. Changes are generally announced to Index licensees at least three trading days prior to their effective date.
The Index is calculated and maintained by Solactive AG (Index Calculation Agent). Solactive is independent of the Fund and the Fund’s investment adviser.
As of June 30, 2016, the Index had 60 constituents, 22 of which were foreign companies, and the weightings for each Sector were as follows: Medical Instruments (44.5%); Medical Appliances (39.0%); and Healthcare Informatics (16.5%).
Fund Top Holdings (08/30/16):
|MERIT MEDICAL SYSTEMS INC||2.59%|
|ICU MEDICAL INC||2.39%|
|BECTON DICKINSON AND CO||2.25%|
Index Top Country Weightings (08/30/16):
Index Category Exposure (08/30/16):
IMED Home Page
Here is a comment from Andrew Chanin, CEO of PureFunds:
“Financial technology is a rapidly growing subsector of the overall financial services industry, and FINQ seeks to tap into the potential investment opportunity created by these disruptive, forward- thinking companies. FINQ allows investors to invest in this fast-growing segment of the industry without having to select individual companies. The rules- based index approach allows us to capture exposure to companies at the forefront of innovation in the financial industry.”
“IMED’s key differentiator is an investment thesis around the premise that companies successfully practicing interdisciplinary convergence may lead in their respective markets. We believe that we are in the early phases of the era of convergence in the broader healthcare technology segment and on the cusp of transformative solutions coming to market. As an example, the next phases of healthcare informatics will leverage areas as diverse as nanotechnologies, advanced sensors, predictive big data analytics, cloud computing and virtual reality to bring about yet another paradigm shift to cut costs and boost operational efficiencies. IMED is intended to serve as a vehicle for investors to gain exposure to this highly innovative, technology driven slice of the broader healthcare sector.”