Changed to Wedbush ETFMG Global Cloud Technology ETF (NYSE Arca: IVES), effective 04/07/2020
Factor Advisors, a subsidiary of ETF Managers Group, alongside PureFunds, ISE ETF Ventures, Reality Shares, and DRONELIFE, begun trading the PureFunds Drone Economy Strategy ETF (NYSE Arca: IFLY) on Wednesday, March 09, 2016.
Here is a synopsis of the new ETF:
|Symbol: IFLY||Exchange: NYSE Arca|
|Name: PureFunds Drone Economy Strategy ETF||Net Expense Ratio: 0.75%|
The PureFunds Drone Economy Strategy ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Reality Shares Drone Index.
The Reality Shares Drone Index tracks the performance of the equity securities (or corresponding American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs) of companies across the globe (including in emerging markets) and across a wide variety of industries that are actively involved in the development, research, or utilization of drones (the “Drone Economy” and such companies, “Drone Economy Companies”). The Drone Economy requires a variety of specialized skills, technologies, and resources, and consequently, Drone Economy Companies may include companies from industry groups as diverse as aerospace/defense, auto parts and equipment, commercial services, computers, electronics, machinery, manufacturing, semiconductors, and telecommunications.
The initial universe of Drone Economy Companies is determined based on proprietary research and analysis conducted by the Research and Advisory Committee of Reality Shares, Inc., the Fund’s Index Provider. The Index Provider uses a variety of independent, third-party resources for such analysis, including industry databases, regulatory agency public records, academic institution reports, and financial services applications and data sets to determine whether a company is actively involved in the Drone Economy (Drone Economy Drivers) and to acquire the information used to weight the Index constituents.
The Index Provider then uses an independent, third-party database to identify companies in the Drone Economy Drivers’ supply chains that derive more than 10% of their revenue from providing support services and supplies to Drone Economy Drivers (Drone Economy Suppliers).
The Index is comprised of both Drone Economy Drivers and Drone Economy Suppliers, each of which must have its equity securities listed on a securities exchange and have a minimum market capitalization of $100 million.
As of each rebalance date, the Index constituents are weighted based on a multi-factor composite “Drone Score” compiled and computed by the Index Provider. The Drone Score is calculated based on:
(i) the estimated dollar amount of a company’s revenue from the Drone Economy,
(ii) the estimated percentage of a company’s revenue derived from the Drone Economy,
(iii) whether a company is a Drone Economy Driver or Drone Economy Supplier, and
(iv) the expected growth of a company’s contributions to the overall revenue, research and development, and supplies/services of the Drone Economy.
The greater the company’s revenue from the Drone Economy (in dollars or as a percentage of total revenue) and the higher the expected growth rate of the company’s contribution to the Drone Economy, the greater the company’s weighting in the Index. Drone Economy Drivers will compose between 50% and 95% of the Index weight and Drone Economy Suppliers will compose between 5% and 50% of the Index weight as of each rebalance date.
The Index weightings are modified such that each constituent weighting is capped at 25% of the Index and the cumulative weight of the five most heavily-weighted constituents may not in the aggregate account for more than 60% of the weight of the Index. In addition, the weight of any individual company in the Index is limited such that the market value of the company’s equity securities in the Index (assuming the Index’s overall value is $1 billion) does not exceed 5% of the value of the company’s outstanding equity securities.
At the time of each rebalance, the Index will consist of a minimum of 20 component stocks. There is no maximum number of component stocks that may be included in the Index.
The Index has a semi-annual review in June and December of each year at which times the Index is reconstituted and rebalanced. Component changes are made after the market close on the third Friday of June and December and become effective at the market opening on the next trading day.
As of January 21, 2016, the Index had 44 constituents.
Fund Top 10 Holdings (03/09/16):
|AEROVIRONMENT INC (AVAV US)||12.39%|
|PARROT SA (PARRO FP)||9.10%|
|BOEING (BA US)||4.55%|
|GOPRO INC-CLASS A (GPRO US)||3.70%|
|L-3 COMMUNICATIONS HOLDINGS (LLL US)||3.24%|
|BAE SYSTEMS PLC (BA/LN)||3.11%|
|HONEYWELL INTERNATIONAL INC (HON US)||2.93%|
|DASSAULT AVIATION SA (AM FP)||2.90%|
|THALES SA (HO FP)||2.81%|
|ELBIT SYSTEMS LTD (ESLT IT)||2.63%|
Fund Country Weightings (03/09/16):
Fund Sub Industry Exposure (03/09/16):
IFLY Home Page
IFLY is the 4th addition to PureFunds’ suite of SelecTech ETFs, following first-to-market ETFs for cyber security, big data, and mobile payments technologies.
Here is a comment from Kian Salehizadeh, Analyst at Reality Shares:
“Drones have already demonstrated how they can reshape the work of some corporations and government entities. Insurers are using them to evaluate claims and property damage, agriculturalists can better address crop and land damages, and police departments have deployed drones to address criminal activity before it begins. New discoveries of drone use will continue as more organizations embrace the latest advances in technology.”