Boutique exchange traded fund provider, PureFunds, launched a different kind of technology-related ETF, one based based on financial services and another on medical devices industries.
On Wednesday, PureFunds rolled out the PureFunds Solactive FinTech ETF (NasdaqGM: FINQ) and the PureFunds ETFx HealthTech ETF (NasdaqGM: IMED). FINQ has a 0.68% expense ratio and IMED has a 0.75% expense ratio.
FINQ tracks global companies that offer tech-based solutions for financial firms to better cater customers and to efficient run their businesses.
“The fundamental purpose of the FinTech disruption is to ask how amassing data, user platforms and aggregating service providers can enhance financial services for the consumer,” according to PureFUnds. “Aiming to increase client options while achieving efficiency-based cost compression, FinTech challenges status-quo actors with innovative applications of technology.”
Specifically, FINQ will track tech services companies that principally derive revenue from the sale of financial-related information, financial data analysis services, financial services software tools or platforms or we-based financial services.
“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,” Andrew Chanin, CEO of PureFunds, said in a press release. “The rules- based index approach allows us to capture exposure to companies at the forefront of innovation in the financial industry.”
FINQ’s underlying Solactive FinTech Index includes exposure to financial companies, including 36.4% deposits & lending, 25.2% investment management, 16.1% general financial services, 13.0% market provisioning, 6.3% analytic and 3.0% payment solutions. Sub-industry holdings include 36.3% information technology services, 15.3% commercial services, 12.7% packaged software, 12.6% data processing, 9.8% financial publishing and 7.1% finance/rental/leasing.
The fund also includes international exposure, with a hefty 71.4% tilt toward U.S. companies, along with 7.1% Bermuda, 3.3% Jersey, 3.2% U.K., 3.2% Denmark and 3.1% Australia.
Additionally, IMED will track companies providing new solutions and technology to the health care and medical industries.
“IMED concentrates on three technology-driven facets of the expanding healthcare field, namely Healthcare Informatics, Medical Instruments and Medical Devices,” according to PureFunds. “Together, these market segments aim for a more informed, technology-focused standard of care, coupling improved patient outcomes with service cost compression.”
The healthtech ETF’s components are engaged in healthcare informatics, medical instruments and medical appliances. The fund may provide exposure to an innovative market that is in its nascent stages of growth.
“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,” Chanin said. “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’s sub-industry exposure include 36.6% medical devices, 28.3% medical instruments, 13.0% health information and 11.0% diagnostics & research.
The ETF also includes a large international weight, with 9.5% Japan, 5.0% Germany, 4.2% U.K., 3.7% Ireland, 3.5% Sweden, along with 55.4% U.S.
For more information on new fund products, visit our new ETFs category.