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.