Under the Hood of MRAD: SmartETFs’ Advertising & Marketing Technology ETF

Empowered by social networks and digital devices, consumers are increasingly dictating how they engage with brands, demanding innovation in how companies engage with consumers. 

The SmartETFs Advertising & Marketing Technology ETF (MRAD) is a great offering for investors looking to add exposure to the technologies disrupting the advertising and marketing industries.

MRAD is actively managed to provide exposure to companies globally that provide support or enable advancements in advertising and marketing technology, according to ETF Database.

MRAD consists of a narrow basket of stocks, typically holding 30 securities on an equal-weighted basis, that are considered best-positioned to benefit from the development, production, or distribution of programmatic, targeted, and data-driven advertising and marketing activities.

Advertising includes digital, print, broadcast, and out-of-home media (content sent to consumers when they are out of their home). Also included are the platforms in which ad content is delivered, such as social media or streaming services, according to ETF Database.

Marketing technology includes companies that target increasing marketing efficiency, customer tracking or personalization, data security or authentication. 

The fund has an expense ratio of 68 basis points. 

This strategy tends to hold smaller, growthier companies than its average peer in the Communications Morningstar Category. 

MRAD tilts toward stocks with high trading volumes, which are easier to trade during market downturns, as well as in favor of high-quality stocks — those that have demonstrated low financial leverage and solid return on equity, according to Morningstar. 

This orientation contributes to helping MRAD weather periods of economic stress better than its category peers, according to Morningstar. 

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