The ETF provides exposure to segments that one wouldn’t initially think of, such as Visa 7.0%, Tencent Holdings 6.2%, Amazon.com 6.0%, Taiwan Semiconductor 6.0% and BP 4.2%, among others. KOIN also has a 12% overlap with the benchmark Nasdaq-100 Index. The fund includes exposure to many prominent companies that are dabbling with the blockchain technology in hopes of implementing the tech to make their businesses more efficient.
These are big companies “that have a war chest to follow through with their initiatives and test how the technology can be used,” Markiewicz said. “It could be a pure play one day, but not now.”
Next-Gen Vehicles
Additionally, Innovation Shares offers the Innovation Shares NextGen Vehicles & Technology ETF (NYSEArca: EKAR), which incorporates the firm’s AI driven methodology to build a diverse portfolio of equities with exposure to the theme of electric & autonomous vehicles.
EKAR tries to reflect the performance of the Innovation Labs Next Generation Vehicles Index, which is comprised of companies engaged in the development of “New Energy Vehicles,” such as vehicles propelled by one or more electric motors powered by rechargeable battery packs, or “Autonomously Driven Vehicles,” such as vehicles capable of driving themselves from a starting point to a predetermined destination in “autopilot” mode using various in-vehicle technologies and sensors, according to a prospectus sheet.
Related: An ETF Focusing on the Next Generation of Automobiles
The next-gen car ETF can also help investors diversify away from a home country bias as the portfolio includes a 60% tilt toward international names.
“The theme of electrification and autonomy is a global theme,” Markiewicz added.
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