Roundhill Investments launched the latest of its “BIG ETFs” with the listing of the Roundhill BIG Tech ETF (BIGT). Trading today on the NASDAQ, BIGT seeks to provide investors with concentrated and cost-efficient exposure to the largest and most influential U.S. technology companies — Facebook, Amazon, Apple, Microsoft, and Google — known collectively as “FAAMG” stocks.
Rather than track a large, diversified basket of companies across the U.S. technology sector, BIGT offers a more targeted approach, focusing on the tech giants at the forefront of innovation throughout cloud computing, e-commerce, artificial intelligence, and more. The fund will use an equal weighting strategy, with quarterly rebalancing and annual reconstitution. BIGT carries an expense ratio of 0.29%.
“With all of the market uncertainty in 2023, investors are seeking safety in the FAAMG stocks, which are viewed as amongst the highest quality companies globally,” said Roundhill’s chief strategy officer Dave Mazza in a news release. “Until today, the only way to gain exposure to these tech giants was by purchasing all five stocks individually, or via diversified tech ETFs that include smaller and potentially less relevant stocks. Today’s launch of BIGT provides investors with a precision tool to trade FAAMG, and only FAAMG, in a single ETF.”
BIGT follows last month’s launch of the Roundhill BIG Bank ETF (BIGB), the first of Roundhill’s BIG ETFs. Roundhill plans to introduce additional BIG ETFs in the coming weeks, including the Roundhill Big Airlines ETF (BIGA) and the Roundhill Big Defense ETF (BIGD), which target the largest companies in airlines and defense, respectively.
Mazza added: “Investors recognize that the FAAMG companies are not only leaders in their respective technologies, but also the largest in terms of revenues, profits, and market capitalization. BIGT provides a unique opportunity for investors to gain focused exposure to these technology giants, which are shaping our digital landscape and driving growth across multiple industries.”
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