Defiance ETFs plans small-cap disruptive technology funds

Nov 25th, 2018 | By | Category: Equities

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Defiance ETFs has filed registration documents with the US Securities and Exchange Commission (SEC) for the listing of seven ETFs targeting different sectors within the disruptive technology theme.

Matthew Bielski, CEO of Defiance ETFs

Matthew Bielski, CEO of Defiance ETFs.

In a first for the ETF industry, five of the new funds will be “junior” disruptive technology ETFs, providing investors with small-cap exposure within the targeted sector.

They will home in on the following disruptive technology industries: robotics, cybersecurity, cloud computing, artificial intelligence, and biotechnology.

Each fund will track an index created by BlueStar Indexes that includes stocks from around the world.

These indices will consist of firms with market capitalizations ranging from $100 million to $3 billion. They will either be equally weighted or employ a modified equal-weighted methodology.

These funds and their tickers are outlined below:

Defiance Junior Robotics ETF (JBOT US)
Defiance Junior Cyber Security ETF (JHAK US)
Defiance Junior Cloud Computing and Big Data ETF (JSKY US)
Defiance Junior Biotechnology ETF (JBIO US)
Defiance Junior Applied AI ETF (AIJR US)

“We are excited to expand our ETF offering with this junior suite,” said Matthew Bielski, CEO of Defiance ETFs. “We founded Defiance with the vision that more investors should be able to tap into the growth driving the truly disruptive technologies that will permanently change the way we live. For the first time, advisors will soon be able to build a full ETF model portfolio of disruptive technology sectors.”

In addition to its small-cap offerings, Defiance also filed for a 5G thematic fund with the goal of making it the first 5G ETF on the market.

The Defiance 5G Next Gen Connectivity ETF (FIVG US) will track a BlueStar index that includes four different categories of companies related to the 5G theme. Categories will be assigned fixed weights between 10% and 50%, and constituents within each category will be weighted by market cap.

“The technology behind 5G will bring faster speeds, less time-lag, more wireless coverage and will transform nearly every industry,” said Bielski. “We believe this fund offers a tremendous opportunity to invest in the future.”

Finally, the Defiance Encrypted Software Technologies ETF (ALTC US) will track an in-house index that provides exposure to companies developing blockchain technology and other related cryptography applications within three sub-sectors: digital assets, military communications, and e‑commerce cybersecurity. Components are equally weighted within the index with weights adjusted based on liquidity.

In August, Defiance ETFs launched its first fund, the Defiance Future Tech ETF (AUGR US), which aims to capture opportunities globally within the realm of augmented reality and virtual reality technology. AUGR was followed shortly thereafter by the Defiance Quantum ETF (QTUM US) in September which invests globally in companies that are developing and applying machine learning and quantum computing technology.

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