Thematic specialist Defiance ETFs has introduced the Big Data ETF (BIGY US) on NYSE Arca, a new fund investing in companies that specialize in data science and analytics.

Sylvia Jablonski, co-Founder and Chief Investment Officer of Defiance ETFs.

“Big Data, big potential opportunity,” said Sylvia Jablonski, co-Founder and Chief Investment Officer of Defiance ETFs. “Data science is an emerging trend that has already taken hold. The race is on to extract actionable data from Big Data, thereby releasing business value and opening up previously unimagined capabilities. The companies at the heart of this process are at the heart of BIGY.”

Methodology

The fund is linked to the BlueStar Big Data & Analytics Index which selects its constituents from an initial universe of developed market stocks with market capitalizations greater than $500 million and average daily trading volumes above $3m.

The methodology screens for pure-play Big Data companies that derive at least 50% of their revenue from database management, data platforms, dev-ops, big data visualization software, or API management software.

Current constituents may see their share of revenue attributable to the Big Data theme fall as low as 25% before they are removed from the index.

The index is equally weighted while capping the cumulative weight of companies that derive between 25% and 50% of their revenue from the Big Data theme at 20%. Reconstitution and rebalancing occur semi-annually in June and September.

BIGY comes with an expense ratio of 0.45%.

The fund will compete with two similar ETFs – the Global X Artificial Intelligence & Technology ETF (AIQ US) and TrueShares Technology, AI & Deep Learning ETF (LRNZ US) – which both target firms that process and analyze large datasets using artificial intelligence. Each ETF comes with an expense ratio of 0.68%.