Guinness Atkinson Asset Management has introduced an actively managed thematic ETF targeting companies shaping the future of advertising and marketing.
The SmartETFs Advertising & Marketing Technology ETF (MRAD US) has listed on NYSE Arca and comes with an expense ratio of 0.68%.
The fund invests in companies from developed and emerging markets that are disrupting traditional advertising and marketing industries by using technology to target consumers with greater efficiency.
Eligible firms include those that derive at least 50% of their revenue from, or dedicate at least 50% of their assets to, the development, production, adoption, or deployment of advertising technology (AdTech) and marketing technology (MarTech) products or services.
Examples of ADTech and MarTech technologies include programmatic advertising, targeted digital advertising, consumer data and targeting, customer relationship management, and marketing automation.
Typical holdings for the ETF will cover firms that operate ad placement platforms, customer relations management platforms, advertising agencies, and web-based marketing or email services.
According to Guinness Atkinson, companies deploying AdTech and MarTech are typically disruptors that are likely to gain a market advantage which allows them to grow rapidly and achieve higher profit margins. This profile offers an opportunity to growth-oriented investors.
The ETF is designed as a low-turnover strategy. At launch, it consists of 30 stocks, equally weighted, including names such as Alphabet, Facebook, Tencent Holdings, Adobe, salesforce.com, Accenture, Baidu, Roku, ZoomInfo Technologies, and New York Times.
The fund is Guinness Atkinson’s third actively managed thematic ETF. Its first two target companies shaping the future of transportation and facilitating the transition to sustainable energy.