PureFunds adds 17 new companies to its ISE Big Data ETF

Apr 1st, 2016 | By | Category: Equities

The PureFunds ISE Big Data ETF (BIGD) has added 17 new companies to its portfolio following the latest reconstitution and rebalancing of its underlying index, the ISE Big Data Index. The move brings the number of holdings to 41, adding a significant degree of diversification to the exchange-traded fund.

PureFunds welcomes seventeen additions to PureFunds ISE Big Data ETF

Andrew Chanin, CEO of PureFunds.

The ETF is the only one of its kind to provide access to companies offering software and services for data analytics. According to PureFunds, Big Data is the value generated by mining and analyzing very large data sets, which have different degrees to reveal key insights, patterns, and trends.

“Businesses of all disciplines in a variety of industries are dependent on Big Data,” said Andrew Chanin, CEO of PureFunds. “Analysis of Big Data helps firms to improve operational and financial performance, understand marketing and sales efforts, and manage risk and compliance challenges, among other functions. Without properly analyzing the information available to them, companies could be compromising both their success and their ability to meet the demands of their customers.”

Companies can become eligible for inclusion in the index if they surpass the size requirement (a minimum market capitalization of $200m). Companies also fit the eligibility criteria if they are determined to be providers of ‘Big Data’ services according to the definitions provided by International Securities Exchange (ISE). The definition of ‘Big Data’ can vary widely depending on the data source, method of collection, analytical process and use of results, but ISE evaluates firms based on three metrics. These are: volume – big data sets are very large; variety – big data sets capture disparate types and categories of data; and velocity – big data sets rapidly generate and integrate new data into existing sets.

As the index is equal weighted at each rebalancing period, the expansion to 41 companies has reduced the target single firm exposure to 2.44%. Some of the new additions include Alliance Data Systems, Blackbaud, CoreLogic, The Rubicon Project, and TubeMogul.

The ISE Big Data Index was constructed by ISE ETF Ventures, a division of ISE, which supports PureFunds’ entire suite of emerging technology ETFs. These include funds targeting firms in the cyber security, mobile payments, drone technology, and video game technology industries.

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