PureFunds expands thematic line-up with mobile payments and big data ETFs

Jul 17th, 2015 | By | Category: Equities

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PureFunds, a US-based provider of thematic exchange-traded funds, and index provider ISE ETF Ventures, have announced the launch of the PureFunds ISE Mobile Payments ETF (NYSE Arca: IPAY) and the PureFunds ISE Big Data ETF (NYSE Arca: BDAT). The two New York-listed ETFs offer targeted exposure to mobile payments and data companies, allowing investors to express views on the growth potential of these two specialist technology sectors.

PureFunds introduces technology based ETFs targeting mobile payments and big data

Andrew Chanin, CEO of PureFunds.

“These new ETFs will offer investors an opportunity for exposure to two industries shaping the future of technology,” said Andrew Chanin, CEO of PureFunds. “These two technology sectors are transforming traditional commerce and data management, and their solutions are bringing exciting changes to everything from how we pay for a cup of coffee to how we access and interpret vital information.”

Continuing on this theme, Kris Monaco, Head of ISE ETF Ventures, commented: “Companies at the forefront of electronic and mobile payments and big data are leaders in technological innovation and disruption, and these two indices will offer an insightful view into how these growing sectors continue to develop.”

The ETFs follow the launch of the hugely popular PureFunds ISE Cyber Security ETF (NYSE Arca: HACK), which has gathered more than $1bn in assets under management since its launch in November 2014.

“Similar to our creation of the first cyber security index, these are emerging sectors within technology that warrant the visibility and investment opportunity made possible through a standalone index,” noted Kris Monaco.

The mobile payments ETF is linked to the ISE Mobile Payments Index, in index which tracks companies at the forefront of the mobile, electronic, and digital payments industry. The ETF currently has 31 constituents of which the largest holdings are in Visa (6.2%), Mastercard (6.0%), and American Express (5.8%).

Consumer spending in the US is responsible for two-thirds of gross domestic product and electronic payments (e-payments) are used to complete 70% of these settlements. This equates to over $8tn in annual electronic transactions in the US alone.

Although the basic infrastructure for e-payments has been established for over a decade, recent advancements has allowed better accommodation of the global demands of this industry. The fund tracks a broad range of firms involved in the e-payments industry including card networks, infrastructure & software providers, processors and solutions companies.

The big data ETF is linked to the ISE Big Data Index, tracking companies that provide products and services that facilitate the creation, management and analysis of oversized data sets. The ETF has 32 constituents of which the largest holding is in New Relic (3.8%).

The growth of this industry has been necessitated by the need to store and manage a rapidly growing level of data output. According to a 2013 report by Norwegian independent research organisation SINTEF, 90 percent of all the data in the world has been generated over the last two years. The successful management of large data sets has historically provided breakthroughs in virtually every industry world-wide, from mapping the human genome to mapping the universe.

Both funds have a total expense ratio of 0.75%. Data as of 25 September 2015.

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