Tortoise launches two digital infrastructure ETFs

Feb 8th, 2019 | By | Category: Equities

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Tortoise Index Solutions has launched two new ETFs in the US which provide exposure to digital infrastructure firms within the cloud computing and digital payments industries.

Matt Weglarz, Portfolio Manager of Passive Investment Strategies at Tortoise.

Matt Weglarz, Portfolio Manager of Passive Investment Strategies at Tortoise.

The funds, listed on Cboe BZX, are the Tortoise Cloud Infrastructure Fund (TCLD US) and Tortoise Digital Payments Infrastructure Fund (TPAY US). Each comes with an expense ratio of 0.40%.

“Digital infrastructure is essential to our everyday lives,” said Matt Weglarz, Portfolio Manager of Passive Investment Strategies at Tortoise. “As the world economy becomes increasingly reliant on instant mobile payments and flexible, efficient, and lower-cost technology, we believe these two products offer investors access to participate in this potential growth.”

Cloud computing

The Tortoise Cloud Infrastructure Fund is linked to the proprietary Tortoise Global Cloud Infrastructure Index which covers developed market stocks with market capitalizations greater than $400 million.

To be eligible for inclusion, a company must have at least 50% of its gross revenues, operating income, EBITDA, or assets related to the cloud infrastructure industry. Relevant companies include those with operations in cloud systems and services, cloud management software, cloud hosting, cloud security, cloud hardware, and cloud data centers.

Companies are also eligible for inclusion if their revenue is in the top ten globally amongst cloud infrastructure industry peers. Constituents are weighted by float-adjusted market capitalization subject to a cap of 4.5%.

Digital payments

The Tortoise Digital Payments Infrastructure Fund tracks the Tortoise Global Digital Payments Infrastructure Index.

Starting from the same universe of developed market stocks, the index selects firms with at least 50% of its gross revenues, operating income, EBITDA, or assets related to the digital payments industry.

This includes companies with business operations in credit card networks, electronic transaction processing and associated products/services, credit card issuers, payments Fintech, and online financial services marketplaces.

Eligible stocks are also weighted by float-adjusted market capitalization subject to a cap of 4.5%.

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