SUBS Subscription Economy Report (August 22-September 2)

Industry updates from the Subscription Economy ETF (SUBS). 
Click here to access the full list of holdings. 

 

T-Mobile Subscribers to be Able to Connect to Starlink Satellites 
T-Mobile will partner with SpaceX satellites to expand the carrier’s coverage to the remote parts of the United States. Access to the constellation of SpaceX’s Starlink satellites will provide service to T-Mobile subscribers that are in areas with no cell towers. T-Mobile chief executive Mike Sievert said, “This partnership is the end of mobile dead zones. This is important for safety, it is important for contact with the people we love, and it is important for people in rural areas.” The carrier will begin using Starlink’s satellites by the end of next year, and the service is expected to be included in existing plans at no extra cost. [1]

 

T-Mobile Space X 

 

VMware Sees Growth in SaaS
Cloud computing company VMware has posted growth in overall revenue including in SaaS (software as a service) and subscription sales. A press release issued by VMware stated that the overall revenue for the second quarter was $3.34 billion which is up 6 percent year over year. Additionally, subscription and SaaS revenue for the quarter was up 22 percent year over year, reaching $943 million. In the last 12 months VMware has grown subscription and SaaS revenue by $176 million. [2]

 

VMware

 

T-Mobile Magenta Max Subscribers to Get Free Apple TV+
Customers of T-Mobile’s Magenta Max plan will now be able to get Apple TV+ for free. T-Mobile also offers the basic, standard tier of Netflix for all T-Mobile customers. Aside from Apple TV+ and Netflix, T-Mobile also offers its subscribers a free year of Paramount Plus, plus monthly discounts on YouTube TV and Philo TV. As most carriers offer 5G coverage or similar mobile data speeds, streaming bundles may help increase customers. [3]

 

T-Mobile

 

 

Learn how to invest in your future experiences with Fount ETFs
 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF (MTVR) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

MTVR may be an attractive vehicle for investors looking to invest in the metaverse.

For a full list of MTVR holdings, please click here.

 

The Fount Subscription Economy ETF (SUBS)

The Fount Subscription Economy ETF (SUBS) seeks to provide investment results that, before fees and expenses, generally correspond to the total return performance of the Fount Subscription Economy Index. The Index was designed to measure the performance of companies engaged in the business of providing subscription services, i.e., companies that sell products or services for recurring subscription revenue.

SUBS may invest in companies that offer subscription-based pricing models, including those in the technology hardware industry.

For a list of SUBS holdings, please click here.

 


1) Lopes, Marina. “T-Mobile partners with SpaceX in effort to end cellphone dead zones” The Washington Post, August 25, 2022
2) Johnson, O’Ryan. “VMware Growth In SaaS, Subscription Sales Lead Revenue Surge,” The Channel Co., August 26, 2022
3) Welch, Chris. “T-Mobile Magenta Max subscribers will now get free Apple TV Plus,” The Verge., August 29, 2022

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Inhee Lee

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

Risk Disclosure:

 

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.