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Why Invest in SUBS?
The general consumption of products and services has adjusted to emphasize subscriptions over ownership. Subscribed Institute found in 2020, that 78% of international adults utilized subscription services in their lives. Additionally, more businesses are adopting subscription-based models as they realize consumer preferences are shifting towards recurring billing rather than outright sales of products and services. The subscription economy is expected to intensify in the future due to its convenience, discounted costs, and access to the latest and greatest upgrades. SUBS includes around 50 companies that are positioned to make the most of the new subscription-based model. SUBS may be an answer for those searching how to invest in subscription services.
- Fund Summary Fund Summary Fund Summary 1
- Fund Details Fund Details Fund Details 2
- Top Holdings Top Holdings Top Holdings 3
- Fund NAV and Market Price Fund NAV and Market Price Fund NAV and Market Price 4
- Fund Performance Fund Performance Fund Performance 5
- Distributions Distributions Distributions 6
- Premium/Discount Premium/Discount Premium/Discount 7
- Fund Materials Fund Materials Fund Materials 8
Fund Summary
The Fount Subscription Economy ETF, or SUBS, has the potential to provide investors exposure to the subscription economy and subscription service stocks. SUBS follows an index that is designed to measure the performance of companies that not only supply subscription services to consumers but also have significant growth potential. This subscription service ETF currently tracks 50 companies that sell products or services for recurring subscription revenue. SUBS holds companies that offer subscriptions for digital content, news, software, and other beneficial good and services.
The Fount Subscription Economy ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Subscription Index. The index utilizes the following processes to select stocks for inclusion:
- Using standard industry classification systems and keywords, the index which underlies the fund identifies sectors of the economy that are likely to offer subscription services.
- The index forecasts the 1 year forward revenue from subscription services by using a proprietary artificial intelligence algorithm.
- Only companies that are expected to derive more than 50% of their revenues from subscription service-related services or products are included in the index.
- Additional size and liquidity constraints are applied to ensure liquidity and tradability.
- The index employs a modified market capitalization by metaverse-related revenue.
- The top 50 securities by modified market cap are selected for inclusion in the index, and weighted by the market cap.
- The index is rebalanced annually.
Fund Details
Data as of 03/27/2023
| Subject | Description |
|---|---|
| Ticker | SUBS |
| CUSIP | 301505582 |
| Exchange | NYSE Arca |
| Inception Date | 27-Oct-21 |
| Expense Ratio | 0.70% |
| AUM | $2,707,822 |
| Shares | 150,000 |
| Holdings | 49 |
| Subject | Description |
|---|---|
| Advisor | Exchange Traded Concepts |
| Administrator | SEI Investments Global Fund |
| Distributor | SEI Investments Distribution |
| Benchmark | Fount Subs Economy Index |
| Index Calculator | Moorgate Benchmarks |
| Index Provider | Fount Investment Co., Ltd. |
| Rebalance | Annual |
| Subject | Description |
|---|---|
| Ticker | SUBS |
| CUSIP | 301505582 |
| Exchange | NYSE Arca |
| Inception Date | 27-Oct-21 |
| Expense Ratio | 0.70% |
| AUM | $2,707,822 |
| Shares | 150,000 |
| Holdings | 49 |
| Advisor | Exchange Traded Concepts |
| Administrator | SEI Investments Global Fund |
| Distributor | SEI Investments Distribution |
| Benchmark | Fount Subs Economy Index |
| Index Calculator | Moorgate Benchmarks |
| Index Provider | Fount Investment Co., Ltd. |
| Rebalance | Annual |
Top Holdings
Data as of 03/28/2023
| Name | Ticker | FIGI | Shares | Market Value | % |
|---|---|---|---|---|---|
| MICROSOFT CORP | MSFT | BBG000BPH459 | 1,043 | $$287,065 | 10.62% |
| ALPHABET INC-CL A | GOOGL | BBG009S39JX6 | 1,130 | $$114,164 | 4.22% |
| META PLATFORMS INC | META | BBG000MM2P62 | 508 | $$101,945 | 3.77% |
| NETFLIX INC | NFLX | BBG000CL9VN6 | 254 | $$82,174 | 3.04% |
| TENCENT HOLDINGS LTD | 700 HK | BBG000BJ35F4 | 1,700 | $$81,905 | 3.03% |
| ORACLE CORP | ORCL | BBG000BQLTW7 | 871 | $$78,259 | 2.90% |
| SALESFORCE, INC. | CRM | BBG000BN2DC2 | 373 | $$71,728 | 2.65% |
| AMAZON COM ORD | AMZN | BBG000BVPV84 | 725 | $$70,499 | 2.61% |
| T MOBILE US ORD | TMUS | BBG000NDV1D4 | 457 | $$65,255 | 2.41% |
| ADOBE ORD | ADBE | BBG000BB5006 | 156 | $$58,250 | 2.15% |
| CADENCE DESIGN SYSTEMS ORD | CDNS | BBG000C13CD9 | 286 | $$58,138 | 2.15% |
| THOMSON REUTERS ORD | TRI CN | BBG000BFK1R9 | 452 | $$57,704 | 2.13% |
| INTUIT COM | INTU | BBG000BH5DV1 | 131 | $$54,932 | 2.03% |
| S&P GLOBAL ORD | SPGI | BBG000BP1Q11 | 156 | $$52,124 | 1.93% |
| SYNOPSYS ORD | SNPS | BBG000BSFRF3 | 141 | $$52,152 | 1.93% |
| AT&T ORD | T | BBG000BSJK37 | 2,766 | $$51,780 | 1.92% |
| RELX ORD | REL LN | BBG000D03WR1 | 1,594 | $$50,481 | 1.87% |
| ACTIVISION BLIZZARD INC | ATVI | BBG000CVWGS6 | 597 | $$50,357 | 1.86% |
| BLACKROCK ORD | BLK | BBG000C2PW58 | 78 | $$50,407 | 1.86% |
| VERIZON COMMUNICATIONS ORD | VZ | BBG000HS77T5 | 1,314 | $$49,932 | 1.85% |
| MARSH & MCLENNAN ORD | MMC | BBG000BP4MH0 | 307 | $$49,826 | 1.84% |
| AUTOMATIC DATA PROCESSING ORD | ADP | BBG000JG0547 | 228 | $$48,826 | 1.81% |
| COMCAST CORP-CLASS A | CMCSA | BBG000BFT2L4 | 1,287 | $$46,911 | 1.74% |
| SERVICENOW INC | NOW | BBG000M1R011 | 109 | $$46,770 | 1.73% |
| SNOWFLAKE CL A ORD | SNOW | BBG007DHGNJ4 | 343 | $$46,240 | 1.71% |
| UBS GROUP N ORD | UBSG SW | BBG007936GV2 | 2,398 | $$46,192 | 1.71% |
| BAIDU INC-CLASS A | 9888 HK | BBG000Q1VPS8 | 2,350 | $$45,564 | 1.69% |
| SOFTBANK ORD | 9434 JP | BBG00MJLWHH3 | 3,800 | $$45,119 | 1.67% |
| MOODYS ORD | MCO | BBG000F86GP6 | 152 | $$44,686 | 1.65% |
| KDDI ORD | 9433 JP | BBG000BJ7JH8 | 1,400 | $$44,042 | 1.63% |
| VMWARE INC-CLASS A | VMW | BBG000BC9938 | 356 | $$43,649 | 1.61% |
| DASSAULT SYSTEMES SA | DSY FP | BBG000GVXBH4 | 1,092 | $$42,636 | 1.58% |
| AUTODESK ORD | ADSK | BBG000BM7HL0 | 214 | $$42,216 | 1.56% |
| CIGNA ORD | CI | BBG00KXRCDP0 | 164 | $$42,066 | 1.56% |
| SOFTBANK GROUP ORD | 9984 JP | BBG000CLY2D3 | 1,100 | $$41,055 | 1.52% |
| NETEASE INC | 9999 HK | BBG000D5CSG1 | 2,200 | $$39,180 | 1.45% |
| PAYCHEX INC | PAYX | BBG000BQSQ38 | 358 | $$39,015 | 1.44% |
| KINDER MORGAN CL P ORD | KMI | BBG0019JZ882 | 2,206 | $$37,634 | 1.39% |
| ELECTRONIC ARTS INC | EA | BBG000BP0KQ8 | 314 | $$37,058 | 1.37% |
| ENBRIDGE ORD | ENB CN | BBG000C7P7N2 | 1,012 | $$37,096 | 1.37% |
| BCE ORD | BCE CN | BBG000DQ7170 | 825 | $$36,566 | 1.35% |
| RECRUIT HOLDINGS ORD | 6098 JP | BBG000F2BCY2 | 1,300 | $$36,360 | 1.35% |
| BLACKSTONE ORD | BX | BBG000BH0106 | 420 | $$35,137 | 1.30% |
| CHARTER COMMUNICATIONS INC | CHTR | BBG000VPGNR2 | 98 | $$33,863 | 1.25% |
| MEITUAN | 3690 HK | BBG00LLV9WV7 | 1,970 | $$33,779 | 1.25% |
| CVS HEALTH ORD | CVS | BBG000BGRY34 | 454 | $$33,196 | 1.23% |
| TC ENERGY ORD | TRP CN | BBG000D07ZQ1 | 783 | $$30,230 | 1.12% |
| VODAFONE GROUP ORD | VOD LN | BBG000C6K5W3 | 26,931 | $$29,531 | 1.09% |
| BROOKFIELD CL A ORD | BN CN | BBG000C9K6K8 | 979 | $$29,314 | 1.08% |
| CASH & OTHER | 101 | $$101 | 0.00% |
Holdings Subject to Change
Fund Performance
Month End as of 02/28/2023
| 1 Month | 3 Months | YTD | 1 Year | 3 Years | 5 Years | ITD | |
|---|---|---|---|---|---|---|---|
| Fund NAV | -4.56% | -0.05% | 4.33% | -15.32% | TBD | TBD | -22.49% |
| Market Price | -4.51% | -0.16% | 4.58% | -15.24% | TBD | TBD | -22.49% |
Quarter End as of 12/31/2022
| 1 Month | 3 Months | YTD | 1 Year | 3 Years | 5 Years | ITD | |
|---|---|---|---|---|---|---|---|
| Fund NAV | -4.20% | 5.42% | -28.79% | -28.79% | TBD | TBD | -27.80% |
| Market Price | -4.54% | 5.30% | -28.72% | -28.72% | TBD | TBD | -27.94% |
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the original cost. Returns for periods of less than one year are cumulative.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The returns shown do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. NAVs are calculated using prices as of 4:00 PM Eastern Time.
Inception to date (ITD)
Distributions
| Months | Ex Date | Record Date | Pay Date | Dividend | Long Term Capital Gains |
Short Term Capital Gains |
|---|---|---|---|---|---|---|
| December | 12/28/2021 | 12/29/2021 | 12/31/2021 | $0.01 | - | - |
| March | 03/25/2022 | 03/28/2022 | 03/31/2022 | $0.04 | - | - |
| June | 06/24/2022 | 06/27/2022 | 06/30/2022 | $0.07 | - | - |
| September | 09/27/2022 | 09/28/2022 | 09/30/2022 | $0.02 | - | - |
| December | 12/27/2022 | 12/28/2022 | 12/30/2022 | $0.05 | - | - |
| March | 03/27/2023 | 03/28/2023 | 03/30/2023 | $0.04 | - | - |
Fund Materials
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.
