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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.

01

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.
02

Fund Details

Data as of 12/01/2022

Subject Description
Ticker SUBS
CUSIP 301505582
Exchange NYSE Arca
Inception Date 27-Oct-21
Expense Ratio 0.70%
AUM $2,670,319
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 $2,670,319
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
03

Top Holdings

Data as of 12/01/2022

Name Ticker FIGI Shares Market Value %
MICROSOFT CORP MSFT BBG000BPH459 1,039 $$264,623 9.91%
ALPHABET INC-CL A GOOGL BBG009S39JX6 1,122 $$113,311 4.24%
NETFLIX ORD NFLX BBG000CL9VN6 254 $$80,505 3.01%
ORACLE ORD ORCL BBG000BQLTW7 871 $$73,260 2.74%
T MOBILE US ORD TMUS BBG000NDV1D4 456 $$69,225 2.59%
AMAZON COM ORD AMZN BBG000BVPV84 722 $$68,951 2.58%
TENCENT HOLDINGS LTD 700 HK BBG000BJ35F4 1,700 $$64,337 2.41%
META PLATFORMS CL A ORD META BBG000MM2P62 507 $$61,063 2.29%
AUTOMATIC DATA PROCESSING ORD ADP BBG000JG0547 227 $$60,825 2.28%
S&P GLOBAL ORD SPGI BBG000BP1Q11 156 $$56,562 2.12%
BLACKROCK ORD BLK BBG000C2PW58 77 $$55,608 2.08%
SALESFORCE, INC. CRM BBG000BN2DC2 372 $$54,684 2.05%
INTUIT COM INTU BBG000BH5DV1 130 $$54,089 2.03%
ADOBE INC ADBE BBG000BB5006 155 $$53,337 2.00%
MARSH & MCLENNAN ORD MMC BBG000BP4MH0 307 $$53,120 1.99%
THOMSON REUTERS ORD TRI CN BBG000BFK1R9 451 $$52,910 1.98%
CIGNA ORD CI BBG00KXRCDP0 163 $$52,722 1.97%
SNOWFLAKE CL A ORD SNOW BBG007DHGNJ4 341 $$52,528 1.97%
AT&T ORD T BBG000BSJK37 2,733 $$52,446 1.96%
CADENCE DESIGN SYSTEMS INC CDNS BBG000C13CD9 285 $$50,382 1.89%
SYNOPSYS ORD SNPS BBG000BSFRF3 140 $$50,098 1.88%
VERIZON COMMUNICATIONS ORD VZ BBG000HS77T5 1,309 $$50,174 1.88%
SOFTBANK GROUP ORD 9984 JP BBG000CLY2D3 1,100 $$48,935 1.83%
COMCAST CORP-CLASS A CMCSA BBG000BFT2L4 1,286 $$46,656 1.75%
SERVICENOW INC NOW BBG000M1R011 109 $$46,390 1.74%
CVS HEALTH ORD CVS BBG000BGRY34 454 $$46,149 1.73%
MOODY'S CORP MCO BBG000F86GP6 151 $$46,218 1.73%
BROOKFIELD ASSET MANAGEMENT CL A ORD BAM/A CN BBG000C9K6K8 977 $$45,665 1.71%
RELX ORD REL LN BBG000D03WR1 1,590 $$45,523 1.70%
ACTIVISION BLIZZARD INC ATVI BBG000CVWGS6 595 $$44,738 1.68%
PAYCHEX INC PAYX BBG000BQSQ38 356 $$44,820 1.68%
UBS GROUP N ORD UBSG SW BBG007936GV2 2,388 $$44,218 1.66%
AUTODESK INC ADSK BBG000BM7HL0 213 $$44,076 1.65%
VMWARE CL A ORD VMW BBG000BC9938 354 $$43,075 1.61%
KINDER MORGAN CL P ORD KMI BBG0019JZ882 2,199 $$42,111 1.58%
RECRUIT HOLDINGS ORD 6098 JP BBG000F2BCY2 1,300 $$42,080 1.58%
KDDI ORD 9433 JP BBG000BJ7JH8 1,400 $$42,042 1.57%
DASSAULT SYSTEMES SA DSY FP BBG000GVXBH4 1,088 $$41,838 1.57%
ENBRIDGE ORD ENB CN BBG000C7P7N2 1,009 $$41,331 1.55%
ELECTRONIC ARTS ORD EA BBG000BP0KQ8 313 $$41,197 1.54%
SOFTBANK ORD 9434 JP BBG00MJLWHH3 3,800 $$41,234 1.54%
BCE ORD BCE CN BBG000DQ7170 822 $$39,088 1.46%
CHARTER COMMUNICATIONS INC CHTR BBG000VPGNR2 98 $$38,138 1.43%
MEITUAN 3690 HK BBG00LLV9WV7 1,800 $$37,717 1.41%
BLACKSTONE ORD BX BBG000BH0106 418 $$35,547 1.33%
TC ENERGY ORD TRP CN BBG000D07ZQ1 780 $$34,140 1.28%
BAIDU INC-CLASS A 9888 HK BBG000Q1VPS8 2,350 $$32,264 1.21%
NETEASE INC 9999 HK BBG000D5CSG1 2,200 $$30,487 1.14%
VODAFONE GROUP ORD VOD LN BBG000C6K5W3 26,826 $$30,117 1.13%
CASH & OTHER 9,763 $$9,763 0.37%

Holdings Subject to Change

04

Fund NAV and
Market Price

Data as of 12/01/2022

NAV Price
Amount $17.80 $17.77
Daily Change +$0.16 +$0.11
Daily Change +0.91% +0.61%

05

Fund Performance

Month End as of 10/31/2022

1 Month 3 Months YTD 1 Year 3 Years 5 Years ITD
Fund NAV 2.81% -12.17% -30.55% -34.29% TBD TBD -33.56%
Market Price 2.81% -12.27% -30.40% -34.60% TBD TBD -33.64%

Quarter End as of 09/30/2022

1 Month 3 Months YTD ITD 1 Year 3 Years 5 Years
Fund NAV -11.16% -8.74% -32.45% -35.37% TBD TBD TBD
Market Price -11.13% -8.59% -32.31% -35.45% TBD TBD TBD

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)

06

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 - -
07

Premium/ Discount

Data as of 29/09/2021

Fund
NAV
Market
Price
Premium/
Discount
30-Day Median
Bid/Ask Spread
$17.80 $17.77 -$0.03 +0.46%
Days
At NAV
Days
At Premium
Days
At Discount
3Q 2022 1 13 50
2Q 2022 1 22 39
1Q 2022 0 16 46
Calendar Year 2021 2 32 12

30-Day Median Bid/Ask Spread : The spread is calculated from (i) sampling the ETF's NBBO as of the end of each 10 second interval during each trading day of the last 30 calendar days; (ii) dividing the difference between each such bid and offer by the midpoint of the NBBO; and (iii) identifying the median of those values.

08

Fund Materials

Fact Sheet
Investment Case
Index Methodology
Prospectus
Summary Prospectus
SAI
Q1 SOI
Q3 SOI
SAR

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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. 

0 MTVR · SUBS
MTVR · SUBS