SUBS

Fount Subscription Economy ETF

Subscribing to a video or digital streaming service, print or digital news, or purchasing a subscription to an office-based software package are typical examples of subscription-based models. The consumer-facing economy may be shifting towards a direction where companies adopt business models based on usership rather than ownership.

Fund Details

Data as of 09/30/2022

Ticker SUBS
CUSIP 301505582
Exchange NYSE Arca
Inception Date October 27, 2021
Expense Ratio 0.70%
AUM $2,404,800
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

NAV and Price

Data as of 09/30/2022

NAV Price
Amount $16.03 $16.01
Daily Change -$0.19 -$0.19
Daily Change -1.17% -1.16%

Fund Materials

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

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. 

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. 

Investment Process

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 subscription service-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.

Top 10 Holdings

Data as of 09/30/2022

Name Ticker FIGI Shares Market Value %
MICROSOFT ORD MSFT BBG000BPH459 1,039 $241,983 10.06
ALPHABET CL A ORD GOOGL BBG009S39JX6 1,122 $107,319 4.46
AMAZON COM ORD AMZN BBG000BVPV84 722 $81,586 3.39
META PLATFORMS CL A ORD META BBG000MM2P62 507 $68,790 2.86
T MOBILE US ORD TMUS BBG000NDV1D4 456 $61,182 2.54
NETFLIX ORD NFLX BBG000CL9VN6 254 $59,802 2.49
SNOWFLAKE CL A ORD SNOW BBG007DHGNJ4 341 $57,956 2.41
TENCENT HOLDINGS LTD 700 HK BBG000BJ35F4 1,700 $57,692 2.40
SALESFORCE ORD CRM BBG000BN2DC2 372 $53,508 2.23
ORACLE ORD ORCL BBG000BQLTW7 871 $53,192 2.21

Holdings Subject to Change

Historical NAVs

Data as of 09/30/2022

Fund Performance

Month 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

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)

Distributions

Month Ex Date Record Date Pay Date Dividend Long Term
Capital Gains
Short Term
Capital Gains
September 09/27/2022 09/28/2022 09/30/2022 0.02 - -
June 06/24/2022 06/27/2022 06/30/2022 0.07 - -
March 03/25/2022 03/28/2022 03/31/2022 0.04 - -
December 12/28/2021 12/29/2021 12/31/2021 0.01 - -

Premium/Discount

Data as of 09/30/2022

hidingText At NAV At Premium At Discount
Third Quarter 2022 1 13 50
Second Quarter 2022 1 22 39
First Quarter 2022 0 16 46
Calendar Year 2021 2 32 12

Unit: Days Traded

hidingText NAV Price Premium/
Discount
30-Day Median
Bid/Ask Spread
Figure $16.03 $16.01 -0.02 0.45%

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.

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.