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 12/03/2021

Ticker SUBS
CUSIP 301505582
Exchange NYSE Arca
Inception Date October 27, 2021
Expense Ratio 0.70%
AUM $7,630,704
Shares 325,000
Holdings 50
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 Market Price

Data as of 12/03/2021

NAV Price
Amount($) 23.48 23.47
Daily Change($) -0.47 -0.47
Daily Change(%) -1.96% -1.97%

Fund Materials

Fact Sheet
Investment Case
Index Methodology
Prospectus
Summary Prospectus
SAI

Fund Summary

The Fount Subscription Economy ETF has the potential to provide investors with an attractive vehicle to gain exposure to the subscription economy. SUBS exposes potential investors to 50 companies that sell products or services for recurring subscription revenue. The fund looks to hold companies in the subscription economy that are expected to have the greatest growth potential. 

Why Invest in SUBS?

The way that individuals consume products and services has changed to emphasize subscriptions over ownership. Subscribed Institute found in 2020, that 78% of international adults utilized subscription services. Due to this popularity, the subscription economy is expected intensify in the future. SUBS includes companies that are positioned to make the most of the new subscription-based model.

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 12/03/2021

Name Ticker FIGI Shares Market Value %
MICROSOFT CORP MSFT BBG000BPH459 2,813 908,627 11.91
ALPHABET INC-CL A GOOGL BBG009S39JX6 146 414,644 5.43
TENCENT HOLDINGS LTD 700 HK BBG000BJ35F4 3,900 231,514 3.03
ADOBE INC ADBE BBG000BB5006 339 209,004 2.74
NETFLIX INC NFLX BBG000CL9VN6 346 208,337 2.73
INTUIT COM INTU BBG000BH5DV1 299 193,740 2.54
ORACLE CORP ORCL BBG000BQLTW7 2,197 193,863 2.54
SALESFORCE.COM CRM BBG000BN2DC2 738 190,640 2.50
BLACKSTONE ORD BX BBG000BH0106 1,253 169,468 2.22
VERIZON COMMUNICATIONS ORD VZ BBG000HS77T5 3,237 166,447 2.18

Holdings Subject to Change

Fund Performance

Month End as of 10/31/2021

1 Month 3 Month YTD ITD 1 Year 3 Year 5 Year
Fund NAV TBD TBD TBD 1.12% TBD TBD TBD
Market Price TBD TBD TBD 1.48% TBD TBD TBD

Quarter End as of 09/30/2021

1 Month 3 Month YTD ITD 1 Year 3 Year 5 Year
Fund NAV TBD TBD TBD TBD TBD TBD TBD
Market Price TBD TBD TBD TBD 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
TBD TBD TBD TBD TBD TBD TBD

Premium/Discount

Data as of 12/03/2021

Fund NAV 23.48
Market Price 23.47
Premium/Discount -0.01
30-Day Median Bid/Ask Spread 0.35%

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.

Fourth Quarter 2021
At NAV 1
At Premium 23
At Discount 3

Unit: Days Traded

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 risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from 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. 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.