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Streaming ETF SUBZ Hits Market

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Roundhill Investments has recently launched the Roundhill Streaming Services & Technology ETF SUBZ. This is the first ETF to invest in global companies in the streaming sector. Let’s delve a little deeper:

SUBZ ETF in Focus

The actively managed fund looks to offer investors exposure to the streaming industry. The fund consists of global companies that are actively involved in the business of streaming. The classification includes “(i) companies that operate direct-to-consumer streaming services including video, audio, livestreaming; and (ii) companies that create infrastructure or technology necessary to facilitate streaming,”per the issuer.

The fund may invest in Streaming Companies that have recently made an IPO and special purpose acquisition companies that have plans to merge with or acquire a Streaming Company. The fund picks stocks across market capitalizations.

SUBZ holdings include video streaming platforms Netflix (5.78% weight), audio streaming platforms Spotify (5.54% weight) and Tencent Music (5.55% weight), and streaming technology companies Roku (5.77% weight) and J-Stream (4.99 % weight). The fund charges 75 bps in fees.

How Does It Fit in a Portfolio?

Streaming is an area that won during the pandemic due to stay-at-home mandates. Growing popularity of online gaming and esports tournaments will continue to boost the industry. “The monetization of the content using live streaming sites by channel owners can drive its use over the forecast period. Establishment of podcasts and preference of ad-supported live streaming casts will be beneficial for the market in the long run,” as indicated by a source.

The rise in the tech-savvy population and growing urbanization is another factor behind the recent surge in the industry. Live streaming market is likely to reach $247.27 billion by 2027 having grown at a CAGR of 28.1% while Media & Entertainment is expected to be the topmost end-user industry and is projected to expand at a CAGR of 28.3%. User penetration will be 14.3% in 2021 and is expected to touch 18.2% by 2025, per Statista.

Will the New Fund See Success?

Roundhill Investments has seen success so far with their new products. Some of the star launches by the issuer areThe Sports Betting ETF (BETZ - Free Report) andThe Esports ETF (NERD - Free Report) , which are up 114% since inception and 131% past year, respectively. Like the former ones, SUBZ also holds a new and emerging concept. The newbie also doesn’t have any competition. Hence, we expect SUBZ to amass sizable assets in the near term. However, the fund may face some competition from Invesco Dynamic Media ETF due their similar concept.

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