Yesterday, we covered a niche Technology ETF known as GAMR (PureFunds Video Game Tech, Expense Ratio 0.75%). This PureFunds product has has once again traded at a new all-time high this morning.
Also coming from PureFunds is a unique product known as the PureFunds ISE Mobile Payments ETF (NYSE:IPAY) (Expense Ratio 0.75%, $8.9 million in AUM).
The fund sponsor points out that IPAY is “The World’s First Mobile/Electronic Payments ETF.” Fund literature states the following in regards to electronic payments, and the landscape of this industry segment:
“The recent shift in the payments industry has been the transition away from the traditional payments methods and into mobile methods. It is commonly held that consumer spending accounts for approximately two thirds of U.S. Gross Domestic Product (GDP which in real terms equates to roughly 11.5 trillion dollars. It is estimated by the Electronic Transaction Association (ETA) that 70% of these transactions are conducted electronically. While the basic infrastructure that facilitates electronic payments (e-payments) has been in place for decades, it has recently evolved to facilitate the demands of a now global industry. Per the ETF, industry segments include Card Networks, Infrastructure & Software Providers, Processors, and/or Solutions companies; players from each of these segments are represented in the fund.”
When we sort through the portfolio composition, we see that 83% of the fund resides in U.S. based companies, with the remaining segments broken out amongst international firms (12% Europe, 2% Emerging Asia, 2% Latin America, 1% Africa). There is a good spread in the size of companies in terms of market capitalization that are made available within this fund portfolio, with 44% of the fund dedicated to Mid-Caps, 28% to Small-Caps, 10% to Mega-Caps, 10% to Small-Caps, and 8% to Micro-Caps.
From a sector standpoint, we see roughly even weightings to both the Industrials and Financial Services sectors at about 39% apiece, with a lesser weightings of 21% to Technology and a token 1% weighting to Consumer Discretionary.
Presently, top single stock holdings are as follows: 1) V (5.23%), 2) MA (5.10%), 3) AXP (4.92%), 4) PYPL (4.77%), and 5) DFS (4.71%).
IPAY, which debuted more than a year ago in July of 2015, is challenging its all-time product high north of $26 that was briefly touched last November presently. IPAY was trading at $25.49 this morning, and is up 3.64% year-to-date.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.