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There are exchange-traded funds that offer exposure to old-guard media companies, and of course there are social media ETFs, but with the advertising and media landscape moving at a rapid pace, shouldn’t there be an ETF for that trend too?
What happened
Now there is, thanks to the Monday debut of the SmartETFs Advertising & Marketing Technology ETF (NYSE:MRAD).
“The ETF’s primary investment objective is to invest in companies that are using technology to disrupt the traditional advertising and marketing industries through programmatic advertising, targeted digital advertising, consumer data and targeting, customer relationship management, marketing automation and other technologies to support advertising and marketing, ”says SmartETFs.
Why it matters
The MRAD managed by Sagar Thanki is an equally weighted ETF that will typically hold up to 30 positions. Within MRAD, the definition of advertising is broad and includes online, print and out-of-home advertisers.
“MRAD also invests in companies that offer, support or enable increased marketing efficiency and / or personalization. This can include companies that increase the efficiency of the production of marketing materials as well as companies that improve the customer experience through automation or personalization, ”the issuer said.
The MRAD is also geographically diversified as it is next to other international names as well Baidu (NASDAQ: BIDU) from China and Yandex (NASDAQ: YNDX) from Russia. Alphabet (NASDAQ: Goog) and Atlassian (NASDAQ: TEAM) are among the well-known US names in the new ETF.
What’s next
MRAD is a game on a growth segment and the data confirms it.
“It has calculated that digital advertising spend worldwide will be $ 325 billion in 2019 and that after a decline in 2020 due to coronavirus-related market issues, it will rise to $ 389 billion in 2021,” according to Statista .
MRAD’s involvement in digital and mobile advertising is potentially compelling for long-term investors as well.
“Global digital ad spend – including both desktop and laptop computers and mobile devices – was estimated at $ 194.6 billion in 2016. It is projected that this number will increase steadily in the coming years and reach a total of 335 billion US dollars by 2020, ”said Statista.
MRAD charges a fee of 0.79% per year.
The other funds in the SmartETFs stall are the SmartETFs Smart Transportation & Technology ETF (NYSE: MOTO) and the SmartETFs Sustainable Energy ETF (NYSE:SULR).
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