Equity: Global Technology

FINQ Top Performer Intra-day
Price $28.11
Today’s Change +0.21%(0.75)
3:00pm 05/26/2017
CIBR Bottom Performer Intra-day
Price $21.79
Today’s Change -0.11%(-0.50)
4:00pm 05/26/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

There are now 11 ETFs in the Global Technology segment, but only one that truly captures the space—by design. IXN is the only ETF that aims to deliver the broad global technologyIXN is the only ETF that aims to deliver the global technology industry industry. TDIV only holds US-listed stocks that have paid dividends over the past 12 months, and the remaining funds each try to capture specific themes: SKYY targets cloud computing firms, SOCL targets social networking, ROBO tracks robotics firms, HACK tracks cybersecurity firms, ARKQ is a play on automation, and XT attempts to play multiple themes.
None of the theme funds comes close to capturing the full technology market, but none tries to. If you’re looking for global technology, IXN is the easy and obvious choice. If, instead, you’re intrigued by the promise of high yielding tech companies or theme plays, one of the other ETFs may be for you, but note the difficulty each fund faces in delivering pure-play exposure. SKYY weights its holdings equally in tiers, and TDIV and SOCL cap the weights of the biggest companies. All the theme funds tilt small, but they’re the only ETFs that offer those unique exposures.
The real deciding factor in this segment is each fund’s exposure, but cost-conscious investors may also worry about expense ratios and liquidity. IXN and TDIV are among the cheapest in the segment, while the other ETFs may charge up to twice as much. IXN is also one of the most liquid—though it doesn't trade nearly as much as relative newcomer HACK—but the other funds can be accessed fairly with some effort. (Insight updated 05/26/17)

All Funds (14)

IXN $1.17 B 1174306500 Comprehensive exposure

A 94
E
91
91
T
92
92
F
94
94

TDIV $720.07 M 720072905.65 Dividend-focused

A 65
E
90
90
T
97
97
F
65
65

SKYY $876.48 M 876480079.68 Cloud computing

B 62
E
84
84
T
96
96
F
62
62

SOCL $127.4 M 127402637.23564 Social media

B 40
E
87
87
T
81
81
F
40
40

HACK $1.07 B 1068208500 Cybersecurity

B 38
E
89
89
T
92
92
F
38
38

ARKQ $54.01 M 54013200 Active; broad mandate

C 29
E
77
77
T
63
63
F
29
29

FINX $4.45 M 4450840.382375 N/A

D 37
E
70
70
T
53
53
F
37
37

XT $1.05 B 1045776420 Lowest fee

N/A 0
E
0
-1
T
0
-1
F
0
-1

IPAY $114.0 M 113997000 New; trade with care.

N/A 0
E
0
-1
T
0
-1
F
0
-1

BIGD $2.69 M 2685000 new; trade with care

N/A 0
E
0
-1
T
0
-1
F
0
-1

PRNT $24.52 M 24518575.809 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

FINQ $2.77 M 2766000 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

CIBR $244.31 M 244305643.626 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

BDAT $1.03 M 1026920 new; trade with care

F 54
E
40
40
T
50
50
F
54
54

ETF.com Grade as 05/18/17

Equity: Global Technology

Performance Dispersion
Performance  [as of 05/25/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: Thomson Reuters Global Technology5.82%10.73%21.85%37.08%15.64%16.52%--
A 93.782186IXN1174306500IXNiShares Global Tech ETF5.56%10.90%21.80%37.23%16.96%17.57%9.22%
A 64.57172TDIV720072905.65TDIVFirst Trust NASDAQ Technology Dividend Index Fund0.69%1.60%9.32%25.08%10.40%----
B 62.473118SKYY876480079.68SKYYFirst Trust Cloud Computing ETF2.94%5.90%16.90%31.37%15.67%17.41%--
B 39.59809SOCL127402637.23564SOCLGlobal X Social Media ETF12.05%18.36%33.30%49.59%17.85%16.97%--
B 37.998221HACK1068208500HACKPureFunds ISE Cyber Security ETF4.20%3.78%15.32%28.04%------
C 29.388221ARKQ54013200ARKQARK Industrial Innovation ETF10.33%19.71%30.81%50.97%------
D 37.172632FINX4450840.382375FINXGlobal X FinTech ETF6.19%12.81%22.76%--------
N/A 0XT1045776420XTiShares Exponential Technologies ETF4.14%9.08%18.45%29.92%------
N/A 0IPAY113997000IPAYPureFunds ISE Mobile Payments ETF3.40%5.25%15.12%20.71%------
N/A 0BIGD2685000BIGDPureFunds ISE Big Data ETF5.71%8.68%17.33%23.73%------
N/A 0PRNT24518575.809PRNT3D Printing ETF9.66%13.93%22.86%--------
N/A 0FINQ2766000FINQPureFunds Solactive FinTech ETF4.69%10.15%19.03%--------
N/A 0CIBR244305643.626CIBRFirst Trust NASDAQ Cybersecurity ETF1.72%1.81%12.19%26.57%------
F 54.30502470601BDAT1026920BDATPureFunds ISE Big Data-13.88%-11.09%-13.70%--------
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

The only broad global the sector fund is also the most Efficient. iShares' IXN tops the chart, and also boasts one of the lowest expense ratios in the segment. Solid tracking and aiShares' IXN tops the chart successful securities lending program have made it even cheaper to hold than its headline fee would suggest. With a large, stable asset base, IXN is here to stay
The other funds in the segment vary in how well they deliver their thematic exposure. Dividend-seeking TDIV, cloud-themed SKYY, and social media-themed SOCL all follow their indexes well, and charge reasonable fees. All three are established funds with large AUMs. If their specialized portfolios appeal to you, you aren't likely to have any structural problems holding these funds.
Near the bottom of the score rankings are ROBO (which holds robotics companies) and ARKQ (an active ETF that holds firms in cutting-edge industries like AI, 3D printing and nanotech). Both funds charge segment-high fees. ROBO has struggled to track its index consistently, while ARKQ is simply unpopular and faces high closure risk.
HACK, one of the most successful ETF launches of 2014, sports a middling Efficiency score due largely to its high fee.
Like the companies they track, there's been a lot of recent innovation in the global tech fund space. Many of the funds here are simply too new to score, or have rapidly changing Efficiency metrics. Be careful with your investment decisions in this space, and review them frequently. (Insight updated 05/26/17)

All Funds (14)

91
91.268746
90
89.845258
89
89.094871
87
86.604545
84
84.091557
77
77.344614
70
69.746854
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
40
39.731549031826

ETF.com Grade as 05/18/17

Equity: Global Technology

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
TDIV First Trust NASDAQ Technology Dividend Index Fund 0.50% -0.74% -0.62% -0.90% 20.00% / 39.60% Low 89.845258
XT iShares Exponential Technologies ETF 0.47% -- -- -- 20.00% / 39.60% Low 0
BIGD PureFunds ISE Big Data ETF 0.75% -- -- -- 20.00% / 39.60% High 0
ARKQ ARK Industrial Innovation ETF 0.75% -- -- -- 20.00% / 39.60% Low 77.344614
PRNT 3D Printing ETF 0.66% -- -- -- 20.00% / 39.60% Medium 0
FINQ PureFunds Solactive FinTech ETF 0.68% -- -- -- 20.00% / 39.60% High 0
CIBR First Trust NASDAQ Cybersecurity ETF 0.60% -- -- -- 20.00% / 39.60% Low 0
FINX Global X FinTech ETF 0.68% -- -- -- 20.00% / 39.60% High 69.746854
HACK PureFunds ISE Cyber Security ETF 0.60% -0.73% -0.48% -0.98% 20.00% / 39.60% Low 89.094871
IPAY PureFunds ISE Mobile Payments ETF 0.75% -- -- -- 20.00% / 39.60% Low 0
IXN iShares Global Tech ETF 0.47% -0.06% 0.01% -0.25% 20.00% / 39.60% Low 91.268746
SKYY First Trust Cloud Computing ETF 0.60% -0.78% 0.34% -1.04% 20.00% / 39.60% Low 84.091557
SOCL Global X Social Media ETF 0.65% -0.96% -0.60% -1.22% 20.00% / 39.60% Low 86.604545
BDAT PureFunds ISE Big Data -- -- -- 20.00% / 39.60% High 39.731549031826

ETF.com Tradability Insight

Most established funds in the global tech segment can be traded with relative ease. The only broad-market fund, IXN, trades reasonably well, though it isn't the most liquid. That honorDespite strong retail liquidity, HACK loses a point in block scoring goes to HACK, a much younger fund that holds cyber security firms and trades millions of dollars daily at tight spreads. TDIV, SKYY and SOCL also trade well.
Robotics-themed ROBO isn't totally illiquid, but it doesn't see a lot of volume. Quoted spreads look manageable, but large orders may be difficult to execute. ARKQ sees minimal daily volume commensurate with its tiny asset base—there simply aren't enough shares to support a liquid market.
ARKQ and ROBO also struggle with liquidity at the block level. Both funds have relatively illiquid baskets, and ROBO charges a somewhat pricey creation fee. Despite its strong retail liquidity, HACK also loses a point in block scoring as its basket is also somewhat illiquid, inhibiting creations and redemptions. Still, block-sized trades might be executed in the secondary market.
As always, we recommend carefully placed limit orders set close to iNAV. Be careful of stale pricing when trading SOCL and ROBO, as many of the underlying stocks in these two funds don't trade when US markets are open. (Insight updated 05/26/17)

All Funds (14)

97
96.618071
96
95.926716
92
92.242356
92
91.538791
81
80.692157
63
63.046894
53
52.699084
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
50
50.324242229796

ETF.com Grade as 05/18/17

Equity: Global Technology

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
PRNT 3D Printing ETF $302.64 K 0.20% 0.26 80.00% 4.36% 0.04% None 0
FINQ PureFunds Solactive FinTech ETF $11.79 K 0.59% 0.00 82.00% 0.77% 0.05% None 0
FINX Global X FinTech ETF $55.84 K 0.42% 0.07 78.00% 0.23% 0.06% None 52.699084
ARKQ ARK Industrial Innovation ETF $514.11 K 0.16% 0.38 99.00% 1.13% 0.04% None 63.046894
CIBR First Trust NASDAQ Cybersecurity ETF $1.43 M 0.21% 1.32 87.00% 0.15% 0.05% None 0
HACK PureFunds ISE Cyber Security ETF $6.77 M 0.06% 4.65 88.00% 0.34% 0.05% None 92.242356
IPAY PureFunds ISE Mobile Payments ETF $960.53 K 0.13% 0.67 90.00% 0.18% 0.02% None 0
IXN iShares Global Tech ETF $2.66 M 0.12% 0.40 80.00% 0.03% 0.02% None 91.538791
SKYY First Trust Cloud Computing ETF $3.88 M 0.10% 1.99 100.00% 0.10% 0.03% None 95.926716
SOCL Global X Social Media ETF $1.02 M 0.21% 0.77 75.00% 0.12% 0.02% None 80.692157
TDIV First Trust NASDAQ Technology Dividend Index Fund $2.02 M 0.10% 1.28 99.00% 0.03% 0.03% None 96.618071
XT iShares Exponential Technologies ETF $2.59 M 0.16% 1.70 74.00% 0.02% 0.10% None 0
BIGD PureFunds ISE Big Data ETF $30.98 K 0.52% 0.02 94.00% 0.29% 0.02% None 0
BDAT PureFunds ISE Big Data $0 0.00 74.00% 0.42% 0.03% None 50.324242229796

ETF.com/ Block Liquidity

CIBR
5
4
3
2
1
HACK
5
4
3
2
1
IPAY
5
4
3
2
1
IXN
5
4
3
2
1
SKYY
5
4
3
2
1
SOCL
5
4
3
2
1
TDIV
5
4
3
2
1
XT
5
4
3
2
1
BIGD
5
4
3
2
1
FINX
5
4
3
2
1
FINQ
5
4
3
2
1
ARKQ
5
4
3
2
1
PRNT
5
4
3
2
1
BDAT
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

IXN is the only fund in the segment that tries to capture the global technology market, so it's no surprise that it's the only one that comes close. The next nearest ETF, TDIV,IXN is the only fund... that tries to capture the global technology market only holds US-listed stocks that have paid dividends over the past year.
The remaining funds each try to capture a unique niche. As such, none of them Fit our benchmark well—if they did, they wouldn't be executing their respective mandates. While these funds aim for different niches, they share a difficult challenge: capturing true pure-play exposure to their respective themes. Our analysis does not confirm or deny success in meeting this objective, but it is quite clear that they don't match the broad market.
Like our benchmark, IXN and TDIV allocate most of their portfolios to the US. IXN allocates over 10% to Apple alone, and nearly all its top holdings are US-based. Most of the thematic funds are also mostly invested in the US. ROBO and SOCL—holdings robotics and social media firms, respectively—have heavy exposure to Japan and China. ROBO also loads up on Germany.
IXN is by far the most marketlike by industry, with a plurality of its portfolio allocated to software, and large portions allocated to computers, office machines and semiconductors. The other ETFs make massive industry bets in an attempt to deliver their respective niche exposures. TDIV overweights semiconductors and includes a 20% allocation to telecoms. HACK, SKYY and SOCL heavily overweight software and exclude semiconductors. ROBO allocates just over half its portfolio to machinery and equipment, an industry that's completely absent in our benchmark.
IXN, the only purely market-cap-weighted ETF in the segment, tilts much larger than the other ETFs. TDIV, SKYY, and SOCL weight constituents in tiers, which de-emphasizes large companies. In addition, many of the largest technology companies fall outside the theme ETFs' universes and are thus excluded. (Insight updated 05/26/17)

All Funds (14)

94
93.782186
65
64.57172
62
62.473118
40
39.59809
38
37.998221
37
37.172632
29
29.388221
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
54
54.30502470601

ETF.com Grade as 05/18/17

Equity: Global Technology