Amplify Launches Digital Trading ETF

The fund tracks an index of online securities exchanges.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

Amplify ETFs’ latest fund aims to give exposure to the growing industry of digital broker-dealers and market makers thrust into the spotlight by last year’s rise in retail trading.

The Amplify Digital & Online Trading ETF (BIDS) debuted on the NYSE Arca Wednesday with an expense ratio of 0.59%. It is the 13th ETF launched by the firm out of Wheaton, Illinois.

BIDS follows the BlueStar Global E-Brokers and Digital Capital Markets Index, which tracks at least 25 global companies that participate in securities brokering, market making or other financing activities on self-directed or robo advisor wealth management platforms. A company must generate half of its revenues from those activities and have a market capitalization of $150 million to qualify for the index.

With its focus on online brokerages, it's no surprise that the index’s largest component is Robinhood, at 8.67%, while Charles Schwab, MarketAxess, Coinbase and SoFi round out the five largest holdings and carry more than 7% in weightings each.

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Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.