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.