Today Amplify launched an ETF that targets the crowdfunding space. The Amplify CrowdBureau Peer-to-Peer Lending & Crowdfunding ETF (LEND) tracks an index provided by CrowdBureau, a research and analytics firm that tracks data from 90 different crowdfunding platforms around the world.
The fund comes with an expense ratio of 0.65% and lists on the NYSE Arca.
LEND’s underlying index tracks U.S.-listed companies involved in the crowdfunding industry, under which companies solicit donations and investments, usually via the internet, to make loans or invest in businesses and projects.
Companies in the index can either run platforms facilitating these activities or provide technology and software support to the companies that do. Components can also operate social networking platforms or be financial institutions that offer their own crowdfunding platforms among their broader services, according to the prospectus.
“As the development of these platforms advances, and more borrowers seek respite from the inefficiencies found within the traditional banking system, we’re excited to offer growth-oriented investors an attractive way to capitalize on this shift in behavior,” said Amplify CEO Christian Magoon, noting peer-to-peer lending and crowdfunding are a growing area for alternative sources of capital for businesses and individuals.
LEND’s index currently includes 34 companies, with LendingTree, Qudian and LexinFintech as its top three holdings, according to the fund’s website.
Contact Heather Bell at [email protected]