Defiance ETFs launched the Defiance Next Gen Big Data ETF (BIGY) on the NYSE Arca on Wednesday.
The fund tracks a custom index following companies worth at least $500 million that derive at least a quarter to half of their revenues from the production, storage or processing of large datasets. That criteria also includes companies focused on cloud communications and internet infrastructure.
The index is reconstituted twice per year, and the fund seeks to carry at least 80% of its weighting in “pure play” companies that make at least half of their revenues from big data-related sales.
With an expense ratio of 0.45%, BIGY is undercutting its thematic rivals by 23 basis points. The Global X Artificial Intelligence & Technology ETF (AIQ) and the TrueShares Technology, AI & Deep Learning ETF (LRNZ) both carry an expense ratio of 0.68% and focus on companies that develop artificial intelligence to process massive datasets.