BlackRock launches digital entertainment and education ETF | ETF Strategy
FACTOR INVESTING – THURSDAY, JULY 14, 2022 (08: 15-11: 30) – THE BERKELEY, LONDON Please join us for our annual factor investment breakfast briefing with the participation of MSCI, FlexShares ETFs, Tabula and Professor Stefan Zohren, Deputy Director of the Institute of Quantitative Finance ‘Oxford-Man. Please register now if you would like to attend.
BlackRock has launched a new capital-themed ETF in Europe that offers exposure to companies offering entertainment or education services through digital channels.
He iShares Digital Entertainment and Education UCITS ETF has been listed in German stock exchange Xetra (CBUN GY) i Euronext Paris (DGGE FP) in euros as well as in SIS Swiss Stock Exchange (PLAY SW) i Euronext Amsterdam (PLAY NOW) in US dollars.
The fund is linked to STOXX Global Digital Education and Entertainment Index which selects its components from a universe of developed and emerging market shares with market capitalizations in excess of € 200 million and average daily trading volumes in excess of € 1 million.
The methodology leverages FactSet’s Revere Enterprise Industry Classification System (RBICS) to detect companies that generate more than half of their revenue from more than 30 industries associated with the topic of digital entertainment and education.
Targeted industries include educational software, gaming products and services, streaming content platforms, and electronic devices, among many others.
The index aims to include at least 80 components that are then weighted through a combination of equal weight and floating market capitalization approaches.
The ETF has an expenditure ratio of 0.40% and is classified as a product of Article 8 according to the European Union Sustainable Finance Disclosure Regulation (SFDR).
The fund is the first in Europe to combine entertainment and digital education issues into a single strategy. However, there are several ETFs that focus on these topics individually or focus on related sub-topics, such as metavers, video games and e-sports, sports betting and iGaming, and educational technology.
These include the ETC Group Global Metaverse UCITS ETF (METERS), VanEck Vectors Videogaming and eSports UCITS ETF (ESPO), Fischer Sports Betting & iGaming UCITS ETF (BETS)i Rize Education Tech and Digital Learning UCITS ETF (LERN).
Evy Hambro, BlackRock’s global head of thematic and industry investments, said: “Thematic investment is being used by an increasingly diverse investor base looking to expose themselves to the secular, disruptive and long-term trends that are As technology continues to revolutionize the entertainment industry and the demand for digital experiences changes the way people play and learn, we have worked with Qontigo to design the IShares Digital Entertainment & Education UCITS ETF, which offers investors granular exposure to a rapidly evolving area of the global economy.