Active management meets the streaming revolution in the new ETF “SUBZ”


Streaming entertainment is one of the first iterations of disruptive growth technology, and it continues to grow rapidly. Investors can access this trend with the benefits of active management with the new Roundhill Streaming Services & Technology ETF (NYSE ARCA: SUBZ).

SUBZ is the fourth exchange-traded fund in the Roundhill Investments portfolio and the first fund actively managed by the issuer.

The ETF “is made up of companies from all over the world that are actively involved in the streaming industry. This classification includes (i) companies that operate direct-to-consumer streaming services including video, audio, live streaming; and (ii) companies that create the infrastructure or technology necessary to facilitate streaming, ”according to the issuer.

SUBZ is coming to market at the right time?

SUBZ may have had the right timing. This can be crucial for children’s thematic funds.

“When it comes to timing, many cable subscribers cut the cord before the coronavirus pandemic, but like so many disruptive technologies, the health crisis is accelerating the case of streaming. With so many people being forced into self-quarantine, home entertainment has become almost as essential as hand soap and toilet paper. Cable, which often lacks custom options, lost six million homes last year, ”according to Nasdaq.

Highlighting SUBZ’s appeal, data confirms the continuing decline of linear television.

“Disruptive innovation usually evolves slowly, until it reaches a tipping point. Since the peak of 2011, the number of linear TV homes in the United States has declined at an annual rate of 2.1%, a rate that we believe will accelerate to -15% year on year over the past five years. coming years, ”said Nicholas, analyst at ARK Invest. Grous in a recent report. “Cumulatively, the number of linear TV homes in the United States could drop 48%, from 86 million in 2019 to around 44 million, a level last seen over 30 years ago at the end of the years. 1980. “

Streaming is an increasingly global phenomenon. The United States represents 54.5% of the fund, China 26.9%, Sweden 5.8%, Japan 5.1%, South Korea 4.7% and Canada 3%. The bottom line is that many consumers are abandoning cable.

“Trade Desk data suggests that 27% of Americans will cancel their traditional television plan this year, a phenomenon known as cord cutting,” Roundhill said. “Goldman Sachs estimates that 1.2 billion people will be subscribed to an audio streaming service by 2030, up from 341 million in 2019.”

To learn more about active strategies, visit our active ETF channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.


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