Alternative Investments/Digital: Roundhill Investments Launches Digital Infrastructure ETF
The ETF will trade under the ticker NYSE: BYTE.
Roundhill Investments and IO Digital Partners have launched a new ETF to provide investors with exposure to the digital infrastructure sector. The Roundhill IO Digital Infrastructure ETF (NYSE: BYTE) will invest in companies that own high-tech assets that support the efficient storage and transmission of data, powering the internet. (ETF Trends)
Roundhill IO Digital Infrastructure ETF (NYSE: BYTE)
Companies that run these types of businesses typically own assets such as fixed-line, high-speed data transmission technology and hardware (such as fiber optic cable and certain “last-mile” technologies that bring data to and from the end-user), data centers, mobile towers and related infrastructure, and other long-lived physical infrastructure assets.
The ETF will track the performance of the IO Digital Infrastructure Index, which is managed by IO Digital Index Partners. The index is comprised of the common stock of 40 U.S. and foreign exchange-listed companies that earn a majority of their revenues from digital infrastructure assets.
During the COVID-19 pandemic the increased reliance on digital infrastructure highlighted the importance of its accelerated development. Grand View Research estimates that the global cloud computing market generated $275 billion of revenue in 2020 and expects it to grow 18% per year to over $1 trillion by 2028.
A recent market study by Equinix said the pandemic had forced economies into digital overdrive, forcing businesses to to deploy their digital infrastructure to multiple regions, expand to multiple edge locations and integrate multiple clouds at speeds 4X their pre-pandemic levels.
Will Hershey, CEO and co-founder at Roundhill Investments said: “We believe digital infrastructure is the backbone underpinning the growth of the consumer internet globally. Whether you’re playing Roblox, hosting a conference call on Zoom, or trading cryptocurrency, you are relying on the physical infrastructure assets that enable high-speed data transmission. With BYTE, we are seeking to provide retail and institutional investors a vehicle to invest in the potential growth of the internet, while offering the potential for the stability and cash flow profile of hard assets.”
The ETF has an expense ratio of 0.75%.
Related Story: Roundhill To Launch ETF For The “Digital Payment Universe”
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