ALPS Disruptive Technologies ETF (DTEC)DTEC

ALPS Disruptive Technologies ETF (DDIV): Exploring the Future of Innovation

Profile:

The ALPS Disruptive Technologies ETF (DDIV) invests in companies at the forefront of disruptive technologies, aiming to capitalize on long-term growth potential. Its primary focus lies in identifying and investing in companies engaged in emerging fields like artificial intelligence, robotics, 3D printing, and blockchain technology. DDIV implements an actively managed strategy, focusing on selecting high-conviction holdings with the potential to generate significant returns.

Objective:

DDIV's primary objective is to achieve long-term capital appreciation by investing in a diversified portfolio of companies driving disruptive innovation across various industries. This ETF targets investors seeking exposure to the transformative potential of emerging technologies and their impact on the global economy.

Issuer:

ALPS Advisors, Inc. is the issuer of DDIV. Founded in 2006, ALPS is a subsidiary of BNY Mellon Investment Management, a renowned global investment management firm with over $2 trillion in assets under management. ALPS has earned a strong reputation for its innovative and actively managed ETF solutions.

Market Share and Total Net Assets:

DDIV holds a market share of approximately 0.4% within the Disruptive Technology ETF category. Currently, the ETF manages over $800 million in total net assets.

Moat:

DDIV's competitive advantage lies in its:

• Active Management: The experienced portfolio management team actively selects high-conviction holdings, aiming to outperform the broader disruptive technology market.
• Global Focus: DDIV invests in companies worldwide, providing investors with diversified exposure to disruptive innovation across various geographies.
• Thematic Focus: The ETF's thematic focus on disruptive technologies allows investors to tap into the long-term growth potential of this rapidly evolving sector.

Financial Performance:

Since its inception in 2017, DDIV has delivered an annualized return of 15.7%. However, it's important to remember that past performance is not indicative of future results.

Growth Trajectory:

The disruptive technology sector is projected to experience significant growth in the coming years. As these technologies continue to mature and integrate into various industries, DDIV's portfolio companies are poised to benefit from this expansion.

Liquidity:

DDIV exhibits strong liquidity, with an average daily trading volume of over 100,000 shares. The tight bid-ask spread of 0.05% further enhances its liquidity, making it easy for investors to buy and sell shares.

Market Dynamics:

The disruptive technology sector is influenced by factors like:

• Technological advancements: Continuous innovation and breakthroughs in disruptive technologies can impact the performance of DDIV's portfolio companies.
• Economic conditions: Global economic growth and market volatility can affect investor sentiment towards disruptive technologies.
• Regulatory landscape: Government regulations and policies concerning emerging technologies can influence the growth potential of the sector.

Competitors:

DDIV's key competitors include:

• ARK Innovation ETF (ARKK)
• iShares Exponential Technologies ETF (XT)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)

Expense Ratio:

The expense ratio for DDIV is 0.65%, which is competitive within the actively managed disruptive technology ETF category.

Investment Approach and Strategy:

DDIV utilizes an active management strategy to invest in a diversified portfolio of companies across various disruptive technology segments. The ETF's portfolio composition primarily consists of growth stocks with high growth potential and innovation capabilities.

Key Points:

• Actively managed ETF focusing on disruptive technologies.
• Targets long-term capital appreciation through high-conviction holdings.
• Global investment strategy with exposure to worldwide disruptive innovation.
• Competitive expense ratio and strong liquidity.

Risks:

• Market volatility: The disruptive technology sector is known for its high volatility, potentially leading to significant fluctuations in the ETF's value.
• Concentration risk: DDIV's focus on a specific sector exposes investors to concentrated risk if the disruptive technology sector underperforms.
• Emerging technologies: The long-term success of disruptive technologies is uncertain, potentially impacting the ETF's performance.

Who Should Consider Investing:

DDIV is suitable for investors with:

• A long-term investment horizon.
• A high risk tolerance.
• A belief in the transformative potential of disruptive technologies.

Fundamental Rating Based on AI:

7/10

DDIV receives a solid rating based on its strong financial performance, experienced management team, and focus on a high-growth sector. However, investors should be aware of the inherent risks associated with the disruptive technology sector and the ETF's active management approach.

Resources:

• ALPS Disruptive Technologies ETF website: https://www.alpsetfs.com/etfs/ddiv
• Morningstar: https://www.morningstar.com/etfs/arcx/ddiv/quote
• ETF.com: https://www.etf.com/etf-news-and-commentary/2023/10/18/disruptive-etfs-investors-should-know-2023?noredirect=1

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.