DISRUPTIVE SECTORS, CONTEMPORY PORTFOLIOS
When Amazon went public in 1997, few investors could have imagined that the online bookseller would almost single-handedly rewrite the rules of retail. Likewise, nobody could have predicted how profoundly Netflix would change entertainment, or how mobile would change communication, media and transportation.
To be sure, disruptive ideas can pave the way for exponential change – and opportunity. While it may be impossible to identify the next Amazon, it is possible for investors to take tactical positions in technologies and trends that are transforming how we live and work.
More than style boxes and market cycles
Disruptive investing isn’t constrained by traditional investment parameters, such as company size, region or sector. Instead, it focuses on identifying long-term secular changes, and then pinpointing the companies best positioned to drive change or benefit from it.
With any emerging area, it can be difficult to spot winners and losers. But by investing in Defiance ETFs, investors can gain precise exposure to a specific disruptive theme, while sidestepping the idiosyncratic risk of a single company.
In the same vein, whereas market-cap weighted indexes tilt heavily toward companies that are already established, Defiance ETFs focuses on equally-weighted indexes. This gives investors key exposure to smaller companies with significantly more potential for growth.