Defiance Memory & Photonics ETF

The Defiance Memory & Photonics ETF (Cboe: PRAM) seeks to track the Solactive Memory and Photonics Index and provides targeted exposure to global companies with business activities in the memory and photonics industries, including data storage drives and memory semiconductors.

The AI buildout to date has been priced around processors, but models do not run on compute alone. Every training run and every inference request depends on data being stored, retrieved, and moved at extraordinary speed. That work falls to two adjacent layers of the stack: memory, the semiconductors and storage hardware that hold data and feed it to accelerators, and photonics, the optical technologies that move data between chips, servers, and data centers using light. Defiance believes demand is compounding across both layers at once, as accelerators require ever more high-bandwidth memory and data centers turn to optics to move more data with less power.

In short, PRAM targets the AI data layer: the companies that store the data and the companies that move it, together in a single fund.

Why PRAM?

Two themes, one ticker. Memory and photonics have each drawn dedicated single-theme funds. PRAM brings both together in one ticker, so investors do not have to choose between the layer that stores AI data and the layer that moves it.

The AI data layer. Accelerators are only as fast as the data they can reach. Memory holds and feeds that data, and photonics transmits it between chips, servers, and data centers using light. Defiance believes demand compounds across both layers as AI workloads scale.

Rules-based and equal weighted. The index selects the 20 largest eligible memory and photonics companies globally by free-float market capitalization, weights each constituent equally at selection, and rebalances quarterly, so focused specialists carry as much weight as the largest names in the theme.

Investment Objective

The Defiance Memory & Photonics ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Solactive Memory and Photonics Index (the “Index”).

The Index

The Solactive Memory and Photonics Index is owned and maintained by Solactive AG, a Germany-based index provider. The Index is rules based and tracks the performance of global companies with business activities in the memory and photonics industries, including data storage drives and memory semiconductors.

The Index selects from the Solactive GBS Global Markets All Cap USD Index, screening for companies classified in one of two categories based on their FactSet Revere Business Industry Classification System (RBICS) sub-industry or industry groups. The Memory category covers data storage drives and peripherals, flash memory semiconductors, volatile memory semiconductors, networking semiconductors, RF analog and mixed signal semiconductors, and other memory semiconductors. The Photonics category covers optoelectronics electronic components.

Eligible companies must be listed on one of the following exchanges: Nasdaq, the New York Stock Exchange, the Hong Kong Exchange, the Taiwan Stock Exchange (including the Taipei Exchange), the Korea Exchange, OMX Nordic Stockholm, or the Tokyo Stock Exchange, and must have a minimum average daily traded value of at least $1 million over both one month and six months. The 20 largest eligible companies by free-float market capitalization are selected for inclusion, each constituent is equally weighted at selection, and the Index is rebalanced quarterly after the market close on the first Wednesday of February, May, August, and November. The Index Provider is not affiliated with the Fund’s adviser, sub-adviser, administrator, or distributor.

Solactive Memory and Photonics Index Holdings