BBIG offers investors global exposure to four key industries driving the technology sector forward
TORONTO – April 13, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launch of the Horizons Global BBIG Technology ETF (“BBIG” or the “ETF”). Shares of the ETF will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbols BBIG (Canadian dollar units) and BBIG.U (U.S. dollar units).
BBIG currently seeks to replicate, to the extent possible and net of expenses, the performance of the Solactive Global BBIG Index (the “Index”), which is designed to provide exposure to the performance of publicly listed large-cap and mid-cap global equities in the following industries: secondary battery, biotechnology, internet, and gaming – represented by the acronym, BBIG.
“Over the last year, we have seen the pace of global technological disruption and proliferation accelerate, particularly in several key industries, including those that BBIG offers exposure to,” said Steve Hawkins, President and CEO of Horizons ETFs. “While these investment themes are in focus now, the continued growth of the BBIG industries will be catalysts for the advancement of other technology-reliant industries, such as the electric vehicle industry, underscoring their future growth potential.”
According to Grandview Research, the battery industry is currently generating approximately US$110 billion in global revenue annually and with the continued shift from traditional energy sources, including fossil fuels, is expected to triple its global revenue to more than US$300 billion by 2027.
Companies included within BBIG’s biotechnology industry category are engaged in various innovative health care sectors, including gene editing, genomics, bioinformatics and biopharmaceuticals. The global biotechnology industry is expected to exceed US$2.4 trillion in market size from its current valuation of US$760 billion by 2028 by Grandview Research.
BBIG and its Index’s approach to internet industry exposure is to focus on companies that are involved in leading the development of internet technologies, software, and services, like cybersecurity and e-commerce infrastructure.
Finally, BBIG’s gaming industry exposure will include video game publishers, producers of hardware used in gaming consoles, e-sports league operators, and companies involved in the development of augmented and virtual reality technologies. According to Grandview Research, by 2027, the gaming industry is forecasted to have revenues of US$291.16 billion.
BBIG’s Index utilizes ARTIS®, a proprietary natural language processing algorithm developed by Solactive. ARTIS® identifies companies with significant exposure to the provision of products and/or services in the Index’s relevant industry categories. Each of the four industry categories are limited to 10 constituent holdings and are equally weighted at 2.5% at each selection and review day.
“While the technological revolution has been well underway for quite some time, the Index’s focus on the top ten ranked names, according to the ARTIS score in each category, helps ensure a portfolio that is focused on the most promising drivers of innovation,” said Mr. Hawkins. “At the same time, the Index’s global mandate ensures that your exposure is not limited by home bias and reflects the cutting-edge technologies that are being discovered and produced around the world.”
In addition to being a company classified within one of the four listed industries, companies eligible for inclusion in the Index must also meet minimum size and liquidity requirements, be headquartered in a developed or emerging market country, as defined by Solactive, and have a primary listing in a developed market country, including South Korea and Taiwan. Any stock listed on a local exchange in China is excluded, however, the Index can include dually listed Chinese stocks that trade on Hong Kong Exchanges or have an American Depository Receipt in the United States.
BBIG has closed its initial offering of shares and will begin trading on the TSX when the market opens this morning.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has approximately $18 billion of assets under management and 89 ETFs listed on major Canadian stock exchanges.
For media inquiries:
Contact Jonathan McGuire
Assistant Vice President, Corporate Communications
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com
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