New ETF Will Focus On Cloud, Digital Ledger And Blockchain Technologies

Feb. 08, 2019 3:35 AM ETBKCH-OLD1 Comment

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Summary

AdvisorShares, a leading sponsor of actively managed ETFs, announced that the AdvisorShares Sabretooth ETF will begin trading Thursday.
It is managed by Sabretooth Advisors, a firm with deep expertise rooted in the ETF and capital market industries.
The launch comes as global growth concerns could have cloud computing investors fretting, but the industry is still garnering strong demand.

Originally published February 7, 2019

AdvisorShares, a leading sponsor of actively managed ETFs, announced that the AdvisorShares Sabretooth ETF (BKCH) will begin trading today. It is managed by Sabretooth Advisors, a firm with deep expertise rooted in the ETF and capital market industries. Sabretooth also sub-advises the AdvisorShares New Tech and Media ETF (FNG).

The launch comes as global growth concerns could have cloud computing investors fretting, but the industry is still garnering strong demand. Tech giants like Amazon (AMZN) and Microsoft (MSFT) are still reporting strong earnings from cloud-based applications despite these concerns.

"The move to the cloud continues and all the cloud providers are gaining," said Kim Forrest, a senior portfolio manager with Fort Pitt Capital Group LLC. "Nobody is losing, it's just some people are faster than others."

While leading cryptocurrency Bitcoin might be languishing amid its falling price, its underlying technology, blockchain, could see more widespread adoption. Last year, Forbes reported that research performed by online job board Glassdoor showed that the blockchain industry ramped up their hiring with a 300% increase in jobs.

According to the research numbers, 1,775 bitcoin and blockchain-related job openings were available in the U.S. as of August 2018. This represents an increase of 693 since the start of 2018 and a rise of 446 versus the same time last year.

According to CBInsights, "For use cases that don't need a high degree of decentralization - but could benefit from better coordination - blockchain's cousin, 'distributed ledger technology (DLT),' could help organizations establish better governance and standards around data sharing and collaboration."

The investment thesis for BKCH holds that companies utilizing cloud computing and digital companies implementing emerging technology like blockchain can realize increased profitability and appreciation in stock prices over an extended time horizon. BKCH invests in U.S.-listed equities and American Depository Receipts (ADRs) of such digital and cloud companies.

The portfolio manager believes these areas represent the future of technological record-keeping and information exchanging which can deliver a durable investment theme for growth equity opportunities and long-term performance.

Original Post

Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

This article was written by

Tom Lydon

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Tom Lydon is editor and publisher of ETF Trends, a website with daily news and commentary about the fast-changing trends in the exchange traded fund (ETF) industry. Mr. Lydon is also CEO of Global Trends Investments, an investment advisory firm specializing in the creation of customized portfolios for high-net worth individuals. He has been involved in money management for more than 25 years. Mr. Lydon serves on the Board of Directors for U.S. Global Investors, Inc. and Guggenheim Investments. In early 2010, Mr. Lydon helped create the CNBC Model ETF Portfolios. Mr. Lydon is the author of The ETF Trend Following Playbook, as well as iMoney: Profitable Exchange-Traded Fund Strategies for Every Investor. He is Co-Founder of Virtual Summits, educational virtual events for financial advisors. Visit his site: ETF Trends (http://www.etftrends.com/) ETF Virtual The ETF Virtual Summit is the largest exchange traded fund (ETF) investment conference in the world. ETF Trends and RIA Database host this complimentary, interactive conference that exists completely online. The virtual showroom features keynote speakers, panel webinars, an exhibitor hall, a networking lounge and hot topic forums. Designed exclusively for Financial Advisors, this conference allows you to interact with experts in the ETF industry in a unique, virtual environment, avoiding the hassles and costs of traveling. Details on the conference, including agenda, past attendee statistics and sponsor information can be found at www.ETFVirtual.com. Alts Virtual The Alts Virtual Summit is the leading Alternative Investment conference for financial advisors. ETF Trends and RIA Database host this complimentary, interactive conference that exists completely online. The virtual showroom features keynote speakers, panel webinars, an exhibitor hall, a networking lounge and hot topic forums. Designed exclusively for Financial Advisors, this conference allows you to interact with experts in the Alternative Investment industry in a unique, virtual environment, avoiding the hassles and costs of traveling. Details on the conference, including agenda, past attendee statistics and sponsor information can be found at www.AltsVirtual.com.

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