WisdomTree Launches Modern Tech Platforms Fund (PLAT)
May 22 2019 - 8:30AM
WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and
exchange-traded product (“ETP”) sponsor and asset manager, today
announced the launch of the
WisdomTree Modern Tech
Platforms Fund (PLAT) on the NYSE Arca.
PLAT seeks to track the price and yield performance, before fees
and expenses, of the WisdomTree Modern Tech Platforms Index and has
an expense ratio of 0.45%.
What is a “Modern Tech Platform”?
WisdomTree believes there is a compelling, long-term market
opportunity created by the evolution of platform business models,
or “modern technology platforms.” WisdomTree defines a modern
technology platform as a company with a non-linear, multi-sided
business model focused on creating value by facilitating
interactions between two or more interdependent groups through
technology. By doing so, platform businesses can benefit from:
- Scale advantages,
- Capital efficiency,
- Network effects, where the marginal cost of adding an
additional user approaches zero as a platform grows, and
- Higher profitability margins.
“Platform-based businesses are gaining market share at the
expense of traditional, linear businesses and doing so with much
better scale economics and long-term profitability figures.
Platform businesses are transforming value chains and we believe
the breadth of opportunity expands far beyond great technology
companies like Google, Amazon, Microsoft, and Apple,” said Jeremy
Schwartz, WisdomTree EVP and Global Head of Research.
PLAT: What’s Under the Hood?
The WisdomTree Modern Tech Platforms Index seeks to provide
access to mid- and large-cap companies listed on a U.S. or European
stock exchange that are generating substantial revenue from a
modern platform business with a market-cap minimum of $2
billion.
In order to be considered a platform business, the company must
possess the following characteristics:
- Customer Relationship: The company has a
direct relationship with a user group who consumes value.
- Producer Relationship: The company has a
direct relationship with an external user group who supplies the
value to be consumed by another user group.
- Platform Revenue: The company derives revenue
from a platform business directly (as a percentage of the monetary
value of each transaction it facilitates) or indirectly (by
providing products or services related to the facilitation of value
exchanges on the platform). Eligible platform types include
services, product, payment, investment, social networking, gaming,
communication, content and development.
- Platform Revenue Percentage: The company must
meet a minimum revenue threshold from platform business units.
- Value Created by Producer: Value is supplied
by a third-party and is not directly controlled by the company, and
that supply does not sit on the company’s balance sheet.
- Network Ownership and Effect: The company owns
the network by which the consumers and producers directly connect.
The more consumers that use the platform, the more value each
producer will get from the platform, and vice versa.
The Index is equally-weighted and rebalanced annually. Learn
more about the WisdomTree Modern Tech Platforms Fund
(PLAT) here.
This Fund is new and has limited operating history. Past
performance is not indicative of future results.
There are risks associated with investing, including possible
loss of principal. Foreign investing involves special risks,
such as risk of loss from currency fluctuation or political or
economic uncertainty; these risks may be enhanced in emerging,
offshore or frontier markets. Technology platform companies
have significant exposure to consumers and businesses and a failure
to attract and retain a substantial number of such users to a
company’s products, services, content or technology could adversely
affect operating results. Technological changes could require
substantial expenditures by a technology platform company to modify
or adapt its products, services, content or infrastructure.
Technology platform companies typically face intense competition
and the development of new products is a complex and uncertain
process. Concerns regarding a company’s products or services that
may compromise the privacy of users, or other cybersecurity
concerns, even if unfounded, could damage a company’s reputation
and adversely affect operating results. Many technology platform
companies currently operate under less regulatory scrutiny but
there is significant risk that costs associated with regulatory
oversight could increase in the future. The Fund invests in
the securities included in, or representative of, its Index
regardless of their investment merit and the Fund does not attempt
to outperform its Index or take defensive positions in declining
markets. The composition of the Index is heavily dependent on
quantitative and qualitative information and data from one or more
third parties and the Index may not perform as intended.
Please read the Fund's prospectus for specific details regarding
the Fund's risk profile.
Investors should carefully consider the investment
objectives, risks, charges and expenses of the Funds before
investing. To obtain a prospectus containing this and other
important information, call 866.909.9473 or visit wisdomtree.com.
Read the prospectus carefully before you invest.
WisdomTree Funds are distributed by Foreside Fund Services, LLC,
in the U.S. only.
Jeremy Schwartz is a registered representative of Foreside Fund
Services, LLC.
WTPR-20190520-0048
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the
U.S., Europe and Canada (collectively, “WisdomTree”), is an
exchange-traded fund (“ETF”) and exchange-traded product (“ETP”)
sponsor and asset manager headquartered in New York.
WisdomTree offers products covering equities, fixed income,
currencies, commodities and alternative strategies.
WisdomTree currently has approximately $57.1 billion in assets
under management globally. For more information, please visit
www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments,
Inc. and its subsidiaries worldwide.
Contact Information:Media RelationsWisdomTree
Investments, Inc.Jessica Zaloom / Kylie Scott+1.917.267.3735 /
+1.917.267.3860jzaloom@wisdomtree.com / kscott@wisdomtree.com
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