The ETF Industry Exposure & Financial Services ETF (TETF) is designed to provide exposure to publicly-traded companies that derive revenue from the Exchange Traded Funds ecosystem.

High Growth
Opportunity


TETF provides investors an opportunity that has historically yielded high growth through companies involved in the ETF industry. Since their introduction in 1993, assets under management in ETFs worldwide have grown to more than $3.5 trillion, with more than $2.7 trillion in AUM in the United States, represented by 1705 funds and 78¹ issuers.² Over the last decade, AUM in the ETF space grew at an annualized rate of 19.4%.³

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    ETFs are one of the higher-growth areas in the financial services and asset management industries. ETFs have grown at a 19%+ annual rate over the last decade and the space now boasts more than $3.5 trillion in assets worldwide. ETF net flows from 1/1/2014 to 10/31/2016 exceeded mutual fund net flows by more than $750 billion.⁵ In 2016, the U.S. ETF industry recorded record inflows totaling $293 billion—the highest ever, outpacing mutual fund flows by almost $400 billion. Many investment professionals expect increased ETF assets flows to continue. In a recent survey, 78% of par-ticipating firms saw ETF assets increasing to $5 trillion by 2020.⁶

Efficient access to
the ETF industry?


With a single trade, investors in TETF can gain exposure to growth in the ETF Industry. More than just traditional asset management, TETF offers exposure to a myriad of supporting players in the ETF ecosystem (ETF sponsors, index providers, exchanges, traders, and more). Prior to TETF, it could prove challenging to gain such diversified exposure to the ETF space.

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    In a single trade, TETF delivers access to dozens of companies with high exposure to the U.S. ETF industry.

    Broader Exposure
    Allows targeted access to the ETF industry while managing both the idiosyncratic risk of individual sponsors or product lines and the concentration in one single subsector of the ETF industry ecosystem.

    Experienced indexing committee composed of industry veterans.
    TETF’s portfolio is meticulously constructed by an investment committee consisting of seasoned ETF professionals with deep insight into the space’s inner workings. Current members of the index committee include Linda Zhang, Kris Monaco, Kevin Carter, Michael Venuto & Guillermo Trias.

    Tiered index methodology The unique tiered methodology allows the index to dynamically shift towards the companies where the most ETF revenue is being generated – as the ETF industry continues to evolve, TETF will evolve along with it, adjusting as necessary.

Targeted
Exposure


TETF can best be thought of as a “focused financials ETF,” providing investors with exposure to partici- pants in the ETF ecosystem – historically one of the faster growing and higher margin subsectors of the financial services industry⁴ while eliminating less dynamic subsectors within the space.

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    TETF’s composition, which follows the Toroso ETF Industry Index, transcends classic sector, industry, and geographic classifications by tracking an emerging industry that has the potential to be well-positioned for growth.

    Although the ETF industry has been growing steadily for the past several years, ETF sponsors are not the only entities to potentially benefit from expansion throughout the space. Taking this into account, the Index seeks to provide targeted exposure to the entire ETF value chain – the intricate ecosystem of financial innovators and service providers that can profit from the success and benefits of ETFs.

    The Index begins with the entire universe of public and private companies generating revenue from ETFs, including fund sponsors, exchanges, trading & custody platforms, liquidity providers, Index & data companies, and others. Utilizing a thorough, proprietary quantitative and qualitative methodology, the Index committee isolates, ranks, and places companies into portfolio tiers according to the significance of revenue exposure to ETF business. The Index is reconstituted every 6 months.

    The index universe consists of:

    Fund sponsors
    • ETF sponsors are asset managers that issue ETFs.
    • Today, 74% of the revenue from all ETF sponsors in the US is flowing to public companies.

    Exchanges
    • Facilitate the listing and trading of ETF shares.
    • Many exchanges also provide data, research, and indexing services to the ETF industry.

    Index/data providers
    • Provide the information necessary to calculate, research, and produce price discovery for ETFs.
    • ETFs have allowed these companies access to scalable revenue, similar to asset management.

    ETF service providers
    • Include custodians, trading platforms, distributors, and wire house platforms.
    • As assets flow from mutual funds into ETFs, many of these service providers have innovated the way they service clients, better positioning these key components of the ETF ecosystem for the continued growth of ETFs.

    Liquidity providers
    • Facilitate the market making, creation/redemption, and trading of ETFs.
    • Liquidity providers are a crucial part of the ecosystem, maintaining the benefits of the ETF structure by ensuring underlying assets are in line with a given fund’s the net asset value (NAV).

    Index breakdown by Sub-Sector (As of March 31, 2017)

    Source: Toroso ETF Industry Index Committee

TETF Quick Info


ETF Info Data as of: 05/22/2019
Ticker tetf
Expense Ratio 0.64%
Index Provider Toroso Asset Management
Exchange NYSE
CUSIP 301505814
ISIN US3015058148
Shares Outstanding 350,000
Number of Holdings 45

The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates. Check the background of SEI Investments Distribution Co. on FINRA’s BrokerCheck.

¹ ETF.com. ² ETFGI, as of December 2016. ³ ETFGI, February 2017 Global ETF AUM Growth. ⁴ PwC survey, 2015. View PDF. ⁵ ETFresearchcenter.com. ⁶ Investment Company Institute

Holdings are subject to change.

To determine if the fund is an appropriate investment for you, carefully consider the fund’s investment objectives, risk, and charges and expenses. This and other information can be found in the fund’s full prospectus, which can be obtained by visiting www.tetfetf.com. Please read the prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. The Fund's assets will be concentrated in the financial services sector, which means the Fund will be more affected by the performance of the financial services sector than a fund that is more diversified. Companies engaged in ETF Activities could be adversely affected if the current growth of the ETF market is not sustained. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index.

There is no guarantee the fund will achieve its stated objective. The Fund is non-diversified. The NAV of the Funds shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange (NYS ), normally 4:00 p.m. Eastern time (the NAV Calculation Time). Shares are bought and sold at market price not NAV. Closing price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Exchange Traded Concepts, LLC serves as the investment advisor, and Penserra Capital Management LLC serves as a sub advisor to the fund. The Funds are distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.

Diversification may not protect against market risk.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns

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