Rize ETF starts out with cybersecurity and medical cannabis launches
Brand new European ETF provider Rize ETF has launched its first two ETFs, the Rize Cybersecurity and Data Privacy UCITS ETF (CYBR) and the Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR).
Both ETFs will be on both the Frankfurt Stock Exchange (Xetra) and the London Stock Exchange (LSE).
The firm writes that each ETF has been purpose-built by Rize ETF in collaboration with index provider Foxberry and thematic specialists in each particular theme, namely New Frontier Data with respect to FLWR and Tematica Research with respect to CYBR.
The Rize Cybersecurity and Data Privacy UCITS ETF (CYBR) provides exposure to 45 companies that are poised to benefit from the booming demand in cybersecurity products and services. These companies offer protection against cyber threats and are heralding the crusade for better data privacy regulation around the world. CYBR is Europe’s most progressive cybersecurity ETF and provides investors with exposure to a booming industry propelled by fresh concerns for data privacy around the world.
Rahul Bhushan, Rize ETF co-founder says: “Cybersecurity has always been an exciting area for us since we launched Europe’s first cybersecurity ETF back in 2015. The market is entering into a new phase of growth, as technologies such as AI and the cloud rapidly change security practices and digital infrastructures around the world, and as the sector is buoyed by favourable regulation such as GDPR in Europe and CCPA in the United States, which went live on 1 January this year. We feel CYBR is well-tailored to benefit from these structural tailwinds, and as we enter 2020, is designed to look out over the next five years to capture the growth we are expecting from this next wave of cybersecurity.”
Rize ETF writes that a key differentiator between CYBR and other ETFs on the market providing similar exposure is the exclusion of companies engaged in the aerospace and defence sector.
“We want to give much greater consideration to the growing concern amongst investors around particular topics such as social and environmental issues and human conflict and, in each case, seeking to incorporate some of the most directly applicable considerations into the structure of each product. In this case, we have excluded specific aerospace and defence companies that are involved with controversial weapons, such as BAE Systems, General Dynamics and Thales,” says Stuart Forbes, co-founder of Rize ETF.
CYBR is priced at 0.45 per cent per annum.
The Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR) provides exposure to 23 companies that are positively exposed to the revolution in cannabinoid-derived medicine and wellness products and operating globally. Rize ETF says this makes it the most diversified and liquid cannabis ETF in Europe.