This New Fund on the Block Bids on the Hottest Technology Right Now

Jim Woods

As the world is caught in a fervor over bitcoin and other cryptocurrencies, as well as the new blockchain technology, new investment opportunities similarly have started to pop up.

Exchange-traded funds (ETFs) with cryptocurrency and blockchain themes also have soared in popularity. This week’s featured ETF, Reality Shares Nasdaq NextGen Economy ETF (BLCN), is one such fund that is gaining attention.

So, what is blockchain? Simply put, it is a record of new transactions (such as the change in the location of cryptocurrency, research data, voting records, etc.). Once a block of information is completed, it is added to the chain to create a chain of blocks known as a blockchain.

Owning cryptocurrencies essentially means owning “private keys” to certain addresses on the blockchain. Since information stored in the blockchain is publicly available, it is comparable to a public ledger of sorts that does not rely on a single computerized server to function. The World Economic Forum predicts that 10% of global gross domestic product (GDP) will be stored on blockchain platforms by 2027.

Many recently launched funds were created to take advantage of this blockchain technology, which some observers view as revolutionary. BLCN, created on January 17, 2018, through a partnership between Reality Shares and Nasdaq, is one of those funds. The fund seeks long-term growth by investing in blockchain-related companies.

BLCN has been aggressively investing in companies around the world and across sectors that contribute to the underlying technologies behind blockchain. The fund currently has 56 holdings and is 57% invested in the information technology (IT) sector. Roughly half of BLCN’s holdings are in North American companies, while the rest are split between Asia and Europe.

Exclusive  Daily Data Flow: Stocks Decline; Dollar Rallies; Consumer Sentiment Jumps

Since the fund is still in its infancy, it will take a bit longer to see how it will perform compared to the broad market. The chart below, though not too meaningful, shows that BLCN has been on an uptrend so far during its first week of trading. BLCN currently manages $47.4 million in total assets. This means that it falls below my recommended threshold for investment of $100 million, but its strategy is nonetheless an interesting one to study. It pays a quarterly distribution with a yield of 1.69%. Its expense ratio is 0.68%.

Top holdings for BLCN include Intel Corp. (INTC), 2.43%; Overstock.com Inc. (OSTK), 2.39%; IBM (IBM), 2.37%; Cisco Systems Inc. (CSCO), 2.26%; and Hitachi Ltd. (HTHIF), 2.21%.

For investors who want to know more about blockchain technology, I encourage you to look into Reality Shares Nasdaq NextGen Economy ETF (BLCN).

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

In the spirit of his “Make America Great Again” slogan, President Donald Trump followed through on one of his campaign promises and approved the recommendation of the U.S. International Trade Commission (ITC) to impose tariffs on some imported goods. This measure is an attempt to curb “dumping” of imported products – such as washing machines and solar pa

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 5 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

LEARN MORE HERE

Jim Woods

A 20-plus-year veteran of the markets, Jim Woods has varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

Product Details

LEARN MORE HERE

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE