Roundhill Investments Launches BYTE, a Digital Infrastructure ETF: What Investors Should Know

A man points a computer screen showing stock information in this illustration photo taken in Bordeaux, France, on March 30, 2016. (Regis Duvignau/Reuters)

Thematic ETF company Roundhill Investments is back with a new sector ETF launching Thursday. Here are the details for investors.

New ETF

The Roundhill IO Digital Infrastructure ETF is targeting growth opportunities in the digital infrastructure sector.

“Digital infrastructure is comprised of the high-tech physical assets that support the efficient-storage and transmission of data, powering the internet,” according to Roundhill.

Companies that operate in the digital infrastructure include fixed-line, high-speed data transmission technology and hardware, data centers, mobile towers and infrastructure asset companies.

The new ETF will track the IO Digital Infrastructure Index (BYTE Index), a newly formed index from ETF partner IO Digital Index Partners.

Holdings in the fund include American Tower, Altice USA and Equinix Inc.

“We believe digital infrastructure is the backbone underpinning the growth of the consumer internet globally,” Roundhill Investments CEO and co-founder Will Hershey said. “Whether you’re playing Roblox, hosting a conference call on Zoom, or trading cryptocurrency, you are relying on the physical infrastructure assets that enable high-speed data transmission.”

The company will seek to provide investors with exposure to growth of the internet along with “the potential for the stability and cash flow profile of hard assets.”

Roundhill ETFs

The launch of BYTE adds another pure play themed ETF to the growing portfolio of Roundhill ETFs.

The company launched Roundhill Ball Metaverse ETF, the Roundhill Pro Sports, Media & Apparel, and Roundhill Streaming Services & Technology ETF earlier this year.

META has generated $123 million in assets under management, ranking as one of Roundhill’s biggest ETFs by assets.

The Roundhill Sports Betting & iGaming ETF was launched in April 2020 and has generated $387 million in assets under management. The ETF is up 40.6 percent in the last year and is up 65.9 percent since inception.

The Roundhill BITKRAFT Esports & Digital Entertainment ETF was launched in June 2019 and has $72 million in assets under management.

By Chris Katje

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