Solactive is pleased to extend its collaboration with Timefolio Asset Management with the launch of a new active TIMEFOLIO Global Consumer Trend Active ETF, benchmarked against the Solactive New Age Consumer Index. This ETF aims to provide investors with strategic exposure to evolving consumer trends driven by digitalization, health, and wellness across global markets.
The rise of digitalization has revolutionized consumer behaviors, with e-commerce, social media, and digital entertainment segments undergoing massive transformation. Consumers have increasingly favored online services and contactless interactions over the ”pre-pandemic ways”, as daily needs and hobbies can be accomplished with the ease of technologies through online platforms. Thus, trends like online shopping, telehealth, and digital education have gained significant traction[1], reshaping billions of people’s lifestyles and consumer decision-making processes, driving the growth of new-age consumer sectors globally.[2]
The Solactive New Age Consumer Index is designed to capture the companies at the forefront of these transformative trends. The index selects consumption-related companies from various sectors, including e-commerce, social media, online gaming, online music and video, health and wellness, and online education. In addition, the index utilizes ARTIS®, Solactive’s proprietary natural language processing technology, to identify and select companies that can benefit from emerging consumer trends. The index components are weighted based on a combination of their market capitalization and thematic relevance, with a floor at 0.1% and a cap at 5% for individual constituents to ensure a highly relevant yet diversified portfolio.
The ETF listed on 29 October on the Korea Stock Exchange with the ticker code 494180.KS.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to partner with Timefolio Asset Management on this innovative ETF. Our Solactive New Age Consumer Index reflects the profound shift in consumer behavior due to digitalization and changing lifestyles. We believe that this exposure will offer investors the opportunity to capitalize on the growth in this transformative sector.”
Jung Wook Lee, General Manager, ETF Department at Timefolio Asset Management, commented: “It is our pleasure to collaborate with Solactive with another index that would expand the investment horizons to our investors. TIMEFOLIO Global Consumer Trends Active ETF is an ETF that invests in the trendiest consumer-related companies of the day. Currently, several consumer-related ETFs are on the market, including those focused on Chinese consumers, luxury goods, cyclical products, consumer staples, travel, and cosmetics. However, these options often focus too narrowly on a few sectors, making it difficult to keep up with market changes. With this active ETF we aim to invest in the fastest-growing consumer-related companies by instantly capturing shifting consumer preferences.”
[1] The pandemic has changed consumer behaviour forever – and online shopping looks set to stay
