DETROIT–(BUSINESS WIRE)–PurePlay ETFs, a thematic ETF issuer, today announced the launch of the PurePlay NVIDIA Ecosystem Picks & Shovels Index ETF (Nasdaq: NVPS), the first ETF in the US market designed to provide end-to-end exposure to the NVIDIA value chain under a single ticker.
The fund seeks targeted, global exposure to the complete upstream and downstream value chain supporting the NVIDIA ecosystem. Using FactSet Supply Chain Relationship data, the strategy identifies companies tied to NVIDIA’s operations and applies a revenue screen requiring companies to derive at least 50% of revenue from related supply chain activities. Eligible companies are organized across six pillars: raw materials, tools, fabrication, packaging, infrastructure and connectivity). Each pillar supports the development and deployment of advanced computing systems associated with NVIDIA. Holdings are weighted based on level of involvement and criticality within the value chain.
NVPS tracks the Solactive Nvidia Picks & Shovels Index. The fund is designed to provide a potential solution to an inherent problem in the AI investment landscape: many ETFs marketed as AI exposure simply hold a broad mix of technology stocks with only limited connection to the investment theme, while leveraged single-stock products tied to NVIDIA can introduce a level of risk that is not suitable for certain investors. NVPS is built to offer a targeted alternative by providing direct exposure to the companies supporting the AI buildout across the NVIDIA value chain.
NVPS is designed to offer a passive, rules-based fund built to identify the companies that play a meaningful and direct role in the ecosystem powering the stalwart of the AI movement.
“We built NVPS around a simple idea: own the ecosystem behind the theme, without dilution from unrelated holdings,” said Joseph DeYonker, founder of PurePlay ETFs. “Investors today are often choosing between broad AI funds that can dilute the theme or leveraged single-stock products that are not built for everyone. NVPS offers a more targeted, disciplined way to invest in the companies helping power the NVIDIA value chain.”
“From the raw materials that go into silicon to the infrastructure and connectivity behind modern data centers, there is an entire network of companies supporting this buildout. NVPS is designed to help investors own that opportunity as precisely as possible,” DeYonker added.
NVPS is the inaugural fund from PurePlay ETFs. The investment philosophy behind the firm is to provide undiluted AI infrastructure exposure, comprehensive supply chain capture and rigorous, data-driven inclusion in one vehicle.
Additional information, including the prospectus and summary prospectus, is available at [www.pureplayetfs.com].
About PurePlay ETFs
PurePlay ETFs is an ETF sponsor focused on building targeted, precision-engineered funds that provide investors with more transparent access to the sectors, ecosystems and value chains shaping the global economy. Through highly specialized, data-driven indexes, the firm seeks to deliver more direct exposure to the themes reshaping markets and help investors own the infrastructure of tomorrow.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please visit the website at www.pureplayetfs.com. Read the prospectus or summary prospectus carefully before investing.
The Fund is distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor of the Fund.
Foreside Fund Services, LLC is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There is no guarantee the Fund will achieve their stated objectives.
New/Smaller Fund Risk. A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. In addition, new funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies.
Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on the Fund’s performance.
Nvidia Dependence Risk. Because the Index is designed to provide exposure to companies that have a material commercial relationship with Nvidia, the Index, and therefore the Fund, is highly sensitive to Nvidia-specific developments. Actual or perceived adverse events at Nvidia, including financial distress, demand declines, supply or regulatory disruptions, litigation, reputational harm, strategic shifts, or insolvency, could impair the results and valuations of Index constituents that rely on Nvidia as a key customer, supplier, or technology partner, leading to material declines And heightened volatility in the Fund.
