SUBZ The Streaming ETF - INVESTOR PRESENTATION SEPTEMBER 2021 - Roundhill ...
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ROUNDHILL INVESTMENTS FORESIDE FUND SERVICES, LLC: DISTRIBUTOR. Disclaimer Investors should consider the investment objectives, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the SUBZ ETF please call 1-877-220-7649 or visit the website at roundhillinvestments.com/etf/subz. Read the prospectus or summary prospectus carefully before investing. Investing involves risk, including possible loss of principal. Streaming Companies and other companies that rely heavily on technology are particularly vulnerable to research and development costs, substantial capital requirements, product and services obsolescence, government regulation, and domestic and international competition, including competition from foreign competitors with lower production costs. Stocks of such companies, especially smaller, less- seasoned companies, may be more volatile than the overall market. Streaming Companies may face dramatic and unpredictable changes in growth rates. Streaming Companies may be targets of hacking and theft of proprietary or consumer information or disruptions in service, which could have a material adverse effect on their businesses. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets involve different and greater risks, as they are smaller, less liquid and more volatile than more developed countries. Depositary Receipts involve risks similar to those associated with investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. Please see the prospectus for details of these and other risks. Foreside Fund Services, LLC: Distributor.
TABLE OF CONTENTS Streaming Explained Market Opportunity: Switch To Streaming Subscription Model Cord Cutting Internet Penetration SUBZ Case Studies: Netflix Roku Spotify ETF Characteristics Top Holdings & Exposures 02 ROUNDHILL INVESTMENTS
Streaming Explained Streaming, otherwise known as OTT content (Over-The-Top Content), is the technology of transmitting audio and video files continuously over the internet. The most popular forms of streaming include: Video streaming Audio streaming Livestreaming Game streaming This market is expected to grow significantly as consumers switch from traditional content delivery to streaming.
Market Opportunity: The Switch To Streaming From 2013 to 2019, average spend per American household on video streaming services increased 480% and average spend on audio streaming increased 345%. Average U.S. Household Spend On Streaming Services Source: Statista. Estimates as of January 9th 2021. Information is subject to change and is not a guarantee of future results.
Market Opportunity: The Subscription Model The subscription model used by streaming services has created reliable recurring revenue and a low incremental cost for each new user added to the service. Video Streaming Revenue Expectations Audio Streaming Revenue Expectations Source: Statista as of January 12th, 2021. Information is subject to change and is not a guarantee of future results. E=estimates.
Market Opportunity: Cord Cutting "Cord-cutting" is the process of cancelling a cable or satellite plan and getting TV shows and movies by other means. 27 percent of U.S. households plan to cut cable TV plans in 2021 according to The Trade Desk. Expected Number Of U.S. Households No Longer Paying For Traditional TV Services Source: Statista, Trade Desk as of 12th January 2021. Information is subject to change and is not a guarantee of future results. E= Estimate.
Market Opportunity: Internet Penetration From 2000-2020, internet access has increased 1,266% leading to a 63.2% global penetration rate today. As high speed internet and bandwidth become more available, streaming becomes increasingly more viable. Internet Penetration Rates By Region Africa Asia Europe LaTam / CARIB North America Oceania / Aus World Total 0% 25% 50% 75% 100% Source: World Internet Stats As Of January 12 2021. Information is subject to change and is not a guarantee of future results.
As of 9/30/2021 Case Study: Netflix SUBZ ETF Exposure: 6.1% Company Details Notable Brands Ticker: NFLX Tiger King Country: United States Queen's Gambit Thematic Relevance: Video Streaming Service Outer Banks Market Capitalization: $270.1 Billion Ozark Key Highlight Key Statistics Netflix is the world’s leading streaming 85% of US streaming subscribers subscribe entertainment service with over 200 million to Netflix. paid memberships in over 190 countries. Netflix says the average user streams two Netflix is behind viral hits Tiger King, Ozarks, hours per day. and the Queens Gambit. Information is subject to change and is not a guarantee of future results. This example was chosen because Netflix is a D2C streaming service.
As of 9/30/2021 Case Study: Roku SUBZ ETF Exposure: 4.8% Company Details Notable Brands Ticker: ROKU Roku OS Country: United States The Roku Channel Thematic Relevance: Technology Roku Streaming Stick Market Capitalization: $41.8 Billion Roku Ultra Key Highlight Key Statistics The Roku OS is the No. 1 smart TV OS in the Roku reached 46 million active accounts U.S and in Canada, and powered more than in Q3 2020. one in three smart TVs sold in the U.S. during The Roku Channel reached U.S. households the first nine months of 2020 according to with an estimated 54 million people. NPD. Information is subject to change and is not a guarantee of future results. This example was chosen because Roku is a leader in streaming technology.
As of 9/30/2021 Case Study: Spotify SUBZ ETF Exposure: 5.8% Company Details Notable Brands Ticker: SPOT The Joe Rogan Experience Country: Sweden The Michelle Obama Podcast Thematic Relevance: Audio Streaming Service Anchor Market Capitalization: $43.0 Billion The Ringer Key Highlight Key Statistics Spotify is the largest audio streaming service Spotify has over 1 million podcasts and in the world. As of October 2020, the over 50 million songs. company announced they had 320 million 44% of users listen to Spotify on a daily active users and 144 million paid basis. subscribers. Information is subject to change and is not a guarantee of future results. This example was chosen because Spotify is the leading audio streaming service.
ETF Characteristics: SUBZ Characteristics Thematic Breakdown Ticker: SUBZ Other 15.5% Expense Ratio: 0.75% Launch Date: February 10th, 2021 AUM: $24.2MM Live 7.8% Video Shares Outstanding: 2,375,000 41.5% Number of Holdings: 38 ETF Options: Yes Audio 20 Day ADV: $142.8K 13.9% Technology 21.3% As of 9/30/2021. Information is subject to change and is not a guarantee of future results.
ETF Exposures: SUBZ Country Exposure Market Capitalization Exposure Other Small Cap ($10B) 55.4% As of 9/30/2021. Information is subject to change and is not a guarantee of future results.
ETF Top Holdings: SUBZ Netflix Spotify Disney Roku AfreecaTV Weight: 6.1% Weight: 5.8% Weight: 5.1% Weight: 4.8% Weight: 3.6% Ticker: NFLX Ticker: SPOT Ticker: DIS Ticker: ROKU Ticker: 067160 KS ViacomCBS J-Stream Comcast TME iQIYI Weight: 3.4% Weight: 3.3% Weight: 3.3% Weight: 3.3% Weight: 3.2% Ticker: VIAC Ticker: 4308 JP Ticker: CMCSA Ticker: TME Ticker: IQ As of 9/30/2021. Information is subject to change and is not a guarantee of future results.
SUBZ The Roundhill Streaming ETF For more information: Website: roundhillinvestments.com Twitter: @roundhill LinkedIn: Roundhill Investments
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