- (1:15) – Why Is The SPAC Market Booming Right Now?
- (8:50) – Defiance NextGen SPAC Derived ETF: SPAK
- (15:00) – How To Avoid Risky Companies Within The Industry
- (18:10) – Defiance NextGen Connectivity ETF: FIVG
-
(22:00) – Episode Roundup:
[email protected]
In this episode of ETF Spotlight, I speak with Paul Dellaquila, Global Head of ETFs at Defiance, about SPACs and 5G technology.
2020 could be one of the busiest years for IPOs on record.Investors’ voracious appetite for fast growing companies and abundant liquidity are fueling this boom. Normally companies use the traditional IPO process or direct listing to go public. Another route to a public listing is through a SPAC (Special Purpose Acquisition Company).
SPACs, also known as blank-cheque companies, raise money from investors, solely to find a private company and take it public. 165 SPACs have raised $61.5 billion in the US this year so far, per
SPAC Research
. Several high-profile investors and public figures, including Bill Ackman and Chamath Palihapitiya, have launched their SPACs.
The Defiance NextGen SPAC IPO ETF
SPAK
is the first ETF to provide exposure to SPACs and the stocks in which they invest. The ETF allows investors to invest in a diversified basket of most liquid SPAC IPOs since picking the winners among individual SPACs can be very difficult. 80% of SPAK’s portfolio is in companies that have gone public through SPACs and remaining 20% is in SPACs that are looking for acquisitions.
Digital sports entertainment and gaming company DraftKings
DKNG
and space tourism company Virgin Galactic
SPCE
are among its top holdings.
We also talk about the Defiance Next Gen Connectivity ETF
FIVG
, which holds companies involved in research, development and usage of 5G technology. With Apple
AAPL
rolling out its new 5G-enabled iPhones recently, this ETF has seen renewed investor interest. Its top holdings include Qualcomm
QCOM
, Xilinx
XLNX
and Skyworks
SWKS
. (Please see:
5G ETFs: Invest in the Next Generation Wireless Technology
)
Tune into the podcast to learn more about these ETFs. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email
[email protected]
.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
