Coincapital Launches 2 Emerging Tech ETFs on the TSX

Coincapital, an investment and portfolio management division under Coinsquare’s umbrella, announced on Thursday (September 20) the launch of two exchange-traded funds (ETFs) on the Toronto Stock Exchange.

The ETFs, called the Coincapital STOXX Blockchain Patents Innovation Index Fund (TSX:LDGR) and the Coincapital STOXX B.R.A.I.N. Index Fund (TSX:THNK), will focus on companies involved in emerging technology sectors like blockchain, nanotech, biotech, artificial intelligence (AI) and robotics.

“Canadians know technologies like AI and the blockchain are going to change the way we live and work, but it can be difficult to access high quality investments in these sectors without deep domain expertise,” Lewis Bateman, CEO of Coincapital, said in the release.

The LDGR ETF is the only blockchain-based ETF that uses AI patents in terms of asset allocation. Both funds, however, use AI to spearhead large companies and startups that are implementing these technologies.

LDGR is based on the iSTOXX Yewno Developed Markets Blockchain Index and tracks 33 companies in its portfolio. The top three holdings include Mastercard (NYSE:MC), weighted at 8.71 percent, Johnson Controls (NYSE:JCI) with a 8.65-percent weighting and Royal Bank of Canada (TSX:RY) at 8.3-percent weighting.

The main criteria for companies to be listed on the LDGR ETF include having patent filings linked to blockchain intellectual property and knowing who blockchain innovators and adapters are.

Meanwhile, THNK has a wider focus on numerous technologies, including biotech, robotics, AI and nanotech.

This ETF follows the iSTOXX Developed Markets B.R.AI.N Index and tracks 57 companies. NVIDIA (NASDAQ:NVDA) leads the top three holdings with a 8.32-percent weight, followed by Google (NASDAQ:GOOGL) representing a 8.21-percent weighting and finally Intel (NASDAQ:INTC) weighing 6.81 percent on the ETF.

“We’re doing the work for investors, using our in-depth industry knowledge to provide Canadians with an innovative suite of investment options that help them invest in new technology even if they’re not an expert,” Bateman added.

On its first day on the TSX, the LDGR ETF increased 1.49 percent to close the trading session on Thursday at C$20.29. THNK saw an increase of 1.55 percent to reach C$20.31 as of market close.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.