What advertising and marketing technology can do for a portfolio

Annual ad spend continues to grow at a rapid pace, and advertisers around the world will spend over half a trillion dollars on digital ads this year, creating a huge opportunity for AdTech players.

This is reflected in the companies included in the SmartETF Advertising and Marketing Technology ETFs (MRAD)which overall see significantly higher earnings growth and revenue growth expected this year compared to the broader market, according to SmartETFs.

Empowered by social media and digital devices, consumers are increasingly dictating how they interact with brands, demanding innovations in how companies interact with consumers.

MRAD is actively managed to provide exposure to companies around the world that provide support or enable advancements in advertising and marketing technology, according to ETFs Database.

MRAD consists of a restricted basket of stocks, typically holding 30 stocks on an equally weighted basis, which are considered best positioned to benefit from the development, production or distribution of programmatic, targeted advertising and marketing activities and data driven.

Advertising includes digital, print, broadcast and out-of-home media (content sent to consumers when they are away from home). Also included are the platforms on which the advertising content is served, such as social media or streaming services, depending on ETFs Database.

Marketing technology includes businesses that aim to increase marketing effectiveness, customer tracking or personalization, data security, or authentication.

This strategy tends to hold smaller, more dynamic companies than its average counterpart in the Morningstar Communications category. The fund also leans toward stocks with high trading volumes, which are easier to trade during market declines, as well as high-quality stocks – those that have demonstrated low leverage and strong stock performance. equity, according to Morningstar.

This guidance helps MRAD times of economic stress better than its peers in the category, according to Morningstar.

The fund has an expense ratio of 68 basis points.

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