What can advertising and marketing technology do for your portfolio?

Annual advertising spending continues to grow at a rapid rate, and aAdvertisers 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 ETFs SmartETFs Marketing and Advertising Technologies (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 technologies, according to the ETF Database.

MRAD consists of a narrow 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 advertising and marketing activities, focused 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, according to the ETF 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 focus helps MRAD weather 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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