SUBZ The Streaming ETF - INVESTOR PRESENTATION SEPTEMBER 2021 - Roundhill ...
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ROUNDHILL INVESTMENTS SUBZ The Streaming ETF INVESTOR PRESENTATION SEPTEMBER 2021
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 INVESTMENTSStreaming 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
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