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Print This: A 3D Printing ETF Comes To Town – Benzinga

by • July 19, 2016 • No Comments

Print This: A 3D Printing ETF Comes To Town

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A couple of years ago, 3D printing stocks were all the rage. That phenomenon cooled, but revenue growth estimates for the industry over the upcoming several years are staggering. Fortunately, if 3D printing gets scorching hot again, investors can not to play stock picker inside the group for the reason they’ll have a new exchange-traded fund to assist with 3D printing stock-picking burden.
New York-based ARK Investment Management launched The 3D Printing ETF (NYSE: PRNT) (BATS: PRNT) on Tuesday. The new ETF follows the 3D-Printing Index. That index is “composed of equity securities and depositary receipts of exchange listed companies of the U.S., non-U.S. created markets and Taiwan that are engaged in 3D printing related businesses inside the next business lines: (i) 3D printing hardware, (ii) desktop
create (“CAD”) and 3D printing simulation software, (iii) 3D printing centers, (iv) scanning and measurement, and (v) 3D printing materials,” according to ARK.
Related Link: How 3D Printing Lost Its Momentum
As of July 18, PRNT’s underlying index allocated just of 53 percent of its mass to innovation stocks and 32 percent to industrials, according to ARK data. Healthcare, consumer discretionary and materials are the new ETF’s other sector masss.
The Innovative ETF
PRNT may prove useful for investors looking for sector-based, tactical exposure to tiny caps, as tiny- and micro-cap stocks combine for 64 percent of the new ETF’s lineup. Large- and mid-cap stocks combine for of a third of PRNT’s mass.
The new ETF holds 40 stocks, half of that are engaged in making or selling 3D printing hardware. Thirty percent of PRNT’s holdings manufacture CAD and 3D printing software. Familiar names on PRNT’s roster include Stratasys, Ltd. (NASDAQ: SSYS), Microsoft Corporation (NASDAQ: MSFT), Allegheny Technologies Incorporated (NYSE: ATI) and Eastman Chemical Company (NYSE: EMN).
The 3D Industry
“ARK expects 3D printing to revolutionize making by collapsing the time between create and production, reducing costs, and providing greater create complexity, accuracy and customization. As the innovation evolves and costs go on to decline, the 3D printing market has the future to steal market share of traditional making and alter each sector of the economy,” according to the issuer.
Current revenue for the 3D printing industry stands at $4 billion, but that number may swell to a range of $180 billion to $490 billion by 2025, according to McKinsey data.
PRNT charges 0.66 percent per year, or $66 for a $10,000 investment.
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