Smart Home ETF

Investing in the future of intelligent homes

Smart Home ETF - Fund Overview

VanEck Smart Home Active UCITS ETF

  • The only ETF of its kind in Europe
  • An actively managed Fund
  • Exposure to companies at the forefront of the Smart Home transformation
  • Smart Home ETF has a focus on highly liquid companies with a global scope
  • Total expense ratio of 0.85%
  • High quality – physical replication and no securities lending
CAVE

ETF Details

ETF Details

Basis-Ticker: CAVE
ISIN: IE000FN81QD2
TER: 0.85%
AUM: $12.9 M (as of 14-06-2024)
SFDR Classification: Article 8

Lower risk

Typically lower reward

Higher risk

Typically higher reward
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Risk: You may lose money up to the total loss of your investment due to Sector Concentration Risk and Limited Diversification Risk as described in the Main Risk Factors, KID and prospectus.

Smart Home ETF Presents the Opportunity to Profit from Early-Mover Advantages

The smart home evolution is starting to influence all areas of our daily lives, changing the way we shop, work, communicate and entertain. Already, a new and smart ecosystem is starting to develop around our homes with many opportunities to invest, and that is to say, this Fund allows you to gain access to them.

The Smart Home Evolution is in Full Swing

The smart home evolution started long before the voice- or sensor-controlled products we see today. Technology has been changing our homes for more than 200 years; the smart home is just the next step in that evolution.

Whether it is work-from-home, virtual workouts, entertainment, delivery services, online shopping, or even telemedicine, many areas of life are increasingly being brought from the “outside” world into our homes. This factor is in favour of the Smart Home ETF. Below are the five steps in the home’s evolution, finishing with today’s smart home.

Powerful Trends Support the Smart Home Development

In its ultimate form, a smart home anticipates the needs of its residents. It empowers them to fine-tune their environment to their needs and activities (e.g. working, learning, entertaining, caring, shopping, etc.). Developments in the three areas of technology, consumer behavior and digital business models are supporting this evolution of the smart home, which is now accessible through VanEck's Smart Home ETF.

Smart home progressing via different developments

              Smart Home ETF reinforces the evolution of smart home

  1. Technology: As the function of the home changes, and the house caters to more of our needs, smart technologies (smart grids, communication networks, smart appliances such as smart speakers) support these changes.
  2. Adapted Behavior: As consumers spend more time living digitally, the way they spend their time and money changes. They work from home, participate in digital entertainment (streaming, gaming) and turn to digital services (such as telehealth).
  3. New Business Models: Increasingly, companies are offering smart home services, using business models backed by digital technology. Products are delivered to the doorstep as part of a (subscription) service within a broader smart home ecosystem.

Explaining the Fund

The Fund enables you to access the innovative companies that are building tomorrow’s ecosystem. You gain exposure to companies at the forefront of new cycles of development. Broadly, there are six types of application built on top of a smart home infrastructure.

Smart Home Infrastructure

Smart Home Infrastructure

Think of infrastructure as the smart home’s central nervous system. Its smart grid connects equipment, appliances and furniture that collect data, communicate with us and act accordingly.

Stock examples: Crowdstrike, ADT, Deutsche Telekom

Work from Home

Work from Home

Digital tools that enable remote working are evolving quickly and are not limited to video calls. They also include workflow solutions and online office environments. The work from home segment can in this way find representation into the Smart Home ETF by VanEck.

Stock examples: Zoom, Slack, Windows

Online Learning

Online Learning

Our homes are becoming centers of online study. They are slowly but surely gaining a new place in education, next to traditional schools and colleges. The initial focus is on digitizing existing learning practices and environments. But as we adapt to online learning, the content is likely to adjust to encompass more topics and skills, offering a more personalized experience.

Stock examples: Kahoot, Duolingo, Blackboard

eHealth

eHealth

Digital technology has made it possible to move care from the clinic to the smart home. Online consultations are increasingly practical. Moreover, the emergence of digital therapeutics and specialized devices is increasingly enabling care-givers to move monitoring and treatment to the home.

Stock examples: Teladoc, Shop Apotheke, Insulet

Workouts

Workouts

As a healthy lifestyle rises in people’s priorities, our homes are places where we can engage in sport. In some cases, they may become augmented reality environments (for instance cycling or rowing). Wearables, meanwhile, help us to keep track of our progress. Moreover, data increasingly allows workouts to be customized to the athlete’s fitness or goals.

Stock examples: Peloton, Nike

Food Delivery

Food Delivery

The home is becoming a food hub, with deliveries ranging from meal boxes to high-end restaurant meals. Diets will become increasingly personalized based on caloric and nutrient intake. Thus, the food delivery segment can be part as well of the Smart Home ETF that we offer.

Stock examples: HelloFresh, Just Eat Takeaway.com, Delivery Hero

Interactive Media

Interactive Media

Leisure activities are possible without going out. Games and media content are always on. Further, we can socialize with friends and family wherever they may be.

Stock examples: Spotify, Netflix, Roblox

Online Shopping

Online Shopping

People can shop from home for groceries and other products. Already commonplace, online shopping was turbocharged by the pandemic.

Stock examples: Zalando, Amazon, eBay

Smart Home ETF is Active

As an active ETF, this Fund combines the best of both worlds: low costs and the dynamism of active management.

The fast changing smart home ecosystem is particularly suited to active management. As it moves through multiple cycles of development, new opportunities will continue to emerge.

Main Risk Factors of a Smart Home ETF

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The prices of the securities in the ETF are subject to the risks associated with investing in the securities market, including general economic conditions and sudden and unpredictable drops in value. Thus, an investment in the Fund may lose money.

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The ETF’s assets may be concentrated in one or more particular sectors or industries. A Smart Home ETF may be subject to the risk that economic, political or other conditions that have a negative effect on the relevant sectors or industries will negatively impact the Fund's performance to a greater extent than if its assets were invested in a wider variety of sectors or industries.

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The ETF may invest a relatively high percentage of its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund's Net Asset Value and may make the Fund more volatile than more diversified funds.

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