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, the Smart Home ETF we offer allows you to gain access to them.
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. Below are the five steps in the home’s evolution, finishing with today’s smart home.
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 ETF by VanEck 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.
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
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 our Smart Home ETF.
Stock examples: Zoom, Slack, Windows
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
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
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
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 we offer.
Stock examples: HelloFresh, Just Eat Takeaway.com, Delivery Hero
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
People can shop from home for groceries and other products. Already commonplace, online shopping was turbocharged by the pandemic.
Stock examples: Zalando, Amazon, eBay
Note: It is not guaranteed that the stocks listed as examples are or will always be part of the portfolio.
As an active ETF, Smart Home ETF 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.
Lower risk: Typically lower reward
Higher risk: Typically higher reward
The prices of the securities in a Small Home 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.
A Small Home ETF’s assets may be concentrated in one or more particular sectors or industries. The Fund 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 the Fund’s assets were invested in a wider variety of sectors or industries.
A Small Home 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.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.