ITAN

Intangible Value ETF

Value Investing for the Modern Era

“The four largest companies today by market value do not need any net tangible assets. They are not like AT&T, GM, or Exxon Mobil, requiring lots of capital to produce earnings. We have become an asset-light economy.”

– Warren Buffett

🧑‍🚀 The Intangible Economy

Value investing is a time-honored framework for buying companies below intrinsic value. However, as the economy shifts from industrial to information-based, intrinsic value is increasingly becoming intangible rather than tangible. ITAN brings value investing to the modern era by including four pillars of intangible value.

Intellectual
Property

Brand
Equity

Human
Capital

Network
Effects

🔭 Quantifying Dark Matter

Intangible value is challenging to quantify, as it is largely omitted from financial statements. The most relevant data tend to be large, noisy, and unstructured (e.g., patents, social media, job postings, earnings calls). Sparkline uses state-of-the-art natural language processing to convert these data into quantitative measures of intangible value for each firm.

🧩 How to Use ITAN?

🏛️

Value

Replacement

Modernize portfolio without abandoning value paradigm

🚀

Growth

Replacement

Bet on innovation while keeping an eye on valuations

📈

Market

Replacement

Double exposure to intangible value factors

🔖 NAV and Market Price

NAV is the sum of all assets less any liabilities, divided by the number of shares outstanding.

📋 Fund Details

📚 Fund Documents

✨ Intangible Factor Exposure

~200% exposure to intangible factors (vs. S&P 500)

Intangible Factor Exposure

Source: S&P, USPTO, LinkedIn, Sparkline. All calculations are weighted averages with weights equal to position size. R&D, S&M, and patents are calculated over a trailing 12-month window. The S&P 500® is a popular gauge of large-cap U.S. equities that includes 500 leading companies. Characteristics refer to the underlying stocks and do not predict the performance of the fund. As of 9/30/2021.

R&D / Price is research and development expenditures divided by market cap. S&M / Price is sales and marketing expenditures divided by market cap. Patents / Price is the number of patent grants divided by market cap. PhDs / Price is the estimated number of PhD employees divided by market cap. *Patents and PhDs are scaled by billions (e.g., # patents per $1 billion market cap).

The red metrics are Sparkline’s proprietary intangible value scores, which are constructed from the weighted average of metrics such as those shown in blue (after being normalized via Z-Score). Disruptive companies are defined using a proprietary classification based on each firm’s exposure to disruptive technologies (e.g., artificial intelligence, cloud computing).

📊 Historical Performance

🗓️ Month-End Performance

🕰️ Quarter-End Performance

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so shares may be worth more or less when redeemed or sold. Current performance may be lower or higher than that quoted.

Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. YTD is year-to-date.

🏢 Fund Holdings

Fund holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.

🧮 Balance Sheet Decomposition

Balance Sheet Decomposition

Stocks are assigned to a single “primary” pillar based on Sparkline’s proprietary intangible value scores (i.e., intellectual property, brand equity, human capital, network effects, tangible). Boxes are proportional to position size. Positions are grouped by primary pillar to illustrate aggregate exposure to each pillar of value. As of 9/30/2021.

🧺 Historical Premium / Discount