Profit From The Blockchain Trend Without Owning Cryptocurrency


You probably have heard the term “blockchain”, even if you don’t know how exactly what it means. It has become a worldwide craze, prompting large
investors to pour money into any company or project. Fortunately, there is a way you can
make a blockchain investment without owning cryptocurrencies
or even a blockchain stock. You can do this through buying something called
a blockchain exchange-traded fund (ETF). Exchange-traded funds are collections of securities that track a certain set of assets
that underlie the fund’s purpose. ETFs can contain many different types of investments such as stocks and bonds,
as well as a mixture of these types. They are also considered securities, which you
can buy or sell on an exchange. What’s the difference between a blockchain ETF
and cryptocurrency ETF? Blockchain ETFs track the stock market prices of blockchain-related companies, while cryptocurrency ETFs track the price
of one or more cryptocurrencies without attaching certain risks that come with
owning cryptocurrencies. How do Blockchain ETFs work? Well, there are two types of blockchain ETFS. Those that have passive portfolio management and those that have active portfolio management. ETFs with passive portfolio management,
which is the more common type, generally invest in stocks that are
included in well-established indexes. On the other hand, ETFs with active portfolio management attempt to outperform the market. The latter approach leads to higher management fees, but it can also lead to higher profits
if the fund is well managed. The development of blockchain technology
is a global phenomenon. For this reason, many blockchain ETFs invest in companies across the world. Here are the 5 of the best blockchain ETFs
you can invest in no particular order. Innovation Shares NextGen Protocol ETF Established in January of 2018,
this blockchain ETF tracks the Innovation Lab Blockchain Innovators Index. 80% of more than $10 million of fund assets
are invested in securities that underlie the index. In terms of performance, as of July 24, 2019, The fund had a 3-month return of 4.17%
and a year-to-date return of 28.51%. Reality Shares Nasdaq NexGen Economy ETF It tracks the Reality Shares NASDAQ
Blockchain Economy Index. The fund has more than $72 million in assets,
with most of this invested in the blockchain stocks
that make up the index. The fund has an annual management fee of 0.68%.
In terms of performance, as of June 24, 2019, the fund had a 3-month return of 2.47% and a year-to-date return of 24.90%. Amplify Transformational Data Sharing ETF It has been established in January of 2016. Unlike those two funds, which have
passive portfolio management, this fund has active portfolio management,
so it has a higher management fee. The ETF has nearly $112 million in assets, making it the largest blockchain in ETF and
it has a management fee of 0.90%. In terms of performance, as of June 24, 2019, the fund had a 3-month return of 4.76%
and a year-to-date return of 27.83%. First Trust Indxx Innovative Transaction & Process ETF This is another passive portfolio-managed
blockchain in ETF that began operations in January of 2018. It invests 90% of more than $40 million in assets, which tracks companies that
develop blockchain-based solutions. The ETF has a management fee of 0.65%. In terms of performance, as of June 24, 2019, the fund had a 3-month return of 2.05%
and a year-to-date return of 21.87%. Lastly is the Goldman Sachs Motif
Finance Reimagined ETF Launched by the one of the world’s
largest financial services companies, it began operations in January of 2019. It invests its $10 million of assets in line with
the Motif Finance Reimagined Index. This company uses Fintech, which means
using advanced technology to support and enable various banking and financial services. Their ETFs management fee is 0.50%.
And in terms of performance, as of June 24, 2019, the fund had a 3-month return of 7.53%. However, this ETF is so new, it is not yet possible to calculate a year-to-date return. It may seem that ordinary investors are being left out. After all, how many people can invest millions
in the latest startup?

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