WisdomTree has launched the WisdomTree Modern Tech Platforms Fund (PLAT) on the NYSE Arca. PLAT seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Modern Tech Platforms Index and has an expense ratio of 0.45 per cent.
WisdomTree believes there is a compelling, long-term market opportunity created by the evolution of platform business models, or “modern technology platforms.” WisdomTree defines a modern technology platform as a company with a non-linear, multi-sided business model focused on creating value by facilitating interactions between two or more interdependent groups through technology. By doing so, platform businesses can benefit from: scale advantages; capital efficiency; network effects, where the marginal cost of adding an additional user approaches zero as a platform grows; and higher profitability margins.
“Platform-based businesses are gaining market share at the expense of traditional, linear businesses and doing so with much better scale economics and long-term profitability figures. Platform businesses are transforming value chains and we believe the breadth of opportunity expands far beyond great technology companies like Google, Amazon, Microsoft, and Apple,” sasys Jeremy Schwartz, WisdomTree EVP and Global Head of Research.
The WisdomTree Modern Tech Platforms Index seeks to provide access to mid- and large-cap companies listed on a US or European stock exchange that are generating substantial revenue from a modern platform business with a market-cap minimum of USD2 billion.