ETF Risk Report: XWEB Buyer Beware: Every ETF Holds the Full Risk of Its Underlying Equities Disclosures in the Best Interest of Investors
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ETF Risk Report: XWEB Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors SPDR S&P Internet ETF Gray Swan Event Risks exist for every equity held by XWEB. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur Gray Swan Event Factor for XWEB 1.38% infrequently, but consistently for all equities. Equities account for 94.57% of XWEB’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for XWEB following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the XWEB equity portfolio is 1.38%. However, individual equity risks vary signicantly. This report helps investors know their risk exposure. Inception Date: 06/27/2020 Year-to-Date Return: 8.21% The SPDR S&P Internet ETF tracks the investment results of the S&P Internet Select Industry Index, a modied Net Assets: $67.9m 1-Year Return: 163.68% equal-weighted index composed of at least 22 U.S.-listed stocks of companies with a market cap > $500 million in Price: $169.72 3-Year Return: 31.99% the internet segment of the S&P Total Market Index, Net Asset Value (NAV): $169.68 5-Year Return: NA including internet & direct marketing retail, internet services & infrastructure, and interactive media & services. Net Expense Ratio: 0.35% Yield: 0.37% The Fund employs a sampling strategy, holding a portfolio of securities with generally the same risk and return As of: 03/31/2021 characteristics of the Index. The Index rebalances quarterly. Sector funds are by denition non-diversied. Company Ticker Held Current GSEF Category Value Top Holdings by Value Angi Homeservices Inc. ANGI Long 1.07% Low $1.21m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Oct 1, 2021. Overstock.Com, Inc. OSTK Long 2.08% Mid $1.17m Investors should invest in ETFs only when they adequately Eventbrite, Inc. EB Long 0.60% Low $1.15m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Digitalocean Holdin... DOCN Long - NA $1.15m do NO traditional risk analysis on equities in their fund. Stitch Fix, Inc. SFIX Long 0.92% Low $1.13m Our Gray Swan Event Factors are meant to inform investors of signicant traditional accounting and Therealreal, Inc. REAL Long 2.01% Mid $1.08m managerial risks for the equities in each ETF. Yelp Inc. YELP Long 0.54% Low $1.08m ETF Risk Reports are published quarterly on dedicated Shutterstock, Inc. SSTK Long 1.64% Low $1.05m platforms like Factset, Renitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Stamps.Com Inc. STMP Long 1.75% Low $1.04m For more details contact: [email protected] Cargurus, Inc. CARG Long 1.24% Low $1.03m Company Ticker Held Current GSEF Category Value Riskiest Holdings Fubotv Inc. /Fl FUBO Long 6.91% High $829k This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Oct 1, 2021. Bigcommerce Holding... BIGC Long 5.79% High $955k The average equity GSEF across 6,500 public equities is Okta, Inc. OKTA Long 3.52% Mid $966k 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Switch, Inc. SWCH Long 3.03% Mid $1.01m extreme risks. Gray Swan Event Factors are derived from skilled analysts Match Group, Inc. MTCH Long 3.02% Mid $987k charting 15 years of negative gray swan event disclosures Etsy Inc. ETSY Long 2.84% Mid $991k against stock price declines following such disclosures. A Gray Swan Event Factor is an assessment of the Fastly, Inc. FSLY Long 2.16% Mid $951k likelihood of, and 12-month price risk for, gray swan Twilio Inc. TWLO Long 2.12% Mid $964k events for each equity. Overstock.Com, Inc. OSTK Long 2.08% Mid $1.17m Therealreal, Inc. REAL Long 2.01% Mid $1.08m Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This table lists the equity holdings for SPDR S&P Internet ETF ranked by highest GSE Factor (riskiest rst). We list all equities (US and foreign) for this ETF. However, some foreign listings only show via a ticker. To further evaluate risks, you can access details for each company by opening its Brief Watchdog Report available for viewing and pdf download. The report is free to readers for their personal consumption and it includes the executive summary data pulled from the full Watchdog Report. To learn more about the full Watchdog and GSEF Reports go to last page or visit watchdogresearch.com. Company Access Details Ticker Held Current GSEF Category Value Fubotv Inc. /Fl Watchdogresearch.com/watchdog/$FUBO FUBO Long 6.91% High $829k Bigcommerce Holdings, Inc. Watchdogresearch.com/watchdog/$BIGC BIGC Long 5.79% High $955k Okta, Inc. Watchdogresearch.com/watchdog/$OKTA OKTA Long 3.52% Mid $966k Switch, Inc. Watchdogresearch.com/watchdog/$SWCH SWCH Long 3.03% Mid $1.01m Match Group, Inc. Watchdogresearch.com/watchdog/$MTCH MTCH Long 3.02% Mid $987k Etsy Inc. Watchdogresearch.com/watchdog/$ETSY ETSY Long 2.84% Mid $991k Fastly, Inc. Watchdogresearch.com/watchdog/$FSLY FSLY Long 2.16% Mid $951k Twilio Inc. Watchdogresearch.com/watchdog/$TWLO TWLO Long 2.12% Mid $964k Overstock.Com, Inc. Watchdogresearch.com/watchdog/$OSTK OSTK Long 2.08% Mid $1.17m Therealreal, Inc. Watchdogresearch.com/watchdog/$REAL REAL Long 2.01% Mid $1.08m Stamps.Com Inc. Watchdogresearch.com/watchdog/$STMP STMP Long 1.75% Low $1.04m Petmed Express Inc. Watchdogresearch.com/watchdog/$PETS PETS Long 1.66% Low $980k Shutterstock, Inc. Watchdogresearch.com/watchdog/$SSTK SSTK Long 1.64% Low $1.05m Mediaalpha, Inc. Watchdogresearch.com/watchdog/$MAX MAX Long 1.41% Low $634k 1 800 Flowers Com Inc. Watchdogresearch.com/watchdog/$FLWS FLWS Long 1.29% Low $965k Liquidity Services Inc. Watchdogresearch.com/watchdog/$LQDT LQDT Long 1.29% Low $478k Revolve Group, Inc. Watchdogresearch.com/watchdog/$RVLV RVLV Long 1.26% Low $1.02m Cargurus, Inc. Watchdogresearch.com/watchdog/$CARG CARG Long 1.24% Low $1.03m Lands' End, Inc. Watchdogresearch.com/watchdog/$LE LE Long 1.19% Low $650k Angi Homeservices Inc. Watchdogresearch.com/watchdog/$ANGI ANGI Long 1.07% Low $1.21m Qurate Retail, Inc. Watchdogresearch.com/watchdog/$QRTEA QRTEA Long 1.03% Low $1.02m Tripadvisor, Inc. Watchdogresearch.com/watchdog/$TRIP TRIP Long 1.00% Low $1.01m Limelight Networks, Inc. Watchdogresearch.com/watchdog/$LLNW LLNW Long 0.99% Low $366k Stitch Fix, Inc. Watchdogresearch.com/watchdog/$SFIX SFIX Long 0.92% Low $1.13m Ebay Inc. Watchdogresearch.com/watchdog/$EBAY EBAY Long 0.87% Low $993k Truecar, Inc. Watchdogresearch.com/watchdog/$TRUE TRUE Long 0.85% Low $439k Godaddy Inc. Watchdogresearch.com/watchdog/$GDDY GDDY Long 0.83% Low $958k Akamai Technologies Inc. Watchdogresearch.com/watchdog/$AKAM AKAM Long 0.81% Low $966k Pinterest, Inc. Watchdogresearch.com/watchdog/$PINS PINS Long 0.75% Low $971k Amazon.Com Inc. Watchdogresearch.com/watchdog/$AMZN AMZN Long 0.71% Low $979k Chewy, Inc. Watchdogresearch.com/watchdog/$CHWY CHWY Long 0.65% Low $939k Eventbrite, Inc. Watchdogresearch.com/watchdog/$EB EB Long 0.60% Low $1.15m Quotient Technology Inc. Watchdogresearch.com/watchdog/$QUOT QUOT Long 0.58% Low $620k Quinstreet, Inc. Watchdogresearch.com/watchdog/$QNST QNST Long 0.55% Low $381k Yelp Inc. Watchdogresearch.com/watchdog/$YELP YELP Long 0.54% Low $1.08m Rackspace Technology, Inc. Watchdogresearch.com/watchdog/$RXT RXT Long 0.53% Low $1.01m Brightcove Inc. Watchdogresearch.com/watchdog/$BCOV BCOV Long 0.53% Low $313k Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Company Access Details Ticker Held Current GSEF Category Value Facebook Inc. Watchdogresearch.com/watchdog/$FB FB Long 0.52% Low $927k Cars.Com Inc. Watchdogresearch.com/watchdog/$CARS CARS Long 0.52% Low $531k Cloudare, Inc. Watchdogresearch.com/watchdog/$NET NET Long 0.51% Low $913k Mongodb, Inc. Watchdogresearch.com/watchdog/$MDB MDB Long 0.51% Low $997k Tucows Inc. Watchdogresearch.com/watchdog/$TCX TCX Long 0.50% Low $215k Wayfair Inc. Watchdogresearch.com/watchdog/$W W Long 0.50% Low $1.01m Snap Inc. Watchdogresearch.com/watchdog/$SNAP SNAP Long 0.47% Low $1.03m Twitter, Inc. Watchdogresearch.com/watchdog/$TWTR TWTR Long 0.45% Low $1.01m Alphabet Inc. Watchdogresearch.com/watchdog/$GOOG GOOG Long 0.42% Low $970k Verisign Inc. Watchdogresearch.com/watchdog/$VRSN VRSN Long 0.42% Low $958k Zillow Group, Inc. Watchdogresearch.com/watchdog/$Z Z Long 0.41% Low $992k Snowake Inc. Watchdogresearch.com/watchdog/$SNOW SNOW Long 0.41% Low $982k Digitalocean Holdings, Inc. Watchdogresearch.com/watchdog/$DOCN DOCN Long - NA $1.15m Solarwinds Corp - SWIUN Long - NA $1.03m Iac/Interactivecorp Watchdogresearch.com/watchdog/$IAC IAC Long - NA $1.02m Doordash Inc Watchdogresearch.com/watchdog/$DASH DASH Long - NA $1.01m Poshmark, Inc. Watchdogresearch.com/watchdog/$POSH POSH Long - NA $974k Bumble Inc. Watchdogresearch.com/watchdog/$BMBL BMBL Long - NA $888k Contextlogic Inc. Watchdogresearch.com/watchdog/$WISH WISH Long - NA $830k Porch Group Inc - PRCH Long - NA $823k Vimeo Inc Ord - VMEO Long - NA $770k Watchdog Research, Inc.