On Tuesday, Sparkline Capital expanded its growing ETF line with the release of the Sparkline International Intangible Value ETF (DTAN).
DTAN is an actively managed ETF with a net expense ratio of 0.55%. For investors, the fund seeks to provide capital appreciation.
In order to generate capital appreciation, the international ETF invests in a variety of equity securities of non-U.S. companies. These can include both common stocks and depositary receipts of common stocks.
When it comes to choosing assets to invest in, Sparkline Capital assess both a company’s tangible assets along with its intangible value. In particular, the measurement of a company’s intangible value is a crucial aspect of Sparkline’s investment philosophy.
Examining Intangible Value
Sparkline Capital looks at four different factors to measure intangible value within a company. The first factor, human capital, evaluates a company’s ability to access and retain a talented pool of employees.
Brand equity is the second intangible value factor that Sparkline considers. With strong brand value, a company can cultivate a loyal customer base and generate more consistent sales.
For the third factor, Sparkline evaluates the value of a company’s intellectual property. This includes both patent-protected products and company trade secrets. DTAN’s prospectus notes that intellectual property is growing to become a major factor in assessing a company’s value.
Lastly, Sparkline also considers the network effects within a company. By building a strong network effect, companies can build value while making the playing field more difficult for competing brands.
Along with a thorough evaluation of intangible value, Sparkline also evaluates companies using proprietary quantitative methodology. This methodology aims to deliver an estimated value for the tangible assets within a company.
By investing in DTAN, investors can help diversify their portfolio with robust international exposure. The fund may invest in both developed and emerging markets. Notably, DTAN can invest in small-, mid-, or- large cap companies.
DTAN is not the first Sparkline ETF to use an intangible value strategy. The Sparkline Intangible Value ETF (ITAN) launched back in 2021 and focuses on U.S. stocks. As of August 31st, 2024, ITAN’s NAV has risen 21.63% over the last twelve months.
For more news, information, and analysis, visit VettaFi | ETF Trends.
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