Tortoise Releases TCLD and TPAY: Digital Infrastructure ETFs

Banking CIO Outlook | Tuesday, February 26, 2019

Tortoise has launched two digital infrastructure Exchange-traded funds (ETFs) named Tortoise Infrastructure Fund (TCLD) and Tortoise Digital payments Infrastructure fund (TPAY). An efficient digital infrastructure is the backbone of the digital revolution which includes everything that transfers, stores, and processes digital information. As the world economy has become increasingly reliant on an instant, flexible, efficient, and lower-cost technology, TCLD and TPAY offer investors access to participate in the potential growth.

TCLD is an ETF which tracks the tortoise Global Cloud Infrastructure Index that represents the existing global cloud infrastructure landscape. Global Cloud Infrastructure Index is propriety, rules-based, modified market capitalization-weighted, float-adjusted index, which comprises of companies that are materially engaged in the cloud infrastructure industry such as, cloud services, cloud management software, cloud hosting, cloud security, cloud hardware, and cloud data centers. As the digital infrastructure involves more significant risks and volatility than less concentrated investments, the risks associated with TCLD are not limited to disruption of services, security breaches, evolving internet regulation and technology. Investments in non-U.S. companies include risks which are related to political, social, and economic developments abroad. Many other risks are not generally associated with investments in securities and instruments of U.S. issuers like differences between U.S. and foreign regulatory and accounting requirements, tax risk and market practices, and fluctuations in the foreign currencies.

TPAY is an ETF which is designed to track the tortoise Global Digital Payments infrastructure Index that represents the digital payments landscape. Global Digital Payments infrastructure Index is a proprietary, rules-based, float-adjusted index, which consists of companies that are materially engaged in digital payments. It also includes merchant processing and settlements, real-time record keeping, settlement networks, and Fintech product and services, which provides the ease, efficiency, and speed of electronic transactions. The index consists of companies whose primary business comprises of one or more combinations of the categories which are as follows: credit card networks, electronic transaction processing and associated products/services, credit card issuers, electronic transaction processing software or online financial services marketplace. 

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