Looking Back And Ahead With Disruptive Technologies

For much of 2018, the technology sector continued leading U.S. equities higher, but in the fourth quarter, that trade unraveled in a big way. As of Dec. 30 th , the tech-heavy Nasdaq-100 Index was saddled with a fourth-quarter loss of 17.68 percent.While broader technology benchmarks encountered difficulty late in 2018, some unique approaches managed less poor annual performances. As of Dec. 31 st , the Indxx Disruptive Technologies Index was poised to modestly outperform the Indxx 500 Index on an annual basis. The Indxx Disruptive Technologies Index features equal-weight exposure to 10 new age technology themes, many of which are under-represented or not found at all in traditional technology indexes. Themes represented in the Indxx Disruptive Technologies Index include 3D printing, cloud computing, cybersecurity, fintech, healthcare innovation and Internet of Things (IoT).Whether it is cybersecurity, healthcare innovation or small-cap healthcare, several of 2018's best-performing themes, are accessible via the Indxx Disruptive Technologies Index. 1

Looking To 2019

Several of the themes found in the Indxx Disruptive Technologies Index are potentially poised for big things in 2019. Cybersecurity, which seemingly delivered an endless spate of compelling headlines in 2018, is one such theme.With customers and investors increasingly sensitive to the havoc wrought by large-scale data breaches, cybersecurity is an important conversation for C-level executives and one that will grow in prominence in the year ahead.“As the damages from breaches continue to become more evident — a lower bottom line, a plunging stock price, a tainted brand — responsibility for cybersecurity failures will go beyond the CIO’s and CISO’s oversight of the IT department and directly to the CEO’s office door,” according to Forbes. “Many board discussions will revolve around mitigating cyber risks and how they can improve their organization’s security posture.” 2Related: Lower is Better When it Comes to Alternative EnergyRelated: Making Mobile Payments Pay Your PortfolioCloud computing, another theme residing in the Indxx Disruptive Technologies Index, could be poised for more upside in 2019. As of Dec. 30th, the IISE Cloud Computing Index was up 4.56 percent in 2018. Data suggest there is still room for significant adoption of cloud-based technologies across myriad industries.“At the close of 2017 analyst house Forrester foundthat globally, organizations were only using cloud for 50% of the IT provision,” according to IDG Connect. “As 2018 nears an end, Paul Miller of Forrester says there has been a small increase in 2018.” 3FinTech, another theme found in the Indxx Disruptive Technologies Index, could deliver exponential growth next year. Recent data suggest venture capitalists and other big-name investors are willing to assign lofty valuations to some fintech startups.Fintech startup Plaid, which helps customers link banks to other financial mobile apps, has seen its valuation rise more than 10-fold in two years. 4Proving that fintech is a global phenomenon, there are unicorns in this space found outside the U.S. For example. South Korea's Toss recently raised $80 million in venture funding, putting its valuation at $1.2 billion. 5

Accessing Growth

Investors looking to tap into the potential of cloud computing, cybersecurity, fintech and other disruptive technological themes in 2019 can consider the ALPS Disruptive Technologies ETF ( DTEC), which tracks the aforementioned Indxx Disruptive Technologies Index. 1Source: Business Insider Dec. 28, 2018 https://markets.businessinsider.com/news/stocks/stock-market-news-best-performing-etfs-2018-2018-12-1027835446#etfmg-prime-cyber-security-etf1 2Source: Forbes Dec. 28, 2018 https://www.forbes.com/sites/forbestechcouncil/2018/12/28/cybersecurity-predictions-for-2019/#5a6386f24a27 3Source: IDG Connect Dec. 4, 2018 https://www.idgconnect.com/opinion/1500485/cloud-computing-ahead 4Source: Forbes Dec. 11, 2018 https://www.forbes.com/sites/alexkonrad/2018/12/11/mary-meekers-first-post-kleiner-deal-fintech-startup-plaid-now-valued-at-265-billion/#25d0c2a377d6 5Source: Business Insider Dec. 11, 2018 https://www.businessinsider.com/toss-raises-80-million-2018-12 Important Disclosures & Definitions An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus which contain this and other information call 844.234.5852 or visit www.alpsfunds.com. Read the prospectus carefully before investing. Standardized performance for the ALPS Disruptive Technologies ETF (DTEC) can be found here . Current holdings for DTEC can be found here . ALPS Disruptive Technologies ETF Shares are not individually redeemable. Investors buy and sell shares of the ALPS Disruptive Technologies ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 50,000 shares.ALPS Advisors, Inc. (AAI) has engaged IRIS Werks, LLC (IRIS) to produce analysis and commentary on ALPS-advised ETFs. IRIS currently has a compensated business relationship with AAI. AAI is not affiliated with IRIS.The content and opinions expressed in this article are that of the author and not the views and opinions of ALPS Advisors, Inc. In addition, ALPS Advisors, Inc. assumes no responsibility to ensure the accuracy of the content written by the author.The author is not an investment professional and this article should not be considered investment advice. While the information and statistical data contained herein are based on sources believed to be reliable, the author takes no responsibility to ensure the accuracy of the content. Additionally, this article should not be relied on or be the basis for an investment decision. Information that is historical is not indicative of future results, and subject to change.Disruptive Technology Theme Risk. Companies that the Index Provider believes are developing disruptive technologies may not in fact do so or may not be able to capitalize on those technologies. Companies that develop disruptive technologies may face political, legal or regulatory challenges. Such companies may also be exposed to risks applicable to industries or sectors other than the disruptive technology Theme for which they are chosen and may underperform relative to other companies that are also focused on a particular Theme.There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the prospectus.An investment in the Fund is subject to investment risk including the possible loss of the entire principal amount that you invest.Companies that the Index Provider believes are developing disruptive technologies may not in fact do so or may not be able to capitalize on those technologies. Companies that develop disruptive technologies may face political, legal or regulatory challenges. Such companies may also be exposed to risks applicable to industries or sectors other than the disruptive technology Theme for which they are chosen and may underperform relative to other companies that are also focused on a particular Theme.Smaller and mid-size companies often have narrower markets, more limited managerial and financial resources and a less diversified product offering than larger, more established companies. As a result, their performance can be more volatile, which may increase the volatility of the Fund’s portfolio.The large capitalization companies in which the Fund invests may underperform other segments of the equity market or the equity market as a whole.The Fund’s investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers, including, among others, less liquidity generally, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of its investments. Finally, the value of the currency of the country in which the Fund has invested could decline relative to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors.The fund is new and has limited operating history.Indxx Disruptive Technologies Index (IDTEC): based around companies that enter traditional markets with new digital forms of production and distribution, are likely to disrupt an existing market and value network, displace established market leading firms, products and alliances and increasingly gain market share.S&P 500 Index - The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.Nasdaq 100 Index – The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting.ISE Cloud Computing Index – ISE Cloud Computing Index has been created to provide investors with a product allowing them to quickly take advantage of both even-driven news and long term economic trends as the market for cloud computing technology continues to evolve.One may not invest directly in the index.Artificial intelligence (AI) is the intelligence exhibited by machines or software. One of the central problems (or goals) of AI research include natural language processing (communication).One may not invest directly in the index.ALPS Portfolio Solutions Distributor, Inc. is the distributor for the ALPS Disruptive Technologies ETF.DTG000203 12/31/2019