Key insights
- An individual investor is considering creating a personalized SaaS ETF focused on enterprise-level, infrastructure-oriented, and AI-resistant companies. The proposed ETF includes NOW, NET, SAP, and ADBE, weighted in that order. This reflects a niche investment strategy based on specific criteria, potentially indicating a bottom-up approach to sector investing. Limited direct market impact.
Given the market climate and the hatred towards a lot of enterprise SaaS, I’m considering making my own etf with specific names. Here are the criteria:
- enterprise SaaS (60+% of sales) - near the infrastructure layer or sticky enough that its subscription cannot be ripped out seamlessly at the Fortune 1000 level - can withstand a 20-25% margin compression given the AI competition - enterprise relationships are a key asset not just a cost to the company
Here is the list I have but am curious if I’m missing others given the drawdowns : - NOW - NET - SAP - ADBE
My weighting currently will be in that order but again I’m curious if others have started to do this or believe other names fit this criteria and are poised to grow over the next 3-5 years (shortest time horizon)