Introduction

The LEGR, also known as the First Trust Indxx Innovative Transaction & Process ETF, is a cryptocurrency exchange-traded fund that focuses on equity. It was introduced by First Trust in January 2018, a notable ETF provider in the U.S. This fund monitors the performance of the Indxx Blockchain Index, which includes companies involved in blockchain technologies.

The selection process of the index begins with a global scope of equities from both developed and emerging markets. Stocks with market caps lower than $250 million and less than $1 million in three-month average daily trading are eliminated. Additional criteria for removal include stocks with less than 90% trading days, a free float of less than 20%, and share prices higher than $10,000.

Furthermore, companies with no association with blockchain technology are excluded before the ranking process commences. Each company is given a score based on their activity related to blockchain technology: 1 for developing, 2 for utilizing, and 3 for exploring. Companies scoring 1 or 2 are included in the index, with weighting split equally between them. Companies scoring 3 are not included, and the index is rebalanced twice yearly with a limit of 100 stocks in the portfolio.

Currently, the ETF's major sectors consist of financials (40%), technology (28%), and communication services (10%). The leading countries included are the U.S. (39%), China (10%), and Germany (9%). The fund leans towards large-cap stocks, with top holdings like Microsoft (MSFT) and Salesforce (CRM) from the Dow Jones index.