Marknaden för börshandlade fonder redo för tillväxt
Sammanfattningsvis var 2016 ett fantastiskt år för börshandlade fonder, ETFer eller Exchange Traded Funds som de också heter. I USA svarade handeln med börshandlade fonder för nästan 30 procent av handelsvolymen – varje dag. I slutet av 2016 kunde vi ta del av uppgifter om att det fanns mer än 2 500 000 000 000 dollar, 2,5 biljoner USD, under förvaltning i börshandlade fonder, nästan 15 procent av allt det kapital som fondindustrin förvaltar. Under 2016 såg marknaden för börshandlade fonder inflöden om 260 miljarder dollar. Marknaden för börshandlade fonder redo för tillväxt och det är framförallt tre saker som gör att vi kan förvänta oss en tillväxt.
Betydande förbättringar av aktiemarknaderna
Liksom alla nya, snabbväxande produkter har marknaden för börshandlade fonder upplevt en enorm evolution – en del av denna är organisk, en del har varit följden av yttre omständigheter. På den organiska sidan har vi sett uppkomsten av smart beta och en spridning av innovativa medel som går långt utöver de ursprungliga breda beta index. ETF-utgivarna fortsätter att investera i forskning och utveckling för att driva nästa generations börshandlade fonder. Detta gör ETF-marknaden till något att hålla ögonen på under 2017.
Några av de yttre krafter som påverkar ETF marknaderna har också medfört en positiv förändring. Dessa inkluderar marknadsstrukturen förbättringars som svar på volatila händelser och en ökning av den dagliga marknadselasticiteten. Vi har sett ett antal sådana händelser, morgonen efter Brexit, Donald Trumpsoväntade seger i det amerikanska presidentvalet under 2016 etcetera.
Medan många förändringar leddes av New York Stock Exchange har en stor del av förbättringarna drivits av ett aldrig tidigare skådad samarbete mellan de amerikanska börserna som ett kollektiv. Resultatet har blivit att aktiemarknaden är starkare än tidigare, mer harmoniserad och i slutändan mer effektiva för emittenter och investerare som söker likviditet, oavsett marknadsförhållanden.
Inträdesbarriärerna har sjunkit
Under juli 2016 godkände SEC, den amerikanska finansinspektionen, en mer strömlinjeformad process som gör det möjligt för förvaltarna att ta aktivt förvaltade ETFer till marknaden. Det som tidigare var en regulatorisk osäkerhet har nu blivit en rättfram lanseringsprocess som är effektiv och snabb. Detta reflekterar finansmarknadens behov av att hela tiden bedöma vart den är på väg och att verka för de förändringar som minskar komplexiteten och stödjer tillväxt när nya produkter tas fram och marknader utvecklas.
Även om vi bara skriver februari 2017 så ser vi att det finns ett stort antal nya produkter och nya emittenter från världen över som förbereder sig för lansering med stöd av det nya regelverket. Det är allt från nya sätt att investera i räntebärande papper, nya investeringsstrategier anpassade för emerging markets, blockchain och kryptovalutor.
Optimismen på ny rekordnivå
Under de senaste veckorna har vi sett hur börserna stigit och investerarnas förtroende är högt, faktum är att det är rekordhögt vilket är ett gott tecken för ETF-marknaden. Det finns dessutom ett antal regelförändringar som kan komma att gynna ETF-marknaden ytterligare framförallt i USA. Det är framförallt de nya föreslagna förändringarna från Department of Labor som kan komma att tvinga rådgivare och investerare att överväga fördelarna med ETF: er, nämligen deras låga kostnader, skatteeffektivitet och insyn.
Som ett resultat kommer en stor del av investeringsrådgivningen troligen att komma att omfatta diskussioner om börshandlade fonder för första gången. Det bådar gott för ETF-marknaden och tillväxten för det förvaltade kapitalet under 2017. Detta ser ut att bli ett starkt år för ETF industrin, med en ökande investeraraptit på nya produkter tillsammans med ett stort antal nya emittenter. Med större lätthet för övergång till nya företag och reducerade starttider för både index och aktivt förvaltade produkter, räknar vi med en ytterligare ett fartfyllt år av tillväxt.
Gold Bull Market Loses Some Shine, But Remains Healthy
Market Review – Gold Bull Market Loses Some Shine, But Remains HealthyGold Consolidates Amid Late Summer Doldrums
Gold Market Commentary September 2016
Market Review
Goldwas range-bound in September, moving in the $1,300 to $1,350 per ounce range. Economic news from the U.S. was generally weak and central bank announcements were supportive of gold. The Federal Reserve (the “Fed”) kept rates on hold and downgraded its median GDP growth projection for 2016 to 1.8% from 2.0%. The Bank of Japan (BOJ) acknowledged that negative rates and quantitative easing are not working as well as planned, so it decided to experiment further with unconventional monetary policies. The BOJ is now targeting the yield curve and attempting to keep 10-year Japanese Government Bonds (JGBs) sufficiently above shorter term negative-yielding maturities. This initiative is aimed at aiding banks, pension funds, and insurance companies who are having difficulty making ends meet in this low/ negative rate environment the BOJ and other central banks have engineered. We believe that these ongoing attempts to manipulate markets will lead to unintended consequences that raise systemic risk.
Gold bullion ended the month at $1,315.75 per ounce for a 0.5% gain while gold stocks experienced more positive returns. The NYSE Arca Gold Miners Index (GDMNTR)1 posted a 3.8% gain while the MVIS™ Junior Gold Miners Index (MVGDXJTR)2 advanced 5.8%.
Market Outlook
Gold had been consolidating in a narrow $1,300 to $1,350 per ounce range since hitting its post-Brexit highs in July. As we write in early October, markets are again pricing in a higher likelihood of a Fed rate increase in December based on comments made by Fed members following its September meeting. This, in turn, is lending strength to the U.S. dollar.
As a result, gold has fallen below $1,300 per ounce and broken below the longer term trend line that had been established this year. This leads us to be less aggressive in our gold price expectations for 2016. It looks like the current consolidation could persist through October, dependent on any economic news that develops. However, this price action changes virtually nothing in our positive long-term outlook for gold. Price weakness is likely to spur seasonal demand out of India and Asia. We continue to believe that a Fed rate increase would ultimately be seen as another misstep that puts global growth at risk. In addition, the U.S. presidential election, implementation of Brexit, and further loss of confidence in central bank policies should support gold through 2017 and beyond.
Each year in mid-September, top managements of gold companies converge on Colorado for the Precious Metals Summit and the Denver Gold Forum. Based on our 41 meetings, eight presentations, and numerous dinners, gatherings, and interactions with industry contacts, we came away with a more refined outlook for the gold mining sector. Here are some important takeaways:
1) Costs savings continue, margins expanding – We questioned whether the cost cycle had run its course after all-in sustaining (mining) costs fell from roughly $1,200/oz in 2012 to $900/oz in 2016. We were surprised to hear companies anticipate continued savings in mining practices, technology implementation, procurement (the act of finding, acquiring, buying goods, services or works from an external source) and contractor costs. We now believe industry costs can trend towards $800/oz through 2018.
2) Companies focused on organic opportunities – Low gold prices forced companies to look inward at existing operations and projects. Success with brownfields exploration (modification or upgrades based on a prior project) have led to expansions or extended mine lives. Revised planning has enabled development projects to require less capital with higher rates of return and phased expansions.
3) Heavy M&A cycle not likely until late 2017/2018 – With more organic opportunities, there is not as much pressure to make acquisitions in the near-term. That said, corporate development teams were quite active, suggesting some companies are preparing to pull the acquisition trigger at some point to replace future production declines.
4) Dividend increases to be limited in 2017 – We had hoped to hear of strong dividend growth in 2017, however, we now believe any increases will be limited due to capital allocations to existing property developments and in some cases to further help pay down debt.
5) Ongoing industry themes – An emphasis on free cash flow over production growth, flat management structure, mine management focused on Net Asset Value (NAV) growth, use of double digit hurdle rates at conservative gold prices on new projects, partnering with juniors for exposure to greenfields (a property or project where no previous work has been conducted).
One of the dominant financial trends of the past decade is a move by investors out of actively managed funds and into passively managed index funds or exchange traded funds (ETFs). The latest example is the Illinois State Pension Board, which according to The Wall Street Journal, decided to jettison active mutual fund managers altogether, leaving only passively managed choices for its state workers. The reasons cited for the move into ETFs included lower fees and potentially better performance as many active managers fail to outperform their passive peers. We have witnessed this recent preference for ETFs here at VanEck.
Although gold has experienced some consolidation recently, we still maintain our positive outlook for gold and believe that investors would be wise to consider their exposure to gold stocks, either passively or actively, as these equities typically outperform gold bullion in a rising market and underperform when gold falls.
With more than 30 years of gold industry experience, Foster began his gold career as a boots on the ground geologist, evaluating mining exploration and development projects. Foster is Portfolio Manager and Strategist for the Gold and Precious Metals strategy.
1In the U.S., the federal funds rate is “the interest rate” at which depository institutions actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, on an uncollateralized basis. Institutions with surplus balances in their accounts lend those balances to institutions in need of larger balances. 2The correlation coefficient is a measure that determines the degree to which two variables’ movements are associated and will vary from -1.0 to 1.0. -1.0 indicates perfect negative correlation, and 1.0 indicates perfect positive correlation. 3U.S. Dollar Index (DXY) indicates the general international value of the U.S. dollar. The DXY does this by averaging the exchange rates between the U.S. dollar and six major world currencies: Euro, Japanese yen, Pound sterling, Canadian dollar, Swedish kroner, and Swiss franc. 4The ISM Manufacturing Index is an index based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. The ISM Manufacturing Index monitors employment, production inventories, new orders and supplier deliveries. 5A survey of consumer confidence conducted by the University of Michigan. The Michigan Consumer Sentiment Index (MCSI) uses telephone surveys to gather information on consumer expectations regarding the overall economy. 6The U.S. consumer confidence index (CCI) is an indicator designed to measure consumer confidence, which is defined as the degree of optimism on the state of the economy that consumers are expressing through their activities of savings and spending. 7NYSE Arca Gold Miners Index (GDMNTR) is a modified market capitalization-weighted index comprised of publicly traded companies involved primarily in the mining for gold. 8MVIS Global Junior Gold Miners Index (MVGDXJTR) is a rules-based, modified market capitalization-weighted, float-adjusted index comprised of a global universe of publicly traded small-and medium-capitalization companies that generate at least 50% of their revenues from gold and/or silver mining, hold real property that has the potential to produce at least 50% of the company’s revenue from gold or silver mining when developed, or primarily invest in gold or silver.
Please note that the information herein represents the opinion of the author and these opinions may change at any time and from time to time.
Important Information For Foreign Investors
This document does not constitute an offering or invitation to invest or acquire financial instruments. The use of this material is for general information purposes.
Please note that Van Eck Securities Corporation offers actively managed and passively managed investment products that invest in the asset class(es) included in this material. Gold investments can be significantly affected by international economic, monetary and political developments. Gold equities may decline in value due to developments specific to the gold industry, and are subject to interest rate risk and market risk. Investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation.
Exchange Traded Funds (ETFs) offer an approach to investing that combines instant diversification with trading flexibility, reduced expenses, and improved tax efficiency. Fundamentals of Exchange Traded Funds.
WHAT ARE ETFs?
An ETF is a collection of securities that tracks, and is intended to represent, the performance of a broad or specific segment of the market (e.g., US equities, small cap stocks or emerging markets).
An ETF is similar to an index mutual fund but trades like a stock throughout the day. ETFs combine the features of index mutual funds with individual securities:
Like index mutual funds, ETFs allow investors to track hundreds of domestic and international indexes, including the S&P 500® and the Dow Jones U.S. Total Stock Market IndexSM, as well as specific sectors or industries (e.g., utilities, technology, or healthcare).
Like individual stocks, ETFs give investors the flexibility to buy and sell on the major stock exchanges throughout the day, at the market price. Like stocks, investors can place stop loss and limit orders on ETFs. They can even be bought on margin and sold short, subject to your broker’s terms and conditions.
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*Morningstar. Average Prospectus Net Expense Ratio for ETFs and open end mutual funds as defined by Morningstar. Data as of 9/30/2014. Average Net Prospectus Expense Ratio for US ETFs and US Mutual Funds as defined by Morningstar.
Unlike a stock, Index ETFs and mutual funds are managed funds that follow a passive investment strategy, attempting to track the performance of an unmanaged index of securities. As a result, the Funds may hold constituent securities of the Index regardless of the current or projected performance of a specific security.
ETFs trade like a stock and will fluctuate in market value over the course of the trading day, unlike an index mutual fund. ETFs may trade at prices below or above the ETF net asset value. Buying shares of an Index ETF, similar to buying a stock, will typically involve brokerage commissions to which index mutual funds may not be subject. Frequent trading of ETFs could significantly increase commissions and other costs.
THE POTENTIAL BENEFITS OF EXCHANGE TRADED FUNDS
DIVERSIFICATION. ETFs offer one of the easiest ways to diversify a portfolio, especially for investors who want to focus on a specific sector or industry. By virtue of being index investments, ETFs offer exposure to a particular market segment, helping to protect against the risk of a select number of individual stocks hurting an investor’s overall portfolio performance. It’s important to remember that diversification does not ensure a profit or guarantee against loss.
LOWER FEES AND EXPENSES. Because most ETFs are passively managed, they typically have low management fees and operating expenses. However, frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
TRADING FLEXIBILITY. ETFs trade all day long, so investors can lock in the market value of the ETF anytime during the trading day. Because ETFs trade like stocks on an exchange, a wider range of techniques (short selling, stop loss and limit orders) can be used to take advantage of anticipated market movements. It’s important to keep in mind that frequent ETF trading, which typically occurs through a broker, can significantly increase brokerage commissions potentially washing away any savings from low fees or costs.
TRANSPARENCY. Investors have all the information they need to make informed investments—no strategy drift or black boxes to decipher. With ETFs, you know precisely which securities the ETF holds and what you’re invested in—there is no need to wait for the end of the quarter to review the fund’s holdings.
TAX EFFICIENCY. The ETF investor decides when to sell his or her ETF shares and much like a stock transaction the individual controls the timing of any taxes on any resulting capital gain/loss. Unlike mutual fund investors, ETF buyers and sellers usually don’t assume as high a tax burden for fellow shareholder redemptions. In this case, the resulting capital gains tax burden would be shared by all of the ETF’s investors.**
DEFINITIONS
FLEXIBLE TRADING OPTIONS
Ease and efficiency with which one can purchase a security. ETFs, like stocks, trade on an exchange and can be bought and sold at any point during trading hours at their current market value. Buy and sell orders for mutual fund shares are placed and transacted after the market close at the mutual fund’s closing market value, where the closing value is calculated at the end of the trading day.
Source: “State Street Global Advisors ETFs: A Brief Introduction”.
TAX TREATMENTS
Tax consequences related to the trading of securities. Turnover of individual stocks will have either short term or capital gains tax consequences for the individual investor only. Similarly, holders of ETFs will not typically be affected by other shareholder redemptions. With a mutual fund, if multiple shareholders redeem their shares concurrently, the fund manager may have to sell underlying holdings to raise cash to pay those shareholders; in addition to transaction costs, this could trigger capital gains. The taxes on those capital gains would then be absorbed by all shareholders in the fund.
Source: “State Street Global Advisors ETFs: A Brief Introduction”.
INDEX DEFINITIONS
S&P 500 INDEX
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the US stock market. The index is heavily weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes.
The Dow Jones U.S. Total Stock Market Index represents the broadest index for the US equity market, measuring the performance of all US equity securities with readily available price data. Over 5,000 capitalization weighted security returns are used to adjust the index.
Source: dowjonesindexes.com.
TALK TO YOUR FINANCIAL ADVISOR
If exchange traded funds interest you, speak to your advisor to determine if you could benefit from incorporating ETFs in your investment plans.
Your advisor can help you analyze your current investments, risk tolerance, tax situation and time horizon, and then recommend strategies to help you achieve your goals.
ABOUT SPDR® ETFs
SPDR ETFs are a comprehensive fund family of over 100 ETFs, spanning an array of international and domestic asset classes. Offered by State Street Global Advisors, SPDR ETFs provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street Global Advisors created the first ETF in 1993 (SPDR S&P 500®—Ticker SPY). Since then, we’ve sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income and sector ETFs.
For information about our ETF family, visit spdrs.com.
STATE STREET GLOBAL ADVISORS
State Street Financial CenterOne Lincoln StreetBoston, MA 02111
866.787.2257spdrs.com
** Like mutual funds, though, there may be times when changes in the underlying index trigger the sale of securities held by the ETF.
FOR PUBLIC USE.
IMPORTANT RISK INFORMATION
ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Passive management and the creation/redemption process can help minimize capital gains distributions.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
The use of short selling entails a high degree of risk, may increase potential losses and is not suitable for all investors. Please assess your financial circumstances and risk tolerance prior to short selling.
Information represented in this piece does not constitute legal, tax, or investment advice. Investors should consult their legal, tax, and financial advisors before making any financial decisions. Performance of an index is not illustrative of any particular investment. It is not possible to invest directly in an index.
Foreign investments involve greater risks than US investments, including political and economic risks and the risk of currency fluctuations, all of which may be magnified in emerging markets.
Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed by SSgA. The Dow Jones US Total Stock Market Index is a product of S&P Dow Jones Indices LLC, and has been licensed by SSgA.
“SPDR” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and has been licensed for use by State Street Corporation. STANDARD & POOR’S, S&P and S&P 500 are registered trademarks of Standard & Poor’s Financial Services LLC. No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in such products. Further limitations and important information that could affect investors’ rights are described in the prospectus for the applicable product.
Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR S&P 500, SPDR S&P MidCap 400 and SPDR Dow Jones Industrial Average, and all unit investment trusts. ALPS Portfolio Solutions Distributor, Inc. is distributor for Select Sector SPDRs. ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are not affiliated with State Street Global Markets, LLC.
Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 866.787.2257 or visit spdrs.com. Read it carefully.
One of the benefits of Exchange Traded Funds is the fact that the price of ETF units generally reflect the market value of its holdings. Understanding ETF Premiums and Discounts.
Market Price vs. NAV
Since ETFs trade on a stock exchange, they have two end-of-day “values”. The first is a closing market price, which is determined by trading activity on the exchange. Typically, this is the price at which the units last traded during the trading session (or the mid-point of the bid and ask quotes if the ETF does not trade during that trading session). The second value is Net Asset Value (NAV), which is calculated by the ETF’s independent fund accountant after the market closes. NAV is the weighted-average price of the ETF’s underlying securities, minus liabilities such as management fees and expenses, then divided by units outstanding. Understanding ETF Premiums and Discounts.
What is a Premium or Discount?
A premium or discount to NAV occurs when the market price of an ETF on the exchange rises above or falls below its NAV. If the market price is higher than NAV, the ETF is said to be trading at a “premium”. If the price is lower, it is trading at a “discount”. An ETF may trade at a premium or discount when, for example;
· its underlying assets trade at different hours than the stock exchange (e.g., commodities)
· its underlying assets trade infrequently (e.g., bonds)
· markets are in a heightened state of instability or flux (e.g., at market open or close)
Many ETFs track well-known indices for which performance data is independently reported by the stock exchange and financial news and data providers such as Thomson Reuters or Bloomberg. The daily closing price they quote is usually the price at which units last traded during the trading session. For ETFs that don’t trade frequently throughout the day, the quoted “last price traded” may not correspond to the daily change in the value of the ETF’s underlying index or basket of securities. This might lead an investor to mistakenly conclude that an ETF is trading at a premium or discount to its NAV.
Market Makers and their Role The majority of Canadian-listed ETFs generally trade with a tight bid/ask spread on either side of NAV, regardless of how often they trade. A tight bid/ask spread is facilitated by the presence of a “market maker”, a designated broker-dealer firm that tracks an ETF’s NAV throughout the trading day. The market maker is obligated to ensure liquidity and to attempt to maintain a tight bid/ask spread close to NAV. It does this by buying or selling ETF units from its own inventory when there are too few buyers or sellers in the market. This allows investors to get their orders filled as near to NAV as possible, when they choose to execute them, regardless of trading volume.
How a Premium or Discount can Occur
Understanding ETF Premiums and Discounts. There are three main reasons why the closing market price of an ETF may deviate from its NAV on any given day:
1. The last trade of the day usually occurs at the bid or ask price posted by the market maker, which reflects a spread on either side of NAV
2. The last daily trade of the ETF on the exchange may occur earlier in the trading day rather than at the market close*
3. The ETF’s underlying assets may trade infrequently or at different hours than the stock exchange (e.g., commodities or bonds)
*The greater the time between the last trade and the close of the market, the greater the spread can be.
The chart below illustrates a hypothetical ETF trading at a discount to NAV on Day 1, and how this results in a higher price change on Day 2:
For Illustration Purposes Only Premiums and discounts usually converge towards the NAV on the following trading day.
Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by AlphaPro Management Inc. and Horizons ETFs Management (Canada) Inc. (the “Horizons Exchange Traded Products”). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the prospectus before investing.
Global X Funds launches Millennials Thematic ETF Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X Millennials Thematic ETF (Nasdaq: MILN). MILN is the ninth ETF in Global X’s suite of thematic funds, and the first in its ’People’ category, which focuses on emerging trends pertaining to changing demographics and consumer behaviors. Global X plans to further expand the ’Thematic – People’ category with launches of the Global X Longevity Thematic ETF (LNGR) and the Global X Health & Wellness Thematic ETF (BFIT) expected next week.
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There are over 90 million Millennials in the United States, making it the largest generation. MILN includes those companies that are among the best positioned to benefit as Millennials, those aged 16-36, gradually enter peak earning years, and become a major force within the U.S. economy.
Millennials currently earn roughly $2 trillion in income, and are poised to earn roughly $8 trillion by 2025. Additionally, the total transfer of wealth from Baby Boomers to Millennials is expected to reach $40 trillion.
”As Millennials enter their prime earning years, companies that cater to their unique spending preferences are expected to gain market share,” said Jay Jacobs, director of research of Global X. ”These companies can come from a broad range of industries and hit on a variety of sub-themes inherent with millennials, such as the use of social media, consumption of digital content, a focus on health and wellness, and investment in education and career advancement, among many others.”
Thematic investments aim to access the high growth potential of companies at the forefront of a long-term, structural changes in the economy. By transcending classic sector and industry classifications, thematic investing seeks to harness macro-level trends and the investments best suited to benefit from those trends.
”Thematic investing is a research-driven approach that has long been available to institutional investors seeking growth opportunities,” added Mr. Jacobs. ”At a time of weak earnings and low GDP growth, we’re excited to broaden our growth-seeking thematic suite of ETFs to now include strategies that seek to benefit from substantial shifts in demographics and consumer behavior.”
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 40 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
DISCLOSURE
Investing involves risk, including the possible loss of principal. The investable universe of companies in which the Fund may invest may be limited. The Fund invests in securities of companies engaged in Information Technology which can be affected by rapid product obsolescence, and intense industry competition. In addition to normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. The fund is non-diversified which represents a heightened risk to investors.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
