Global X Funds recently filed a prospectus with the Securities and Exchange Commission (SEC) to introduce new exchange traded funds (ETFs) that will enable investors to fine-tune their exposure to various emerging and frontier markets.
As per the prospectus, the funds will target six Chinese industries: consumers, financials, energy, industrials, materials and technology. What’s unique about these funds is that they will enable investors to specifically invest in specific Chinese sectors, as opposed to choosing a broader emerging market or China ETF that’s heavily invested in a range of sectors.
Luisa Beltran for Inites notes that 80% of the assets will be invested in an underlying index, while another 20% will go to futures, swaps and options.
Global X also filed for a line of single-country ETFs that will be passively managed and enable investors to grab exposure to emerging markets that can be difficult to access. These markets include Denmark, Africa, Finland, Norway, Pakistan, Poland and the United Arab Emirates.
Global X was founded in March 2008, and they currently have 12 ETFs in registration with the SEC. Another seven are “effective,” which means that they are cleared for launch. Right now, the firm has two available ETFs that launched this year:
- Global X/InterBolsa FTSE Columbia 20 (NYSEArca: GXG): up 80.1% since Feb. 9 inception
- Global X FTSE Nordic 30 (NYSEArca: GXF): up 10.7% since Aug. 19 inception
For more stories on new ETFs, visit our new ETF category.
Kevin Grewal contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.