Global X, a provider of niche and alternative exchange traded fund products, this week launched a diversified ETF that holds various assets in an attempt to perform in any market condition, providing investors with a market agnostic tool during volatile times.
Global X Permanent ETF (NYSEArca: PERM) tries to reflect the performance of the Solactive Permanent Index, which tracks the performance of four asset categories that are designed to perform in varying economic conditions, including increasing growth, decreasing growth, increasing inflation and decreasing inflation. PERM has an expense ratio of 0.49%.
After each rebalance, the fund’s underlying index would re-allocate 25% to each of the four asset categories: stocks, long-term U.S. Treasuries, short-term U.S. Treasuries and gold/silver.
Stock ETFs can be further broken down into: U.S. large-caps 9%, U.S. small-caps 3%, international stocks 3%, U.S. real estate stocks 5% and U.S. and foreign natural resource stocks 5%.