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%.
Gold ETFs/ETCs is 20% of the fund and silver ETFs/ETCs is 5%.
“The Global X Permanent ETF is designed to preserve and increase purchasing power over the long-term,” Bruno del Ama, chief executive officer of Global X Funds, said in a press release. “PERM provides access to this diversification in a single, cost-effective ETF.”
For more information on new offerings, visit our new ETFs category.
Max Chen contributed to this article.