In early February of this year, the ETF provider Global X launched a new fund, Global X Permanent ETF (NYSEArca: PERM), which is designed to provide diversified exposure to four different asset class categories.
Tracking the Solactive Permanent Index, the fund delivers according to the issuer, “All Seasons Allocation” by investing in non-correlated asset classes (Equities, Gold and Silver, Short Term Government Bonds, and Long Term Government Bonds).
The goal of PERM is to provide proper diversification that is methodically rebalanced to the investor, and be positioned to perform in different economic environments such as those involving increasing or decreasing growth and/or increasing or decreasing inflation. [Economic All-Season ETF]
The fund rebalances on an annual basis back to the target 25% weighting in each asset class to keep things in line, and if a radical move occurs in any one given asset class during the course of the trading year beyond established thresholds, the fund reserves the right to rebalance back to target in these circumstances.
Since inception, the ETF has attracted approximately $11 million in assets under management and traded about 6,100 shares per day on an average daily basis, but since it is roughly two months old, this is quite normal as awareness and acceptance of the fund will likely grow in time.
Due to the underlying make-up of the index, liquidity is present in this fund enabling investors to enact larger trades, although if one looks at published bid/ask spreads or average daily volume this may not be readily apparent.
Global X Permanent ETF