Closely following the launch of the AlphaClone hedge fund replication exchange traded fund, Global X is also marketing an ETF based on top hedge fund picks.
On Tuesday, the Global X Top Guru Holdings Index ETF (NYSEArca: GURU) started trading, according to a press release. GURU will try to reflect the performance of the Top Guru Holdings Index, which is comprised of top U.S.-listed equity positions reported on the Form 13F by hedge fund managers. The fund has an expense ratio of 0.75%.
The fund will select from a pool of hedge fund positions based on their reported equity holdings and efficacy of replicating their publicly disclosed positions. The ETF will rebalance quarterly and also follow an equal-weight methodology.
As of May 25, GURU had 51 holdings, with top components including America Movil (NYSE: AMX) 2.0%, American Capital Agency Corp. (NasdaqGS: AGNC) 2.0%, American International Group (NYSE: AIG) 2.0%, Apple (NasdaqGS: AAPL) 2.0% and Banco Bradesco (NYSE: BBD) 2.0%.
Sector allocations include technology 21.6%, financials 17.7%, industrials 15.7%, energy 9.8%, 7.8%, consumer goods 7.8%, consumer services 7.8%, health care 7.8% and telecommunications 3.9%.
Earlier in June, AlphaClone launched the AlphaClone Alternative Alpha ETF (NYSEArca: ALFA). ALFA has an expense ratio of 0.95%. [New Hedge Fund Replication ETF]
For more information on new product launches, visit our new ETFs category.
Max Chen 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.