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.