The Global X Top Guru Holdings Index ETF (NYSEArca: GURU) has been breaking new 52-week highs throughout the year, providing exchange traded fund investors with an outperforming strategy based on top hedge fund picks.
GURU has increased 33.4% year-to-date, trading just below its most recent high of 23.27.
The Global X Top Guru ETF tries to reflect the performance of the Solactive Top Guru Holdings Index, which is comprised of the top U.S. listed equity positions reported on quarterly Form 13F by a select group of hedge funds.
The SEC Form 13F, or Information Required of Institutional Investment Managers Form, is a quarterly filing required of institutional managers with over $100 million in qualifying assets. The filing contains information on the manager’s list of recent investing holdings, which provide the public a glimpse of how the heavy weights are moving around the changing markets. [Hedge Fund ETF Tops $500M in Assets]
GURU utilizes the public filing information to construct a portfolio aimed to outperform the broader equities market at a fraction of the cost to traditional hedge funds. The ETF has a 0.75% expense ratio, compared to hedge funds that typically charge a 2% management fee and a 20% performance fee.
However, since GURU’s holdings are based on numbers from the previous quarter, the ETF’s positions may become stale in a quickly changing market.
The fund has 54 components and the top holdings include Education Management Corp 2.7%, U.S. Airway Group 2.3%, Cumulus Media 2.2%, Pandora Media 2.2% and Yahoo Inc 2.2%.
Sector allocations include basic materials 7.3%, consumer cyclical 17.3%, financial services 10.4%, real estate 1.7%, telecom services 9.2%, energy 7.5%, industrials 9.4%, tech 24.1%, consumer defensive 2.6% and healthcare 10.5%.
Global X Top Guru Holdings Index ETF
For more information on hedge funds, visit our hedge fund category.
Max Chen contributed to this article.