Expanding on its successful Global X Guru Index ETF (NYSEArca: GURU), Global X has filed with the Securities and Exchange Commission to launch a small-cap and international exchange traded funds based on top hedge funds picks.
According to a SEC filing, Global X is working on the Global X Guru Small Cap Index ETF (NYSEArca: GURX) and the Global X Guru International Index ETF (NYSEArca: GURI). Both ETFs will have a 0.75% expense ratio. [Unleash Your Inner Hedge Fund Manager With ETFs]
The two new ETFs, like the original GURU ETF, are comprised of high conviction ideas based on 13F filing data from a select pool of hedge funds.
GURX will track small-cap companies reported on Form 13F by hedge funds and other institutional investors while GURI will follow international companies. The index provider also screens hedge funds based on the size of their reported equity holdings, efficacy of replicating their publicly disclosed positions and management teams with a record of creating shareholder value.
GURX will take the top 100 small-cap stock picks with market capitalization ranging from $100 million to $3 billion. The holdings are equally weighted and rebalanced quarterly.
GURI includes the top 50 international picks, and holdings are equally weighted and rebalanced quarterly.