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Global X Funds launched a new ETF on Wednesday that offers exposure to U.S. consumption by holding 100 of the most recognizable brands in the U.S.
The Global X Iconic U.S. Brands ETF (BATS: LOGO) tracks the Accuvest Iconic U.S. Brands Index, offering exposure to the most recognizable brands in the U.S. as defined by the index provider, Accuvest Global Advisors.
Jay Jacobs, director of research at Global X, said they are excited to offer investors a way to invest in U.S. consumption via the brands they know and trust.
“A strong and recognizable brand is becoming an increasingly valuable asset to a large corporation” Jacobs said. “It’s an intuitive notion that consumers continue to return to companies and brands that they trust – one that’s continually backed up by research into consumer behavior and corporate earnings.”
LOGO’s top holdings include General Motors, Marriott, Ross Stores, Priceline, Expedia and Home Depot.
As of 2016, annual consumption in the U.S. was estimated at $12.8 trillion, representing approximately 70% of the total national GDP. U.S. consumers increasingly direct that estimated $12.8 trillion to brands that they are loyal to.
In a recent WPP survey over 80% of consumers cited brand as a key consideration in their purchases, and 56% stated brand, not price, was the most important factor. LOGO offers investors an avenue to gain exposure to those loyal consumption habits.