David Garff, president of Accuvest Global Advisors, said despite the fact that the U.S. is driven primarily by household spending, its research indicates that investors tend to be chronically underweight the brands and industries that stand to benefit from a consumer’s lifetime of spending.
“Consequently, we designed the Accuvest Iconic U.S. Brands Index to provide what we believe is a more accurate representation of the economy’s primary driver,” Garff said.
Related: 2017 End of Year Market, ETF Outlook
LOGO’s underlying index includes the top 100 companies according to the Iconic Brands Score, which represents the highest ranking brands from a comprehensive analysis of consumption-focused industries.
The Iconic Brands Strength Score then rewards the companies in the top 100 with the highest revenue growth and absolute cash flow generation with a greater weighting in the Index.
The 25 companies from the Tier 1 sub-industries (core to the consumption theme) with the highest Iconic Brands Strength Score receive 50% of the total index exposure, with the remaining 75 constituents comprising the rest. LOGO is Global X’s fourth ETF in its suite of Thematic – People.
For more information on new fund products, visit our new ETFs category.
