Helping investors capitalize on the growth in the online retail business, Global X rolled out a targeted e-commerce ETF.
Global X launched the Global X E-commerce ETF (NasdaqGM: EBIZ), which has a 0.68% expense ratio.
The Global X E-commerce ETF tries to reflect the performance of the Solactive E-commerce Index, which include companies that are positioned to benefit from the increased adoption of e-commerce as a distribution model, including but not limited to companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online, according to the fund’s prospectus.
Solactive implements a proprietary Natural Language Processing (NLP) engine called ARTIS® (Algorithmic Theme Identification System), which identifies and ranks companies with direct exposure to the e-commerce industry based on filings, disclosures and other public information. Companies identified are further reviewed based on revenue related to e-commerce activities.
“Undoubtedly, it is safe to say that E-commerce will further define our consumption habits, which are focusing largely on the immediate availability of goods. As an innovative index provider, it is our pursuit to not only find the obvious but also take on different directions and perspectives on how to identify new sources for valuable index concepts,” Timo Pfeiffer, Head of Research at Solactive, commented in a note.