Thematic ETF provider Global X finished 2021 with twice as many assets as the previous year, prompting market experts to ponder just how the company did it.
“The firm ended as the 12th largest ETF manager, climbing four spots in the crowded CFRA ETF league table, aided by $21 billion of net inflows,” CFRA Research notes in a “Funds in Focus” report. “To learn more about what drove the firm’s relative success, we spoke in mid-January to Global X CEO Luis Berruga.”
“He explained that the firm has become known for thematic ETFs that have a long-term growth focus, are unconstrained by geographies and sectors, and are tied to relatable concepts that impact daily lives,” the report says. “Global X offers 33 such thematic ETFs with over $20 billion in assets. While Global X expanded its suite in 2021, Berruga noted LIT was the industry’s first thematic ETF when it came to market in 2010. LIT recently had $5.3 billion in assets.”
Specifically, CFRA notes that funds like the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ), which capitalizes on global disruption with growth technologies. BOTZ seeks to invest in companies that stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.
With a heavier reliance on the internet amid the pandemic, another fund that helped Global X prosper was the Global X Cybersecurity ETF (BUG). BUG seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index.
Bolstering Its ETF Roster
Additionally, Global X bolstered its roster with the debut of more thematic funds as the rise in popularity of these ETFs increased. One new fund is the Global X Clean Water ETF (AQWA).
AQWA seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Clean Water Industry Index. The fund invests at least 80% of its total assets, plus borrowings for investments purposes (if any), in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index, which is designed to provide exposure to companies that have business operations in the provision of clean water.
A rise in renewable energy sources like solar saw the introduction of the Global X Solar ETF (RAYS). The fund seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry, which includes companies involved in solar power production, the integration of solar into energy systems, and the development and manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.
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