The United States can’t have all the fun when it comes to introducing new ETFs into the marketplace. Global X, a purveyor when it comes to innovative and thematic ETF offerings, is giving the United Kingdom what they want with a pair of new funds for the London Stock Exchange.
“US exchange-traded fund (ETF) provider Global X has launched its first two ETFs on the London Stock Exchange,” a UK-based Shares news article said. “The ETF market in the US is more mature than the UK and Global X specializes in thematic products, something reflected in the nature of these new launches, Global X Video Games & Esports (HERU) and Global X Telemedicine & Digital Health (EDOC).”
This is good news for UK investors who want more niche-based market exposure as opposed to more broad market movements. It’s a trend that could bring more thematic funds to the London Stock Exchange.
In this case, both funds take advantage of growing industries, especially during the Covid-19 pandemic.
“Historically UK ETFs tended to focus on tracking the main market indices but the choice available to investors is broadening, allowing them to gain more focused exposure,” the article said. “Global X Video Games & Esports tracks the Solactive Video Games & Esports v2 index and includes companies involved in the development or publishing of video games, a sector which is expected to exceed $159 billion in revenue in 2020.”
“The index includes those companies involved in the streaming and distribution of video gaming and esports content, and hardware used in video games and esports,” the article added. “Global X Telemedicine & Digital Health follows the Solactive Telemedicine & Digital Health index tracking a basket of companies involved in telemedicine, health care analytics, connected health care devices, and administrative digitalization.”
Rising Global Appeal
Both funds are a step forward in the right direction for more access to thematic-based ETFs to not just the UK, but the whole of Europe. It’s a sign that ETFs are continuing to grow their global appeal.
“We believe investors are increasingly seeking exposures beyond broad-market indices to achieve their unique financial goals,” said Rob Oliver, Global X head of business development in Europe. “Global X has spent the last decade developing a comprehensive suite of thematic strategies targeting among the highest potential growth areas of the market. We are thrilled to broaden access in Europe to Global X’s research-driven approach to thematic investing for the first time.”
For more news and information, visit the Thematic Investing Channel.