Global X Expands Roster of Thematic ETFs with Two Disruptive Tech Offerings and a Fund-of-Funds Thematic Solution
October 29 2019 - 10:00AM
Global X ETFs, the New York-based provider of exchange-traded funds
(ETFs), today launched three new funds: the Global X Video Games
& Esports ETF (Nasdaq: HERO); the Global X Cybersecurity ETF
(Nasdaq: BUG); and the Global X ThematicGrowth ETF (Nasdaq: GXTG).
The three new ETFs will join Global X ETF's Thematic Growth Suite,
which now has 18 total funds.
Global X Video Games & Esports ETF (HERO)
Global revenues for esports and video games in 2018 were nearly
$140 billion according toanalyst estimates,1 and viewership of
mobile and online gaming is expected to exceed nearlyevery
professional sport by 2021.2 Designed to track the Solactive Video
Games & Esports Index, the Global X Video Games & Esports
ETF holds a basket of companies that develop or publish video
games, facilitate the streaming and distribution of video gaming or
esports content,own or operate within competitive esports leagues,
or produce hardware used in video games andesports, including
augmented and virtual reality.
Global X Cybersecurity ETF (BUG)
Concerns over online security and cybercrime have reached an
all-time high, with the cost of damages from these activities
expected to cost $6 trillion annually by 2021.3 Designed to
trackthe Indxx Cybersecurity Index, the Global X Cybersecurity ETF
holds a basket of companiesthat could benefit from increased
adoption of cybersecurity technology, including companieswhose
principal business involves developing and managing security
protocols to preventintrusion and attacks on systems, networks,
applications, computers, and mobile devices.
Global X Thematic Growth ETF (GXTG)
Aiming to provide investors with a cost-effective and efficient
tool to access disruption across multiple themes and segments of
the economy, the Global X Thematic Growth ETF tracks the Solactive
Thematic Growth Index, which seeks to provide broad exposure to
thematic growth strategies using a portfolio of Global X’s thematic
growth ETFs. To determine which ETFs will be selected for
inclusion, the index provider calculates an aggregate realized
sales growthnumber based on the weighted average revenue growth of
all the companies held by each potential underlying ETF, and the
ETF with the highest aggregate realized sales growth within its
sector assignment is selected for inclusion in the index. As of
October 29, 2019, there were a total of seven ETFs in the
index.
Each ETF included in the index receives a starting weight of
7.5%. ETFs that have a sales growth number in the top half of the
ETFs included in the index receive an additional weight of 7.5%.
The individual ETF with the highest sales growth receives an
additional weight of 7.5%.The weight of any single ETF is capped at
25% and the remaining weights are distributed evenly among the
remaining ETFs included in the index. Holdings will be reevaluated
for inclusion in the index annually, and rebalancing will occur
semi-annually.
“We are excited to expand our offerings with two new disruptive
technology funds and the multi-theme Global X Thematic Growth ETF,”
said Pedro Palandrani, research analyst at GlobalX ETFs. “As
disruption accelerates across the global economy, investors are
looking for targeted and efficient solutions to gain access to
these trends. Through our extensive thematic growth suite, we now
offer investors access to seventeen individual themes as well as a
fund-of-funds thematic solution.”
ABOUT GLOBAL X ETFs
Global X was founded in 2008 with the mission of listening to
and empowering clients to invest wisely in unexplored and
intelligent solutions. Our product lineup features more than 60 ETF
strategies. While we are distinguished for our Thematic Growth,
Income and International Access ETFs, we also offer Core,
Commodity, and Alpha funds to suit a wide range of investment
objectives. Global X is a member of Mirae Asset Global Investments
Group, a Seoul-based global enterprise which offers asset
management expertise worldwide. Explore our ETFs, research and
insights, and more at www.globalxetfs.com.
Investing involves risk, including the possible loss of
principal. The investable universe ofcompanies in which the funds
may invest may be limited. Video Game and Esports Companiesare
subject to risks associated with additional regulatory oversight
with regard toprivacy/cybersecurity concerns, shifting consumer
preferences, and potential licensingchallenges. The Fund invests in
securities of companies engaged in Information Technology,which can
be affected by rapid product obsolescence and intense industry
competition.International investments may involve risk of capital
loss from unfavorable fluctuation incurrency values, from
differences in generally accepted accounting principles or from
social,economic or political instability in other nations. HERO,
BUG, and GXTG are non-diversified.
Cybersecurity Companies are subject to risks associated with
additional regulatory oversightwith regard to privacy/cybersecurity
concerns. Declining or fluctuating subscription renewalrates for
products/services or the loss or impairment of intellectual
property rights couldadversely affect profits.
Emerging economic themed companies typically face intense
competition and potentially rapidproduct obsolescence. Thematic
companies may have limited product lines, markets,
financialresources or personnel. They typically engage in
significant amounts of spending on research anddevelopment, capital
expenditures and mergers and acquisitions, and there is no
guarantee thatthe products or services produced will be
successful.
Shares of ETFs are bought and sold at market price (not NAV) and
are not individually redeemed from the Fund. Brokerage commissions
will reduce returns. Global X NAVs are calculated using prices as
of 4:00 PM Eastern Time. The closing price is the Mid-Point
betweenthe Bid and Ask price as of the close of exchange. Closing
price returns do not represent thereturns you would receive if you
traded shares at other times. Indices are unmanaged and do
notinclude the effect of fees, expenses or sales charges. One
cannot invest directly in an index.
Carefully consider the Fund’s investment objectives,
risks, and charges and expenses beforeinvesting. This and other
information can be found in the Fund’s summary or fullprospectuses,
which may be obtained by calling 1.888.493.8631, or by visiting
globalxetfs.com. Please read the prospectus carefully before
investing.
Global X Management Company LLC serves as an advisor to Global X
Funds. The Funds aredistributed by SEI Investments Distribution Co.
(SIDCO), which is not affiliated with Global XManagement Company
LLC or Mirae Asset Global Investments. Global X Funds are
notsponsored, endorsed, issued, sold or promoted by Solactive AG,
nor does Solactive AG makeany representations regarding the
advisability of investing in the Global X Funds. NeitherSIDCO,
Global X nor Mirae Asset Global Investments are affiliated with
Solactive AG.
Frank Taylor
Global X
(646) 808-3647
Frank@dlpr.com
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