Global X expands thematic line-up in Europe with ETFs on US infrastructure, genomics and biotech, and cloud computing

Nov 5th, 2021 | By | Category: Equities

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Global X ETFs has expanded its product line-up in Europe with the launch of three thematic equity strategies on the London Stock Exchange.

Luis Berruga, CEO of Global X

Luis Berruga, CEO of Global X.

The ETFs, which are part of Global X’s ‘Thematic Growth’ family, offer exposure to US infrastructure, genomics and biotechnology, and cloud computing.

They are the Global X US Infrastructure Development UCITS ETF (PAVE LN), the Global X Genomics & Biotechnology UCITS ETF (GNOM LN), and the Global X Cloud Computing (CLO LN).

The US infrastructure and cloud computing ETFs are linked to indices provided by Indxx while the genomics and biotechnology ETF is based on a Solactive index.

Global X has established itself as a leader in thematic investing, with 32 products in the thematic space in the US market, representing more than $21 billion in assets under management. Including other strategies, the New York-headquartered firm has approximately $40bn in ETF AUM.

It made its debut in the European market in December 2020.

Of the three new UCITS funds, the US infrastructure play, PAVE, is perhaps the most exciting – at least from a product perspective. Global X offers this strategy in the US, which it unveiled in the early part of 2017. In the first three years of its existence, the fund underperformed the broader market and failed to generate any notable degree of investor interest. In the past 18 months or so, it is a very different story. The fund has outperformed the market and grown from a little over $100 million in assets to $5bn on the back of heightening expectations of increased federal infrastructure spending in the US.

There is no other ETF listed in Europe offering the same kind of targeted exposure to mainstream US infrastructure companies.

Commenting on the rollout of the three funds, Luis Berruga, CEO of Global X, said: “With these latest launches, we’re continuing to expand our industry-leading thematic offerings to include three additional emerging and powerful themes: an increase in infrastructure activity in the United States, further advances in the field of genomic science, and increased adoption of cloud computing technology.”

He added: “Our focus has always been on bringing products to market that offer investors access to untapped market segments, and these three funds represent a continuation of this goal. In keeping with that sentiment, PAVE and GNOM both represent first-of-their-kind products in the European market and we’re thrilled to be bringing these strategies to investors across Europe and around the world.”

The funds

The Global X US Infrastructure Development UCITS ETF tracks the Indxx US Infrastructure Development v2 Index. It invests in companies that potentially stand to benefit from an increase in infrastructure investment in the US including those involved in the production of raw materials, heavy equipment, engineering, and construction. The passage of a long-awaited US infrastructure spending bill would mark the start of a structural transformation of US infrastructure to meet changing societal and demographic demands, achieve net-zero emissions by 2050 as well as upgrade digital infrastructure.

PAVE has an expense ratio of 0.47%.

The Global X Genomics & Biotechnology ETF follows the Solactive Genomics v2 Index. It focuses on companies listed globally that potentially stand to benefit from further advances in the field of genomic science. Such advancements involve companies specialised in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology. Waves of private and public investment and R&D have poured into the space to further understand and treat various genetic disorders, complex diseases and medical conditions. Personalised treatments based on an individual’s unique genetic sequence would represent a monumental leap in health care, enabling people to live longer and healthier.

GNOM has an expense ratio of 0.50%.

Global X Cloud Computing UCITS ETF tracks the Indxx Global Cloud Computing v2 Index. It invests in companies listed globally that are positioned to benefit from the increased adoption of cloud computing technology, including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), managed server storage space and data centre real estate investment trusts, and/or cloud and edge computing infrastructure and hardware. In today’s world where robust digital infrastructure and remote work arrangements are vital, the importance of the cloud – the virtual space where software applications run, data reside, and computing occurs – cannot be overstated.

CLO has an expense ratio of 0.55%.

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