Global X launches thematic ETF model portfolio in Europe

Mar 8th, 2022 | By | Category: ETF and Index News

New York-based Global X has introduced the Global X Innovation UCITS ETF Model Portfolio in Europe.

Jon Maier, Chief Investment Officer at Global X

Jon Maier, Chief Investment Officer at Global X.

Developed and maintained by Jon Maier, Chief Investment Officer at Global X, the Portfolio provides exposure to multiple structural megatrends by investing across the firm’s extensive suite of thematic UCITS ETFs.

Since debuting its first funds in Europe in December 2020, Global X has greatly expanded its thematic ETF line-up.

The firm’s suite comprises 22 ETFs targeting the investment themes of infrastructure, cloud computing, video games & Esports, telemedicine & digital health, lithium & battery tech, robotics & AI, copper miners, autonomous & electric vehicles, cybersecurity, the internet of things, fintech, genomics & biotechnology, renewable energy producers, digital infrastructure, clean technology, e-commerce, blockchain, clean water, wind energy, hydrogen power, solar power, and agricultural technology.

According to Global X, the Portfolio will typically be equally split between two thematic categories: ‘Disruptive Technology’ and ‘People & Demographics’. Up to 20% of the Portfolio, however, may be allocated to themes classified within a ‘Physical Environment’ category.

Individual themes are selected for the Portfolio based on which areas are expected to cause the most short-term disruption to the global economy. To diversify thematic risks, however, Global X will seek to include themes that are disrupting different sectors of the economy.

Themes are first equally weighted within their categories and then adjusted to increase the weight of themes displaying strong positive momentum. This momentum factor will typically account for a 20% influence when determining thematic weights but may be increased to 40% depending on the market environment.

The Portfolio does not charge any direct management fees; however, investors will need to pay the fees attributable to the underlying ETF positions. As of 3 March, the Portfolio comprised 10 ETFs with a weighted average fee of 0.54%.

Notable thematic exposures included cybersecurity, the internet of things, video games & Esports, and autonoumous & electric vehicles, each of which commanded a weight of 12.6%.

Commenting on the launch, Jon Maier said: “Our mission at Global X is to serve clients with unexplored and intelligent investment solutions, and our model portfolios are an extension of that passion. We’re thrilled to bring our ETF Model Portfolio strategies to the European market with the launch of the Global X Innovation UCITS ETF Model Portfolio, allowing European advisors to capitalize on Global X’s leadership and deep knowledge of the world of thematic investing.”

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