Global X Funds – Most innovative North American ETF Provider
New York-based Global X Funds, headed up by CEO Bruno del Ama, currently has over 100,000 investors in more than 100 countries.
Since it was established in 2009, Global X has seen its number of ETFs grow from one to 32 funds as of end-Q1 2012. Overall AUM has grown from USD2million to USD1.4billion.
Del Ama attributes Global X Funds’ success to its ability to offer products that reflect some of the ongoing fundamental shifts in the global economy. “Our focus was to build a range of innovative ETFs that reflect some of the big trends that will drive change in the global economy over the next 10 years.”
In terms of sector allocation, nine out of the 32 ETFs currently available to investors fall in the commodity producer sector (28 per cent). The next two largest sectors are Asia (22 per cent), with a total of seven ETFs and Latin America (19 per cent), with six ETFs. The remaining ETFs are in sectors that include Europe, Industry and Income.
Six out of seven of Global X Funds’ Asian ETFs are China-focused. They cover a range of industries from technology, energy and industrials through to consumer and financials. However, the most popular Global X ETF last year was the Silver Miners ETF (SIL), attracting inflows of USD50.8million. Strong inflows also went into the firm’s other commodity ETFs, in particular its Uranium and Lithium ETFs.
“We believe that we are in a long-term secular bull market for commodities,” says del Ama.
“The Global X Uranium ETF attracted large inflows in spite of the Fukushima nuclear disaster, whilst the demand for lithium keeps growing as result of its use in tablets, smart phones and increasingly in electric vehicles and smart grids. However, one of our most innovative, and successful, launches of 2011 was the Global X SuperDividend ETF (SDIV) which scans the globe for the 100 highest yielding companies and equal weights them in a single ETF.”
Global X has become well known for its expertise in commodity producer ETFs and Emerging Markets but it’s keen to differentiate itself even further from its competitors. Last year, and into 2012, the firm continued to diversify its product offerings by expanding into Income, Asset Allocation and other strategies.
Explains del Ama: “We developed our first “core holding” ETF for investors’ portfolios: the Global X Permanent ETF (PERM), a multi-asset class fund that includes equities, bonds and commodities. We also brought to market the lowest cost MLP exchange traded product – Global X MLP ETF (MLPA).
“We remain committed to providing investors with unique fund suites that allow relatively easy and cost-effective access to global markets. We expect our AUM to grow quickly over the next decade, particularly considering that our portfolio of ETFs is, by design, positioned in market segments that we expect to grow most rapidly.”
On winning the award, del Ama comments: “We are humbled and honoured to win the most prestigious award offered by etfexpress as voted by the ETF industry, particularly considering the phenomenal competition from both established and emerging competitors in the industry. It will keep us focused on our core principles: our clients, and delivering for the long term.”
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