Global X launches first two UCITS ETFs in Europe
Global X ETFs, a specialist in thematic investing, has launched its first two European-listed UCITS ETFs. The firm, which announced its formal entrance to European markets on 1 December, is launching the Global X Video Games & Esports UCITS ETF (HERU) and the Global X Telemedicine & Digital Health UCITS ETF (EDOC) on the London Stock Exchange.
Tracking the Solactive Video Games & Esports v2 Index, HERU provides investors with targeted exposure to the evolution of digital entertainment via video games & esports, which saw immense adoption amidst global stay-at-home efforts throughout 2020. The Fund includes companies involved in the development or publishing of video games, a sector which is expected to exceed USD159 billion in revenue in 2020, making it larger than the movie industry and professional sports. The Fund also includes those companies involved in the streaming and distribution of video gaming & esports content, and hardware used in video games & esports.
EDOC, which follows the Solactive Telemedicine & Digital Health Index, offers investors access to companies driving advancements in the telemedicine & digital health theme. The Covid-19 pandemic has highlighted the importance of utilising digital technologies in health care, with some health care providers reporting that remote telehealth appointments have increased as much as 175x in 2020. EDOC invests in those companies involved in telemedicine, health care analytics, connected health care devices, and administrative digitalisation.
Rob Oliver, Head of Business Development in Europe, says: “We believe investors are increasingly seeking exposures beyond broad-market indices to achieve their unique financial goals. 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.”
“Across the global economy, digitalisation is accelerating as businesses, consumers, and governments are increasingly embracing these disruptive technologies to enhance production, quality of life and offer societal benefits,” adds Morgane Delledonne, Global X’s Director of Research in Europe. “In health care; telemedicine & digital health are revolutionising the access to and quality of patient care, while simultaneously reducing costs. On the consumer side, video games & esports are providing immersive, mobile, and social entertainment to billions of gamers around the world, dramatically changing the way we spend our leisure time. We expect these powerful themes to continue to experience long-term growth as they further disrupt traditional economic sectors.”
Investors around the globe have already demonstrated a strong appetite for the video games & esports and telemedicine & digital health themes. Global X’s US-listed funds targeting these disruptive areas have each gathered over USD400 million in net inflows in 2020, amassing over $1 billion in combined assets under management.
The Funds reside within Global X’s suite of Thematic Growth ETFs which aims to transcend traditional sector classifications to access disruptive and emerging trends.