Global X, the New York ETF company knows for its equity funds focused on commodities and the emerging markets, today launched two new funds linked to Nasdaq indexes that provide investors broad exposure to an array of nonfinancial stocks.
The two new funds, which come with an annual expense ratio of 0.48 percent, are:
- Global X Nasdaq 500 ETF (NasdaqGM:QQQV - News)
- Global X Nasdaq 400 Mid Cap ETF (NasdaqGM:QQQM - News)
The rollout reflects Global X’s plan to embrace Nasdaq indexes. For example, Global X recently said that around Dec. 15, it would be changing the ticker on its China Technology Fund from (NYSEArca:CHIB - News) to "QQQC” on the Nasdaq—a clear resemblance to the tickers of the funds it rolled out today. It said at the time that the China tech fund’s benchmark would become the Nasdaq OMX China Technology Index. Until then, the fund will remain organized around the Solactive China Technology Index.
Global X is betting that Nasdaq indexes will maintain the relatively strong performance that they have had in recent years. According to Global X, between November 2001 and November 2011, the financial sector lost 34.21 percent of its value, and during the same period, technology stocks gained 37. 82 percent and industrials gained 16.85 percent, based on Nasdaq sector indexes.
In addition, according to an analysis by Global X, from Jan. 1 to Sept. 30, 2011, the Nasdaq 500 and 400 indexes outperformed the S'P 500 and 400 indexes by more than 3 percent, with similar volatility.
Global X CEO Bruno del Ama said in a recent telephone interview that his company plans to issue more funds based on Nasdaq indexes.
“We developed a relationship at a high level with Nasdaq,” said del Ama, “and we saw an opportunity to come to market with a whole range of innovative ETFs looking at the technology spectrum.”
The two new funds use a sampling strategy, meaning that they won’t own all of the stocks in their respective indexes.
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