Global X Funds has listed its own exchange traded fund targeting the global auto industry just a little over one week after First Trust launched the world’s first auto ETF.
The Global X Auto ETF (NYSEArca: VROM) tries to reflect the performance of the S-Network Global Automotive Index, which is a modified capitalization-weighted index that holds publicly traded companies that produce automobiles, automobile parts, tires and related products. The index rebalances semiannually.
The fund holds 50 of the world’s largest and most active auto-related companies. The ETF has an expense ratio of 0.65%.
Top company allocations include: Toyota Motor Corp (TM) 10.26%, Daimler (DDAIF.PK)10.22%, Ford Motor Co. (F) 9.40%, Bayerische Motoren Werke (BAMXY.PK) 5.22%, Honda Motor Co. (HMC) 4.96%, Hyndai Motor Co. (HYMLF.PK) 4.91%, Johnson Controls Inc. (JCI) 4.34%, Volkswagen (VLKAF.PK) 3.87%, and General Motors (GM) 2.70%.
Country allocations include: Germany 23.18%, Japan 2.88%, U.S. 2.49%, South Korea 11.1%, France 6.39%, China 4.76%, India 2.33%, Indonesia 2.03%, Italy 1.89%, Canada 1.84% and Sweden 1.12%.
In comparison to First Trust NASDAQ Global Auto Index Fund (NasdaqGM: CARZ), VROM has more holdings at 50 compared to the 32 of CARZ, and the Global X auto fund includes firms that deal in auto parts and derive a minimum of 50% of revenue from the auto industry. CARZ has an expense ratio of 0.7%.
Max Chen contributed to this article.