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Since its founding in 2008, Global X ETFs has long had a reputation as a niche fund issuer, rolling out some of the most creative strategy and thematic funds available to investors. From what was arguably the first thematic ETF launched by any firm* - the Global X Lithium and Battery ETF (LIT) - to its unique lineup of thematic, SuperDividend, single country/region and Scientific Beta funds, Global X's stable of 76 ETFs is loaded with investing strategies that simply aren't offered elsewhere. Unlike other issuers that use the same one or two indexers - or have transitioned over to self-indexing their funds - Global X utilizes the services of more than a half-dozen indexers (the real number may be in the double digits - I ran out of time to count), painstakingly researching who can best deliver true pure-play exposure to a given theme, country or strategy.
Two and a half years ago, Global X was acquired by Mirae Asset, a Seoul, South Korea-based global financial services firm. Global X's global footprint has certainly expanded as a result of the acquisition with listings of Global X ETFs on an increasing number of international exchanges. But the firm's focus on offering investors a line-up of truly unique theme and strategy ETFs has remained tantamount.
I was fortunate to be joined on the latest episode of Let's Talk ETFs by Global X CEO Luis Berruga. Originally from Spain, Luis earned his MBA from the Kellogg School of Management at Northwestern University before starting his career on the investment banking side of the business with Morgan Stanley and Jefferies. Enamored with the elegance of the ETF structure, he joined Global X in 2014 and he hasn't looked back since.
With so many unique thematic ways to play the market, I thought I'd try something new in this week's episode - a Mad Money style COVID-19 ETF investing "lightning round", where we discuss a bunch of trends and themes directly related to the COVID-economy and how a particular Global X ETF or set of ETFs can be used to play that theme. As a result of this conversation, I actually went out and purchased the Global X E-commerce ETF (NASDAQ:EBIZ) for my own and my kids' long-term portfolios.
I hope you find this conversation as useful and enjoyable as I did.
Show Notes
- 2:45 - A most elegant piece of financial engineering: Luis' move from investment banking to Global X ETFs
- 7:00 - A global footprint: Mirae Asset enters the picture
- 12:30 - How many exchanges are Global X ETFs currently listed on?
- 17:15 - Masters at work: Global X's approach to thematic investing
- 24:00 - The birthing process: How Global X brings thematic products to market
- 28:00 - Matchmaker, Matchmaker: Carefully choosing the perfect indexer for each ETF
- 30:00 - Are institutional investors using thematic ETFs differently than individuals?
- 34:30 - How has COVID-19 affected trends in the thematic space?
- 38:30 - COVID-19 thematic ETF lightning round
- 39:00 - The race for the cure: The Global X Genomics & Biotechnology ETF (NASDAQ:GNOM)
- 43:00 - The evolving business of aging: The Global X Longevity Thematic ETF (LNGR)
- 46:00 - Body-mind connection 2.0: The Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ)
- 50:00 - The new shop-from-home economy: The Global X E-commerce ETF (EBIZ) (NASDAQ:AMZN)
- 55:45 - The new socially distant entertainment ecosystem: The Global X Video Games & Esports ETF (NASDAQ:HERO)
- 62:00 - Looking for yield in a yield-less world: Global X SuperDividend ETFs (NYSEARCA:SDIV) (NYSEARCA:DIV)
- 71:45 - What are Luis' favorite sectors right now?
*One could make the very reasonable claim that a fund like the VanEck Vectors Gold Miners ETF (GDX), launched in 2006, is a thematic fund, not a sector one.
