Global X Seeks To Launch 4 Hedge Fund ETFs

Includes: CSLS, CSMA, WDTI
by: Tom Lydon

Global X, a provider known for its niche exchange traded fund products, has filed with the Securities and Exchange Commission to add four specialized ETFs that seek to provide investors exposure to hedge-fund and other money manager strategies.

According to a regulatory filing the new passively indexed ETFs include:

  • Global X Top Hedge Fund Equity Holdings ETF. The fund includes top U.S.-listed equity positions held by a select group of the world's premier value investors
  • Global X Top Value Guru Holdings ETF. The fund tracks the top U.S.-listed equity positions held by a select group of the world's premier value investors.
  • Global X Top Activist Investor Holdings ETF. The fund follows the equity positions of the world's premier activist investors.
  • Global X Listed Hedge Funds ETF. The fund holds securities and GDRs of publicly listed hedge funds globally.

Index Unverse was the first to report on the Global X registration.

The filing does not include ticker symbols or expense ratios. The new ETFs are based on Structured Solutions AG indices, which include securities based on quarterly hedge fund and activist investor filings with the SEC. Consequently, the ETFs will rebalance quarterly.

Hedge funds cater to sophisticated investors, with a net worth of more than $1 million, and use investment strategies like leveraged, long, short and other derivative positions. The new funds help provide hedge fund-like strategies to the average retail investor.

On Tuesday, the first U.S.-listed hedge fund replication ETF, IQ Hedge Multi-Strategy Tracker ETF (NYSEARCA:QAI), celebrated its 3-year anniversary.

"Before the launch of QAI, hedge fund investing was generally limited to institutions and high net worth individuals." Adam Patti, CEO of IndexIQ, said in a press release. "QAI changed all of that. While the concept was novel at the time, QAI has performed as we anticipated over the past three years and has attracted more than $200 million in assets."

Other funds in this sub-space include WisdomTree Managed Futures Strategy Fund (NYSEARCA:WDTI), Credit Suisse Merger Arbitrage Liquid Index (NYSEARCA:CSMA) and Credit Suisse Long/Short Liquid Index (NYSEARCA:CSLS).

Max Chen contributed to this article.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.