Global X launches ETF Model Portfolio focused on disruptive tech

Rick Steves

The high costs and unexciting returns offered by many actively managed products have made passively managed ETFs a growth market in the UK and Europe over recent years. 

Global X ETFs has launched an ETF Model Portfolio which will provide exposure to key themes driving global structural changes.

The latest addition to the firm’s suite of model portfolios goes by the name of Global X Innovation UCITS ETF Model Portfolio and was developed and maintained by Chief Investment Officer Jon Maier and his team.

The provider of exchange-traded funds (ETFs) continues to bring products to help advisors with insight into the vast landscape of ETFs to achieve specific outcomes or risk targets for their clients.

Bringing ETF Model Portfolio to European market

The Global X Innovation UCITS ETF Model Portfolio provides exposure to key themes at the heart of the structural changes occurring across the global economy, according to the firm.

Predominantly focusing on the Disruptive Technology and People & Demographics categories within the Global X thematic universe, the ETF Model Portfolio incorporates an equal weight and momentum component to weight the portfolio and theme selection on areas of the economy that are being disrupted, as part of a growth-focused equity strategy.

Jon Maier, Chief Investment Officer at Global X ETFs, commented: “Our mission at Global X is to serve clients with unexplored and intelligent investment solutions, and our model portfolios are an extension of that passion. We’re thrilled to bring our ETF Model Portfolio strategies to the European market with the launch of the Global X Innovation UCITS ETF Model Portfolio, allowing European advisors to capitalize on Global X’s leadership and deep knowledge of the world of thematic investing.”

Global X is a member of Mirae Asset Financial Group, which has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $70bn in assets under management. Global X ETFs was founded in 2008 and boasts 90 ETF strategies and over $40 billion in assets under management.

It was in December 2020 that ̃New York-based Global X ETFs announced its intention to cross the Atlantic and add to the geographic foot parent of its Korean parent Mirae Asset Global Investments who distribute ETFs across Asia the Americas.

Global X was one of the latest in a series of US ETF providers who have set their sights on Europe, however not all US providers have been happy to meet European regulatory requirements such as producing key information documents (KIDs) and risk-reward scenarios for their individual funds, without which it can be very difficult for European private investors to own the funds.

The high costs and unexciting returns offered by many actively managed products have made passively managed ETFs a growth market in the UK and Europe over recent years.

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