Global X, begun trading 2 new thematic ETFS, the Global X Health & Wellness Thematic ETF (Nasdaq: BFIT) and the Global X Longevity Thematic ETF (Nasdaq: LNGR) on Thuesday, May 10, 2016.
1.
FUND INFORMATION:
| Symbol: BFIT | Exchange: NASDAQ |
| Name: Global X Health & Wellness Thematic ETF | Net Expense Ratio: 0.68% |
FUND OBJECTIVE:
The Global X Health & Wellness Thematic ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX Global Health & Wellness Index.
REFERENCE INDEX:
The INDXX Global Health & Wellness Index is designed to provide exposure to exchange-listed companies in developed markets that provide products and services that facilitate physical wellness through active and healthy lifestyles, including but not limited to companies involved in fitness equipment, fitness technology, athletic apparel, nutritional supplements, and organic/natural food offerings, as defined by INDXX, the provider of the Underlying Index.
The eligible universe of the Underlying Index includes the most liquid and investable companies in accordance with the standard market capitalization and liquidity criteria associated with developed markets, as defined by the Index Provider. As of April 15, 2016, companies must have a minimum market capitalization of $500 million and a minimum average daily turnover for the last 6 months greater than or equal to $2 million in order to be eligible for inclusion in the Underlying Index. The Underlying Index may include components from the following countries:
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, South Korea, the United Kingdom and the United States.
From the eligible universe, the Index Provider identifies Health & Wellness Companies by applying a proprietary analysis that consists of 2 primary components: theme identification and company analysis.
As of April 15, 2016, the Index Provider has identified the following 5 themes that are expected to provide the most exposure to Health & Wellness Companies:
(1) Healthy Food, Nutrition and Weight Loss,
(2) Fitness and Fitness Apparel,
(3) Nutritional Supplements and Preventive Health Care,
(4) Anti-Aging and
(5) Wellness
In order to be included in the Underlying Index, a company must be identified as having significant exposure to one of these Health & Wellness Themes. The Index Provider analyzes companies based on 2 primary criteria: revenue exposure and primary business operations.
A company is to have significant exposure to one of the Health & Wellness Themes if (i), according to a public filing, it generates a majority of its revenue from the sale of products or services from one of the Health & Wellness Themes, (ii), in the absence of a revenue segment breakdown, it has stated its primary business to be in products and services focused on one of the Health & Wellness Themes. Accordingly, the Fund assets will be concentrated (that is, it will hold 25% or more of its total assets) in companies that provide products and services that facilitate physical health and wellness.
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and rebalanced annually.
The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include consumer discretionary, consumer staples, health care and information technology companies.
INDEX TOP 10 HOLDINGS (05/09/16):
| Adidas AG | 3.34% |
| Gildan Activewear, Inc. | 3.10% |
| Yue Yuen Industrial Holdings, Ltd. | 3.23% |
| VF Corp. | 3.04% |
| Yakult Honsha Co., Ltd. | 3.21% |
| Herbalife Corp. | 3.03% |
| ANTA Sports Products Ltd. | 3.15% |
| ABC Mart, Inc. | 3.02% |
| The WhiteWave Foods Co. | 3.12% |
| Foot Locker, Inc. | 3.01% |
INDEX INDUSTRY BREAKDOWN (05/09/16):
| Apparel, Accessories & Luxury | 20.68% |
| Packaged Foods & Meats | 19.99% |
| Footwear | 15.03% |
| Specialty Stores | 8.32% |
| Leisure Products | 6.83% |
| Apparel Retail | 6.57% |
| Personal Products | 6.26% |
| Food Retail | 5.13% |
| Health Care Equipment | 3.12% |
INDEX COUNTRY BREAKDOWN (05/09/16):
| United States | 46.81% |
| Japan | 13.90% |
| Cayman Islands | 8.54% |
| Taiwan | 6.32% |
| United Kingdom | 3.84% |
| Germany | 3.34% |
| Bermuda | 3.23% |
| Canada | 3.10% |
| Ireland | 2.96% |
Useful Links:
BFIT Home Page
2.
FUND INFORMATION:
| Symbol: LNGR | Exchange: NASDAQ |
| Name: Global X Longevity Thematic ETF | Net Expense Ratio: 0.68% |
FUND OBJECTIVE:
The Global X Longevity Thematic ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX Global Longevity Thematic Index.
REFERENCE INDEX:
The INDXX Global Longevity Thematic Index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the demographic trend of longer average life spans and the aging of the global population, including but not limited to companies involved in biotechnology, medical devices, pharmaceuticals, senior living facilities and specialized health care services, as defined by INDXX, the provider of the Underlying Index.
The eligible universe of the Underlying Index includes the most liquid and investable companies in accordance with the standard market capitalization and liquidity criteria associated with developed markets, as defined by the Index Provider. As of April 15, 2016, companies must have a minimum market capitalization of $500 million and a minimum average daily turnover for the last 6 months greater than or equal to $2 million in order to be eligible for inclusion in the Underlying Index. The Underlying Index may include components from the following countries:
Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, South Korea, the United Kingdom and the United States.
From the eligible universe, the Index Provider identifies Longevity Companies by applying a proprietary analysis that consists of 2 primary components: theme identification and company analysis.
As of April 15, 2016, the Index Provider has identified the following 5 themes that are expected to provide the most exposure to Longevity Companies:
(1) Health Care Products
(2) Health Care Services,
(3) Medical Devices,and
(4) Senior Homes.
In order to be included in the Underlying Index, a company must be identified as having significant exposure to one of these Longevity Themes. Companies are analyzed based on two primary criteria: revenue exposure and primary business operations. A company is deemed to have significant exposure to one of the Longevity Themes if (i), according to a public filing, it generates a majority of its revenue from one of the Longevity Themes, (ii), in the absence of a revenue segment breakdown, it has stated its primary business to be in products and services focused on one of the Longevity Themes. Accordingly, the Fund assets will be concentrated
(that is, it will hold 25% or more of its total assets) in companies that provide products and services that facilitate the aging of the global population.
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and rebalanced annually.
The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include health care, biotechnology and pharmaceuticals companies as well as real estate investment trusts (REITs).
INDEX TOP 10 HOLDINGS (05/09/16):
| Boston Scientific Corp. | 3.38% |
| Medtronic Plc | 3.11% |
| AbbVie, Inc. | 3.16% |
| St. Jude Medical, Inc. | 3.09% |
| Welltower, Inc. | 3.16% |
| Zimmer Biomet Holdings, Inc. | 3.07% |
| Ventas, Inc. | 3.15% |
| Stryker Corp. | 3.03% |
| Becton, Dickinson & Co. | 3.13% |
| Vertex Pharmaceuticals, Inc. | 2.98% |
INDEX INDUSTRY BREAKDOWN (05/09/16):
| Health Care Equipment | 36.00% |
| Biotechnology | 31.53% |
| Health Care REITs | 11.42% |
| Health Care Services | 8.52% |
| Pharmaceuticals | 4.96% |
| Health Care Supplies | 3.86% |
| Health Care Facilities | 3.10% |
| Health Care Distributors | 0.62% |
INDEX COUNTRY BREAKDOWN (05/09/16):
| United States | 70.05% |
| Denmark | 6.20% |
| Ireland | 3.94% |
| Japan | 3.58% |
| Germany | 2.91% |
| United Kingdom | 2.66% |
| Switzerland | 2.46% |
| France | 1.78% |
| South Korea | 1.68% |
Useful Links:
LNGR Home Page
ETFtrack comment:
Here is a comment from Jay Jacobs, director of research of Global X:
About LNGR:
“As the world’s population ages, certain companies are well-positioned to serve the unique needs of seniors. These companies can include pharmaceuticals focused on age-related ailments, medical device manufacturers, senior care facilities, and senior-focused health care service providers.”,
and about BFIT:
“Consumers around the world are increasingly prioritizing living a healthier lifestyle and taking a more proactive approach to improving their wellbeing. We believe this lifestyle shift presents an opportunity for companies involved in the trillion dollar health and wellness industry, such as those providing healthy and organic food, athletic apparel, gyms and fitness equipment, and preventative healthcare.”