Global X, begun trading three new Thematic Technology ETFs, the Global X FinTech Thematic ETF (Nasdaq: FINX), the Global X Internet of Things Thematic ETF (Nasdaq: SNSR) and the Global X Robotics & Artificial Intelligence Thematic ETF (Nasdaq: BOTZ) on Thuesday, September 13, 2016.
Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: FINX | Exchange: NASDAQ |
| Name: Global X FinTech Thematic ETF | Net Expense Ratio: 0.68% |
FUND OBJECTIVE:
The Global X FinTech Thematic ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX Global Fintech Thematic Index.
REFERENCE INDEX:
The INDXX Global Fintech Thematic Index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software and alternative currencies (collectively, “FinTech Companies”), as defined by INDXX, the provider of the Underlying Index.
The eligible universe of the Underlying Index includes among 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 July 1, 2016, companies must have a minimum market capitalization of $100 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. As of July 1, 2016, components from the following countries were eligible for inclusion in the Underlying Index: 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 FinTech Companies by applying a proprietary analysis that consists of 2 primary components: theme identification and company analysis. As part of the theme identification process, the Index Provider analyzes industry reports, investment research and consumer data related to the fintech industry in order to establish the themes that are expected to provide the most exposure to the growth of the fintech industry.
As of July 1, 2016, the Index Provider has identified the following 6 Fintech Themes:
(1) Mobile Payments
(2) Peer-to-Peer (P2P) and Marketplace Lending,
(3) Enterprise Solutions,
(4) Blockchain and Alternative Currencies,
(5) Crowdfunding and
(6) Personal Finance Software and Automated Wealth Management/Trading.
In order to be included in the Underlying Index, a company must be identified as having significant exposure to one of these FinTech Themes. In the second step of the process, companies are analyzed based on 2 primary criteria: revenue exposure and primary business operations. A company is deemed to have significant exposure to one of the FinTech Themes if (i) according to a public filing, it generates a majority of its revenue from one of the FinTech Themes, or (ii) it has stated its primary business to be in products and services focused on one of the FinTech Themes. Accordingly, the Fund assets will be concentrated (that is, it will hold 25% or more of its total assets) in companies that provide exposure to the fintech industry.
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and rebalanced annually. At the annual rebalance, a capping methodology is applied to reduce concentration in individual securities and increase diversification of the Underlying Index. The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include financial and information technology companies.
Index Top Holdings (08/29/16):
| First Data Corporation | 6.07% |
| SS&C Technologies Holdings Inc. | 5.84% |
| Wirecard | 5.63% |
| Fidelity Natl Information | 5.48% |
| Paypal Holdings Inc. | 5.24% |
| Temenos Group AG | 5.18% |
| Guidewire Software Inc. | 5.15% |
| Intuit Com | 5.02% |
| Fiserv Inc. | 4.83% |
| Paysafe Group Plc | 4.74% |
Index Industry Breakdown (08/29/16):
| Data Processing & Outsourced Services | 41.91% |
| Application Software | 35.13% |
| Internet Software & Services | 7.30% |
| Consumer Finance | 3.84% |
| Managed Health Care | 3.39% |
| Thrifts & Mortgage Finance | 2.23% |
| Asset Management & Custody Banks | 2.00% |
| Investment Banking & Brokerage | 1.24% |
| IT Consulting & Other Services | 1.08% |
Index Country Breakdown (08/29/16):
| United States | 67.57% |
| Germany | 7.78% |
| Switzerland | 7.18% |
| Australia | 5.80% |
| Isle of Man | 4.74% |
| Denmark | 4.12% |
| Cayman Islands | 2.82% |
Useful Links:
FINX Home Page
Category:
2.
FUND INFORMATION:
| Symbol: SNSR | Exchange: NASDAQ |
| Name: Global X Internet of Things Thematic ETF | Net Expense Ratio: 0.68% |
FUND OBJECTIVE:
The Global X Internet of Things Thematic ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX Global Internet of Things Thematic Index.
REFERENCE INDEX:
The INDXX Global Internet of Things Thematic Index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the Internet of Things industry, including companies involved in wearable technology, home automation, connected automotive technology, sensors, networking infrastructure/software, smart metering and energy control devices (collectively, “Internet of Things Companies”), as defined by INDXX, the provider of the Underlying Index.
The Internet of Things refers to the network of physical objects (devices, vehicles, equipment, homes, buildings) that are connected to the internet through embedded devices and software, which allows these physical objects to collect, analyze and exchange data.
The eligible universe of the Underlying Index includes among 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 July 1, 2016, companies must have a minimum market capitalization of $100 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. As of July 1, 2016, components from the following countries were eligible for inclusion in the Underlying Index: 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 Internet of Things Companies by applying a proprietary analysis that consists of 2 primary components: theme identification and company analysis. As part of the theme identification process, the Index Provider analyzes industry reports, investment research and consumer data related to the Internet of Things industry in order to establish the themes that are expected to provide the most exposure to the growth of the Internet of Things industry. As of July 1, 2016, the Index Provider has identified the following 4 Internet of Things themes:
(1) Consumer IoT Technology
(2) Equipment, Vehicle, and Infrastructure/Building Technology,
(3) Semiconductors and Sensors and
(4) Networking Infrastructure/Software (collectively, “Internet of Things Themes”).
In order to be included in the Underlying Index, a company must be identified as having significant exposure to one of these Internet of Things Themes. In the second step of the process, 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 Internet of Things Themes if (i) according to a public filing, it generates a majority of its revenue from one of the Internet of Things Themes, or (ii) it has stated its primary business to be in products and services focused on one of the Internet of Things Themes. In addition, companies with more diversified revenue streams may also be included in the Underlying Index if they meet the following criteria:
(1) identified as being critical to the IoT ecosystem due to scale in certain IoT technologies and services,
(2) have a distinct business unit(s) focused on IoT products and services and
(3) have a core competency that is expected to benefit from increased adoption of IoT.
Companies that meet these criteria are eligible for inclusion in the Underlying Index with a weighting cap of 2%. 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 provide exposure to the Internet of Things industry.
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and rebalanced annually. At the annual rebalance, a capping methodology is applied to reduce concentration in individual securities and increase diversification of the Underlying Index. The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include industrials and information technology companies.
Index Top Holdings (08/29/16):
| Garmin Ltd. | 6.27% |
| Skyworks Solutions Inc. | 6.27% |
| Dexcom Inc. | 6.10% |
| Stmicroelectronics N.V. | 5.93% |
| Sensata Technologies Holding NV | 5.59% |
| Mobileye NV | 5.49% |
| Advantech Co Ltd Ord | 4.41% |
| Brocade Communications Sys | 3.68% |
| Cypress Semiconductor Corp. | 2.96% |
| Belden Inc. | 2.64% |
Index Industry Breakdown (08/29/16):
| Semiconductors | 34.72% |
| Electrical Components & Equipments | 15.40% |
| Communications Equipment | 9.95% |
| Consumer Electronics | 6.27% |
| Health Care Equipment | 6.10% |
| Application Software | 6.09% |
| Electronic Equipment & Instruments | 4.79% |
| Technology Hardware, Storage & Peripherals | 4.41% |
| Electronic Components | 3.65% |
Index Country Breakdown (08/29/16):
| United States | 52.39% |
| Netherlands | 19.00% |
| Switzerland | 8.26% |
| Taiwan | 5.07% |
| France | 4.19% |
| United Kingdom | 2.92% |
| Cayman Islands | 2.40% |
| Austria | 2.13% |
| Ireland | 1.81% |
Useful Links:
SNSR Home Page
Category:
3.
FUND INFORMATION:
| Symbol: BOTZ | Exchange: NASDAQ |
| Name: Global X Robotics & Artificial Intelligence Thematic ETF | Net Expense Ratio: 0.68% |
FUND OBJECTIVE:
The Global X Robotics & Artificial Intelligence Thematic ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX Global Robotics & Artificial Intelligence Thematic Index.
REFERENCE INDEX:
The INDXX Global Robotics & Artificial Intelligence Thematic Index is designed to provide exposure to exchange-listed companies in developed markets that are involved in the development of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments (collectively, “Robotics & Artificial Intelligence Companies”), as defined by INDXX, the provider of the Underlying Index.
The eligible universe of the Underlying Index includes among 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 July 1, 2016, companies must have a minimum market capitalization of $100 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. As of July 1, 2016, components from the following countries were eligible for inclusion in the Underlying Index: 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 Robotics & Artificial Intelligence Companies by applying a proprietary analysis that consists of two primary components: theme identification and company analysis. As part of the theme identification process, the Index Provider analyzes industry reports, investment research and consumer data related to the robotics and artificial intelligence industry in order to establish the themes that are expected to provide the most exposure to the growth of the robotics and artificial intelligence industry. As of July 1, 2016, the Index Provider has identified the following four robotics and artificial intelligence themes:
(1) Industrial Robotics and Automation
(2) Unmanned Vehicles and Drones,
(3) Artificial Intelligence,
(4) Non-Industrial Robotics (collectively, “Robotics & Artificial Intelligence Themes”).
In order to be included in the Underlying Index, a company must be identified as having significant exposure to one of these Robotics & Artificial Intelligence Themes. In the second step of the process, 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 Robotics & Artificial Intelligence Themes if (i) according to a public filing, it generates a majority of its revenue from one of the Robotics & Artificial Intelligence Themes, or (ii) it has stated its primary business to be in products and services focused on one of the Robotics & Artificial Intelligence Themes. Accordingly, the Fund assets will be concentrated (that is, it will hold 25% or more of its total assets) in companies that provide exposure to the robotics and artificial intelligence industry.
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and rebalanced annually. At the annual rebalance, a capping methodology is applied to reduce concentration in individual securities and increase diversification of the Underlying Index. The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include industrials and information technology companies.
Index Top Holdings (08/29/16):
| ABB Ltd-Reg | 8.06% |
| SMC Corp Ord | 7.82% |
| Mitsubishi Electric Corp | 7.63% |
| Keyence Corp Ord | 7.50% |
| Intuitive Surgical Inc | 7.40% |
| Fanuc Corp | 7.37% |
| Trimble Navigation Ltd | 5.10% |
| Yaskawa Electric Corp Ord | 4.90% |
| Mobileye NV | 4.68% |
| Omron Corp Ord | 4.53% |
Index Industry Breakdown (08/29/16):
| Industrial Machinery | 30.02% |
| Electronic Equipment & Instruments | 11.59% |
| Health Care Equipment | 11.24% |
| Electronic Components | 9.43% |
| Electrical Components & Equipment | 8.06% |
| Heavy Electrical Equipment | 7.63% |
| Aerospace & Defense | 6.52% |
| Electronic Manufacturing Services | 5.10% |
| Application Software | 4.68% |
Index Country Breakdown (08/29/16):
| Japan | 46.14% |
| United States | 20.36% |
| Switzerland | 10.48% |
| United Kingdom | 5.70% |
| Netherlands | 4.68% |
| Germany | 4.31% |
| Canada | 4.27% |
| Finland | 3.38% |
| France | 0.69% |
Useful Links:
BOTZ Home Page
Category:
ETFtrack comment:
Here is a comment from Jay Jacobs, director of research of Global X:
“Robotics & AI, FinTech, and the Internet of Things are among the most significant emerging technological trends in the world as they are set to disrupt a broad range of industries and change how we interact with ordinary things like banks, cars, and even refrigerators. Our aim with launching these funds is to provide investors with tools to efficiently gain exposure to the companies that are well-positioned to grow from these technological revolutions.”