Global X Funds Announces Launch of the Global X Iconic U.S. Brands ETF (LOGO)
--LOGO Seeks to Harness U.S. Consumption Through the Power of Recognized Brands--
NEW YORK, Oct. 18, 2017 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange traded funds (ETFs), today announced the launch of the Global X Iconic U.S. Brands ETF (BATS: LOGO). Tracking the Accuvest Iconic U.S. Brands Index, the fund offers exposure to U.S. consumption by holding 100 of the most recognizable brands in the U.S. as defined by the index provider, Accuvest Global Advisors.
As of 2016, annual consumption in the U.S. was estimated at $12.8 trillion, representing approximately 70% of the total national GDP.1 U.S. consumers increasingly direct that estimated $12.8 trillion to brands that they are loyal to. In a recent WPP survey over 80% of consumers cited brand as a key consideration in their purchases, and 56% stated brand, not price, was the most important factor.2 LOGO offers investors an avenue to gain exposure to those loyal consumption habits.
"A strong and recognizable brand is becoming an increasingly valuable asset to a large corporation. It's an intuitive notion that consumers continue to return to companies and brands that they trust - one that's continually backed up by research into consumer behavior and corporate earnings," said Jay Jacobs, director of research at Global X. "We're excited to offer investors a way to invest in U.S. consumption via the brands they know and trust."
"Despite the fact that the U.S. is driven primarily by household spending, our research indicates that investors tend to be chronically underweight the brands and industries that stand to benefit from a consumer's lifetime of spending," added David Garff, president of Accuvest Global Advisors. "Consequently, we designed the Accuvest Iconic U.S. Brands Index to provide what we believe is a more accurate representation of the economy's primary driver."
LOGO's underlying index includes the top 100 companies according to the Iconic Brands Score, which represents the highest ranking brands from a comprehensive analysis of consumption-focused industries. The Iconic Brands Strength Score then rewards the companies in the top 100 with the highest revenue growth and absolute cash flow generation with a greater weighting in the Index. The 25 companies from the Tier 1 sub-industries (core to the consumption theme) with the highest Iconic Brands Strength Score receive 50% of the total index exposure, with the remaining 75 constituents comprising the rest. LOGO is Global X's fourth ETF in its suite of Thematic - People.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
Carefully consider the fund's investment objective, risk factors, charges, and expenses before investing. This and additional information can be found in the fund's summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxfunds.com. Please read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Narrowly focused investments may exhibit higher volatility. LOGO is non-diversified.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Accuvest nor does Accuvest make any representations regarding the advisability of investing in or the suitability of the Global X Funds. Neither SIDCO nor Global X is affiliated with Accuvest.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. This information is not intended to be individual or personalized investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.
1 Source: Bureau of Economic Analysis, U.S. Department of Commerce.
2 Source: WPP BrandZ 2017 Global Report
SOURCE Global X Funds
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