NEW YORK, Feb. 15, 2017 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X Founder-Run Companies ETF (BATS: BOSS). Tracking the Solactive U.S. Founder-Run Companies Index, BOSS will hold a basket primarily consisting of U.S. large and mid-cap companies led by CEOs who are the original founders of their firms. The fund will be the fourth in Global X's "Alpha" suite of funds, designed with the aim of delivering market-beating returns.
The founder/CEOs of companies currently held in BOSS boast 10 times higher equity ownership in their companies than the average S&P 500 CEO.i Further, in-depth studies have concluded that founder/CEOs instill an owner's mindset in their firms, which consists of a unique set of core practices, values, and attitudes that can positively influence their company's success over the long term.ii
"Bringing BOSS to market reinforces our goal of providing unique solutions for investors that are based on academic research and sound index construction," said Alex Ashby, director of product development at Global X. "Founders bring a unique vision and innovative culture to their companies that we believe will translate into more sustainable long-term growth."
High equity ownership, bolstered by an emotional attachment to a company they have grown from the start, may cause founder/CEOs to take a longer term view of growing their businesses. For example, these companies tend to avoid excess indebtedness, averaging 52% lower debt-to-equity ratios than the average S&P 500 company.iii
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.
Investing involves risk, including the possible loss of principal. The investable universe of companies in which the Fund may invest may be limited. The Fund is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Market price returns are based upon the midpoint of the bid/ask spread at the close of the exchange and does not represent the returns an investor would receive if shares were trade at other times. Brokerage commissions will reduce returns. NAVs are calculated using prices as of 4:00 PM Eastern Time.
Carefully consider the Fund's investment objectives, 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 www.globalxfunds.com.
Solactive Indexes have been licensed by Solactive AG for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Global X Management Company, LLC.
i Source: Bloomberg. CEO equity ownership data as of 1/18/2017
ii Source: https://hbr.org/2016/03/founder-led-companies-outperform-the-rest-heres-why
iii Source: Bloomberg. Debt to equity ratio data as of 1/18/2017
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SOURCE Global X Funds