NEW YORK, April 29, 2015 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X Guru™ Activist Index ETF (Nasdaq: ACTX). The introduction of the fund further expands the Guru family of ETFs, and seeks to capitalize on the increasing number of successful, high-level activist campaigns led by hedge fund managers and other institutional investors.
ACTX seeks to provide investors with access to 50 of the top equity holdings that are targets of major activist investors. Activists are known to target companies to unlock unrealized value for shareholders by effecting major changes. ACTX follows some of the largest and best-known activists in the world by utilizing publicly available information contained in 13F and 13D filings. By investing alongside these activists, ACTX seeks to benefit from their campaigns and potentially generate excess returns over US equity benchmarks, such as the S&P 500.
Traditionally, activist investors purchase a large number of shares in a company with the objective of accumulating enough voting power to swing company proxy votes. Through these proxy votes, an activist will seek to obtain seats on a company's board of directors, allowing for considerable influence over the company's strategy, governance, and policies.
"Activist investing is an increasingly popular alpha strategy, but is often limited to investors in hedge funds and other institutional managers," said Jay Jacobs, research analyst at Global X Funds. "With the launch of ACTX, investors now have the opportunity to participate in activist campaigns, avoiding a 2 and 20 fee structure1 and gaining the liquidity and transparency of an ETF." ACTX will have an expense ratio of 0.75%.
ABOUT GLOBAL X FUNDS Global X is a New York-based sponsor of exchange-traded funds (ETFs), offering access to investment opportunities across global markets. Founded in 2008, Global X is recognized by individual and institutional investors for its suite of income, international, commodity and alternative funds. With over 40 funds available across U.S. and foreign exchanges, Global X is one of the fastest growing issuers of ETFs. For more information, please visit www.globalxfunds.com.
Investing involves risk, including the possible loss of principal. The 13F filings used to select the securities in the Underlying Index are filed by each hedge fund approximately 45 days after the end of each calendar quarter. Therefore a given hedge fund may have already sold its position by the time of the 13F filing. The fund may invest in small capitalization companies, which have greater volatility and less financial resources than large-capitalization companies. Investments in the securities of foreign issuers (including investments in American Depositary Receipts ("ADRs")) are subject to the risks associated with investing in those foreign markets, such as heightened risks of inflation or nationalization. In addition, securities of foreign issuers may lose value due to political, economic and geographic events affecting a foreign issuer or market. The fund invests in mid- and small capitalization companies, which have greater volatility and less financial resources than large-capitalization companies. The Fund is nondiversified.
There is no guarantee that the Fund will meet its stated objectives.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' 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. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
Solactive Indexes have been licensed by SolactiveAG 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.
1 A 2 and 20 fee structure is common among hedge funds. It represents an annual fee of 2% of assets as well as a 20% fee on profits.