Global X, the New York ETF company, filed regulatory paperwork with the Securities and Exchange Commission for its three new funds based on Nasdaq indexes. The filings include tickers and expense ratios, indicating that the funds are close to launch.
The three planned funds each have expense ratios of 0.48 percent. Their names and tickers are as follows:
- The Global X Nasdaq 500 ETF (NasdaqGM: QQQV)
- The Global X Nasdaq 400 Mid Cap ETF (NasdaqGM: QQQM)
- The Global X Nasdaq 100 Global Technology Index ETF (NasdaqGM: QQQT)
The three funds that Global X registered will use sampling strategies, meaning that they won’t own all of the stocks in their respective indexes. One of the new Global X funds, QQQT, will be a direct competitor to the $21 billion PowerShares QQQ Trust (NasdaqGM: QQQ).
By following tech-heavy Nasdaq indexes, each of which steers clear of financial companies, Global X’s three planned ETFs provide an alternative to large-market ETFs, such as the SPDR S&P 500 ETF (NYSEArca: SPY), which has about 13.5 percent allocated to banks and other financial companies.
The financial sector is at the center of the financial crisis that caused the stock market crash in 2008-2009. Also, in the past six months, as the eurozone’s financial crisis has deepened, financial stocks have been hit a lot harder than those included in technology-oriented Nasdaq indexes.
For example, the $85 billion SPY, the largest ETF in the world, has dropped about 10 percent in the past six months, and the $7.9 billion SPDR S&P MidCap 400 ETF (NYSEArca: MDY) is down about 15 percent over the same period. PowerShares’ Nasdaq 100, QQQ, meanwhile has fallen just 4.7 percent in the past six months, according to data posted on Google Finance.
Pimco is going back to what it does best—generating alpha through fixed-income exposure.
Understanding how to trade ETFs means understanding a number of crucial metrics.
A robotic focus on expense ratios costs more than you think.
In the retirement vehicle space, ETFs wither while mutual funds flourish.