Global X Hopes Bond ETFs Are Sticky Too

October 07, 2010

Global X looks to expand on its equity-ETF success into the world of fixed-income funds.

Global X, the New York-based exchange-traded fund company that is focused on investments around the world in the emerging markets and natural resources, filed paperwork with the Securities and Exchange Commission to begin offering fixed-income ETFs.

The company is building on what’s clearly shaping up to be a success story in equity funds. Investors put $147.6 million into the company’s funds last month, lifting assets to $650.3 million, as the league table at the end of IndexUniverse.com’s recent September ETF flows story shows.

“We are focused on big-big themes,” Global X Chief Executive Officer Bruno del Ama said in a telephone interview, stressing that the company is thinking about how places like
China
might look in 2050 when it designs products to give investors exposure to such regions.

Its biggest fund is the Global X China Consumer ETF (NYSEArca: CHIQ), which gathered $35.8 million, lifting assets to $146.3 million. But its second-biggest fund, the Global X/InterBolsa FTSE Colombia 20 ETF (NYSEArca: GXG), gathered more. GXG added $49.2 million, bringing its assets to $115.9 million. The company’s No. 3 fund, the Global X China Financials ETF (NYSEArca: CHIX), had $81.7 million at the end of September.

The company is also focused on the natural resources story with a view to the long term. Its Global X Lithium fund (NYSEArca: LIT), gathered $14.4 million in September and had $43.5 million at the end of last month

Del Ama said any fixed-income ETFs rolled out under the current exemptive relief request would hew to the same investment philosophy as the company’s equity funds.

Exemptive relief filings grant the ETF firms exception to sections of the Investment Act of 1940 and are just the first step in the path to launching ETFs. It often takes at least six to 12 months from the date of the initial filing for a company’s first ETF to hit the market.

Find your next ETF

Reset All