Daily ETF Watch: Luxury Fund Planned

Firm plans ETF that will focus on high-end goods and services.

Reviewed by: Heather Bell
Edited by: Heather Bell

U.S. Global Investments has filed for a global luxury ETF via ETF Series Solutions’ exemptive relief. The U.S. Global Luxury Goods ETF (LUXE) will track an index of small-, mid- and large-cap companies that offer high-end goods and services.

The component firms provide everything from luxury cosmetics to professional services and luxury vehicles. They are selected based on liquidity, revenue growth, share price movement and price-to-cash-flow ratio, according to the prospectus. In all, the index will cover roughly 40 companies and use a modified market-capitalization weighting methodology.

A luxury fund is not a new concept. Before Claymore was acquired by Guggenheim, the firm launched the Claymore/Robb Report Global Luxury ETF in 2007, only to close it in 2010 when it failed to gather significant assets. The fund had tracked an index developed by the Robb Report, a magazine devoted to the luxury lifestyle.

The filing for the new fund did not include an expense ratio or the exchange it would be listed on.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.