ETF Watch: Global X Targets Founder-Run Companies

Proposed ETF will invest in companies that are headed by the individuals that founded them.
Reviewed by: Staff
Edited by: Staff

A recent filing from Global X outlines the firm’s plans to launch an ETF that tracks companies for which the firm’s founder also serves as its chief executive officer. The Global X Founder-Run Companies ETF will track an index of up to 100 equal-weighted companies.

The fund’s underlying index selects its components from the Solactive U.S. Broad Market Index, ranking the founder-run companies in that particular universe by market capitalization. The resulting list is screened for liquidity, and the top 100 companies by market capitalization are selected for inclusion in the index. The number of components will be less than 100 if there are not enough companies to qualify as founder-run and meet the methodology’s liquidity screen, the prospectus says.

In February, according to a Solactive fact sheet, the index’s top five components included Netflix Inc. (4.56%), Nvidia Corp. (4.11%), Inc. (3.89%), SoftBank Group Corp. (3.75%) and Tencent Holdings Ltd. (3.73%). Information technology was the largest sector as of Sept. 30, 2016.

There are no similar ETFs currently trading, so the Global X fund will likely be the first of its kind when it launches.

The filing did not include a ticker, expense ratio or listing exchange.

Contact Heather Bell at [email protected]. is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.