Today, Global X launched an ETF focused on companies providing education-related products and services. The Global X Education ETF (EDUT) is global in scope and covers everything ranging from early childhood education to professional training for adults.
EDUT comes with an expense ratio of 0.50% and lists on the Nasdaq exchange.
Companies selected for the index must have significant business operations in at least one of five categories: educational content and publishing; digital learning platforms; early childhood education; secondary, higher or professional education; and enterprise video and chat communication platforms.
The index uses a modified market capitalization approach to weighting that is intended to keep large-cap companies from dominating the index and also specifically limits the weighting of the video and chat communications category to 15% of the index, the prospectus says.
Educational products and services are likely to receive more attention during the pandemic as education currently takes place in students’ homes for the most part. EDUT is the first ETF of its kind, giving Global X a lead on other issuers looking to capture this theme in an ETF wrapper.
Contact Heather Bell at [email protected]