New ETFs Tackle Tech Disruption

October 29, 2020

Global X is launching two new ETFs offering access to different parts of the popular growth story focused on technology disruption.

The new funds are:

CTEC is a renewable energy ETF, entering a space populated by a number of funds commanding nearly $7 billion in combined assets that have performed very well in 2020.

CTEC invests in companies producing, storing and implementing renewable energy and related tools. Top holdings at launch include names such as Enphase Energy (ENPH), Solaredge (SEDG), Xinyi Solar (0968.HK) and First Solar (FSLR). These companies can also be found in CTEC’s main competitors, such as the $2 billion iShares Global Clean Energy ETF (ICLN).

While not the cheapest, CTEC comes with an expense ratio of 0.50%, landing somewhere in the middle of this segment where fees range from 0.45% to 0.75%.

(Use our stock finder tool to find an ETF’s allocation to a certain stock.)

VPN is a play on the infrastructure underlying communication technology and digital growth, investing in semiconductors, data centers and cell towers. At launch, the fund invested in names such as American Tower (AMT), Crown Castle (CCI), Equinix (EQIX) and Digital Realty Trust (DLR).

The fund, with a 0.50% expense ratio, is designed to be implemented as a growth as well as an income strategy given its focus on real estate assets—a relatively unique feature among the 72 technology ETFs in the market today.

“With these new ETFs, investors have a unique opportunity to capture the global shift to clean technologies, and the building of the digital infrastructure that will serve as the backbone for continued digital innovation,” Alex Ashby, head of product development at Global X ETFs, said in a release.

The new launches add to Global X’s current lineup of thematic funds comprising some 75 ETFs, with about $15.5 billion in combined assets.

Contact Cinthia Murphy at [email protected]

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