Global X, the New York-based ETF issuer known for its funds focused on the emerging markets and commodities, filed papers with the U.S. Securities and Exchange Commission detailing the expenses and ticker of its forthcoming international oil equities ETF, suggesting the fund may launch soon.
The Global X Oil Equities ETF will have the ticker “XOIL” and cost investors 0.49 percent a year, according to the filing. The fund, originally outlined in a December 2010 filing, will trade on the New York Stock Exchange’s electronic trading platform, Arca. Global X didn’t say when it will launch XOIL, but the revelation of tickers and prices in SEC filings often suggests a fund’s rollout is near, if not imminent.
The price of oil briefly spiked to more than $100 a barrel last week, as unrest in Libya turned into civil war and crude output fell by half. Crude oil on the New York Mercantile Exchange was trading below $98 a barrel on Monday on reports Saudi Arabia and Kuwait were prepared to boost their output to offset Libya’s lost production.
XOIL will track an index of international oil companies whose returns have historically been correlated with the price of oil. It will be based on the Solactive Global Oil Equities Index, a free-float-adjusted, liquidity-tested and market-capitalization-weighted benchmark. The fund aims to fully replicate its index by holding all 25 oil companies in the index.
Global X, which launched its first ETF in early 2009, has succeeded in attracting sizable assets over the past year, with funds focused on commodities such as lithium and uranium and on emerging markets such as China.
Global X had $1.47 billion under management as of Friday, Feb. 25, according to data compiled by IndexUniverse.com.