Global X Joins Dorsey Wright Platform

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Global X Funds, the New York-based ETF provider known for its alternative strategies, will now offer a group of its funds on the Dorsey Wright Platform in a partnership that points to Global X’s growing place in the U.S. ETF market. Terms weren’t disclosed.

The Global Opportunities Portfolio will consist of seven of Global X’s 35 ETFs, in a mix that relies on Dorsey Wright’s technical-analysis-focused, relative-strength approach, Justin Young, relationship manager and head of sales for Global X, told IndexUniverse in a telephone interview.

Dorsey Wright is a well-respected investment advisor firm known for research and its roster of model portfolios that include ETF baskets from powerhouses such as iShares, State Street Global Advisors, Vanguard, WisdomTree and Invesco PowerShares.

Adding Global X funds to the Dorsey Wright platform not only amounts to a tip of the hat to a fund sponsor that has gathered $1.5 billion in just over two years, but possibly sets the stage for Global X to grow a lot more. Its funds will now be available to a roster of RIAs—as well as to some of the biggest wire houses—with whom Global X has yet to establish a relationship, Young said.

“This partnership is a sign of maturity, a sign that we are going in the right direction,” Global X’s Young said, noting that having Dorsey Wright for a partner speaks to how “popular” Global X’s ETFs are. “It validates our significant growth in the past two years.”

The Portfolio

The Global Opportunities Portfolio, again, will consist of seven Global X ETFs in a mix that picks from its pool of 35 funds. The offering will be broken down into asset classes that include developed markets, emerging markets, commodity producers, income producers and special opportunities suites. That mix, while revisited weekly, will strive to keep turnover low, Young said.

The approach ranks securities very much like in an “arm wrestling game,” Young said, where each is tested against another, and their relative strength to one another is assessed.

“We are rarely interested in timing precise tops and bottoms in a market, but are very interested in finding the strongest of performance trends within an asset class, and staying with them,” Dorsey Wright & Associates President Tom Dorsey said in a press release.

“We feel our relative strength-based approach is as adept a means for identifying such trends as exists today, and when applied in a disciplined fashion can help investors get the most out of a dynamic fund lineup such as Global X’s,” Dorsey added.

The initial lineup includes:

  • Global X Aluminum ETF (NYSEArca:ALUM)
  • Global X FTSE Andean 40 ETF (NYSEArca:AND)
  • Global X FTSE Argentina 20 ETF (NYSEArca:ARGT)
  • Global X Copper Miners ETF (NYSEArca:COPX)
  • Global X FTSE Colombia 20 ETF (NYSEArca:GXG)
  • Global X SuperDividend ETF (NYSEArca:SDIV)
  • Global X Auto ETF (NYSEArca:VROM)

 

Clients already using the Dorsey Wright platform will have access to Global X’s model portfolio at no added cost.

However, the membership-exclusive access to this platform also means that the portfolio will be largely off limits to smaller retail investors.

 

Don't forget to check IndexUniverse.com's ETF Data section.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: ALUM , AND , ARGT , COPX , GXG

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