Global X, the New York ETF company, filed regulatory paperwork
with the Securities and Exchange Commission for its three new funds
based on Nasdaq indexes. The filings include tickers and expense
ratios, indicating that the funds are close to launch.
The three planned funds each have expense ratios of 0.48
percent. Their names and tickers are as follows:
- The Global X Nasdaq 500 ETF (NasdaqGM:QQQV)
- The Global X Nasdaq 400 Mid Cap ETF (NasdaqGM:QQQM)
- The Global X Nasdaq 100 Global Technology Index ETF
The three funds that Global X registered will use sampling
strategies, meaning that they wonât own all of the stocks in
their respective indexes. One of the new Global X funds, QQQT, will
be a direct competitor to the $21 billion PowerShares QQQ Trust
By following tech-heavy Nasdaq indexes, each of which steers
clear of financial companies, Global Xâs three planned ETFs
provide an alternative to large-market ETFs, such as the SPDR S'P
500 ETF (NYSEArca:SPY), which has about 13.5 percent allocated to
banks and other financial companies.
The financial sector is at the center of the financial crisis
that caused the stock market crash in 2008-2009. Also, in the past
six months, as the eurozoneâs financial crisis has deepened,
financial stocks have been hit a lot harder than those included in
technology-oriented Nasdaq indexes.
For example, the $85 billion SPY, the largest ETF in the world,
has dropped about 10 percent in the past six months, and the $7.9
billion SPDR S'P MidCap 400 ETF (NYSEArca:MDY) is down about 15
percent over the same period. PowerSharesâ Nasdaq 100, QQQ,
meanwhile has fallen just 4.7 percent in the past six months,
according to data posted on Google Finance.
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