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One Year In: Global X S&P 500 Catholic Values ETF


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The Global X S&P 500® Catholic Values ETF recently passed its one-year anniversary, allowing us the chance to see how CATH has stacked up against the S&P 500 since inception.

CATH (CATH) seeks investment results that correspond to the S&P 500® Catholic Values Index, which aims to perform similarly to the S&P 500 but avoids companies that do not adhere to socially responsible investment guidelines set by the US Conference of Catholic Bishops (USCCB). The Fund currently has 467 holdings compared to the S&P 500’s 506, with the majority of the difference coming from the Health Care and Industrials sectors. In order to mitigate the differences between the S&P 500 and CATH, the Fund seeks to re-weight its sector exposure to match that of the S&P 500. The table below provides more details on these differences.

As a result of the nearly 90% overlap with the S&P 500 1 and comparable sector weights, CATH has performed similarly to the S&P 500.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.For CATH performance data current to the most recent month- and quarter-end, please clickhere.

While many aspects of CATH are designed to be similar to the S&P 500 index, one area that may differ from popular S&P 500 index funds is the manner in which the Fund votes its proxies. Proxy voting for the Fund’s holdings are conducted according to Glass Lewis & Co.’s guidelines on Catholic Policy. Glass Lewis has structured a Catholic voting policy primarily based on the principles set forth by the USCCB, which is the same set of principles used to create the filters for the S&P 500 Catholic Values Index, which CATH tracks.

For more information about the Global X S&P 500 Catholic Values ETF, click here.

Check the background of SIDCO and Global X’s Registered Representatives on FINRA’s BrokerCheck.

FOOTNOTES

1. Source: ETF Research Center, June 2017.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxfunds.com. Read the prospectus carefully before investing.

“S&P 500” is a service mark of S&P and has been licensed for use for certain purposes by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by S&P nor does this company make any representations regarding the advisability of investing in the Global X Funds.

The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company, LLC.

The Fund is not authorized or sponsored by the Roman Catholic Church and the United States Conference of Catholic Bishops has not endorsed Global X, its investment management activities and/or the Fund.

Investing involves risk including possible loss of principal. The Fund’s consideration of the Guidelines in its investment process may result in choices not to purchase, or sell, otherwise profitable investments in companies that have been identified as being in conflict with the Guidelines. This means that the Fund may underperform other similar funds that do not consider the Guidelines when making investment decisions.

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



This article appears in: Investing , ETFs , Investing Ideas
Referenced Symbols: CATH


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