Global X Funds New ETFs Are Exciting Investments

| June 28, 2011 | 0 Comments

Longtime readers know I love ETFs (Exchange Traded Funds).  And with more than $1 trillion invested in US listed ETFs, I’m not the only one.

I’ve talked about the many benefits of investing with ETFs before.  In short, investing with ETFs gives you the best of stock and mutual fund investing in one package.

It’s great to see investors putting ETFs to work for them.

As the amount of money invested in ETFs grows, so are the numbers of ETF providers.  As a result, one question seems to come up time and time again…

Who’s the best ETF provider?

I’ll get to that in a second… First, just so we’re all on the same page, who are ETF providers and more importantly, why should you care?

ETF providers are the companies who make ETFs available to investors. Some of the most popular are iShares, State Street, Vanguard, PowerShares, and ProShares.

And that’s just to name a few… The list of providers is growing longer every day.

The key is every ETF provider is different.  No two are exactly the same. They offer different types of funds, carry different expense ratios, construct their indexes in different ways, and in some cases can be traded without brokerage fees.

Savvy investors can use this information to maximize their investment dollars.  That alone is reason enough to pay attention.  But that’s just part of the story.

The real beauty of ETFs is innovation.

Remember, ETF providers are competing for your investment dollars. They want to attract as much money into their ETFs as the can.  After all, the more money invested in their ETFs, the more money they make.

At this point, the ETF universe is getting a bit crowded.  The most popular indexes, like the S&P 500 and NASDAQ, already have ETFs from multiple providers.  And we really don’t need 25 different ETFs tracking the same index.

That means new ETF providers need to be creative.  In order to be successful, the new guys on the block must deliver something new and interesting.

The competition for your investment dollars has led to a virtual arms race amongst the ETF providers.  New ETFs are constantly being rolled out. Some are great… And some are just awful…

One company that’s successfully carving out a niche market is Global X Funds.

Global X Funds has done a great job of delivering ETFs with “unique investment opportunities”.  In other words, they’re not rolling out the same old ETFs as everybody else.  They’re doing something different.

For example, Global X Funds has ETFs tracking a number of unique groups of commodity producers.  Like the Gold Explorers ETF (GLDX).  This ETF is a “pure gold exploration play”.  It invests only in gold mining companies that are searching for gold but not yet producing any ore or profits.

GLDX is a great way to invest in tomorrow’s big gold producers.

Global X also has a great lineup of emerging market ETFs.  The ETFs invest in fast growing countries in Latin America and others focus on specific Chinese sectors.

They also have a series of special opportunities ETFs focusing on stocks in specific industries.  Right now there are five special opportunities ETFs.  They are Waste Management ETF (WSTE), Food ETF (EATX), Fishing Industry ETF (FISN), Auto ETF (VROM), and Farming ETF (BARN).

No doubt about it, Global X makes it easy to focus on specific investment themes.

And Global X Funds’ commitment to delivering innovative new ETFs is paying off big.  They’ve won various industry awards for their work over the last few years.  And more importantly, they recently eclipsed $1.5 billion in assets under management.

Clearly they’re growing fast.

With all of their new ETFs, it’s easy to see why I think Global X Funds have the best ETFs.  They’re just the type of unique investment opportunity I’m looking for in a new ETF.  In fact, you can bet they’ll be on my radar when I’m looking for ETFs to recommend in the next issue of Sector ETF Trader.

Tags: , ,

Category: ETFs

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets on a daily basis. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

Leave a Reply

Your email address will not be published.