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GURU August 2017 Rebalance Report

On August 24^th, the Global X Guru Index ETF (GURU) underwent its quarterly rebalance. The August 2017 GURU Report can be found here.

Notable observations from this rebalance period include the following:

GURU’s index, the Solactive Guru Index, outperformed the S&P 500, GURU’s broad-market benchmark, over this rebalance period by 0.03% (3 bps).¹ GURU’s index has outperformed the S&P 500 by 140 bps over the past year.²
GURU is now 4.6% overweight to the Energy sector versus the S&P 500 after being underweight the sector during the last rebalance.³ The new energy positions may be a tactical play by hedge fund managers to capitalize on cheap oil prices and rising US oil production levels.
The removal of three Information Technology companies now brings the technology sector to a 9.5% underweight relative to the S&P 500.³ Hedge funds may have decided to take gains with the Tech sector having rallied this year.

For Fund performance, please click on the fund ticker: GURU

Authored by: Global X Research Team

Date:
Sep 6, 2017

Category:
Reports

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Index returns are for illustrative purposes only and do not represent actual Fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. The performance data quoted represents past performance. Past performance does not guarantee future results. For GURU performance data current to the most recent month- and quarter-end, please click here.

Investing involves risk, including the possible loss of principal. The 13F filings used to select the securities in the Underlying Index for each fund are filed by each hedge fund approximately 45 days after the end of each calendar quarter. Therefore a given hedge fund may have already sold its position by the time of the 13F filing. For GURU, the fund’s manager has the ability to employ up to 20% leverage, which may accelerate the velocity of potential gains or losses. The fund may invest in small and mid-capitalization companies, which have greater volatility and less financial resources than large-capitalization companies. Furthermore, the funds may hold foreign securities which are subject to different risks than domestic securities, including foreign currency fluctuation, different financial and accounting standards, and political instability. Investments in the securities of foreign issuers (including investments in American Depositary Receipts (“ADRs”)) are subject to the risks associated with investing in those foreign markets, such as heightened risks of inflation or nationalization. The Funds are non-diversified.

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The Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the Funds will also generate tax consequences and transaction expenses.

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Global X Management Company, LLC serves as an advisor to the Global X Funds. The Global X Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Global X Management Company or any of its affiliates.