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GURU February 2019 Rebalance Report

Mar 21, 2019

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On February 26th, the Global X GURU Index ETF (GURU) underwent its quarterly rebalance. The February 2019 GURU Report can be found here.

Notable observations from this rebalance period include each of the following:

  • GURU’s index, the Solactive Guru Index, has outperformed the S&P 500, GURU’s broad-market benchmark by 4.20% (420 bps) year to date through February 26th. GURU has been supported by strong selections in Industrials, Communication Services and Information Technology.
  • GURU saw 3 net deletions in Real Estate, 3 net deletions in Communication Services and 2 net deletions in Industrials, potentially signaling fund profit-taking from those sectors.
  • GURU saw 4 net additions in the Information Technology sector, whose underweight relative to the S&P 500 shrunk from 8.1% to 2.6% since the November 2018 rebalance, suggesting hedge funds may be warming up to technology stocks again after last year’s late sell off. Companies added are active in disruptive themes like FinTech, Autonomous Vehicles, Internet of Things, and Cloud Computing.
  • GURU also saw 3 net additions in the Materials sector, which is now 5.5% overweight relative to the S&P 500 vs 0.3% overweight last quarter. Hedge funds may have identified an opportunity in the Materials sector.

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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 current GURU holdings and 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 GURU’s Underlying Index 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. The fund’s manager employs leverage, which may accelerate the velocity of potential gains or losses. The fund invests in small and mid-capitalization companies, which have greater volatility and less financial resources than large-capitalization companies. The fund 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.

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 summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxetfs.com. Read the prospectus carefully before investing.

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., which is not affiliated with Global X Management Company.