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GURU May 2019 Rebalance Report

Jun 13, 2019

View all Rohan Reddy's ArticlesRohan ReddyRohan Reddy

On May 24th, the Global X GURU Index ETF (GURU) underwent its quarterly rebalance. The May 2019 GURU Report can be found here.

Notable observations from this rebalance period include the following:

  • GURU’s index, the Solactive Guru Index, has outperformed the S&P 500, GURU’s broad-market benchmark, by 1.63% (163 bps) year to date through May 24th. Outperformance has been supported by a strong selection of Consumer Staples and Information Technology stocks throughout the year.
  • GURU saw two net additions in Healthcare, potentially trying to capture opportunities in the worst performing sector of 2019, thus far. Also, GURU saw two net additions in Information Technology and one net deletion in Utilities, Energy, Financials, and Communication Services.
  • GURU buys were mostly large cap and household names such as Apple, Adobe, The Walt Disney Company, Visa, among others.
  • GURU is now 7.4% overweight Materials and 2.6% Consumer Staples relative to its benchmark. For the latter sector, GURU has had an average weight of 9.97% throughout the year and achieved an average return of 25%, demonstrating the strong selection within the sector.
  • GURU is underweight Financials by 3.2%, which may signal aversion to the flat and somewhat inverted yield-curve. Also, GURU is 2.8% underweight Information Technology, possibly positioning for more concerns around the impact of US-China trade negotiations.

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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.