As of June 6, New York-based Global X had $10.43 billion in combined assets under management across its lineup of exchange-traded funds (ETFs), making the company the 16th-largest U.S. ETF sponsor.
One thing Global X is known for is having a unique lineup of funds. Global X ETFs run the gamut of smart-beta, broad-market exposure, income-generating funds, as well as previously hard-to-access emerging and frontier markets and a slew of thematic funds. Global X ETFs include themes such as iconic brands, Catholic values, investments targeted at millennials, lithium and more.
While many Global X ETFs can be considered niche funds, there is no denying some are potent performers. As of June 7, 191 US-listed ETFs had year-to-date gains of least 10%. Eight of those funds were Global X ETFs. On that same day, five Global X ETFs hit 52-week highs.
Here are some Global X ETFs offering the potential for significant upside going forward.
Top Global X Funds: Global X MSCI Norway ETF (NORW)
Expense Ratio: 0.5% per year, or $50 on a $10,000 investment.
Among European economies represented by single-country ETFs, Norway often goes overlooked, but the Global X MSCI Norway ETF (NYSEARCA:NORW) has been around awhile and has a credible following. This Global X ETF turns eight years old in November and has over $170 million in assets under management.
Beyond those superficial metrics, this Global X ETF is delivering for investors in 2018. NORW is up nearly 13% year-to-date and was one of the Global X ETFs hitting all-time highs on June 7. NORW’s YTD gain is a far cry from the 1% loss sported by the S&P Europe 350 Index.
NORW is a play on rising oil prices, as Norway is one of the largest oil producers in Europe, a fact reflected by NORW’s nearly 30% weight to the energy sector. One area of concern is that Norwegians are currently carrying massive amounts of household debt, meaning the economy there could be pinched if interest rates rise.
Top Global X Funds: Global X Autonomous & Electric Vehicles ETF (DRIV)
Expense Ratio: 0.68%
Having debuted just two months ago, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is one of the newest Global X ETFs. It is also one with significant long-term potential. DRIV is not the first ETF to tap the burgeoning electric vehicle theme, but this Global X ETF and its rivals could benefit from compelling long-term fundamentals.
“Presently, EVs remain more expensive than ICEs, but many analysts believe this will change within the next 10 years as battery costs continue to rapidly decline,” according to Global X research. “In the three year period from 2014 to 2016, battery costs fell over 50% from process improvements and scale effects, bringing EVs significantly closer to parity with ICE costs.”
Another factor DRIV has in its favor is decent size. Many investors wait for new ETFs to accumulate assets before jumping, the very epitome of herd mentality, but DRIV already has $39 million in assets. That is impressive for a two-month-old ETF, and it could lure more investors to this Global X ETF.
Top Global X Funds: Global X Future Analytics Tech ETF (AIQ)
Expense Ratio: 0.68%
Here is another new Global X ETF. The Global X Future Analytics Tech ETF (NASDAQ:AIQ) debuted just a month ago as the latest addition to the issuer’s expanding thematic suite. AIQ follows the Indxx Artificial Intelligence & Big Data Index. This fund is one of several Global X ETFs that tap into technology themes that are expected to see exponential growth in the years ahead.
AIQ holds 82 stocks across several sectors, but this is essentially a technology ETF, as that sector accounts for over 81% of its weight. Familiar names featured in AIQ’s lineup include Nvidia Corporation (NASDAQ:NVDA), Facebook, Inc. (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN).
Artificial intelligence (AI), as is seen in AIQ, is linked to other important themes, such as big data and Internet of Things (IoT).
“Nourished by an ever-growing reservoir of data, the stage has been set for AI to become a disruptive force across the global economy. According to one report, AI could contribute up to $15.7 trillion to global GDP in 2030, with $9.1 trillion coming from consumption-side effects and $6.6 trillion coming from increased productivity,” according to Global X Research.
Top Global X Funds: Global X FinTech ETF (FINX)
Expense Ratio: 0.68%
The financial services industry is evolving, and much of that evolution is tied to the growth of fintech concepts. The Global X FinTech ETF (NASDAQ:FINX) taps into that theme before giving investors exposure to companies that are changing the ways consumers bank, invest, buy insurance and transfer money, among other activities.
This Global X ETF, which tracks the Indxx Global FinTech Thematic Index, holds 31 stocks, most of which hail from the financial services and technology sectors. Obviously, this is not your father’s financial services ETF. This Global X ETF’s top 10 holdings, which do not include any traditional banks or brokerage firms, feature the likes of Square Inc (NYSE:SQ) and PayPal Holdings Inc (NASDAQ:PYPL).
FINX is crushing traditional financial services funds. Over the past year, this Global X ETF is up more than 45%, or more than double the returns offered by the largest financial services ETF over the same period.
Todd Shriber does not own any of the aforementioned securities.
