Global X Guru International Index ETF – GURI
This product follows the Solactive Guru International Index, tracking the highest conviction international stock holdings of a select group of hedge funds and institutional investors, based on regulatory filings from the SEC. The fund also charges 75 basis points a year in fees from investors, though it only holds 50 stocks in its basket.
Energy stocks take the top spot at 22% of the basket, followed by technology (20%), and consumer discretionary (16%) to round out the top three. Meanwhile, from a country look, Canada (26%), China (14%), and Mexico (10%), take the top three spots and show that the fund will have a nice mix between developed countries and emerging markets.
Both GURX and GURI are looking to tap into the same trends that have propelled GURU to its incredible success over the past year. Plus, there is clearly a great deal of demand for this type of investing and international and small cap focuses seem to be the next logical steps for this type of strategy.
So while competition looks to be fierce, both GURX and GURI do have a pretty good chance of building up a sizable asset base. Investors will just have to hope that the same techniques that worked so well in the large-cap focused fund hold up in the small cap and international markets too, and allow these new funds to shine as well.
This article is brought to you courtesy of Eric Dutram.