Global X will begin trading its new “Global X Mexico Small-Cap ETF” (NYSE:MEXS) Thursday May, 5 2011. The Global X Mexico Small-Cap ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Mexico Small-Cap Index. The Solactive Mexico Small-Cap Index is designed to reflect the performance of Mexican small cap companies. It is comprised of companies whose market capitalization is less than $3 billion as of the date of its inclusion in the index. The index is comprised of companies that are domiciled or have their main business operations in Mexico. The stocks are screened for liquidity and weighted according to free-float market capitalization. The index is maintained by Structured Solutions AG.
Total Annual Fund Operating Expenses: .69%
PRINCIPAL INVESTMENT STRATEGIES
The Fund will invest at least 80% of its total assets in the securities of the Underlying Index and in ADRs and GDRs based on the securities in the Underlying Index.
The Underlying Index is designed to measure equity market performance of small-market capitalization companies in Mexico, as defined by Structured Solutions. As of April 28 2011 the Underlying Index’s three largest holdings were Grupo Comercial Chedraui SA, OHL Mexico SAB de CV and Grupo Continental SAB. The Fund’s investment objective and Underlying Index may be changed without shareholder approval. Shareholders will be given 60 days’ prior notice of any such change.
The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund (“Adviser”). The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Structured Solutions.
The Adviser uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued.
The Fund uses a replication strategy with respect to the Underlying Index. A replication strategy is an indexing strategy that involves investing in the securities of the Underlying Index in approximately the same proportions as in the Underlying Index. However, the Fund may utilize a representative sampling strategy with respect to the Underlying Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index, in instances in which a security in the Underlying Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Underlying Index.
For the complete prospectus click: HERE