Global X will begin trading its new “Global X S&P/TSX Venture 30 Canada ETF” (NYSE:TSXV) Thursday, March 17, 2011. The Global X S&P/TSX Venture Canada ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P/TSX Venture 30 Index. The S&P/TSX Venture 30 Index is designed to provide exposure to 30 most liquid securities of the S&P/TSX Venture Composite Index. For eligibility, as of the reference date, securities must have USD $100 million and above in market capitalization. Stocks must trade at least 100,000 shares in each of the previous six months preceding the rebalancing reference date. The top 30 securities, ranked by their 6 month average daily value traded, form the index. The weighting mechanism employs an optimization algorithm as such the overall basket liquidity of the index is maximized, subject to stock level constraints. The maximum weight of the security is capped at 8%, and the sum of the securities with weight over 5% does not exceed 50%. The index is maintained by Standard & Poor’s Financial Services LLC (a subsidiary of The McGraw-Hill Companies) (“S&P”).
Total Annual Fund Operating Expenses: 0.75%
PRINCIPAL INVESTMENT STRATEGIES
The Underlying Index is a free-float adjusted, modified capitalization-weighted index designed to provide exposure to the 30 most liquid securities of the TSX Venture Exchange. The TSX Venture Exchange is Canada’s junior listings market for emerging companies. As of January 3, 2011 the three largest stocks were Rainy River Resources, Canaco Resources and San Gold Corporation. 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 Standard & Poor’s Financial Services LLC (a subsidiary of The McGraw-Hill Companies) (“S&P”).
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 will invest at least 80% of its total assets in the securities of the Underlying Index, which are listed in Canada’s TSX Venture Exchange.
The Fund will use a replication strategy. 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 filing click: HERE