NEW YORK, Feb. 24, 2021 (GLOBE NEWSWIRE) — Global X ETFs (the “firm” or “Global X”), the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X China Disruption ETF (KEJI). The fund will be among the first actively managed ETFs to target disruption in China and will seek to invest in innovative Chinese companies across several powerful themes.
KEJI merges two of Global X’s core areas of expertise developed over more than ten years: accessing Chinese markets and harnessing disruptive trends. The fund will join the firm’s Thematic Growth family of ETFs and provide targeted access to companies at the leading edge of several themes reshaping China’s economy and the world at large.
“China is rapidly emerging as a hotspot for global disruption. The country’s cutting-edge technologies in areas like 5G, e-commerce, and gaming have placed Chinese enterprises on the world-stage, and the growth of its healthcare and clean energy industries further underscores China’s expanding global influence,” said Chelsea Rodstrom, research analyst at Global X. “In bringing together our knowledge of disruptive themes with Mirae Asset’s seasoned portfolio managers, investors will have access to the dynamic and wide-ranging landscape of innovation in China with KEJI.”
Global X will leverage its thematic research capabilities to pinpoint long-term, structural themes that are expected to be the most impactful in China over the coming decades. Themes may be driven by advancements in disruptive technologies, changing demographics and consumer preferences, or adaptations to the physical environment. KEJI intends to access the following themes: Autonomous & Electric Vehicles, Climate Change, Cloud Computing, Cybersecurity, E-commerce, Education, FinTech, 5G & the Internet of Things, Healthcare Innovation, Infrastructure Development, Longevity, Rising Emerging Markets Consumers, Robotics & Artificial Intelligence, Social Media and Video Games & E-sports.
The fund is sub-advised by Mirae Asset Global Investments (Hong Kong) Limited, an affiliate of Global X, which will apply its extensive research and experience within the region to select and weight securities in an effort to best capture each theme and to balance risks. Under normal market conditions, the sub-adviser will seek to limit single stocks to a 10% weighting and the aggregate weight of each theme to 35% of the portfolio. The fund will invest across several Chinese equity share classes, including Chinese A Shares, H Shares, and ADRs.
KEJI will draw on the firm’s expertise in China and thematic investing – totaling a combined 37 ETFs and $16 billion in assets under management across these categories – and will leverage Mirae Asset’s local presence and team of Asia-focused research analysts in Hong Kong and Mainland China.
About Global X ETFs
Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features more than 70 ETF strategies and $27 billion in assets under management.1 While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $450 billion in assets under management worldwide. Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $70bn in assets under management.
Investing involves risk, including the possible loss of principal. The investable universe of companies in which KEJI may invest may be limited. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging economic themed companies typically face intense competition and potentially rapid product obsolescence. Thematic companies may have limited product lines, markets, financial resources or personnel. They typically engage in significant amounts of spending on research and development, capital expenditures and mergers and acquisitions, and there is no guarantee that the products or services produced will be successful. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. KEJI is non-diversified.
As an actively managed Fund, KEJI does not seek to replicate a specific index. KEJI may invest in securities denominated in foreign currencies. Because the Fund’s NAV is determined in U.S. dollars, the KEJI’s NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments (Hong Kong) Limited.
1 As of 2/18/2021