Market Overview

Hedge Fund Clone ETF Surpasses $100M In Assets

Hedge fund replication ETFs have been criticized by some as being gimmicky.

The ones offering exposure to stocks that appear in 13F filings have been assailed as gimmicky and criticized for the obvious risk of the 13Fs not appearing until well after a quarter ends.

In 14 months of trading, the Global X Top Guru Holdings Index ETF (NYSE: GURU) has defied the critics and reached the much ballyhooed $100 million in assets under management. As of Wednesday's close, GURU had $114.8 million in assets under management.

"We've been extremely pleased that investors are responding so strongly to the fund and that we are able to deliver such strong returns,” said Justin Young, Head of Capital Markets at Global X, according to ETF Daily News.

Related: ETFs Skirting Herbalife Saga...For Now.

GURU tracks the Top Guru Holdings Index, which "is comprised of the top U.S. listed equity positions reported on Form 13F by a select group of entities that Structured Solutions AG characterizes as hedge funds.

GURU, which charges 0.75 percent per year, features GameStop (NYSE: GME), Pandora (NYSE: P), Pioneer Natural Resources (NYSE: PXD) and Lockheed Martin (NYSE: LMT) among its top-10 holdings. The stocks are equally weighted with none receiving a weight north of 2.44 percent.

Importantly, GURU has defied the often used yet unproven theory that small ETFs are not worth investors' trouble by surging 23.1 percent this year.

For more on ETFs, click here.

Disclosure: Author owns none of the securities mentioned here.

Posted-In: Global XNews Broad U.S. Equity ETFs Specialty ETFs Hedge Funds Intraday Update ETFs Best of Benzinga

 

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