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Global X Adds To Thematic With 3 New ETFs

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Global X Adds To Thematic With 3 New ETFs

Global X added to its burgeoning lineup of thematic exchange-traded funds Tuesday with the introduction of three new funds. Those new ETFs are the Global X FinTech Thematic ETF (NASDAQ: FINX), the Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ: BOTZ) and the Global X Internet of Things Thematic ETF (NASDAQ: SNSR).

FINX

FINX tracks the Indxx Global FinTech Thematic Index. That new ETF, which is about two-thirds allocated to U.S. stocks, is a mix of traditional financial services companies and technology firms. However, FINX's fintech tilt is obvious a combined 77 percent weight to data processing and application software companies.

Related Link: Not All Dividend ETFs Are Excessively Valued

FINX will tussle with the PureFunds Solactive FinTech ETF (NASDAQ: FINQ), which debuted a couple of weeks ago as the first fintech ETF on the market. FINQ tracks the Solactive FinTech Index.

SNSR

SNSR follows the Indxx Global Internet of Things Thematic Index, providing exposure to “companies that stand to potentially benefit from the broader adoption of the Internet of Things (IoT). This includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet,” according to Global X.

Familiar names in SNSR's top-10 lineup include Mobileye NV (NASDAQ: MBLY) and Cypress Semiconductor Corporation (NASDAQ: CY). Semiconductor stocks are 34.7 percent of the new ETF's lineup while components makers comprise another 15.4 percent.

“The ecosystem of devices and objects that are wireless connected is expected to total over 50 billion by 2020, with an estimated economic impact of $3.9–$11.1 trillion by 2025,” noted Global X, citing McKinsey.

BOTZ

BOTZ tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which provides exposure to companies poised to benefit from increased use of artificial intelligence and robotics.

Related Link: Previewing Fidelity's Upcoming Low Volatility ETF

Japan is the largest country allocation in BOTZ at 46.1 percent followed by the United States at just over 20 percent. Industrial machinery stocks are over 30 percent of the BOTZ lineup, while electronic and healthcare equipment makers combine for almost 23 percent.

The Bottom Line

All three new ETFs charge 0.68 percent per year, or $68 on a $10,000 investment.

In May, Global X introduced the Global X Longevity Thematic ETF (NASDAQ: LNGR) and the Global X Health & Wellness Thematic ETF (NASDAQ: BFIT). In July, the Global X Conscious Companies ETF (NASDAQ: KRMA) debuted.

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