Market Overview

Global X Permanent ETF Debuts Today

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New York-based ETF issuer Global X rolled out the Global X Permanent ETF (NYSE: PERM) today, an ETF that is designed to deliver alpha in myriad market environments. With an expense ratio of 0.48%, the Global X Permanent ETF tracks the Solactive Permanent Index.

PERM is the first new product introduction for Global X this year. The firm introduced 22 new ETFs in 2011, making it one of the most prolific issuers of new ETFs in the U.S.

The ETF has target allocations of 25% to equity stocks, 25% to short term bonds, 20% to gold and 5% to silver, and 25% to long term bonds. PERM does not try to beat an index but rather maintains target allocations through passive indexing, according to a statement issued by Global X.

PERM currently holds a 25.2% weight to long-term U.S. Treasuries and a 24.91% to short-term Treasuries. The ETF has a 19.99% allocation to an ETF Securities gold ETF and a 4.94% weight to the ETFS Physical Silver Shares (NYSE: SIVR). The rest of the ETF's holdings are spread among U.S. large-caps, real estate stocks, materials names, global stocks and U.S. small-caps.

“The Global X Permanent ETF is designed to preserve and increase purchasing power over the long term,” said Bruno del Ama, chief executive officer of Global X Funds, in the statement. “PERM provides access to this diversification in a single, cost-effective ETF.”

Posted-In: News Bonds Broad U.S. Equity ETFs Specialty ETFs New ETFs Intraday Update Markets Trading Ideas

 

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