Market Overview

The Cream Of The Crop? Another Brand-Oriented ETF Debuts

Share:
The Cream Of The Crop? Another Brand-Oriented ETF Debuts

Another exchange traded fund focusing on companies with significant brand leverage is now available to investors. Last week, Global X introduced the Global X Iconic U.S. Brands ETF (BATS:LOGO).

That new ETF follows the Accuvest Iconic U.S. Brands Index. The new ETF's “holdings include firms that are integral to the U.S. consumption story, including those from traditional consumer sectors, plus Technology, Health Care and Financials, among other categories,” according to New York-based Global X.

LOGO holds 100 stocks, none of which account for more than 2.3 percent of the rookie ETF's weight. The average market capitalization of LOGO's holdings is almost $126 billion, confirming that this is a large- and mega-cap ETF.

Venerable Names

LOGO, the fourth ETF in the Globa X thematic suite, predictably features some well-known companies on its roster. The new fund's top 10 holdings include General Motors Company (NYSE: GM), Charles Schwab Corp. (NYSE: SCHW), Dow component Home Depot Inc (NYSE: HD) and Google parent Alphabet Inc (NASDAQ: GOOG).

“Very simply, we think investors are underweight consumption in their portfolios given its importance to the U.S. economy,” said Global X. “We believe that an ETF tracking an index of among the most powerful brands in the U.S. can provide broad exposure to the consumption theme and improve upon currently available large cap and consumer strategies.”

LOGO allocates over 35 percent of its weight to consumer discretionary stocks and over 31 percent, on a combined basis, to the technology and consumer staples sectors.

Competition

LOGO isn't the only iconic brands ETF on the market. Earlier this year, Exponential ETFs launched the Brand Value ETF (NYSE: BVAL).

“BVAL invests in companies whose brand is undervalued relative to its share price as determined by the rules-based Index. By measuring the Brand Value change from year to year of its constituents, BVAL and its index strive to invest in well-established brands ahead of a company’s growth,” according to Exponential ETFs.

BVAL has traded slightly higher since coming to market in the second quarter.

Related Links:

A Bond ETF For Tax Reform

New Looks For Big Sector ETFs

 

Related Articles (GM + HD)

View Comments and Join the Discussion!

Posted-In: BVAL LogoLong Ideas Broad U.S. Equity ETFs New ETFs Top Stories Trading Ideas ETFs Best of Benzinga