Global X Files For “All-In-One” ETF, ProShares Plans Sovereign Bond Fund

by on November 18, 2011

The product development front in the exchange-traded universe continues to buzz with activity as two key issuers laid the groundwork for first-to-market products this week. Global X filed for an intriguing multi-asset class index fund while ProShares drafted plans to beef up its fixed income lineup with a new ex-U.S. bond fund.

New York based provider, Global X, recently filed with the SEC to bring to the market a one of a kind, multi-asset index fund that is intended for a wide variety of macroeconomic environments. The filing may pose a bit of a regulatory hurdle for the issuer as this would be the company’s first product that includes bond market exposure [see SEC Filing]:

  • Global X Permanent ETF: The proposed fund would track the Solactive Permanent Index and would seek to preserve and increase “purchasing power” value over the long haul, regardless of current or future market conditions, through a fixed allocation in a variety of asset classes. The underlying index includes exposure to: U.S. value stocks, domestic and foreign natural resource equities, short and long term U.S. Treasuries, U.S. Treasury Inflation Protected Bonds (TIPS), gold ETFs, and real estate investment trusts (REITS). The fund’s diversified portfolio is intended to provide consistent returns over the long-haul, regardless of the economic environment.

ProShares, the world’s largest manager of inverse and leveraged funds, filed paperwork with the SEC for an intriguing bond ETF. The proposed ETF is well timed given that demand for fixed income exposure has increased considerably in recent months as sovereign debt woes pose a major roadblock for the global economic recovery [see SEC Filing]:

  • ProShares Sovereign Fiscal Strength ETF: The proposed fund would track an ex-U.S. index comprised of fixed-rate debt instruments denominated in local currencies. The index methodology is designed to provide exposure to the debts of sovereign non-U.S. issuers that are deemed to exhibit relative fiscal strength based on a variety of fundamental metrics. The underlying holdings will be assessed based on debt-to-GDP ratio, deficit-to-GDP ratio, current account balance, as well as variety of governance and institutional factors. Additionally, the ETF will include only investment-grade securities that have at least one year to maturity.


Disclosure. No positions at time of writing.