GlobalShares Launches Three New ETFs (GSZ, GSO, GSW)

by on April 6, 2010 | ETFs Mentioned:

Old Mutual Global Index Trackers, a South Africa-based division of asset Manager Old Mutual, launched three new ETFs on Tuesday, bringing the number of funds in its product line to five. The new ETFs include:

  • GlobalShares FTSE All-Cap Asia Pacific Ex Japan Fund (GSZ)
  • GlobalShares FTSE All-World ex U.S. Fund (GSO)
  • GlobalShares FTSE All-World Fund (GSW)

GSZ will track the performance of the FTSE All Cap Asia Pacific Ex Japan Index, a benchmark comprised of companies in the Asia Pacific region (excluding Japan) that account for approximately 98% of the investable market capitalization. The underlying index consists of nearly 1,800 stocks, making GSZ unique in that it will offer exposure to Asia Pacific equities of all sizes, instead of focusing only on mega-cap firms (see all ETFs in the Asia Pacific Equities ETFdb Category). GSZ will charge an expense ratio of 0.50%, below the average for this ETFdb Category.

GSO will track the performance of the FTSE All-World ex U.S. Index, (see this database of equity indexes for a look at all the benchmarks linked to U.S.-listed ETFs). The Vanguard FTSE All-World ex-U.S. ETF (VEU) tracks this same benchmark, so GSO will be competing directly with this well-established fund (VEU has assets of about $5.5 billion and average daily trading volume of almost 1 million shares). GSO charges an expense ratio of 0.35%, 10 basis points higher than VEU.

GSW will also track an index already linked to an existing ETF. This fund will seek to replicate the performance of the FTSE All-World Index, a benchmark that includes nearly 3,000 stocks of companies in 47 countries, including both developed and emerging markets. The Vanguard Total World Stock ETF (VT) also tracks this index, charging an expense ratio of 0.30% (GSW will charge 0.35%).

Growing Lineup

These three ETFs join existing ETFs from GlobalShares offering exposure to developed (GSD) and emerging markets (GSR). “We’re very pleased to introduce our new ETF products to American investors,” said Tendai Musikavanhu, CEO of Old Mutual Global Index Trackers. “These products represent a major step in the continuation of our mission to bring global diversification to the portfolios of individual investors in a flexible and low-cost manner.

Disclosure: No positions at time of writing.