Global X Disruptive Materials ETF (DMAT)

Overview

The Global X Disruptive Materials ETF (DMAT) seeks to invest in companies that are involved in the exploration, mining, processing, and refining of materials that are likely to disrupt established industries by enabling new technologies, and scientific advancements. This includes companies involved in lithium, rare earth elements, composites, and other advanced materials. The ETF offers focused exposure to companies involved in the upstream part of the value chain related to disruptive materials. It allows investment in the rapidly evolving materials science sector. Asset allocation focuses on equity holdings within the targeted sectors.

Reputation and Reliability

Global X ETFs is a well-established provider known for its thematic and innovative ETF offerings. They have a proven track record and are recognized as a reliable issuer.

Management Expertise

Global X has a team of investment professionals with experience in thematic investing and ETF management. Their team employs a rigorous methodology for index selection and portfolio construction.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Disruptive Materials Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Solactive Disruptive Materials Index. It employs a replication strategy, meaning it generally invests in all of the securities in the index in proportion to their weighting in the index.

Composition The ETF holds a basket of stocks representing companies involved in the disruptive materials sector. These include companies engaged in the production, refinement and exploration of disruptive materials.

Market Share: DMAT's market share is relatively modest within the broader materials ETF space, which is dominated by more diversified ETFs.

Total Net Assets (AUM): 49600000

Key Competitors

• Materials Select Sector SPDR Fund (XLB)
• iShares U.S. Basic Materials ETF (IYM)
• Vanguard Materials ETF (VAW)

Competitive Landscape

The materials ETF market is competitive, with XLB dominating the market share due to its broad exposure to the basic materials sector. DMAT is differentiated by its focus on disruptive materials, providing a more targeted approach compared to broad-based materials ETFs like XLB, IYM, and VAW. This niche focus could be an advantage for investors seeking exposure to specific growth areas within the materials sector, but it also comes with higher risk due to the concentration.

Historical Performance: Historical performance data unavailable in requested format, but can be found from other sources.

Benchmark Comparison: Benchmark comparison data unavailable in requested format, but can be found from other sources.

Expense Ratio: 0.39

Average Trading Volume

The average trading volume of DMAT is approximately 10,000 shares, which indicates moderate liquidity.

Bid-Ask Spread

The typical bid-ask spread for DMAT is generally around 0.10%, indicating relatively low trading costs.

Market Environment Factors

Economic growth, technological advancements, and government regulations impact DMAT. Demand for electric vehicles, renewable energy, and advanced manufacturing technologies drive the demand for disruptive materials. Current market conditions, including supply chain disruptions and inflation, can affect the cost and availability of these materials.

Growth Trajectory

DMAT's growth is tied to the increasing adoption of technologies reliant on disruptive materials. Changes in strategy and holdings would be reflective of the changing index that it tracks.

Competitive Edge

DMATu2019s advantage lies in its targeted exposure to the disruptive materials sector, differentiating it from broader materials ETFs. This niche focus allows investors to capitalize on the growth potential of specific materials crucial for emerging technologies. The ETF provides access to companies involved in the exploration, mining, processing, and refining of materials for the future. It offers a targeted approach for those seeking exposure to specific growth areas within the materials sector driven by technology and scientific advancements. These factors could potentially lead to higher growth if the disruptive materials industry expands as expected.

Volatility

DMAT may exhibit higher volatility than broad-based materials ETFs due to its concentrated focus on disruptive materials, which are subject to rapid technological and regulatory shifts.

Market Risk

DMAT faces risks associated with commodity price fluctuations, changes in technology demand, and regulatory hurdles specific to the mining and processing of disruptive materials.

Ideal Investor Profile

DMAT is suited for investors who understand the disruptive materials sector and seek targeted exposure to companies involved in the exploration, mining, processing, and refining of these materials.

Market Risk

DMAT is best suited for investors with a long-term investment horizon and a higher risk tolerance, as the ETF is concentrated in a specific sector.

The Global X Disruptive Materials ETF (DMAT) offers targeted exposure to companies involved in the disruptive materials sector, differentiating itself from broader materials ETFs. It presents a niche focus for investors aiming to capitalize on the growth of materials essential for emerging technologies. DMAT's performance and suitability are significantly influenced by technological advancements, regulatory factors, and the overall economic climate affecting material demand. While its focused approach offers potential for higher growth, it also introduces higher volatility and market risk compared to more diversified materials ETFs. It's most suitable for long-term investors with a high-risk tolerance who understand the disruptive materials sector.

Data Sources:

• Global X ETFs Website
• ETF.com
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.