Global X Guru Index ETF (GURU)

ETF Global X Guru Index ETF (GURU)

Profile:

GURU tracks the Guru Index, which selects the top 25 performing stock pickers from the TipRanks database. These gurus are identified based on their stock selection accuracy, return on investment, and risk-adjusted returns. The ETF invests in the top 5 holdings of each guru, providing exposure to a diversified portfolio of high-conviction stocks.

Objective:

The primary investment goal is to provide long-term capital appreciation by mimicking the investment decisions of top-performing stock pickers.

Issuer:

Global X Management Company, a leading provider of thematic and sector-specific ETFs.

Market Share:

GURU holds a small market share in the U.S. ETF industry.

Total Net Assets:

$54.9 million as of November 1, 2023.

Moat:

• Unique Investment Strategy: GURU's strategy of tracking the decisions of top stock pickers provides a differentiated approach to active management.
• Access to Guru Insights: Investors gain exposure to the insights of leading stock pickers without individually researching and selecting stocks.

Financial Performance:

• Year-to-Date: -22.12% (as of November 1, 2023)
• Previous Year: 3.82%
• Since Inception (2018): 21.43%

Benchmark Comparison:

• GURU has outperformed the S&P 500 since its inception but underperformed in 2023.

Growth Trajectory:

The ETF's growth trajectory is uncertain due to its relatively short track record and dependence on the performance of individual stock pickers.

Liquidity:

• Average Trading Volume: 50,000 shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic Indicators: The ETF's performance is sensitive to economic indicators like interest rates and inflation.
• Sector Growth Prospects: The ETF's performance is influenced by the performance of the underlying sectors represented by the gurus' stock picks.

Competitors:

• AXS 40 Active US Equity ETF (AXS40): 0.2% market share
• TrueShares Actively Managed ETF (TACT): 0.1% market share

Expense Ratio:

0.60%

Investment Approach and Strategy:

• Strategy: Actively managed, mimicking the top 25 stock pickers' top 5 holdings.
• Composition: Primarily U.S. equities across various sectors.

Key Points:

• Provides access to top stock pickers' insights.
• Offers diversification through exposure to a variety of stocks.
• Aims for long-term capital appreciation.

Risks:

• Volatility: GURU's performance can be volatile due to its dependence on individual stock pickers.
• Market Risk: The ETF's performance is subject to overall market risks and sector-specific risks.
• Active Management Risk: The ETF's success relies on the continued performance of the gurus.

Who Should Consider Investing:

• Investors seeking active management with exposure to top stock pickers' decisions.
• Investors comfortable with volatility and a longer investment horizon.

Fundamental Rating Based on AI (Scale 1-10):

6.5

Analysis: GURU has a unique and potentially advantageous strategy. However, its short track record and dependence on individual stock pickers introduce risks. The AI rating considers factors like the ETF's performance, volatility, expense ratio, and market dynamics to arrive at this rating.

Resources:

• Global X Website: https://www.globalxetfs.com/guru/
• ETF Database: https://etfdb.com/etf/guru/
• Yahoo Finance: https://finance.yahoo.com/quote/GURU/
• TipRanks: https://www.tipranks.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.