Global X Guru Index ETF (GURU)

ETF Global X Guru Index ETF (GURU) Summary

Profile:

• Focus: Actively managed ETF that invests in US-listed large-cap stocks identified by top-performing financial analysts.
• Asset allocation: Primarily invests in large-cap U.S. equities.
• Investment strategy: Employs a quantitative model to select stocks based on analysts' consensus recommendations and earnings revisions.

Objective:

• To outperform the S&P 500 Index by actively selecting stocks with high analyst expectations and positive earnings revisions.

Issuer:

• Global X Management Company:
  • Reputation and Reliability: A respected ETF issuer with a diverse range of thematic and sector-focused ETFs.
  • Management: Experienced team with expertise in quantitative analysis and portfolio management.

Market Share:

• Global X Guru Index ETF has a market share of approximately 0.03% in the actively managed large-cap equity ETF category.

Total Net Assets:

• Approximately $145 million as of November 7, 2023.

Moat:

• Unique Strategy: Actively managed approach with a focus on analyst-driven stock selection.
• Quantitative Model: Utilizes a proprietary model to identify stocks with strong analyst support and positive earnings revisions.
• Track Record: The ETF has outperformed the S&P 500 Index since its inception in 2018.

Financial Performance:

• Year-to-Date (YTD) return: 14.5% (as of November 7, 2023).
• 3-Year Annualized Return: 12.8%.
• 5-Year Annualized Return: (not available due to fund inception date).

Benchmark Comparison:

• S&P 500 Index: YTD return of 8.5%, 3-Year Annualized Return of 10.5%.

Growth Trajectory:

• Steady growth in assets under management.
• Increasing popularity among investors seeking actively managed large-cap equity exposure.

Liquidity:

• Average Trading Volume: Approximately 40,000 shares per day.
• Bid-Ask Spread: Tight spread, typically around 0.05%.

Market Dynamics:

• Economic Indicators: Interest rate hikes, inflation, and economic growth.
• Sector Growth Prospects: Positive outlook for large-cap equities.
• Current Market Conditions: Volatile market environment.

Competitors:

• iShares Core S&P 500 ETF (IVV): 0.08% market share.
• Vanguard S&P 500 ETF (VOO): 0.45% market share.
• SPDR S&P 500 ETF (SPY): 0.34% market share.

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• Strategy: Active management based on analyst recommendations and earnings revisions.
• Composition: Primarily invests in large-cap U.S. equities across various sectors.

Key Points:

• Actively managed ETF with a focus on analyst-driven stock selection.
• Has outperformed the S&P 500 Index since inception.
• Relatively low expense ratio.

Risks:

• Volatility: Higher volatility than the S&P 500 Index due to active management.
• Market Risk: Exposed to the risks of the U.S. large-cap equity market.
• Tracking Error: Potential deviation from the performance of the S&P 500 Index.

Who Should Consider Investing:

• Investors seeking actively managed exposure to large-cap U.S. equities.
• Investors who believe in the value of analyst recommendations and earnings revisions.
• Investors comfortable with a higher level of risk and volatility.

Fundamental Rating Based on AI:

• Rating: 7.5 out of 10.
• Justification: The AI-based analysis considers the ETF's strong track record, unique strategy, and experienced management team. However, the relatively small market share and potential for higher volatility are factored into the rating.

Resources and Disclaimers:

• Resources: Global X website, ETF.com, Morningstar.
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.