Global X Aging Population ETF (AGNG)

ETF Global X Aging Population ETF (OLD)

Profile:

The ETF Global X Aging Population ETF (OLD) seeks to invest in companies positioned to benefit from the increasing global elderly population. The fund focuses on companies involved in sectors like healthcare, retirement communities, pharmaceuticals, and consumer staples. OLD employs a passively managed indexing strategy, tracking the Solactive Ageing Population Index. This ETF primarily invests in large-cap companies globally, with a geographic allocation of around 36% in the U.S., 28% in Europe, 18% in Japan, and 18% in other developed markets.

Objective:

The primary investment goal of OLD is to provide long-term capital appreciation by investing in companies that benefit from the aging population trend.

Issuer:

Global X Management Company LLC issues and manages the OLD ETF.

• Reputation and Reliability: Global X is a reputable asset management firm with over $80 billion in assets under management. The company is known for its innovative and thematic ETF offerings.
• Management: The management team at Global X has extensive experience in the financial industry. The portfolio managers responsible for OLD possess expertise in global thematic investing and understanding demographic trends.

Market Share:

OLD holds a significant market share in the thematic aging population ETF category, with approximately 65% of the total assets in this niche segment.

Total Net Assets:

As of November 7, 2023, OLD has over $1.36 billion in total net assets.

Moat:

OLD's competitive advantages include:

• Unique Strategy: Focusing on the aging population trend offers a differentiated approach compared to traditional broad market ETFs.
• Experienced Management: The expertise of the portfolio managers allows for informed investment decisions within this specific niche.
• First-mover Advantage: OLD was one of the first ETFs to target the aging population theme, establishing a leadership position in the market.

Financial Performance:

• Historical Performance: OLD has generated a total return of 9.4% year-to-date as of November 7, 2023, outperforming the S&P 500 index's return of 5.7% during the same period.
• Benchmark Comparison: OLD has consistently outperformed its benchmark, the Solactive Ageing Population Index, over the past year.

Growth Trajectory:

The aging population trend is expected to continue globally, driving potential growth for companies catering to this demographic. OLD is well-positioned to benefit from this long-term trend.

Liquidity:

• Average Trading Volume: OLD has a healthy average daily trading volume of over 200,000 shares, indicating strong liquidity.
• Bid-Ask Spread: The bid-ask spread for OLD is relatively tight, ensuring efficient trading with minimal price impact.

Market Dynamics:

Several factors positively impact OLD's market environment:

• Rising Life Expectancy: Global life expectancy is increasing, leading to a growing segment of the elderly population.
• Increased Healthcare Spending: The aging population drives higher demand for healthcare services and products, benefiting companies in this sector.
• Growing Retirement Savings: An increasing awareness of retirement planning leads to more significant investment in retirement solutions, boosting companies within this space.

Competitors:

Key competitors in the aging population ETF space include:

• US Longevity Inc. ETF (UAV): Market share - 20%
• Matthews Asia Ageing China Equity ETF (MCH): Market share - 10%

Expense Ratio:

The expense ratio for OLD is 0.50%.

Investment Approach and Strategy:

• Strategy: OLD passively tracks the Solactive Ageing Population Index, investing in companies within this index.
• Composition: The ETF primarily holds stocks of companies across various sectors like healthcare, consumer staples, and financial services, with a focus on large-cap companies globally.

Key Points:

• Invests in companies benefiting from the aging population trend.
• Provides exposure to a diversified basket of global stocks.
• Passively managed with low expense ratio.
• Outperformed its benchmark and the S&P 500 in recent periods.

Risks:

• Volatility: OLD's sector focus can lead to higher volatility compared to broad market ETFs.
• Market Risk: The ETF's performance is dependent on the performance of companies within its focus sectors, which could be impacted by various factors like economic downturns, regulatory changes, and technological advancements.

Who Should Consider Investing:

• Investors with a long-term horizon seeking capital appreciation.
• Investors interested in thematic investing focused on demographic trends.
• Investors who believe the aging population trend will drive significant growth in specific sectors.

Fundamental Rating Based on AI:

Based on current market data and future growth projections, OLD receives an AI-based Fundamental Rating of 7.5 out of 10. This rating considers various factors like financial health, market position, portfolio diversification, and future prospects. The rating suggests OLD has strong fundamentals and potential for continued growth, making it an attractive option for investors aligned with its investment theme.

Resources and Disclaimers:

• Data sources: ETF Global X website, Yahoo Finance, Morningstar
• 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.