AUSF Profile
Global X Adaptive U.S. Factor ETF is an investment fund that strategically allocates a significant portion of its assets to a specialized index designed to capture key equity factors. The fund commits at least 80% of its total assets to securities that comprise the index. This investment policy is non-fundamental, meaning it is subject to change with a 60-day written notice to shareholders. The flexibility in this policy allows the fund to adapt to evolving market conditions while maintaining its focus on factor-based investing.
The underlying index for the fund is engineered to dynamically allocate across three distinct sub-indices, each targeting a specific equity factor: value, momentum, and low volatility. This approach aims to provide diversified exposure to U.S. equities based on their performance characteristics in these three areas. The value factor focuses on undervalued stocks with strong fundamentals, the momentum factor targets stocks with upward price trends, and the low volatility factor emphasizes equities with stable performance and lower risk profiles.
The fund's dynamic allocation strategy involves adjusting the weightings of these three sub-indices to reflect changing market conditions and economic trends. By doing so, the ETF seeks to capitalize on the strengths of each factor in different market environments, aiming to enhance overall performance and manage risk effectively. This adaptive approach allows the fund to respond to shifts in market dynamics and investor sentiment, optimizing its exposure to key equity factors.
As a non-diversified fund, Global X Adaptive U.S. Factor ETF takes a focused approach by concentrating its investments in specific factors rather than spreading across a broad range of assets. This targeted strategy enables the fund to harness the potential benefits of value, momentum, and low volatility factors, offering investors a nuanced way to gain exposure to U.S. equities. By leveraging a factor-based approach and maintaining flexibility in its investment policy, the fund provides a sophisticated solution for those seeking to enhance their equity portfolios with strategic factor exposures.
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