ONOF Profile
The Global X Adaptive U.S. Risk Management ETF is designed to provide strategic exposure to U.S. equities while incorporating risk management features. The fund aims to achieve this by investing at least 80% of its total assets in securities that are component parts of its index or in investments with similar economic characteristics. This ensures that the fund’s investments are closely aligned with the index’s performance, either individually or collectively.
The index utilized by the fund is structured to dynamically shift between two key allocations. It either provides 100% exposure to the Solactive GBS United States 500 Index Total Return, which encompasses a broad range of large-cap U.S. equities, or shifts to 100% exposure to a portfolio of U.S. Treasuries with 1-3 years remaining to maturity. This dual allocation strategy allows the fund to adapt to changing market conditions and manage risk effectively.
The Solactive GBS United States 500 Index includes 500 of the largest and most liquid U.S. stocks, representing a comprehensive cross-section of major U.S. industries. By allocating to this index, the fund captures the performance of the largest U.S. companies, providing investors with exposure to the broader U.S. equity market. In contrast, the allocation to short-term U.S. Treasuries offers a safer investment alternative, helping to preserve capital during periods of heightened market volatility.
As a non-diversified fund, the Global X Adaptive U.S. Risk Management ETF focuses its investments based on a specific set of criteria, either in a broad basket of U.S. equities or in short-term government securities. This focus allows the fund to maintain a clear strategic direction in its investment approach but also means that it is exposed to sector-specific and interest rate risks depending on its current allocation. The fund's adaptive strategy is designed to balance growth potential with risk mitigation.
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