Global X Guru ETF Is Killing It
Have you heard about Form 13F?
This simple form is the key to one of top performing ETF’s 50% gain over the last year.
You see, the SEC requires institutional investors with more than $100 million in US equity investments to publish their stock holdings. They must file Form 13F with the SEC within 45 days of the end of a calendar quarter.
In other words, Form 13F tells you exactly what stocks successful stock pickers like Warren Buffet, Carl Icahn, George Soros, and John Paulson are buying and selling.
Needless to say, these successful investors and the other institutional investors and hedge funds that file a 13F spend lots of money to uncover the best investment opportunities.
However, wading through the massive amount of information and making a buy or sell decision based on this information is no easy task.
Global X Guru Index ETF (GURU) is an easier way to follow the best stock pickers.
GURU does all of the heavy lifting for you. The index of stocks GURU tracks is made of the highest conviction ideas from a select pool of hedge funds.
They eliminate funds that trade in and out of stocks quickly. The high turnover of stocks at these places make their 13F Forms worthless. They’ve probably bought and sold the stock before they ever report owning it on their 13F.
Now that they identified the Hedge Funds with 13Fs worth paying attention to, Global X drills down even further. They dig through the 13Fs to find the stock each Hedge Fund has the most conviction in.
GURU invests an equal amount of money into each holding. They hold these stocks for one quarter. Then they run the analysis and rebalance the ETF after the next round of 13Fs are filed next quarter.
Following this stock picking methodology, GURU has shot up 40% year-to-date. And it’s up 50% over the last year. The stellar performance hasn’t gone unnoticed either.
After launching in June of 2012, GURU began the year with a mere $25 million in assets under management. But it has net inflows of $209 million this year to push total assets north of $234 million.
To capitalize on the success of GURU, Global X recently registered two new ETFs – The Global X GURU Value Index ETF and The Global X GURU Activist Index ETF.
Here’s the upshot…
Following the world’s best investors by watching the 13Fs has long been a staple for many investors. And GURU has this stock selection methodology down to a science. This is one ETF every investor should consider adding to their portfolio.
Good Investing,
Corey Williams
Category: ETFs, Investment Style ETFs
