US exchange-traded fund (ETF) provider Global X has launched its first two ETFs on the London Stock Exchange.
The ETF market in the US is more mature than the UK and Global X specialises in thematic products, something reflected in the nature of these new launches, Global X Video Games & Esports (HERU) and Global X Telemedicine & Digital Health (EDOC).
Historically UK ETFs tended to focus on tracking the main market indices but the choice available to investors is broadening, allowing them to gain more focused exposure.
Global X Video Games & Esports tracks the Solactive Video Games & Esports v2 index and includes companies involved in the development or publishing of video games, a sector which is expected to exceed $159 billion in revenue in 2020.
The index includes those companies involved in the streaming and distribution of video gaming and esports content, and hardware used in video games and esports.
Global X Telemedicine & Digital Health follows the Solactive Telemedicine & Digital Health index tracking a basket of companies involved in telemedicine, health care analytics, connected health care devices, and administrative digitalisation.
Both ETFs have ongoing charges of 0.5% which, while higher than more basic funds like iShares Core FTSE 100 (ISF) at 0.07%, do not compare unfavourably with other thematic products listed in London.
Rob Oliver, Global X head of business development in Europe commented: ‘We believe investors are increasingly seeking exposures beyond broad-market indices to achieve their unique financial goals.
‘Global X has spent the last decade developing a comprehensive suite of thematic strategies targeting among the highest potential growth areas of the market. We are thrilled to broaden access in Europe to Global X’s research-driven approach to thematic investing for the first time.’