Latest news with #SHLD
Globe and Mail
4 days ago
- Business
- Globe and Mail
Top 3 ETFs Defense Hawks Are Buying
Global military spending is accelerating, with total worldwide military expenditures for 2024 estimated at $2.72 trillion. This marks a 9.4% increase in real terms over 2023 levels and the sharpest year-over-year (YOY) rise in decades. While spending in the major military powers of the United States, Russia, China, Germany, and India still accounts for the majority of total defense spending, budgets in other parts of the world are also increasing, particularly given instability in the Middle East and concern in Europe about the escalation of Russia's invasion of Ukraine. Defense hawk investors who believe this trend is likely to continue may be inclined to invest in aerospace and defense firms that are most likely to benefit from increased military spending. Individual investments in this area are accessible for U.S. investors but less so for international defense companies. Hawkish investors seeking broader international exposure to the defense space might consider a dedicated and expansive exchange-traded fund (ETF) targeting this industry. Targeted Global Defense Exposure in a Popular Fund [content-module:CompanyOverview|NYSEARCA:SHLD] The Global X Defense Tech ETF (NYSEARCA: SHLD) has more than $2 billion in assets under management (AUM), making it one of the largest and most popular defense-focused ETFs. SHLD includes about 40 holdings with companies in the industrials, cybersecurity, AI, and drone systems spaces. The fund is fairly concentrated, with positions in German automotive and arms manufacturer Rheinmetall AG (ETR: RHM) and U.S.-based Palantir Technologies Inc. (NASDAQ: PLTR) together accounting for more than 21% of the portfolio. Just over half of the portfolio is given over to U.S. companies, with Germany, France, Britain, and South Korea among the other markets best represented. SHLD offers an expense ratio of 0.50%, which is somewhat high for a passively managed fund but understandable given its global exposure and specialized theme. What's more, the fund's performance in recent months has likely more than made up for its fee—SHLD has returned nearly 52% year-to-date (YTD) and 69% in the past 12 months. North American and European Focus With a New Fund [content-module:CompanyOverview|NASDAQ:NATO] The Themes Transatlantic Defense ETF (NASDAQ: NATO) is a fund specifically focused on aerospace and defense stocks headquartered in the 32 North Atlantic Treaty Organization (NATO) member countries across Europe and North America. NATO's portfolio includes more than 70 companies, and the largest position is under 9% of total assets. This makes the fund somewhat more diversified than SHLD above, even as it has a more narrowly focused geographical purview. NATO is also almost exclusively focused on industrials names, while SHLD gives over a portion of its portfolio to software and AI companies with defense interests as well. More than two-thirds of NATO's portfolio is made up of U.S. companies, with France and the U.K. making up the bulk of the remainder. NATO comes in ahead of SHLD when it comes to fees, as it has an expense ratio of just 0.35%. Having launched last October, it has a limited performance history, but it has generated returns of about 32% YTD. However, with an AUM of around $24 million and a one-month average trading volume hovering around 17,000, investors may find liquidity to be an issue here more so than for SHLD. High-Risk, High-Reward 3X Defense Leverage [content-module:CompanyOverview|NYSEARCA:DFEN] Direxion Daily Aerospace & Defense Bull 3X Shares Fund (NYSEARCA: DFEN) is a fund reserved for defense investors comfortable taking on a high degree of risk. This ETF provides an opportunity for investors anticipating a short-term rally in U.S. defense stocks, offering daily 3X leveraged exposure to a bucket of about 38 companies. Like SHLD above, DFEN is fairly concentrated, with the top two positions representing more than a quarter of assets invested. As with other leveraged funds, DFEN is not designed to be held longer than a single day of trading. This means it may be a viable option for investors holding one of the defense funds above long-term but seeking additional targeted exposure in anticipation of an intraday rally in this industry. Due to its leverage and unique focus, this fund has a higher expense ratio of 0.95%. It also has the highest degree of leverage available in defense ETFs, but there are alternatives providing 2X exposure for investors interested in taking on a more moderate degree of risk. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Yahoo
5 days ago
- Business
- Yahoo
NATO, European Defense ETFs: 2025 Market Leaders
In a year marked by escalating geopolitical tensions and shifting global alliances, the Themes Transatlantic Defense ETF (NATO) has surged 35% while U.S. stocks, as measured by the S&P 500, have gained roughly 2%. The fund's performance comes amid renewed hostilities in the Russia-Ukraine conflict and fresh uncertainty about the future of NATO itself following President Donald Trump's sharp criticisms of the alliance. These dynamics have triggered a wave of increased defense spending across Europe, fueling investor demand for companies tied to military production, surveillance systems and advanced weaponry. The most recent catalyst: a memorandum from Russia laying out aggressive conditions for ending the war, further rattling markets and boosting defense-focused equities. The Themes Transatlantic Defense ETF is designed to give investors targeted exposure to defense and aerospace companies headquartered in countries that are members of the North Atlantic Treaty Organization (NATO). To achieve its objective, the fund tracks the Themes NATO Defense Index, which includes firms involved in weapons manufacturing, military communications, cybersecurity, aerospace systems and battlefield logistics across both the U.S. and Europe. Since NATO tracks a market cap-weighted index, the top holdings include major U.S. names like GE Aerospace (GE) and Boeing (BA), alongside European giants like Airbus AE. The ETF's strategy reflects a transatlantic alignment, making it unique compared to more U.S.-centric or Europe-only defense ETFs. With rising defense budgets, particularly among Germany, Poland and the Nordic countries, the fund has benefited from strong investor interest and real-world increases in defense contracts. But will global and European defense ETFs keep climbing? Beyond NATO, other ETFs focused on European defense stocks have also attracted attention in 2025. The iShares European Defense ETF (EUAD) provides exposure to pure-play European defense firms and excludes U.S. companies. It targets manufacturers and suppliers within the EU and U.K. that derive significant revenue from defense activities. EUAD offers a tighter regional focus than NATO, making it more sensitive to European policy changes and spending trends. EUAD leads all ETFs in this group, as it's up nearly 70% year to date. The SPDR European Shield ETF (SHLD) blends defense and homeland security exposure, including worldwide companies that work in border protection, drone surveillance and cyber-defense. Its portfolio tilts slightly more toward tech-enabled security and infrastructure resilience, making it a broader play on European and global national security than strictly military hardware. SHLD also has an impressive year-to-date gain of nearly 55%. As the Russia-Ukraine war drags on and tensions rise with Russia's latest hardline peace proposal, defense stocks may continue to benefit from political pressure and policy changes. NATO, EUAD and SHLD all stand to gain if European nations follow through on their pledges to increase military readiness and spending—regardless of the tone coming out of Washington. While a potential diplomatic breakthrough could cool some of the momentum, the long-term trend of rising defense investment in Europe appears firmly in place. For investors looking to tap into this macro shift, the NATO and its peers offer a focused way to participate in the evolving security landscape. Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in ETFs involves risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions. At the time of publication, Kent Thune did not hold a position in any of the aforementioned | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
30-04-2025
- Business
- Cision Canada
GLOBAL X LAUNCHES 11 NEW ETFs, INCLUDING INTERNATIONAL DEFENCE INDUSTRY ETF & SEMI-MONTHLY DISTRIBUTION BITCOIN FUNDS Français
TORONTO, April 30, 2025 /CNW/ - Global X Investments Canada Inc. (" Global X" or the "Manager") is launching eleven new ETFs (the " New ETFs"), including a defence sector index ETF and two Bitcoin-focused covered call funds that offer twice monthly distributions to Canadians – the first ETFs in Canada that deliver income more than once per month to unitholders. Units of the ETFs begin trading today on the Toronto Stock Exchange (" TSX") and Cboe Canada (" Cboe"), as applicable. Today's launch expands Global X's index, covered call and enhanced covered call suites, solidifying Global X's position as the provider of one of Canada's largest suites of covered call and enhanced covered call ETFs. In addition, Global X is also announcing a rebate on one of the New ETFs: the Global X Equal Weight Canadian REITs Index ETF (" REIT"). The Manager has voluntarily agreed to rebate the full 0.25% of the Management Fee ordinarily payable by REIT to the Manager until December 31, 2025 (the " REIT Rebate"). During the REIT Rebate period, the effective Management Fee that Unitholders of REIT will pay will be reduced from 0.25% to 0.00% of the net asset value of REIT. Additionally, the Manager has voluntarily agreed to waive the operating expenses of REIT until the end of the REIT Rebate period. Therefore, the effective management expense ratio (" MER") of REIT is expected to be 0.00% until the end of the REIT Rebate period. REIT remains subject to trading costs, which will be included in REIT's trading expense ratio (" TER"). "So far in 2025, market conditions have prompted many Canadians to take a deeper look at their accounts to ensure they're ready for what may come and are still positioned to achieve their financial goals," said Chris McHaney, Executive Vice President, Investment Management & Strategy at Global X. "With these new launches and our rebates, we're aiming to be a partner in helping them achieve that mission. Our new ETFs were developed with these market dynamics in mind, whether to harness increasingly important sectors or to incorporate the potential for greater yield and more frequent income in their investment portfolios." Index ETFs The index ETFs are further described in the table below: *Plus applicable sales tax "Our expanding suite of benchmark and index ETFs includes first-of-their-kind strategies in Canada that deliver exposure to sectors and industries that are poised for future growth," said Mr. McHaney. "In particular, SHLD offers investors globally diversified exposure to leading companies in the defence technology sector. With geopolitical tensions prompting increased defence spending across Europe and other regions, SHLD provides timely access to this rapidly in-focus sector." Covered Call ETFs The covered call ETFs use an increasingly popular strategy that may generate additional income through the sale of option premiums on the underlying holdings. The covered call ETFs are described further in the table below: ETF Name and Ticker Investment Objective Exchange Management Fee * Global X Equal Weight Canadian Telecommunications Covered Call ETF (" RNCC") RNCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an equal-weighted index designed to provide exposure to the largest Canadian telecommunications companies (currently, the Mirae Asset Equal Weight Canadian Telecommunications Index); and (b) monthly distributions of dividend and call option premiums. To mitigate downside risk and generate premiums, RNCC employs a dynamic covered call option writing program. TSX 0.39 % Global X Bitcoin Covered Call ETF (" BCCC" and " BCCC.U") BCCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of Bitcoin; and (b) monthly distributions of call option income. To mitigate downside risk and generate premiums, BCCC employs a dynamic covered call option writing program. Cboe 0.65 % *Plus applicable sales tax "Bitcoin continues to attract attention among Canadian investors as an alternative asset class," said Mr. McHaney. "We're looking to attract even more attention to cryptocurrency in ETF form by offering exposure to Bitcoin with a novel 'twice monthly' approach to distributions, which means investors may earn income from the additional yield generated through the ETFs' covered call writing program." Enhanced Covered Call ETFs In addition to a covered call overlay, the enhanced covered call ETFs use leverage, a strategy that can potentially amplify returns and losses, as well as covered call writing to enhance income generation. The leverage ratio is regularly monitored and maintained at approximately 125% or 1.25x of net asset value (" NAV"). The enhanced covered call ETFs are further described in the table below: ETF Name and Ticker Investment Objective Exchange Management Fee * Global X Enhanced Equal Weight Canadian Telecommunications Covered Call ETF (" RNCL") RNCL seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of equal-weighted equity securities of Canadian telecommunications companies (currently, the Mirae Asset Equal Weight Canadian Telecommunications Index); and (b) high monthly distributions of dividend and call option income. To generate premiums, RNCL is exposed to a dynamic covered call option writing program. RNCL also employs leverage (not to exceed the limits on use of leverage described under "Investment Strategies" in the ETFs prospectus) through cash borrowing and generally endeavours to maintain a leverage ratio of approximately 125%. TSX 0.65 % Global X Enhanced Russell 2000 Covered Call ETF (" RSCL") RSCL seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of small-cap securities of the U.S. equity market (currently, the Russell 2000 RIC Capped Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, RSCL is exposed to a dynamic covered call option writing program. RSCL also employs leverage (not to exceed the limits on use of leverage described under "Investment Strategies" in the ETFs prospectus) through cash borrowing and generally endeavours to maintain a leverage ratio of approximately 125%. Cboe 0.85 % Global X Enhanced Gold Producer Equity Covered Call ETF (" GLCL") GLCL seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equity securities of diversified North American listed gold producers (currently, the Mirae Asset North American Listed Gold Producers Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, GLCL is exposed to a dynamic covered call option writing program. GLCL also employs leverage (not to exceed the limits on use of leverage described under "Investment Strategies" in the ETFs prospectus) through cash borrowing and generally endeavours to maintain a leverage ratio of approximately 125%. TSX 0.85 % Global X Enhanced Bitcoin Covered Call ETF (" BCCL" and " BCCL.U") BCCL seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of Bitcoin; and (b) high monthly distributions of call option income. To mitigate downside risk and generate premiums, BCCL will be exposed to a dynamic covered call option writing program. BCCL also employs leverage (not to exceed the limits on use of leverage described under "Investment Strategies" in the ETFs prospectus) through cash borrowing and generally endeavours to maintain a leverage ratio of approximately 125%. Cboe 0.85 % *Plus applicable sales tax "Last year, we launched RING, our telecommunications sector offering within our 'Best of Canada' suite," said Mr. McHaney. "Demand for the strategy has driven us to offer both covered call and enhanced covered call versions. With their history of strong dividends and entrenchment in Canada's economy, we believe that our country's leading telecommunications companies can offer investors strong yield potential, especially with the potential benefit of light leverage and covered call overlays." The New ETFs closed their initial offering of units to their designated broker and will begin trading today on the TSX and Cboe Canada, as applicable. About Global X Investments Canada Inc. ( Global X Investments Canada Inc. (" Global X") is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has approximately $38 billion of assets under management and 142 ETFs listed on major Canadian stock exchanges. Global X is a wholly owned subsidiary of the Mirae Asset Financial Group, which manages more than $900 billion of assets across 19 countries and global markets around the world. Commissions, management fees, and expenses all may be associated with an investment in products (the "Global X Funds") managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently and past performance may not be repeated. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. Past performance may not be repeated. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing. Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law. Mirae Asset Global Index Private Limited (an affiliate of the Manager) owns all rights to the trademark, name and intellectual property associated with the Underlying Indices of certain of the Index ETFs (in this disclaimer, the "Mirae Asset Indices"). No representation is made by Mirae Asset Global Index Private Limited that the Mirae Asset Indices are accurate or complete or that investment in a Mirae Asset Index or an Index ETF will be profitable or suitable for any person. The Mirae Asset Indices are administered and calculated by Mirae Asset Global Index Private Limited and Mirae Asset Global Index Private Limited will have no liability for any error in the calculation of the Mirae Asset Indices. Mirae Asset Global Index Private Limited does not guarantee that the Mirae Asset Indices or their underlying methodology is accurate or complete. The Global X Russell 2000 Index ETF ("RSSX.U"), the Global X Russell 2000 Covered Call ETF ("RSCC") and the Global X Enhanced Russell 2000 Covered Call ETF ("RSCL") (in this disclaimer, the "Russell 2000 Funds") have been developed solely by Global X Investments Canada Inc. The Russell 2000 Funds are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the RUSSELL 2000 RIC CAPPED INDEX (in this disclaimer, the "Index") vest in the relevant LSE Group company, which owns the Index. Russell® is a trademark of the relevant LSE Group company and is/are used by any other LSE Group company under license. The Index is calculated by Frank Russell Company, an affiliate of FTSE International Limited. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of reliance on or any error in the Index or (b) investment in or operation of RSSCL. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Russell 2000 Funds or the suitability of the Index for the purpose to which it is being put by Global X Investments Canada Inc. Global X Equal Weight Global Healthcare Index ETF ("MEDX") is not issued, sponsored, endorsed, sold or promoted by VettaFi LLC or its affiliates (collectively, "VettaFi") or any of its index calculations agents, if any. VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of MEDX or any member of the public regarding the advisability of investing in securities generally or in MEDX particularly or the ability of the VettaFi Global Healthcare Technology 20 Index (the "Index") to track general market performance. VettaFi's only relationship to Global X Investments Canada Inc. is the licensing of the Index which is determined, composed and calculated without regard to Global X Investments Canada Inc. or MEDX. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of MEDX to be issued. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of MEDX. VettaFi® and "VettaFi Equal Weight Global Healthcare IndexSM are servicemarks of VettaFi and their use is granted under a license from VettaFi. Neither VettaFi nor any of its index calculation agents, if any, guarantee the accuracy and/or completeness of the Index or any data included therein and neither VettaFi nor its agents shall have any liability for any errors, omissions, interruptions or defects therein. VettaFi makes no warranty, express or implied, representations or promises, as to results to be obtained by Global X Investments Canada Inc. or any other person or entity from the use of the Index or any data included therein. VettaFi makes no express or implied warranties, representations or promises, regarding the originality, merchantability, suitability, or fitness for a particular purpose or use with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall VettaFi or its index calculation agents, if any, have any liability for any direct, indirect, special, incidental, punitive, consequential, or other damages (including lost profits), even if notified of the possibility of such damages. This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase investment products (the "Global X Funds") managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor. Global X Investments Canada Inc. ("Global X") is a wholly owned subsidiary of Mirae Asset Global Investments Co., Ltd. ("Mirae Asset"), the Korea-based asset management entity of Mirae Asset Financial Group. Global X is a corporation existing under the laws of Canada and is the manager and investment manager of the Global X Funds. © 2025 Global X Investments Canada Inc. All Rights Reserved. SOURCE Global X Investments Canada Inc.
