Global X US 100 ETF (ASX: U100)

The Global X US 100 ETF tracks the performance of 100 of the largest innovative companies listed on the US market on either the NASDAQ or NYSE. It focuses on technology and pioneering US companies, providing exposure to sectors with high growth potential, such as technology, consumer goods, and more.

This includes companies like Alphabet, Apple, Amazon, Microsoft, and Nvidia, as well as a range of digital juggernauts whose products or services play a vital role in everyday life.

The Global X US 100 ETF seeks to provide investment results that correspond generally to the price and yield, before fees and expenses, of the Global X US 100 Index.

• The top five stocks, Apple, Microsoft, Amazon, Nvidia and Alphabet, make up more than 20% of the S&P 500 total market capitalisation.
• Companies listed on the Nasdaq exchange, on average, spend almost double the amount on research and development annually compared to those in the S&P 500.
• Many Australian investors are heavily home biased, which can hinder portfolio performance as the Australian share market represents around 2% of the total global market, while the US makes up around 60%.

The Global X US 100 Index tracks the performance of 100 of the largest non-financial companies listed on the Nasdaq exchange. This sector breakdown is significantly different to the other major indices, such as the US S&P 500 and the Australian S&P/ASX 200. The information technology sector makes up more than half of the constituent companies, which is largely responsible for driving growth and overall performance.

The success of the highest performing US technology companies largely comes down to being the first movers in prominent megatrends. Their ability to do so links back to a concept called positive feedback loops. In short, the more innovative a company can be, the more likely it is to generate revenue from new products and services, and so the positive feedback loop continues.

This investment into innovation also positively affected these companies’ bottom lines. Over the last 10 years, the trailing 12-month EPS of the constituent companies has tripled, and operating margins have increased more than 88%.3 Looking ahead, several factors should continue to propel innovation-led companies from artificial intelligence and digitalisation to demand for healthcare and consumer goods.

Incorporating the Global X US 100 ETF (ASX: N100) into your investment portfolio can enhance diversification and exposure to innovative industries. However, remember that, like any investment, the Global X US 100 ETF carries risks, so it’s essential to assess your risk tolerance and align this index with your overall financial goals and investment horizon.

The Global X US 100 Index weights companies by market capitalisation.

Individual securities are capped at 14%, with the total weight of the top eight companies capped at 47.5%. The index follows an annual reconstitution at the close of the last trading day in November. A quarterly rebalance occurs on the last trading day of February, May, and August each year.

• As a cost-effective way to access the largest, growth orientated stocks.
  
• To incorporate a growth tilt into a core portfolio.

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The issuer of units in Global X US 100 ETF (N100) ARSN: 661 600 755 is the responsible entity of the Fund, being Global X Management (AUS) Limited (AFSL 466778) (“Global X”). The product disclosure statement (PDS) for the Fund contains all of the details of the offer of units in the Fund. Copies of the PDS are available from Global X Management (AUS) Limited or at www.globalxetfs.com.au. In respect of each retail product, Global X has prepared a target market determination (TMD) which describes the type of customers who the relevant retail product is likely to be appropriate for. The TMD specifies distribution conditions and restrictions that will help ensure the relevant product is likely to reach customers in the target market. Each TMD is available at www.globalxetfs.com.au. The information provided in this document is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information in this document, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of Global X, the group of companies which Mirae Asset Global Investments Co., Ltd is the parent, or their respective directors, employees or agents guarantees the performance of any products issued by Global X or the repayment of capital or any particular rate of return therefrom. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.