Global X has launched the Global X Guru Activist Index ETF, the first US-listed exchange traded fund that seeks to provide exposure to stocks targeted by major activist investors.
Activist investors seek to unlock unrealised value for shareholders by effecting major changes in their target companies. Utilizsng publicly available 13F and 13D filings, ACTX follows the investments of some of the largest and best known activists in the world.
By investing alongside these activist investors, ACTX seeks to benefit from their campaigns to unlock shareholder value and generate excess returns over US equity benchmarks. Ordinarily, investing with an activist requires the payment of an ongoing 2 per cent management fee as well as 20 per cent of all profits. ACTX has an expense ratio of just 0.75 per cent, potentially allowing for greater cost efficiency.