The last few days have been very rocky for the markets. Many investors are worried about inflation, the war in Ukraine, and the near certainty of rising interests. But if you step back, the market has been relatively stable in the last year. During that time, VOO (which tracks the S&P 500) has returned 4.22% and QQQ (which tracks the tech-heavy Nasdaq 100) is down 2.43%. However, many thematic ETFs have done much worse. One ETF issuer which has a focus on thematic ETFs is Global X, which is an industry leader with about $40 billion in assets under management.
While many of their funds have performed strongly over the last year, here are three Global X ETFs that are down over 50% and may present a buying opportunity for investors:
3. Global X Education ETF (EDUT), down -58.07%
This ETF tracks the Indxx Global Education Thematic Index, which consists of companies around the world that provide educational products and services. The top three holdings in this ETF are Pearson (PSON), Bright Horizons Family Solutions (BFAM), and IDP Education (IEL). $10k invested in this ETF 12 months ago would be worth $4.19k today.
- Net Assets: $4.36 million
- Date founded: 7/10/2020
- Expense ratio: 0.50%
- Yield: 0.00%
- Total holdings: 38
- Net fund flows (past year): -$3.20 million
2. Global X Emerging Markets Internet & E-commerce ETF (EWEB), down -58.11%
This ETF tracks the Nasdaq CTA Emerging Markets Internet & E-commerce Net Total Return Index, which consists of companies in the developing world that may benefit from the increased adoption of the internet and ecommerce. The top three holdings in this ETF are NetEase (NTES), Alibaba Group Holding (BABA), and Meituan Class B (03690). $10k invested in this ETF 12 months ago would be worth $4.18k today.
- Net Assets: $2.43 million
- Date founded: 11/9/2020
- Expense ratio: 0.65%
- Yield: 0.00%
- Total holdings: 39
- Net fund flows (past year): -$1.05 million
1. Global X Cannabis ETF (POTX), down -68.86%
This ETF tracks the Cannabis Index, which consists of companies that are, not surprisingly, involved in the cannabis industry. The top three holdings in this ETF are Sundial Growers (SNDL), OrganiGram Holdings (OGI.TO), and Tilray Brands (TLRY). $10k invested in this ETF 12 months ago would be worth $3.11k today.
- Net Assets: $73.24 million
- Date founded: 9/17/2019
- Expense ratio: 0.50%
- Yield: 0.00%
- Total holdings: 24
- Net fund flows (past year): $46.95 million