Yahoo Finance Roundhill Investments Launches Global Luxury ETF (NYSE Arca: LUXX)
LUXX tracks the S&P® Global Luxury Index, providing access to 80 leading global luxury companies across Europe, Asia, and North America
NEW YORK, Aug. 23, 2023 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is pleased to announce the launch of the Roundhill S&P® Global Luxury ETF (NYSE Arca: LUXX), which begins trading on the NYSE Arca today. At an expense ratio of 0.45%, LUXX provides investors with access to the luxury goods sector in a cost-efficient and liquid ETF format.
"Luxury goods have shown resilience through challenging economic conditions, and we believe the sector has long-term growth potential.," said Dave Mazza, Chief Strategy Officer at Roundhill Investments. "We are excited to offer investors efficient, low cost access to gain access to the global luxury sector with the launch of LUXX."
The global luxury market size is expected to grow roughly 50% between 2022 and 2030, resulting in a total market size of more than $600 billion, according to Bain & Company. Generation Y, Z, and Alpha are expected to be the key drivers of this growth, with their spending set to grow three times faster than other generations 1.
Longer term, luxury companies such as LVMH and Hermes have benefited from strong pricing power and high margins driving significant free cash flow2 generation. Historically, luxury stock fundamentals have translated into long term price performance as evidenced by the S&P® Global Luxury Index, which has generated an annualized total return of 11.8% since its launch in 2011. 3
"As an independent global index provider, S&P Dow Jones Indices is pleased to provide investors with index-based solutions for various themes that are reshaping our world," said Ari Rajendra, Head of Thematic Indices at S&P Dow Jones Indices. "An example of one of our many thematic indices is the S&P Global Luxury Index, which is designed to deliver theme purity while tracking companies engaged in the production or distribution of luxury goods or services."
LUXX's exposures span across various industries, including Apparel, Accessories & Luxury, Automobile Manufacturers, Distillers and Vintners, Footwear, and more.
The fund's top holdings at launch include:
Company Name | % Weight |
Hermes International | 8.2 % |
LVMH Moet Hennessy Louis Vuitton SE | 7.9 % |
Cie Financiere Richemont SA | 7.6 % |
Mercedes-Benz Group AG | 5.4 % |
Kering SA | 5.0 % |
Ferrari NV | 5.0 % |
Diageo PLC | 4.1 % |
NIKE Inc | 4.1 % |
Pernod Ricard SA | 4.0 % |
Tesla Inc | 3.8 % |
Marriott International Inc/MD | 3.3 % |
Bayerische Motoren Werke AG | 3.3 % |
Estee Lauder Cos Inc/The | 3.2 % |
Lululemon Athletica Inc | 2.7 % |
Hilton Worldwide Holdings Inc | 2.5 % |
Holdings are subject to change and excludes cash positions.
For current holdings and more information on the Roundhill S&P® Global Luxury ETF (LUXX), please visit https://www.roundhillinvestments.com/etf/luxx.
For more information on the S&P Global Luxury Index, please visit www.spglobal.com/spdji or refer to the methodology document here.
About Roundhill Investments:
Roundhill Investments is a registered investment adviser focused on offering innovative financial products designed to offer exposure to investment themes that appeal to the next generation of investors. To learn more about the company, please visit roundhillinvestments.com.
Investors should consider the investment objectives, risk, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the LUXX ETF please call 1-877-220-7649 or visit the website at https:// www.roundhillinvestments.com/etf/luxx/. Read the prospectus or summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Luxury companies face intense competition, both domestically and internationally, may have products that face rapid obsolescence, and are heavily dependent on the protection of patent and intellectual property rights. Such factors may adversely affect the profitability and value of luxury goods companies. Investments made in small and mid-capitalization companies may be more volatile and less liquid due to limited resources or product lines and more sensitive to economic factors. Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may risk and fall more than diversified funds. Foreign investing involves social and political instability, market illiquidity, exchange-rate fluctuation, high volatility and limited regulation risks. Emerging markets may be more volatile and less liquid than more developed markets and therefore may involve greater risks. Depository Receipts involve risks similar to those associated investments in foreign securities, but may not provide a return that corresponds precisely with that of the underlying shares. The fund is passively managed and attempts to mirror the composition and performance of the S&P Global Luxury Index. The Fund's returns may not match due to expenses incurred by the Fund or lack of precise correlation with the index. Please see the prospectus for details of these and other risks.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.
The "S&P® Global Luxury Index " is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Roundhill Investments Inc. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Roundhill Investments Inc. The Roundhill S&P® Global Luxury ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P® Global Luxury Index.
1 Bain & Co. (January 17, 2023). Renaissance in Uncertainty: Luxury Builds on Its Rebound.
2 Free cash flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.
3 Annualized total return of the S&P Global Luxury Index (SPGLGUP Index) since index inception (8/31/2011 - 7/31/2023).
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SOURCE Roundhill Investments
