U.S. Global Investors, Inc. (Nasdaq: GROW) (“the Company”), a
boutique registered investment advisory firm specializing in gold
and precious metals, natural resources and emerging markets, is
pleased to announce that its U.S. Global GO GOLD and Precious Metal
Miners ETF (GOAU) surpassed $100 million in net assets for the
first time since its debut in June 2017. The smart-beta 2.0 ETF
ended the session on July 8 with $100.5 million in assets under
management (AUM). What’s more, GOAU’s share price closed at a new
record high for the fourth consecutive trading session on July 8,
ending at $22.35.
“This milestone is an important one,” says Frank Holmes, the
Company’s CEO and chief investment officer. “Many broker-dealers
require ETFs to meet a minimum threshold in AUM and daily trading
volume before they can be made available to investors. Exceeding
$100 million in AUM may help GOAU quality for greater distribution
and attract additional assets.”
The achievement comes just a month after the Company’s airlines
ETF, the U.S. Global Jets ETF (JETS), crossed above $1 billion in
AUM as value investors piled into securities impacted by
coronavirus-related travel restrictions. Between March 3 and June
10, JETS saw a remarkable 70 straight trading days of positive
daily inflows. That’s thanks in large part to tactical investors
anticipating a rebound and millennial investors using Robinhood,
many of whom began to make bets on the airline industry in early
March and April before Warren Buffett’s May 2 announcement that he
had dumped all of his airline stocks. In the quarter ended June 30,
JETS’ AUM grew 297 percent, from $302.0 million to $1.20
billion.
“GOAU is doing precisely what we designed it to do, and we’re
very pleased to see its AUM exceed $100 million,” Mr. Holmes says.
“We spent about 8,000 hours developing the ETF, using our decades
of gold stock investing expertise as active gold fund managers. We
analyzed different methodologies and portfolio structures and
looked at dozens of factors one-by-one. It’s truly been a labor of
love, and I’m thrilled to see that investors are acknowledging that
hard work.
“Both GOAU and JETS are dynamic, smart-beta 2.0 ETFs,” Mr.
Holmes continues. “GOAU has a unique portfolio structure, 30
percent of which is based on using mean reversion to rebalance the
three largest gold royalty names—Franco-Nevada, Wheaton Precious
Metals and Royal Gold. The other 70 percent is based on using
rules-based stock-picking factors to select 25 high-quality gold
stocks every quarter. These 25 names are layered based on market
cap and attractiveness using our robust financial factors. We are
focused on momentum in revenue, free cash flow (FCF) and high-gross
margins on a per-share basis. In other words, whenever a company
dilutes these value factors on a per-share basis, they’re kicked
out of the ETF.”
To see GOAU’s top 10 holdings, click here.
The Company is proud to offer GOAU on the following platforms:
Charles Schwab, TD Ameritrade, Fidelity, BNY Pershing, Stifel,
Oppenheimer, Royal Bank of Canada (RBC), Janney, LPL Financial,
Raymond James, Advisor Group, Commonwealth Financial Network,
Kestra Financial and Robinhood.
To learn more about GOAU, click here.
To learn more about JETS, click here.
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About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years
when it began as an investment club. Today, U.S. Global Investors,
Inc. (www.usfunds.com) is a registered investment adviser that
focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the Company provides money management and other
services to U.S. Global Investors Funds and U.S. Global ETFs.
Forward-Looking Statements and Disclosure
Please consider carefully a fund’s investment objectives, risks,
charges and expenses. For this and other important information,
obtain a statutory and summary prospectus by visiting
www.usglobaletfs.com. Read it carefully before investing.
Past performance does not guarantee future
results.
Investing involves risk, including the possible loss of
principal. Shares of any ETF are bought and sold at market price
(not NAV), may trade at a discount or premium to NAV and are not
individually redeemed from the fund. Brokerage commissions will
reduce returns. Because the fund concentrates its investments in
specific industries, the fund may be subject to greater risks and
fluctuations than a portfolio representing a broader range of
industries. The fund is non-diversified, meaning it may concentrate
more of its assets in a smaller number of issuers than a
diversified fund. The fund invests in foreign securities which
involve greater volatility and political, economic and currency
risks and differences in accounting methods. These risks are
greater for investments in emerging markets. The fund may invest in
the securities of smaller-capitalization companies, which may be
more volatile than funds that invest in larger, more established
companies. The performance of the fund may diverge from that of the
index. Because the fund may employ a representative sampling
strategy and may also invest in securities that are not included in
the index, the fund may experience tracking error to a greater
extent than a fund that seeks to replicate an index. The fund is
not actively managed and may be affected by a general decline in
market segments related to the index. Airline companies may
be adversely affected by a downturn in economic conditions that can
result in decreased demand for air travel and may also be
significantly affected by changes in fuel prices, labor relations
and insurance costs.
Smart beta refers to a type of exchange-traded
fund (ETF) that uses a rules-based system for selecting
investments to be included in the fund portfolio. Free cash flow
(FCF) represents the cash a company generates after accounting
for cash outflows to support operations and maintain
its capital assets. The outbreak of the COVID-19 pandemic and
the resulting actions to control or slow the spread has had a
significant detrimental effect on the global and domestic
economies, financial markets and industries, including airlines.
U.S. Global Investors continues to monitor the impact of COVID-19,
but it is too early to determine the full impact this virus may
have on commercial aviation. Should this emerging macro-economic
risk continue for an extended period, there could be an adverse
material financial impact to the U.S. Global Jets ETF.
Distributed by Quasar Distributors, LLC. U.S. Global Investors
is the investment adviser to GOAU and JETS.
All opinions expressed and data provided are subject to change
without notice. Opinions are not guaranteed and should not be
considered investment advice.
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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