Global X

In a competitive industry, Global X doesn't differentiate itself enough, leading to an Average Parent Pillar rating. A strength of Global X is that its product shelf of open-end and exchange-traded funds is, on average, offered at a minimal cost, suggesting that it considers what's best for its investor base. On average, fees for funds are in the second-lowest quintile of respective category peers. Global X has had higher portfolio management turnover than peer firms in the past five years. Turnover in the portfolio-management ranks can happen for a number of reasons, including fund mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for fundholders, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture. An average tenure of only four years among the longest-tenured managers at Global X is concerning. In isolation, seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.