And it has produced stellar returns, including a year-to-date rise of 23 percent. On an annualized basis, it’s up 27.1 percent and 18.6 percent during the past three and five years, respectively. Both figures easily topped the fund’s bogey, the MSCI ASWI NR USD Index, a broad measure of large- and mid-cap equities in both developed and emerging markets.
The portfolio of SKYY, like that of the new Global X fund, is dominated by the U.S. with a weighting of roughly 88 percent.
Both of these ETFs can be used as a high-growth, alpha-generating position within the equity portion of an investment portfolio. But keep in mind that the respective aggregate valuations of both funds are significantly higher than market averages. Then again, that’s the risk part of the risk/reward equation with high-flying stocks and/or the funds that invest in them.