Q: Global X has a number of Corporate class Funds that I'm interested in holding in a non-registered account. I believe you suggest a maximum per ETF of about 15% of a portfolio. Is there a maximum portion of a portfolio that you would allocate to a single issuer?
Thanks
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5i Research Answer:
ETF assets are segregated from managers, so we do not see exposure as a huge concern. That being said, some problems have occurred (i.e Emerge Funds which were shut down) and there have been halts on redemptions in some cases. We would have no concerns on Global X but would still cap exposure at 25%.