Back to top

Image: Shutterstock

S&P Global Talks to Buy IHS Markit Put These ETFs in Focus

Read MoreHide Full Article

As the prospect of economic recovery is increasing on vaccine optimism, the mergers and acquisitions space has been buzzing hot. Per the Dow Jones, S&P Global is in advanced talks to acquire IHS Markit for about $44 billion. The deal will bring Wall Street’s two of the largest data providers under one roof.

The deal is expected to be an all-stock one and could come as early as possible. This would be the biggest deal of this year though it could fall apart as the transaction is likely to face close examination from competition watchdogs given that the financial information market becomes increasingly concentrated.

IHS Markit has a diverse set of businesses ranging from selling data and technology industries on automotive to publishing Jane’s Defence Weekly. The company was formed by acquiring Britain’s Markit Ltd. in 2016. IHS Markit is valued at $36.9 billion as of the close on Nov 27 and has risen 23% so far this year. On the other hand, S&P Global has gained 25% this year, bringing its market cap to $82.2 billion. S&P Global provides debt ratings of sovereigns, companies, as well as data to capital and commodity markets around the world.

The current market rally has driven up the valuation of both the companies. IHS Markit shares trades at 33.5 times estimated earnings while S&P Global trades at 29.8 times (read: 5 ETFs Deserving Special Thanks in Pandemic-Stricken 2020).

This potential merger put the spotlight on global ETFs, issued by the S&P Global and could be the best ways for investors to tap the opportunity arising from the potential deal. Investors should keep a close eye on the movement of these ETFs over the coming weeks.

iShares Global 100 ETF (IOO - Free Report)

This ETF offers exposure to a broad range of 106 large international companies in developed and emerging markets by tracking the S&P Global 100 Index. It charges 40 bps in annual fees and has AUM of $2.7 billion.

SPDR S&P Global Dividend ETF (WDIV - Free Report)

This fund follows the S&P Global Dividend Aristocrats Index, which provides access to high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least 10 consecutive years. It has attracted $80.3 million in its asset base while charges 50 bps in annual fees.

SPDR S&P Global Infrastructure ETF (GII - Free Report)

This product seeks to provide exposure to the 76 largest infrastructure-related stocks based on float-adjusted market cap and tracks the S&P Global Infrastructure Index. It charges 40 bps in annual fees and has amassed $374.5 million in its asset base.

iShares Global Infrastructure ETF (IGF - Free Report)

With AUM of $3.2 billion, this fund offers exposure to companies that provide transportation, communication, water, and electricity services by tracking the S&P Global Infrastructure Index. It holds 75 stocks in its basket and charges 46 bps in annual fees.

iShares Global Clean Energy ETF (ICLN - Free Report)

This ETF follows the S&P Global Clean Energy Index and offers exposure to 31 companies that produce energy from solar, wind, and other renewable sources. It has AUM of $2.8 million and charges 46 bps in annual fees (read: ETFs to Bet on Biden's Potential Presidential Victory).

SPDR S&P Global Natural Resources ETF GNR

This ETF provides exposure to 93 largest market cap securities in three natural resources sectors — agriculture, energy, and metals and mining and follows the S&P Global Natural Resources Index. The fund has AUM of $1.2 billion and charges 40 bps in fees per year.

iShares Global Timber & Forestry ETF (WOOD - Free Report)

This fund follows the S&P Global Timber & Forestry Index and provides exposure to 25 companies that produce forest products, agricultural products, and paper and packaging products. It has amassed $261.1 million in its asset base while charges 46 bps in annual fees.

Apart from these, there are number of sector ETFs that tracks the sub-indices of S&P Global with a specific sector exposure and will be in focus. Below we have highlighted these ETFs and their tracking index (read: Energy on Track for Its Best Month Ever: 5 ETF, Stock Winners):

iShares Global Industrials ETF (EXI - Free Report) - S&P Global 1200 Industrials Sector Index

iShares Global Tech ETF (IXN - Free Report) - S&P Global 1200 Information Technology Sector Index

iShares Global Healthcare ETF IXJ - S&P Global 1200 Healthcare Sector Index

iShares Global Energy ETF (IXC - Free Report) - S&P Global 1200 Energy Sector Index

iShares Global Materials ETF MXI - S&P Global 1200 Materials Sector Index

iShares Global Financials ETF (IXG - Free Report) – S&P Global 1200 Financials Sector Index

iShares Global Utilities ETF JXI - S&P Global 1200 Utilities Sector Index

iShares Global Consumer Discretionary ETF (RXI - Free Report) - S&P Global 1200 Consumer Discretionary Sector Capped Index

iShares Global Consumer Staples ETF KXI - S&P Global 1200 Consumer Staples Sector Capped Index

iShares Global Comm Services ETF (IXP - Free Report) - S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
 

Published in