- GXIG blends human expertise with machine learning to actively manage a portfolio of investment grade corporate bonds.
- The fund’s tech-enabled process aims to offer both income and capital appreciation while managing risk in real time.
- A new wave of value and momentum stocks could be setting up for major moves—and Tim Melvin will name them live this Wednesday. Secure access here.
Global X Management is treading boldly into the future of fixed income investing with the introduction of the Global X Investment Grade Corporate Bond ETF GXIG.
The new actively managed fund is not another passive take on corporate credit; it’s a wholesale adoption of AI and quantitative modeling in pursuit of high-quality bond opportunities.
At its essence, GXIG employs a quantitative factor model and deep neural network to search and evaluate the corporate bond universe. That is, this ETF isn’t merely smart beta, it’s got brains.
The objective? To provide income and capital gain while controlling risk adaptively, all in an anything-but-predictable market.
“As interest rate and credit environments grow more complex, GXIG can help fill the gap by introducing an adaptive, data-driven solution in the fixed income space,” said Pedro Palandrani, head of Product R&D at Global X.
But the actual differentiator is how GXIG does business.
Compared to conventional passive funds that remain faithful to an index regardless of how turbulent the market becomes, GXIG’s active strategy provides its portfolio managers the flexibility to make a U-turn. With the AI-driven model, they have the ability to respond quickly with data-driven choices, not gut feelings.
The fund is sub-advised by Mirae Asset Global Investments (USA) LLC, which has portfolio managers who possess more than 20 years of experience in managing investment-grade strategies.
Global X CEO Ryan O’Connor explained the new ETF is a response to the company’s initiative to update legacy asset classes: “GXIG’s active strategy gives portfolio managers flexibility over portfolio construction, allowing for agile decision-making in evolving market conditions; we believe this approach will help investors meet their long-term fixed income needs.”
GXIG boasts a light expense ratio of 0.14%, providing institutional-quality tech in a retail-acceptable package.
With over $55 billion in assets under management, Global X has been synonymous with its thematic and income approach, but GXIG portends something new: a vision that the future of fixed income will be coded, not calibrated.
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