Global X Expands Billion-Dollar[1] SuperDividend® Family With Alternatives ETF
-- New ETF combines multiple strategies for comprehensive alternative income solution --
NEW YORK, July 14, 2015 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today launched the Global X SuperDividend® Alternatives ETF (Nasdaq: ALTY). ALTY is the sixth ETF in Global X's billion-dollar1 suite of SuperDividend® funds and seeks to invest in potentially high income generating alternative investments.
The fund's holdings are publically traded alternatives, which fall in the following categories:
- Real estate;
- MLPs and infrastructure companies;
- Institutional managers;
- Fixed income & derivative strategies.
The index methodology selects among the highest dividend yielding securities in each eligible alternative category. The strategy seeks to reduce volatility by screening for lower volatility components and assigning greater weights to historically less volatile categories.
"The alternatives space encompasses a broad range of investments with risks, returns and correlations that differ from traditional equity and fixed income securities," said Jay Jacobs, research analyst at Global X Funds.
"Investors are increasingly looking for alternative solutions that can potentially generate high income while diversifying their portfolios. Applying the SuperDividend® approach to the alternative income space is a natural extension of our suite."
ABOUT GLOBAL X FUNDS
Global X is a New York-based sponsor of exchange-traded funds (ETFs), focused on providing high quality and cost efficient investment solutions to institutional and individual investors. Founded in 2008, Global X is recognized by individual and institutional investors for its suite of smart beta, income, and access ETFs. With over 40 funds available across U.S. and foreign exchanges, Global X is one of the fastest growing issuers of ETFs. For more information, please visit www.globalxfunds.com.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company, LLC.
Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations. Current and future holdings are subject to risk. The Fund is non-diversified. Narrowly focused investments may be subject to higher volatility.
High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund's performance.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
The Fund may invest in underlying funds or companies that use derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses.
Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer's financial condition, or unfavorable or unanticipated poor performance of a particular issuer. MLP investments in the energy industry entail significant risk and volatility.
BDCs may carry risks similar to those of a private equity or venture capital fund. BDC company securities are not redeemable at the option of the shareholder and they may trade in the market at a discount to their net asset value. BDCs usually trade at a discount to their net asset value because they invest in unlisted securities and have limited access to capital markets. The Fund will indirectly bear its pro rata share of the fees and expenses incurred by a BDC it invests in, including advisory fees.
Bonds and bond funds generally decrease in value as interest rates rise. Mortgage-backed securities are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities.
The Fund may invest in underlying funds or companies that purchase or sell options, which involve the payment or receipt of a premium by the investor and the corresponding right or obligation, as the case may be, to either purchase or sell the underlying security for a specific price at a certain time or during a certain period. Purchasing options involves the risk that the underlying instrument will not change price in the manner expected, so that the investor loses its premium. Selling options involves potentially greater risk because the investor is exposed to the extent of the actual price movement in the underlying security rather than only the premium payment received (which could result in a potentially unlimited loss). Over-the-counter options also involve counterparty solvency risk.
"Indxx" is a service mark of Indxx and has been licensed for use for certain purposes by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by INDXX nor does this company make any representations regarding the advisability of investing in the Global X Funds.
Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's full or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
[1] Total assets under management as of 6/30/2015
SOURCE Global X Funds
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