Offering solutions to investors seeking to increase or diversify their portfolios’ income, the Income family includes our SuperDividend® ETFs, which invest in among the highest dividend-yielding securities in the world. It also features our suite of alternative MLPs & Energy ETFs and our Preferred ETFs.
The MLPs & Energy portion of this family is designed with the objective of providing alternative sources of income, through exposure to Master Limited Partnerships (MLPs) and an emerging class of renewable energy assets known as YieldCos.
Investing involves risk, including the possible loss of principal. 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 funds’ performance. The potential benefits of investing in MLPs depend on them being treated as partnerships for federal income tax purposes. Further, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distributions to the fund, which could result in a reduction of the funds’ value. The risks associated with real estate investment trusts include interest rate risk, which may cause certain REIT holdings to decline in value if interest rates increase. REITs are subject to general risks related to real estate, including default risk and the possibility of decreasing property values.
Investments in securities of MLPs involve risks 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 macro-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 (in the case of MLPs, generally measured in terms of distributable cash flow). The MLP funds invest in the energy industry, which entails significant risk and volatility. There is no guarantee distributions will be made and dividends may be reduced or eliminated at any time.
International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. Narrowly focused investments and investments in smaller companies may be subject to higher volatility.
Carefully consider the funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the funds’ summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting globalxfunds.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to the Global X Funds. The funds are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA, 19456), which is not affiliated with Global X Management Company LLC.
MSCI indexes have been licensed by MSCI for use by Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by MSCI, nor do these companies make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with MSCI.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the funds. Brokerage commissions will reduce returns.