The ETF seeks to provide investors with access to a variety of alternative income generating assets, including master limited partnerships (MLPs) and infrastructure, real estate, institutional managers, and fixed income and derivative strategies.
The index methodology of the fund selects among the highest dividend-yielding securities in each category of alternatives to increase the fund’s income potential. These alternatives are generally known for lower volatility versus to equities. The methodology of this new ETF aims to further reduce volatility through its selection and weighting of components.
Jay Jacobs, research analyst at Global X Funds, commented on the launch:
After a six-year bull market and the looming threat of rising interest rates, investors are increasingly looking for investment opportunities outside of the traditional equity and fixed income asset classes. We are excited to offer an alternatives-based solution that can potentially generate high portfolio income while diversifying potential sources of returns.
As the home to some of the world’s most innovative ventures, Nasdaq has opportunities for issuers to access new markets and deliver new concepts. Jeff McCarthy, vice president and head of ETP listings at Nasdaq commented on the ETF as well:
We are delighted that Global X has once again chosen Nasdaq as the listing venue for their new ETF. Global X continues to bring dynamic and innovative products to market and their selection of Nasdaq is an example of how asset managers continue to see value in Nasdaq as a listing venue dedicated to supporting ETFs.
As of midday, this ETF was flat on the day at $15.12, in a post launch trading range of $15.10 to $15.14.
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