Académique Documents
Professionnel Documents
Culture Documents
KEY POINTS
LOWER VOLATILITY
Alternatives are generally known for lower volatility compared to
equities. ALTYs index methodology seeks to further reduce volatility
through its selection and weighting of components.
LOW CORRELATION
Alternative income is generated from sources that often demonstrate
low correlations to traditional equity and fixed income securities.
THE CASE
ALTERNATIVES REPRESENTED IN ALTY
MLPs &
Infrastructure
Real Estate
Institutional
Managers
ALTERNATIVES EXPLAINED
Alternatives encompass a broad range of investments with risks, returns, and correlations that differ from traditional
equity and fixed income investments. The alternatives included in ALTY consist of securities publicly traded in the U.S.
that are among the highest yielding investments in their respective asset class.
Past performance is no guarantee of future results.
HOW IT WORKS
1
ALTERNATIVES UNIVERSE
ALTERNATIVE STRATEGY
SUB-STRATEGY
Infrastructure Companies
REITs
Institutional Managers
Yield (%)
Carry Trade /
Emerging Market Debt
Fixed Income &
Derivative Strategies
2
Volatility
Higher
Volatility
Strategies
4
Lower
Volatility
Strategies
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 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 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.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage
commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is
the Mid-Point between the Bid and Ask price as of the close of exchange.
"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.
Index data source: INDXX
Carefully consider the Funds investment objectives, risk factors, charges, and expenses before investing. This and
additional information can be found in the Funds full or summary prospectus, which may be obtained by calling
1-888-GXFUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Published July 2015