New York, June 24, 2020 (GLOBE NEWSWIRE) -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launches of the Global X Variable Rate Preferred ETF (PFFV), and the Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA). These funds will grow the investment solutions available to investors in existing suites of Global X ETFs.
Through PFFV, investors can efficiently access the traditionally shorter-duration variable rate segment of the preferred stock space. Variable rate preferreds can include securities that offer fixed-to-floating rate coupons or those that offer floating rate coupons for the entire life of the issuance. By allocating to securities with variable coupon payments, investors may utilize PFFV to lower the duration, or interest rate risk, of their portfolios, while potentially achieving the higher yields typically associated with the preferred stock asset class. PFFV comes with an expense ratio of 0.25%, which is half the industry average.
CEFA expands Global X’s offering of Catholic-aligned investments alongside the existing S&P 500 Catholic Values ETF (CATH). Both funds track S&P indexes and are constructed in accordance with the U.S. Conference of Catholic Bishops (USCCB) investment guidelines, allowing investors to align their investments with their religious beliefs. CEFA aims to closely mirror broad international equity markets, but with screens to remove companies involved in activities that do not adhere to the USCCB’s guidelines. CEFA comes with an expense ratio of 0.35%.
Alex Ashby, head of product development at Global X ETFs added: “We were thrilled to see the strong reception to our existing preferred stock and Catholic values ETFs and are excited to introduce PFFV and CEFA to further develop those fund suites. At Global X, we strive to continually provide investors with a range of tools that can help them efficiently attain their investment goals, whether that is diversifying one’s sources of income or aligning one’s investments with their personal beliefs.”
Global X’s suite of preferred stock ETFs has more than $900m in assets under management, as of June 18, 2020, spread between the low cost U.S. Preferred ETF (PFFD) and the high yielding SuperIncome™ Preferred ETF (SPFF). Joining this suite, PFFV will track the ICE U.S. Variable Rate Preferred Securities Index. CEFA joins the S&P 500 Catholic Values ETF (CATH) as the firm’s two religious values-focused ETFs. CEFA will track the S&P Developed ex-U.S. Catholic Values Index.
ABOUT GLOBAL X
Global X was founded in 2008 with the mission of listening to and empowering clients to invest wisely in unexplored and intelligent solutions. Our product lineup features more than 70 ETF strategies. While we are distinguished for our Thematic Growth, Income and International Access ETFs, we also offer Core, Commodity, and Alpha funds to suit a wide range of investment objectives. Global X is a member of Mirae Asset Global Investments Group, a Seoul-based global enterprise which offers asset management expertise worldwide. Explore our ETFs, research and insights, and more at www.globalxetfs.com.
Disclosures:
Investing involves risk, including the possible loss of principal. CEFA’s consideration of the Guidelines in its investment process may result in choices not to purchase, or sell, otherwise profitable investments in companies that have been identified as being in conflict with the Guidelines. This means that the Fund may underperform other similar funds that do not consider the Guidelines when making investment decisions.
In addition to the normal risks associated with investing, 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. CEFA and CATH are non-diversified.
Preferred stock is subject to many of the risks associated with debt securities, including interest rate risk. In addition, preferred stock may not pay a dividend, an issuer may suspend payment of dividends on preferred stock at any time, and in certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. 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.
Variable and Floating Rate Securities may have limits on the maximum increases in coupon rates and may lag behind changes in market rates. A downward adjustment in coupon rates may decrease the Fund's income as a result of its investment in variable or floating rate securities. Performance of companies in the Financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets. PFFV is non-diversified.
Shares of ETFs 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. Closing price returns do not represent the returns you would receive if you traded shares at other times. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.
Carefully consider the Funds’ investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Funds’ summary or full prospectuses, available at globalxetfs.com. Please read the prospectuses carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X ETFs are not sponsored, endorsed, issued, sold or promoted by Standard & Poors or ICE, nor does Standard & Poors or ICE make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Standard & Poors or ICE.
CEFA is not authorized or sponsored by the Roman Catholic Church, and the United States Conference of Catholic Bishops has not endorsed Global X, its investment management activities and/or the Fund.