Global X ETFs Launches Emerging Markets Bond ETF, Issuer’s First Actively Managed Fund

New York, UNITED STATES


New York, June 03, 2020 (GLOBE NEWSWIRE) -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X Emerging Markets Bond ETF (EMBD). The Fund is sub-advised by Global X affiliate, Mirae Asset Global Investments. Today’s announcement marks the first time that Global X ETFs has offered an actively managed strategy.

EMBD aims to provide investors with strategic exposure to the growing universe of emerging market debt. With a total market size of $26 trillion, emerging market debt represents more than 20% of the global bond market and is a common fixture in income-oriented portfolios.The Fund primarily invests in emerging market debt securities denominated in U.S. dollars, however, the Fund may also invest in those denominated in applicable local foreign currencies. Securities may include fixed-rate and floating-rate debt instruments issued by sovereign, quasi-sovereign, and corporate entities from emerging market countries. 

EMBD will utilize the expertise of tenured Mirae Asset portfolio managers Joon Hyuk Heo and Ethan Yoon, who have combined industry experience totaling more than 35 years. The portfolio managers are supported by more than 20 professionals around the globe from Mirae Asset’s Investment, Global Macroeconomic Strategy, and Emerging Markets Research Teams. EMBD’s country allocation will be based on factors including, but not limited to, economic indicators and conditions, industry structure, terms of trade, political environment and geopolitical issues. The portfolio managers will additionally seek to identify potential corporate and sovereign opportunities in support of bolstering EMBD’s risk-adjusted returns. 

In partnering with Mirae Asset’s experienced team, Global X aims to provide investors with a rigorously designed and managed investment solution in a traditionally difficult-to-access segment of the market. EMBD will capitalize on the extensive experience of Mirae Asset’s fixed income team, and pair it with the client-focused approach that underpins Global X ETFs, with a competitive 0.39% expense ratio. 

“With this new launch, we are seeking to combine the expertise of seasoned emerging market investors with the efficiency, transparency, and tradability of an ETF,” said Luis Berruga, CEO of Global X ETFs. “The core pillar of our business is on delivering products that will serve as solutions for investors’ needs - it is our belief that the best way to access this important income-oriented asset class is through active management. We believe the intimate knowledge and research that Joon Hyuk and Ethan have developed over their careers, combined with extensive support across the Mirae Asset organization, should be a crucial advantage for our investors in accessing these ever-changing markets. We’re thrilled to bring their skillset to our investors.”

The Fund will join Global X’s Income suite of ETFs, which includes 17 other funds offering exposure to high dividend payers, preferreds, MLPs & energy, and covered call strategies.

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. 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.

High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments. EMBD is actively managed, which could increase its transaction costs (thereby lowering its performance) and could increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate. EMBD is non-diversified.

As an actively managed Fund, EMBD does not seek to replicate a specified index and is subject to increased credit and default risk, where there is an inability or unwillingness by the issuer of a fixed income security to meet its financial obligations, debt extension risk, where an issuer may exercise its right to pay principal on an obligation later than expected, as well as interest rate/maturity risk, where the value of the Fund's fixed income assets will decline because of rising interest rates.

EMBD may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the EMBD's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.

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.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses, which may be obtained by calling 1.888.493.8631, or by visiting globalxetfs.com. Please read the prospectus 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.

 

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