Global X Alternative Income ETF (ALTY)

Overview

This fund is a diverse investment vehicle that directs at least 80% of its total assets towards securities represented in the underlying index, in addition to American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) which are based on these securities. The primary goal of the underlying index is to provide investors with exposure to a mixture of five income-generating categories. These include Master Limited Partnerships (MLPs) and Infrastructure, Real Estate, Preferred stocks, Emerging Market Bonds, and Covered Calls. The fund aims to cater to investors looking for a mix of income and growth potential across a broad spectrum of assets.

Products and Services

• Master Limited Partnerships (MLPs) and Infrastructure

MLPs and infrastructure investments focus on essential services and supply chains, including energy, utilities, and transportation. This segment is characterized by its potential for steady income through dividends and its critical role in economic development and expansion.

• Real Estate

Investing in real estate assets offers the dual benefit of generating rental income and the potential for property value appreciation. This category includes investments in commercial, residential, and industrial real estate, often structured through real estate investment trusts (REITs).

• Preferreds

Preferred stocks combine features of both equity and debt, offering fixed dividends which generally have priority over common stock dividends. This offers a relatively stable income similar to bonds, making them an attractive option for income-focused investors.

• Emerging Market Bonds

These bonds are issued by countries with developing economies and can offer higher yields compared to more developed markets, albeit with increased risk. Investments in emerging market bonds can diversify a portfolio geographically and provide exposure to the growth potential of these economies.

• Covered Calls

This strategy involves owning a stock and selling call options on the same stock to generate income from the option premiums. Covered calls can offer a conservative strategy to generate additional income on an equity portfolio, with the potential for capital appreciation.