Global X Variable Rate Preferred ETF (BPFV39)

Overview

The fund is a financial entity that focuses on investing a significant portion of its assets in the securities represented by an underlying index, which aims to mirror the broad-based performance of the U.S.-listed variable rate preferred securities market. A noteworthy aspect of its investment strategy is the inclusion of both American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) that are based on the securities within the underlying index. This approach enables the fund to have a stake in the performance of these securities without direct investment. The fund also reserves the right to utilize borrowings for investment purposes, highlighting its proactive approach to leveraging financial instruments to enhance its investment portfolio. Additionally, it’s important to note that the fund is non-diversified, indicating a focused investment strategy that may involve higher risks and rewards due to its concentration in a specific sector or type of security.

Products and Services

• Securities Investment

  The core service provided by the fund involves investing in securities that form part of the underlying index designed to reflect the performance of the U.S.-listed variable rate preferred securities market. This includes a broad spectrum of securities, offering investors exposure to the preferred securities market through a single investment vehicle.

• American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) Investment

  In addition to direct securities investment, the fund expands its portfolio by investing in ADRs and GDRs. These instruments represent shares in foreign companies that are traded on U.S. and global stock exchanges, respectively. This allows the fund to invest in a wider range of securities, including those not directly listed in the U.S., thus offering a more diversified global exposure.