Nyenta.com

Menu
  • Home
  • Business
  • Entertainment
  • Music
  • Books
  • Health
  • Technology
  • Education
  • Sports
Menu

Global X ETFs Expands its Lineup of Options-Based Strategies with Two Innovative Actively Managed Funds
Nyenta.com/10198412

Trending...
  • Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Outset Medical, Inc. (OM) Investors and Encourages Investors to Contact the Firm Before September 6, 2022
  • UNILEVER DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against Unilever PLC and Encourages Investors to Contact the Firm
  • New Rochelle: Speed Awareness Week Begins August 14
NEW YORK, July 6, 2022 /PRNewswire/ -- Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X Interest Rate Hedge ETF (IRHG) and the Global X Interest Rate Volatility & Inflation Hedge ETF (IRVH). These two funds represent Global X's latest additions to its options-based ETF suite, which now includes 14 funds totaling over $9.7 billion in assets under management.[i]

Currently, inflation seems to be spreading across the entire supply chain, from components and commodities, all the way to end consumer products. With a tight labor market, high energy prices, supply chain issues and a strong consumer, elevated levels of inflation are unlikely to dissipate in the near-term. In response to this persistently high inflation, central banks are aggressively raising rates and rolling back bond buying programs. Rising interest rates are increasing costs for companies globally and putting pressure on the broader markets. And, as inflationary pressures permeate across the economy, both equity and debt markets are facing challenges. Options-based strategies designed to target rising rates and volatility can potentially mitigate these risks and serve as alternatives for investors seeking an efficient or tactical hedge within their portfolios.

IRHG and IRVH can act as portfolio hedges in a low-cost manner with the liquidity benefits of the ETF vehicle. IRHG is designed to be functionally similar to owning a position in long-dated put options on longer term U.S. Treasury bonds through the use of derivatives contracts. IRHG uses interest rate payer swaptions, which offer investors the ability to hedge interest rate risk in their fixed income portfolio allocation. IRHG is designed to benefit when interest rates rise, unlike traditional fixed income instruments.

IRVH combines over-the-counter options on the interest rate markets with U.S. Treasury Inflation-Protected Securities (TIPS). IRVH seeks to hedge relative interest rate movements arising from a steepening of the U.S. interest rate curve, and to benefit from periods of market stress when interest rate volatility increases, while also providing inflation-protected income. The strategy seeks to navigate these complex market environments by holding over-the-counter curve options and TIPS.

"Options-based strategies can help to ameliorate the difficult market conditions that investors face in inflationary and rising rate environments. Compared to traditional equity market opportunities, interest rate strategies using options can provide greater diversification and potentially stronger risk-adjusted returns in a rising rate environment" said Rohan Reddy, Director of Research at Global X. "While we continue to see headwinds in the market, IRHG and IRVH combine Global X's expertise in options-based strategies with active management to offer alternatives for investors looking to diversify or hedge their portfolios against interest rate and inflationary risks."

More on Nyenta.com
  • Le Roy, Former Head of Thoma Bravo Credit who has Completed ~$5 Billion of Investments, Joins Star Mountain Capital as a Managing Director
  • MINISO ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against MINISO Group Holding Limited and Encourages Investors to Contact the Firm
  • Aquia Inc. Joins the Digital Services Coalition of Companies Driving Government Transformation
  • TelevisaUnivision Announces Pricing of $400 Million Notes Offering
  • Henry Schein Advances ESG Stewardship

Under normal circumstances, IRHG generally expects to invest less than 25% of its assets in options, and to actively manage options investments to reduce the weight of such options in the fund's portfolio if their value increases above 25% of the fund's assets. IRHG's remaining assets will generally be invested in cash or U.S. Treasury bills.

IRVH, under normal market conditions, generally expects to invest less than 20% of its assets in yield curve spread options and to actively manage options investments to reduce the weight of such options in the fund's portfolio if their value increases above the desired amount. Similarly, IRVH generally expects to sell portfolio investments and reinvest proceeds in yield curve spread options if the value of such options declines below the desired amount.

Both IRHG and IRVH have expense ratios of 0.45%.

About Global X ETFs

Global X ETFs was founded in 2008. For more than a decade, our mission has been empowering investors with unexplored and intelligent solutions. Our product lineup features more than 90 ETF strategies and over $40 billion in assets under management.[ii] 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. Explore our ETFs, research and insights, and more at www.globalxetfs.com.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than $628 billion in assets under management worldwide.[iii] Mirae Asset has an extensive global ETF platform ranging across the U.S., Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with over $84 billion in assets under management.[iv]

Media Contact

Frank Taylor
Dukas Linden Public Relations
[email protected]
(646) 808-3647

Important Disclosures

Diversification does not ensure a profit or guarantee against a loss. Investing involves risk, including the possible loss of principal. The Funds engage in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. In an interest rate swap option, the Fund has the right, but not the obligation, to enter a swap contract at a future date, where the Fund pays a fixed interest rate and receives a floating interest rate. The Fund is expected to benefit from the options it holds if long-term U.S. interest rates rise during the time period in which the Fund holds the options. However, if long-term rates decrease, the Fund will lose money on the options, up to the amount invested in option premiums, and underperform an otherwise identical bond fund that had not used such options. Options may subject the Fund to greater volatility than investments in traditional securities and may magnify the Fund's gains or losses.

More on Nyenta.com
  • Datadog Announces Return of Dash Conference to New York City
  • Saelig Introduces WEROCK Scoria M240 Rugged Handheld Logistics Data PC
  • Morgan Stanley at Work Enhances Technology to Deliver Time and Cost Savings to Stock Plan Administrators and Participants
  • Council Member Marjorie Velázquez Leads Multi-Agency Infrastructure Walk-Through Amid Sinkhole
  • Redpoint Cybersecurity LLP - David Duncan is Promoted to Vice President of Cyber Operations

Over-the-counter options are traded directly between counterparties rather than on a centralized exchange. Such options may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.

TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. The Funds are non-diversified.

The Funds are 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. There is no guarantee that the Funds will achieve their stated investment objectives. The Funds are 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.

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.

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, which are available at 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. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated.

[i] Global X, as of 5 July 2022
[ii] Global X, as of July 2022
[iii] Mirae Asset, as of May 2022
[iv] Mirae Asset, as of July 2022

SOURCE Global X Management Company LLC
Filed Under: Business

Show All News | Report Violation

0 Comments
1000 characters max.

Latest on Nyenta.com
  • CI&T Acquires Transpire to Enhance its Growth in Australia and APAC
  • EQUITY ALERT: Rosen Law Firm Encourages Sinovac Biotech Ltd. Investors to Secure Counsel Before Important Deadline in Securities Class Action Against 1Globe Capital LLC and Certain of its Officers – SVA
  • Council Member Velázquez, FDNY Officials, and Engine 89 Celebrate the Recent Budget Allocati
  • Western New York Small Business Owner Molly Bakewell Chamberlin Selected as Entrepreneur Mentor for EforAll Buffalo Accelerator Program
  • EQUITY ALERT: Rosen Law Firm Encourages Uber Technologies, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action – UBER
  • Why Market Timing is a Bad Idea
  • Nationally Recognized Trial Lawyer Randy Mastro Joins King & Spalding's Trial and Global Disputes Practice in New York
  • Boom Boom Firearms Training LLC., Is Hosting Maryland Wear & Carry Permit (CCW) 16-Hour Courses For Eligible MD Residents & Non Residents
  • Smartly.io Becomes First Campaign and Ads Partner to Launch TikTok Shopping Ads, Offering Brands Critical Planning Opportunities for Holiday Shopping
  • Improvement, data science pros to convene in Atlanta Sept. 19-21
  • Multi #1 International Best-Selling Author Jennifer S. Wilkov Announces the 2022 October Speak Up Women Conference and Last Call For Speakers
  • OTR™ INTRODUCES NEW ESPRESSO MARTINI WITH A ONE-OF-A-KIND PRIVATE JET SERVICE TO UPGRADE SUMMER TRAVEL PLANS
  • Mandarina Houses presents a comprehensive solution to your real estate needs
  • Gen II Introduces E-Subdocs Fund Subscription Solution for Private Equity Funds
  • Bundledocs launch new Cloud PDF Editor as part of their entry into North American market
  • ARE's new book "Una Vez Amé con el Alma, Pero no con La Razón" is a thought-provoking read about exploring the meaning of love in its true form
  • Elys Game Technology Reports Second Quarter 2022 Results
  • Non-profit Responds to Post Covid Needs
  • Endo Enters Into Restructuring Support Agreement with Senior Secured Debtholders to Strengthen Financial Position and Advance Ongoing Business Transformation
  • CI&T Acquires Transpire to Enhance its Growth in Australia and APAC

Popular on Nyenta

  • New Rochelle: Monkeypox: Information and Vaccine Clinics from Westchester County
  • New Rochelle: Monkeypox: Information and Vaccine Clinics from Westchester County
  • New Rochelle: Job Fair at City Hall- July 28
  • New Rochelle Breaks Ground on $4M Transformation of Anderson Street and Plaza
  • Rochester: Statement from City Councilmember LaShay D. Harris on the Murder of Officer Mazurkiewicz
  • TUYA ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Tuya, Inc. and Encourages Investors to Contact the Firm
  • Rochester: Line of Duty Death Officer Anthony Mazurkiewicz
  • New Rochelle: Public Input Needed for Drainage Analysis Study
  • New Rochelle: NRPD Invites the Community to National Night Out at Police Headquarters, Tuesday August 2
  • New Rochelle: NRPD Invites the Community to National Night Out at Police Headquarters, Tuesday August 2

Similar on Nyenta

  • The Rosen Law Firm, P.A. Defeats Motion to Dismiss in Robinhood Securities Class Action
  • Javer announces the 5th Javer Sustainability Award
  • Monro, Inc. Declares Quarterly Cash Dividend
  • Le Roy, Former Head of Thoma Bravo Credit who has Completed ~$5 Billion of Investments, Joins Star Mountain Capital as a Managing Director
  • MINISO ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against MINISO Group Holding Limited and Encourages Investors to Contact the Firm
  • TelevisaUnivision Announces Pricing of $400 Million Notes Offering
  • Henry Schein Advances ESG Stewardship
  • Datadog Announces Return of Dash Conference to New York City
  • Morgan Stanley at Work Enhances Technology to Deliver Time and Cost Savings to Stock Plan Administrators and Participants
  • Redpoint Cybersecurity LLP - David Duncan is Promoted to Vice President of Cyber Operations
Copyright © 2022 nyenta.com | Terms of Service | Privacy Policy | Contribute | Contact Us