by: Doug Fabian
Global X is a fast-growing, multi-faceted alternative exchange-traded fund (ETF) provider. The company’s focus solely on ETFs sets it apart from many of the other providers we’ve profiled in this series, since a number of them began as mutual fund providers or are part of a large banking conglomerate. But with 40 available ETFs and more than $3 billion in assets under management, Global X has an interesting variety of strategies it can offer investors.
As its name suggests, a large proportion — roughly half — of Global X’s ETFs are international, with China and the rest of Asia having the greatest presence in the provider’s portfolio. Roughly a quarter of Global X’s ETFs are based in the commodities sector, and one-fifth are focused on income generation. While “income” is sometimes read as “corporate dividends,” Global X also has three master limited partnership (MLP) ETFs.
MLPs are a popular structure for doing business in the energy sector, since they avoid corporate taxes. Unfortunately, they also generate tax-related complexities for investors. Global X MLP & Energy Infrastructure ETF (MLPX) seeks to avoid these drawbacks, while still allowing for the transparency and ease of ownership that an ETF structure allows. Since the fund’s inception date of August 7, 2013, MLPX has gained 17.74%. In 2014 alone, it has gained 8.58%. MLPX also began paying quarterly dividends in November.
Global X is a fast-growing ETF provider that offers a diverse array of investment strategies. As you look to expand your portfolio, you may want to consider Global X funds that match your objectives and risk tolerance.
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In case you missed them, I encourage you to read my articles from previous weeks about ETF providers Deutsche Bank, ALPS, Direxion, Fidelity, Charles Schwab, Guggenheim, PowerShares, WisdomTree, First Trust, ProShares, Vanguard, iShares and State Street. I also invite you to share your thoughts below.