Global X Funds Introduces TargetIncome™ Family of ETFs
-- The ETFs, structured as fund-of-funds, aim to deliver specified yield targets --
Jul 31, 2018, 10:25 ET
NEW YORK, July 31, 2018 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), today announced the launch of the Global X TargetIncome™ 5 ETF (CBOE: TFIV), and the Global X TargetIncome™ Plus 2 ETF (CBOE: TFLT). TFIV seeks to achieve a 5% yield, net of fees, while TFLT seeks to achieve the yield on the current 10 Year US Treasury Note, plus 2%, with both funds expected to pay distributions on a monthly basis.
In a decades long shift from defined benefit (DB) plans, which provide investors with predictable income streams in retirement, to defined contribution (DC) plans, individual investors have assumed much of the risk relating to their retirements. With an outcome-based approach, TFIV and TFLT seek to help investors achieve a specific income levels from their retirement assets.
TFIV and TFLT track indexes developed by Wilshire Associates (Wilshire®) that allocate across 11 ETFs representing different income-paying asset classes. The ETFs seek to attain their targeted income levels while simultaneously optimizing their exposures to mitigate risk.
"By combining Wilshire's robust multi-asset analytics and deep institutional allocation expertise, we've structured indexes that aim to target specific yield objectives while mitigating risks," said Jason Schwarz, president of Wilshire Analytics and Wilshire Funds Management. "We're proud to bring these indexes to market and very pleased to work with Global X, which has established itself as a leader in income ETFs," Schwarz added.
"Despite a recent spate of rate hikes, investors continue to face a low yielding market," said Jay Jacobs, head of research and strategy at Global X. "As the baby boomer generation increasingly transitions into retirement, we believe that TFIV and TFLT can offer potential solutions to investors looking to achieve specific income goals with their portfolios."
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
Investing involves risk, including the possible loss of principal. There is no guarantee that the Funds will achieve their investment objectives or produce the targeted price or yield performance. A company may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund's performance. TFLT & TFIC are non-diversified.
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. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.
Since the Fund's shares typically do not trade in the secondary market until several days after the Fund's inception, for the period from inception to the first day of secondary market trading in Shares, the NAV of the Fund is used to calculate market returns.
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 at globalxfunds.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. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Wilshire, nor does Wilshire make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Wilshire.
ABOUT WILSHIRE ASSOCIATES
Wilshire Associates, a leading global financial services firm, provides consulting services, analytics solutions and customized investment solutions to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets. The firm was founded in 1972, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. Wilshire developed the Wilshire 5000 Total Market Index and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire® is a registered service marks of Wilshire Associates Incorporated.
SOURCE Global X Funds