NEW YORK, Oct. 22, 2018 /PRNewswire/ -- Global X Funds, the
New York-based provider of
exchange-traded funds (ETFs), has announced that the Global X
YieldCo Index ETF (NASDAQ: YLCO) will undergo an index change to
track the Indxx YieldCo & Renewable Energy Income Index.
Concurrent with the index change, the name of the Fund will be
changed to the Global X YieldCo & Renewable Energy Income ETF.
The Fund is expected to implement these changes on or around
November 19, 2018.
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The current and new indexes and Fund names are shown below. The
new index is designed to provide exposure to publicly traded
companies that are formed to own operating assets that produce
defined cash flows ("YieldCos"), as well as companies that are
involved in the production of renewable energy such as solar, wind
and hydroelectric power ("Renewable Energy Companies") that meet
minimum dividend yield criteria, as determined by Indxx, LLC, the
provider of the new index. A YieldCo is a dividend growth-oriented
public company, created by a parent company, which bundles
renewable and/or conventional longterm contracted operating assets
in order to generate systematic cash flows. Renewable Energy
Companies include but are not limited to companies involved in the
production of renewable energy, renewable energy components and
systems, and smart grid technology.
|
Current
|
New
|
ETF
Name
|
Global X YieldCo
Index ETF
|
Global X YieldCo
& Renewable Energy Income ETF
|
Index
|
Indxx Global YieldCo
Index
|
Indxx YieldCo &
Renewable Energy Income Index
|
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. Founded in 2008, Global X is
distinguished by its Thematic Growth, Income and International
ETFs. Global X is recognized as a leader in providing intelligent
investment solutions for its shareholders.
Global X Management Company, LLC serves as an advisor to the
Global X Funds. The Funds are distributed by SEI Investments
Distribution Co., which is not affiliated with Global X Management
Company, LLC.
Investing involves risk, including the possible loss of
principal. Investments in smaller companies typically exhibit
higher volatility. The value of securities issued by companies in
the energy sector may decline for many reasons, including, without
limitation, changes in energy prices; international politics;
energy conservation; the success of exploration projects; natural
disasters or other catastrophes; changes in exchange rates,
interest rates, or economic conditions; changes in demand for
energy products and services; and tax and other government
regulatory policies. The Fund is non-diversified.
Investments in securities of yieldcos involve risks that differ
from investments in traditional operating companies, including
risks related to the relationship between the yieldco and the
company responsible for the formation of the yieldco. Yieldco
securities can be affected by expectations of interest rates and
investor sentiment towards yieldcos or the energy sector.
Yieldcos may distribute all or substantially all of the cash
available for distribution, which may limit new acquisitions and
future growth. Yieldcos may finance its growth strategy with debt,
which may increase the yieldco's leverage and the risks associated
with the yieldco. The ability of a yieldco to maintain or grow its
dividend distributions may depend on the entity's ability to
minimize its tax liabilities through the use of accelerated
depreciation schedules, tax loss carryforwards, and tax
incentives.
Shares are bought and sold at market price (not NAV) and are not
individually redeemed from the Fund. Brokerage commissions will
reduce returns.
"INDXX" is a service mark of INDXX and has been licensed for use
for certain purposes by Global X Management Company, LLC. Global X
Funds are not sponsored, endorsed, issued, sold, or promoted by
INDXX nor does this company make any representations regarding the
advisability of investing in the Global X Funds. (Index data
source: INDXX)
Carefully consider the Funds' investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Funds' full or summary
prospectus, which may be obtained by calling 1-888-GX-FUND-1
(1.888.493.8631), or by visiting www.globalxfunds.com. Read the
prospectus carefully before investing.
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SOURCE Global X Funds