MLPA


MLP ETF

Fund Summary

The Global X MLP ETF (MLPA) invests in some of the largest, most liquid midstream Master Limited Partnerships (MLPs).

Fund Objective

The Global X MLP ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive MLP Infrastructure Index.

Why MLPA?

High Income Potential

MLPs typically pay high yields to investors because they do not pay corporate income taxes.

Midstream Exposure

MLPA invests in midstream pipelines and storage facilities that have less sensitivity to energy prices.

Low Management Fee

MLPA is the lowest management fee MLP ETF in the US. (ETF Database, Category: MLP ETFs)

Fund Details As of 8/26/16

Ticker MLPA
Primary Exchange NYSE Arca
CUSIP 37950E473
ISIN US37950E4733
Net Assets $311,756,244.96
Management Fee 0.45%
Annual Fund Operating Expense 0.45%
Inception Date 4/18/12
Shares Outstanding 27,150,000
Effective Tax Rate 37.00%
Net Deferred Tax Asset/(Liability) ($538,217)
Distribution Frequency Quarterly
Distribution Calendar

The Fund will accrue a valuation allowance* equal the inverse any net deferred tax asset, resulting in an adjusted net deferred tax asset of $0. The fund will not accrue a valuation allowance if it holds a net deferred tax liability.

Fund Prices

As of 8/26/16
NAV Price
Net Asset Value $11.48 Closing Price $11.48
Daily Change $0.02 0.14% Daily Change $0.04 0.35%

Performance History

Cumulative %

Data as of month end (7/31/16)

Fund NAV Closing Price Index
1 Month 0.43% 0.09% 0.42%
3 Months 7.82% 7.45% 7.59%
6 Months 35.18% 34.57% 34.27%
Since Inception 2.70% 2.33% 11.19%

Avg Annualized %

Data as of month end (7/31/16)

Fund NAV Closing Price Index
1 Year -8.02% -8.40% -10.48%
3 Years -4.26% -4.39% -4.83%
5 Years -- -- --
Since Inception 0.62% 0.54% 2.51%

Avg Annualized %

Data as of quarter end (6/30/16)

Fund NAV Closing Price Index
1 Year -10.55% -10.55% -13.13%
3 Years -4.34% -4.34% -4.91%
5 Years -- -- --
Since Inception 0.53% 0.53% 2.45%

Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized Return is the average return gained or lost by an investment each year over a given time period.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

Fund Characteristics As of 8/25/16

Return on Equity 4.20%
Average Market Cap $9,055.00 M
2015 2016
Price-to-earnings 37.49 26.17
Price-to-book value 1.07 1.12

Source: AltaVista Research, LLC

Fund Risk Stats As of 8/25/16

Versus Beta
S&P 500 1.02
MSCI EAFE 0.90
MSCI Emg. Mkts 0.68
Standard Deviation 18.70%

Source: AltaVista Research, LLC

Top 10 Holdings

As of 8/26/16
Net Assets % Name Market Price ($) Shares Held Market Value ($)
9.62 ENERGY TRANSFER PARTNERS 39.91 751,764 30,002,901.24
9.54 ENTERPRISE PRODUCTS PARTN 26.59 1,117,934 29,725,865.06
7.66 PLAINS ALL AMER PIPELINE 28.52 837,502 23,885,557.04
7.66 MAGELLAN MIDSTREAM PARTNE 70.17 340,125 23,866,571.25
5.71 BUCKEYE PARTNERS LP 69.74 255,425 17,813,339.50
5.64 WILLIAMS PARTNERS LP 37.07 474,373 17,585,007.11
5.03 ENBRIDGE ENERGY PARTNERS 23.67 662,770 15,687,765.90
4.88 MPLX LP 33.47 454,672 15,217,871.84
4.87 SUNOCO LOGISTICS PARTNERS 30.17 503,104 15,178,647.68
4.70 ONEOK PARTNERS LP 39.76 368,662 14,658,001.12
Holdings are subject to change.

*Valuation Allowance refers to a balance sheet line item that offsets all or a portion of the value of a company’s deferred tax assets because the company doesn’t expect it will be able to realize this value.

Global X NAVs are calculated using prices as of 4:00 PM Eastern Time.

From time to time, Adviser will modify the estimates or assumptions regarding the Fund’s deferred tax liability as new information becomes available. The Fund will generally compute deferred income taxes based on the federal income tax rate applicable to corporations currently 35% and an assumed rate attributable to state taxes.

Cash distributions from an MLP to the Fund that exceed such Fund’s allocable share of such MLP’s net taxable income are considered a tax-deferred return of capital that will reduce the Fund’s adjusted tax basis in the equity securities of the MLP. These reductions in such Fund’s adjusted tax basis in the MLP equity securities will increase the amount of gain (or decrease the amount of loss) recognized by the Fund on a subsequent sale of the securities. The Fund will accrue deferred income taxes for any future tax liability associated with (i) that portion of MLP distributions considered to be a tax-deferred return of capital as well as (ii) capital appreciation of its investments. Upon the sale of an MLP security, the Fund may be liable for previously deferred taxes. The Fund will rely to some extent on information provided by the MLPs, which is not necessarily timely, to estimate deferred tax liability for purposes of financial statement reporting and determining the net asset value. From time to time, the Adviser will modify the estimates or assumptions regarding the Fund’s deferred tax liability as new information becomes available. The Fund will generally compute deferred income taxes based on the federal income tax rate applicable to corporations currently 35% and an assumed rate attributable to state taxes.

The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange.

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.

Past distributions are not indicative of future distributions. There is no guarantee that dividends will be paid.

Shares 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 fund’s investment objectives, risks, and charges and expenses. This and other information can be found in the fund’s prospectus. Please read the prospectus carefully before investing.

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 or any of its affiliates. Solactive Indexes have been licensed by Solactive AG for use by Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive AG nor does this company make any representations regarding the advisability of investing in the Global X Funds.

Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer’s financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). High short-term performance of the fund is unusual and investors should not expect such performances to be repeated. The MLP fund invests in the energy industry, which entails significant risk and volatility. The fund is non-diversified which represents a heightened risk to investors. Furthermore, the fund invests in small and mid-capitalization companies, which pose greater risks than large companies. The Fund also pays distributions, which are generally treated as a return of capital for tax purposes rather than from net profits and shareholders should not assume that the source of distributions is from the net profits of the fund.

Due to the nature of the Fund’s investments, the Fund will be subject to taxation on its taxable income. The NAV of Shares will also be reduced by the accrual of any deferred tax liabilities. The Underlying Index however is calculated without any deductions for taxes. As a result, the Fund’s after tax performance could differ significantly from the Underlying Index even if the pretax performance of the Fund and the performance of the Underlying Index are closely correlated.

The Fund is taxed as a regular corporation for federal income tax purposes. The index however is calculated without any deductions for taxes. As a result, the Fund’s after tax performance could differ significantly from the index even if the pretax performance of the Fund and the performance of the index are closely correlated. The potential tax benefits from investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund’s value.

This information is not intended to be individual or personalized investment or tax advice. Please consult a financial advisor or tax professional for more information regarding your tax situation. The fund is required to distribute income and capital gains which may be taxable. Buying and selling shares will result in brokerage commissions and tax consequences. Shares are only available through brokerage accounts which may have minimum requirements. Only whole shares may be purchased.