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 Expense Ratio

MLPA’s expense ratio is nearly half the industry average*

*Source: ETF.com; MLPA’s expense ratio was 49% lower than the industry average net expense ratio, as of 10/6/17, as per ETF.com’s ETF screener (Niche = “MLPs”, Active per SEC = “No”, ETNs = “Exclude ETNs”)

Fund Details As of 12/15/17

Ticker MLPA
Primary Exchange NYSE Arca
CUSIP 37950E473
ISIN US37950E4733
Bloomberg Index Ticker MLPAMID
Net Assets $765,979,852
Management Fee 0.45%
Other Expenses (Deferred Income Tax & Franchise Tax) 0.02%
Annual Fund Operating Expense 0.47%
Inception Date 4/18/12
Shares Outstanding 78,200,000
Effective Tax Rate 36.94%
Net Deferred Tax Asset/(Liability) $16,620,377
Distribution Frequency Quarterly
Distribution Calendar

The Fund will accrue a valuation allowance* equal to the inverse of 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 12/15/17
NAV Price
Net Asset Value $9.80 Closing Price $9.79
Daily Change -$0.08 -0.84% Daily Change -$0.10 -1.01%

Performance History

Cumulative %

Data as of month end (11/30/17)

Fund NAV Closing Price Index
1 Month -1.53% -1.43% -1.86%
3 Months -6.15% -6.24% -6.57%
6 Months -10.58% -10.82% -11.44%
Since Inception -7.83% -7.86% -2.23%

Avg Annualized %

Data as of month end (11/30/17)

Fund NAV Closing Price Index
1 Year -9.85% -9.77% -10.83%
3 Years -10.51% -10.53% -13.17%
5 Years -2.34% -2.43% -1.69%
Since Inception -1.44% -1.45% -0.40%

Avg Annualized %

Data as of quarter end (9/30/17)

Fund NAV Closing Price Index
1 Year -4.55% -4.91% -6.35%
3 Years -9.59% -9.67% -12.69%
5 Years -1.00% -1.09% -0.31%
Since Inception -0.23% -0.27% 0.95%

Index performance shown represents the Hybrid Solactive MLP Infrastructure Index which consists of the Solactive MLP Composite Index from the inception of the Fund through March 31, 2015, and the Solactive MLP Infrastructure Index going forward.

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 12/14/17

Return on Equity 4.90%
Average Market Cap $6,818.00 M
2016 2017
Price-to-earnings 26.08 21.16
Price-to-book value 1.03 1.06

Source: AltaVista Research, LLC

Fund Risk Stats As of 12/14/17

Versus Beta
S&P 500 1.14
MSCI EAFE 1.00
MSCI Emg. Mkts 0.66
Standard Deviation 18.70%

Source: AltaVista Research, LLC

Top 10 Holdings

As of 12/15/17
Net Assets % Name Market Price ($) Shares Held Market Value ($)
10.16 ENTERPRISE PRODUCTS PARTN 26.09 2,982,272 77,807,476.48
8.97 ENERGY TRANSFER PARTNERS 17.50 3,926,448 68,712,840.00
8.01 MAGELLAN MIDSTREAM PARTNE 68.89 890,803 61,367,418.67
6.95 MPLX LP 36.11 1,474,883 53,258,025.13
6.17 WILLIAMS PARTNERS LP 38.05 1,242,673 47,283,707.65
4.82 ANDEAVOR LOGISTICS LP 47.62 775,174 36,913,785.88
4.81 PLAINS ALL AMER PIPELINE 20.29 1,817,181 36,870,602.49
4.76 EQT MIDSTREAM PARTNERS LP 71.99 506,659 36,474,381.41
4.65 BUCKEYE PARTNERS LP 48.96 728,144 35,649,930.24
4.32 WESTERN GAS PARTNERS LP 47.00 704,422 33,107,834.00
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.

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 risks 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).

MLPA invests in the energy industry, which entails significant risk and volatility. The Fund is non-diversified. 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. Past distributions are not indicative of future distributions. There is no guarantee that dividends will be paid.

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.

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.

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.

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.

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.

Shares 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.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses. This and other information can be found in the Fund’s summary or full prospectuses. 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 Solactive, nor does Solactive make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Solactive.