Investing involves risk including 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). The funds invest in the energy industry, which entails significant risk and volatility. In addition, MLPA and MLPX are non-diversified which represents a heightened risk to investors. Furthermore, MLPA and MLPX invest in small and mid-capitalization companies, which pose greater risks than large companies. There is no guarantee distributions will be made and dividends may be reduced or eliminated at any time. The potential tax benefits from investing in MLPs depend on them being treated as partnerships for federal tax purposes. MLPA are taxed as regular corporations for federal income tax purposes, which differs from most investment companies. The amount of taxes currently paid by MLPA will vary depending on the amount of income and gains derived from MLP interests and such taxes will reduce an investor’s return from an investment in the funds. MLPA will accrue deferred income taxes for any future tax liability associated with certain MLP interests. Upon the sale of an MLP security, MLPA may be liable for previously deferred taxes which may increase expenses and lower the fund’s NAV.
MLPX has a different and more complex tax structure than traditional ETFs and investors should consider carefully the significant tax implications of an investment in MLPX.
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 market price is the Mid- Point between the Bid and Ask price as of the close of exchange.
Carefully consider the Fund’s 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.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Global X Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Global X Management Company or any of its affiliates.