Navigate Rate Shifts with Preferred Stocks & Fixed Income

With inflation cooling and additional rate cuts potentially on the horizon, investors who have been benefiting from higher yields may need to explore new strategies to sustain their yield potential.[1]

Preferreds

Preferred securities offer an alternative for income-seeking investors while potentially benefiting from a decrease in interest rates. In addition, their high yields and below average duration risk compared to traditional long-term bonds should position them well for the long term.

Short-Term Treasury Bills

Access to the front end of the treasury curve through an ETF wrapper can be an ideal solution for both strategic and tactical allocation purposes, presenting an appealing investment opportunity as a cash and risk management solution.

Treasury Ladders

Employing a Treasury Ladder strategy across various maturity ranges may help reduce the impact of interest rate volatility and mitigate reinvestment risk, providing strategic flexibility across the Treasury yield curve.

Get to know our broader family of differentiated Income ETFs, offering solutions for investors seeking to manage, increase, or diversify the yield potential of their portfolio.

[1] Consumers paid 2.2% more for goods and services for the year ended in August, versus 2.5% in July. This marks the lowest inflation rate seen since February 2021, when inflation clocked in at 1.9% (Personal Consumption Expenditures Price Index, 27 September 2024).

This material contains an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular.

Investing involves risk, including the possible loss of principal.

Preferred stock is subject to many of the risks associated with debt securities, including interest rate risk. In addition, preferred stock may not pay a dividend, an issuer may suspend payment of dividends on preferred stock at any time, and in certain situations, an issuer may call or redeem its preferred stock or convert it to common stock. High yielding stocks are often speculative, high-risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time.

Variable and Floating Rate Securities may have limits on the maximum increases in coupon rates and may lag behind changes in market rates. A downward adjustment in coupon rates may decrease PFFV’s income as a result of its investment in variable or floating rate securities.

Fixed income securities are subject to loss of principal during periods of rising interest rates. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. CLIP is not a money market fund, does not seek to maintain a stable net asset value, and is not subject to the risk limiting provisions applicable to money market funds.

PFFD is 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.

Carefully consider the Funds' investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Funds' full or summary prospectuses, which may be obtained at globalxetfs.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., which is not affiliated with Global X Management Company LLC.