Global X Funds Launches Tax Pass-Through MLP & Energy Infrastructure ETF (MLPX)

NEW YORK, Aug. 7, 2013 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X MLP & Energy Infrastructure ETF (NYSE Arca: MLPX).  MLPX is the lowest cost ETF¹ with Master Limited Partnership (MLP) and midstream energy infrastructure exposure, taking advantage of a fund structure unique to MLP ETFs to provide greater tax efficiency for shareholders. Due to its structure as a Regulated Investment Company, MLPX is not subject to corporate taxes, yet still provides access to the popular MLP sector. MLPX has the added advantage of not requiring K-1 tax filings from investors, only 1099s.  At just 0.45%, MLPX has the lowest cost among ETFs with similar MLP exposure¹.

As investors continue to express interest in the United States' energy infrastructure boom, ETFs serve as an efficient way to capitalize on the industry's income and growth potential. According to a 2012 report from The International Energy Agency², the U.S. will become the world's top exporter of oil by 2017.  With domestic energy consumption and production set to increase, investors are poised to benefit from the industry's toll-road business model, which directly correlates with volume as opposed to commodity pricing.

The Global X MLP & Energy Infrastructure ETF tracks the Solactive MLP & Energy Infrastructure Index, which is designed to be a MLP benchmark index for midstream energy infrastructure MLPs and corporations.  The fund expects to pay quarterly income distributions.

"We are pleased to continue to innovate in the MLP space," said Bruno del Ama, chief executive officer of Global X Funds. "MLPX provides investors with lower-cost access to midstream energy infrastructure MLPs and corporations in an ETF structure without many of the tax complexities inherent in MLP investing."

MLPX complements the Global X suite of MLP ETFs, which includes the Global X MLP ETF (NYSE Arca: MLPA) and the Global X Junior MLP ETF NYSE Arca: (MLPJ). Respectively, the funds target the 30 largest MLPs and the small-cap segment of the MLP market. 

ABOUT GLOBAL X FUNDS

Global X is a New York-based sponsor of exchange-traded funds that facilitates access to investment opportunities across the global markets. With $2 billion in managed assets and over 100,000 investors from more than 100 countries as of July 31, 2013, Global X offers exchange-traded funds that target Income, International, Commodity Producers, Alternatives, Industry and Asset Allocation fund suites. For more information about these exchanged traded funds, please visit www.globalxfunds.com.

DISCLOSURE

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 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 Fund invests in the energy industry, which entails significant risk and volatility. In addition, the Fund is non-diversified which represents a heightened risk to investors.

The Fund derives substantially all of its cash flow from investments in equity securities of MLPs. The amount of cash that the Fund will have available to pay or distribute to you depends entirely on the ability of the MLPs that the Fund owns to make distributions to their partners and the tax character of those distributions. Neither the Fund nor the Adviser has control over the actions of underlying MLPs. The amount of cash that each individual MLP can distribute to its partners will depend on the amount of cash it generates from operations, which will vary from quarter to quarter depending on factors affecting the energy infrastructure market generally. Available cash will also depend on the MLPs' level of operating costs (including incentive distributions to the general partner), level of capital expenditures, debt service requirements, acquisition costs (if any), fluctuations in working capital needs, and other factors. The MLP holdings of the Fund expect to generate significant investment income, and the Fund's investments may not distribute the expected or anticipated levels of cash, resulting in the risk that the Fund may not have the ability to make cash distributions as investors expect from MLP-focused investments.

Shares of Global X Funds are bought and sold at market price, not NAV, and are not individually redeemed from the Fund. Buying and selling shares will result in brokerage commissions.

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.  Index data source: Solactive AG.

Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's prospectus 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.

¹ Source: etfdb.com 7/31/2013
² IEA World Energy Outlook 2012

 

SOURCE Global X Funds

Copyright 2013 PR Newswire