The SPFF issuer, Global X Funds, directs its investments predominantly towards the Global X U.S. High Yield Preferred Index, maintaining at least 80% of its total assets in the securities of this index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. This commitment to preferred securities underscores the fund's focus on stability and income generation. Managed by Global X Management Company LLC, an affiliate of the fund and its investment adviser, the index tracks the highest-yielding preferred securities listed in the United States. The criteria for inclusion in the index, determined by Solactive AG, the index administrator, ensure a balance of size, liquidity, issuer concentration, rating, and maturity. As of December 31, 2023, the index comprised 50 constituents, reflecting the fund's broad exposure. Preferred stocks, characterized by fixed dividends and priority in liquidation over common stocks, offer a balance between equity ownership and fixed-income security. While the index does not directly reflect the performance of issuing companies, it covers various categories of preferred stock, including floating and fixed rate preferreds, perpetual preferred stock, trust preferred securities, and preferred stocks with callable or conversion features. The fund's replication strategy aims to mirror the index's composition, ensuring a correlation exceeding 95% over time, while also employing representative sampling when necessary to mitigate risks or comply with regulatory requirements. Notably, as of December 31, 2023, the index exhibited a concentration in the banking industry, aligning with the fund's concentrated investments, particularly in the financial sector.
SPFF Dividend, as an exchange-traded fund (ETF) within the Global X Funds family, prioritizes income generation through investments in preferred securities. This ETF aligns its portfolio closely with the Global X U.S. High Yield Preferred Index, maintaining at least 80% of its assets in securities tracked by the index. The selection process, overseen by Solactive AG, the index administrator, ensures inclusion of preferred stocks meeting specific criteria related to size, liquidity, and issuer concentration, among others. With a focus on stability and consistent returns, SPFF Dividend emphasizes preferred stocks' characteristics of fixed dividends and priority in liquidation over common stocks. This investment strategy is complemented by the fund's passive indexing approach, aiming to replicate the index's performance while minimizing expenses and enhancing investor returns. By concentrating its investments in preferred securities, SPFF Dividend provides investors with a vehicle to access a diversified portfolio of income-generating assets, appealing to those seeking a balance between equity ownership and fixed-income stability.
SPFF Tracking, an ETF offered by Global X Funds, is designed to closely follow the performance of the Global X U.S. High Yield Preferred Index. With a primary objective of mirroring the index's returns, SPFF Tracking invests at least 80% of its total assets in securities comprising the underlying index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. The index, developed and owned by Global X Management Company LLC, emphasizes high-yielding preferred securities listed in the United States, providing investors exposure to a diversified range of preferred stocks meeting stringent criteria set by Solactive AG, the index administrator. SPFF Tracking's passive indexing approach ensures that the fund does not attempt to outperform the index, instead focusing on replicating its performance over time. By adopting a replication strategy, SPFF Tracking aims to achieve a correlation exceeding 95% with the underlying index before fees and expenses, offering investors a transparent and cost-effective means of accessing the income potential of preferred securities.
SPFF Correlation, an ETF managed by Global X Funds, seeks to maintain a high correlation with the performance of the Global X U.S. High Yield Preferred Index. This correlation is a key metric for investors seeking consistency between the ETF's returns and those of the underlying index. By investing at least 80% of its assets in securities tracked by the index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities, SPFF Correlation aims to closely mirror the index's movements. The index, developed by Global X Management Company LLC and administered by Solactive AG, focuses on high-yielding preferred securities listed in the United States, ensuring a diversified exposure for investors. SPFF Correlation's commitment to a replication strategy underscores its objective to match the index's performance before fees and expenses, offering investors a reliable means of accessing the income potential of preferred securities with minimal tracking error.
SPFF Sector, an ETF managed by Global X Funds, concentrates its investments in sectors closely aligned with the composition of the Global X U.S. High Yield Preferred Index. With a primary focus on preferred securities, SPFF Sector aims to provide investors exposure to industries with significant representation within the index, such as the banking and financial sectors. By investing at least 80% of its total assets in securities comprising the underlying index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities, SPFF Sector ensures alignment with the index's sectoral composition. The index, developed and administered by Global X Management Company LLC and Solactive AG, respectively, emphasizes high-yielding preferred securities listed in the United States, offering investors a diversified portfolio within specific sectors. SPFF Sector's targeted sectoral approach provides investors with an opportunity to capitalize on the income potential of preferred securities while maintaining exposure to sectors exhibiting significant representation within the index, enhancing portfolio diversification and sector-specific investment strategies.
SPFF Exposure, an ETF managed by Global X Funds, offers investors comprehensive exposure to the Global X U.S. High Yield Preferred Index, emphasizing high-yielding preferred securities listed in the United States. With a commitment to mirroring the index's performance, SPFF Exposure invests at least 80% of its total assets in securities comprising the underlying index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. Developed and administered by Global X Management Company LLC and Solactive AG, respectively, the index provides a diversified selection of preferred stocks meeting stringent criteria for size, liquidity, and issuer concentration. By adopting a replication strategy, SPFF Exposure aims to closely track the index's returns before fees and expenses, offering investors a transparent and cost-effective means of accessing the income potential of preferred securities. This comprehensive exposure allows investors to capitalize on the stability and income generation offered by preferred securities, aligning with their investment objectives and risk tolerance.
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