Interest Rate Volatility & Inflation Hedge ETFActive

Reasons to Consider IRVH

Efficient Hedge

By pairing Treasury Inflation-Protected Securities (TIPS) with over-the-counter (OTC) interest rate options, IRVH offers investors the ability to potentially hedge against inflation and benefit from falling short term interest rates and/or rising long term interest rates.

Portfolio Diversifier

IRVH is expected to exhibit low correlation with equity, real estate and fixed income markets, making it a potential diversifier within a broader portfolio.

Monthly Distributions

IRVH expects to make monthly distributions with the potential for inflation-protected income.

Key Information As of 09/22/23

Inception Date 07/05/22
Total Expense Ratio 0.46%
Net Assets $3.35 million
NAV $20.92
Fact Sheet View the document

ETF Summary

The Global X Interest Rate Volatility & Inflation Hedge ETF (IRVH) is an actively-managed ETF designed to offer investors inflation-protected income potential while also potentially benefiting from a steepening of the yield curve and an increase in interest rate volatility. IRVH seeks to achieves its investment objective by primarily investing in, directly or indirectly, a mix of TIPS and interest rate options on the shape of the yield curve.

The value of TIPS increases with inflation, a feature that is intended to protect investors from inflation risk. However, TIPS are also highly sensitive to interest rates. By purchasing yield curve spread options, IRVH seeks to partially mitigate some of the interest rate sensitivity of TIPS, as the options are expected to benefit from a steepening of the yield curve and an increase in interest rate volatility.

ETF Objective

The Global X Interest Rate Volatility & Inflation Hedge ETF (IRVH) seeks to hedge relative interest rate movements arising from a steepening of the U.S. interest rate curve, and to benefit from periods of market stress when interest rate volatility increases, while also providing inflation-protected income.

Trading Details As of 09/21/23

Ticker IRVH
CUSIP 37960A792
ISIN US37960A7928
Primary Exchange NYSE Arca
Shares Outstanding 160,000
Number of Holdings 30
30-Day Median Bid-Ask Spread 0.33%

Distributions As of 09/22/23

30-Day SEC Yield 5.41%
Distribution Frequency Monthly

ETF Prices As of 09/22/23

NAV $20.92 Daily Change $0.07 0.34%
Market Price $20.92 Daily Change $0.15 0.72%

Performance History

As of recent
Fund NAV Market Price
Year-to-Date -2.82% -2.28%
1 Month -4.19% -4.50%
3 Months -4.80% -4.82%
Since Inception -10.48% -10.03%
Year-to-Date -2.72% -2.63%
1 Month -0.27% -0.37%
3 Months -4.09% -4.85%
Since Inception -10.39% -10.35%

Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). 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. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.

Top Holdings As of 09/22/23

Net Assets (%) Ticker Name SEDOL Market Price ($) Shares Held Market Value ($)
10.98 U.S. TIPS 0-7/8% 01/15/29 BJB9TW3 1.13 325,000 367,351.91
10.60 U.S. TIPS 0-1/8% 4/15/26 BMG87G6 1.09 325,000 354,759.09
10.42 U.S. TIPS 0-1/8% 04/17/27 BMXW6J7 1.00 350,000 348,821.85
7.68 U.S. TIPS 3-3/8% 04/15/32 2805872 1.90 135,000 257,084.19
6.39 U.S. TIPS 1-3/4% 01/15/28 B2PB3T1 1.43 150,000 214,038.22
6.29 U.S. TIPS 0-1/8% 01/15/32 BPLFCC4 0.94 225,000 210,528.72
5.21 U.S. TIPS 0-3/4% 02/15/42 B622LB3 1.06 165,000 174,337.54
4.98 U.S. TIPS 0-3/8% 07/15/25 BYST006 1.24 135,000 166,839.44
4.68 U.S. TIPS 0.125% 01/15/30 BJVB6M8 1.05 150,000 156,751.53
4.54 U.S. TIPS 2-1/2% 01/15/29 B4RNYM9 1.45 105,000 152,013.97
2.69 USD 2-10 06/30/25 0 0.00 20,000,000 90,000.00
2.58 CASH 1.00 86,479 86,479.43
2.57 U.S. TIPS 0-7/8% 02/15/47 BF0SHC9 0.96 90,000 85,991.12
2.57 U.S. TIPS 1% 02/15/48 BFZBGW6 0.96 90,000 85,989.89
2.53 U.S. TIPS 1.125% 01/15/33 BQFMC06 0.94 90,000 84,784.41
2.53 TII 0 1/8 04/15/25 BMF0417 1.13 75,000 84,781.59
2.08 U.S. TIPS 0-5/8% 07/15/32 BNXG760 0.93 75,000 69,704.02
1.53 U.S. TIPS 3-7/8% 04/15/29 2407096 2.04 25,000 51,087.18
1.41 U.S. TIPS 0-1/8% 02/15/52 BNYF3S0 0.63 75,000 47,183.06
1.38 USD 2-10 02/27/25 0.00 0.00 12,000,000 46,080.00
1.16 USD 2-10 07/05/24 0.345% 0.00 40,000,000 38,920.00
0.82 USD 2-10 11/07/24 0.05 0.00 10,000,000 27,360.00
0.79 U.S. TIPS 1.5% 2/15/2053 BMXHQN6 0.88 30,000 26,479.16
0.62 U.S. TIPS .125 07/15/2030 BLCGQJ3 1.04 20,000 20,884.18
0.61 U.S. TIPS 0-1/8% 01/15/31 BMV7Z42 1.02 20,000 20,308.62
0.61 U.S. TIPS 1-5/8% 10/15/27 BQRGLR6 1.01 20,000 20,240.83
0.59 U.S. TIPS 0-1/8% 07/15/31 BNW0365 0.98 20,000 19,604.00
0.42 U.S. TIPS 2-1/8% 02/15/41 B3XRK75 1.39 10,000 13,902.31
0.30 U.S. TIPS 0-5/8% 02/15/43 B9JHJX0 1.00 10,000 9,974.35
0.28 TII 1 02/15/49 BDVLC40 0.93 10,000 9,295.00
0.20 U.S. TIPS 0-1/8% 02/15/51 BMT9GR0 0.68 10,000 6,814.92
-0.04 OTHER PAYABLE & RECEIVABLES 1.00 -1,163 -1,162.73
Holdings are subject to change. "Cash" denotes U.S. dollars.

ETF Research

Diversification does not ensure a profit or guarantee against a loss. Investing involves risk, including the possible loss of principal. TIPS can provide investors a hedge against inflation, as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. IRVH is non-diversified.

IRVH is actively managed, which could increase its transaction costs (thereby lowering its performance) and could increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate. The Fund is subject to increased credit and default risk, where there is an inability or unwillingness by the issuer of a fixed income security to meet its financial obligations, debt extension risk, where an issuer may exercise its right to pay principal on an obligation later than expected, as well as interest rate/maturity risk, where the value of the Fund’s fixed income assets will decline because of rising interest rates.

The Fund’s exposure to derivatives tied to interest rates subjects the Fund to greater volatility than investments in traditional securities, such as stocks and bonds. Investing in derivatives can be extremely volatile.

The Fund engages in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. In an interest rate swap option, the Fund has the right, but not the obligation, to enter a swap contract at a future date, where the Fund pays a fixed interest rate and receives a floating interest rate. The Fund is expected to benefit from the options it holds if long-term U.S. interest rates rise during the time period in which the Fund holds the options. However, if long-term rates decrease, the Fund will lose money on the options, up to the amount invested in option premiums, and underperform an otherwise identical bond fund that had not used such options. Over-the-counter options are traded directly between counterparties rather than on a centralized exchange. Such options may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.

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. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. 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 before investing. 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 or Mirae Asset Global Investments. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated.