| NAV | $27.55 | Daily Change | -$0.33 | -1.18% |
| Market Price | $27.43 | Daily Change | -$0.13 | -0.47% |
RATE seeks to achieve its investment objective of providing a hedge against a sharp increase in long-term U.S. interest rates by using over-the-counter (OTC) instruments that are typically only accessible to institutional investors.
By holding options designed to benefit from rising long-term interest rates, RATE provides access to an efficient fixed income hedging strategy designed to offset interest rate risk in a portfolio.
RATE is an active strategy from the standpoint of interest rate risk management.
| Inception Date | 07/05/22 |
| Total Expense Ratio | 0.47% |
| Net Assets | $3.58 million |
| NAV | $27.55 |
| Fact Sheet | View the document |
The Global X Interest Rate Hedge ETF (RATE) is an actively-managed ETF designed to benefit when long-term interest rates increase. RATE seeks to achieve its investment objective primarily by investing in long interest rate swap options (“swaptions”) and long positions in short term U.S. Treasury securities. The latter is mainly utilized for cash management purposes. RATE may invest in U.S. Treasury bills directly or through other ETFs.
The Global X Interest Rate Hedge ETF (RATE) seeks to provide a hedge against sharp increases in long-term U.S. interest rates and is expected to benefit during periods of market stress when interest rate volatility is elevated.
| NAV | $27.55 | Daily Change | -$0.33 | -1.18% |
| Market Price | $27.43 | Daily Change | -$0.13 | -0.47% |
|
As of recent (06/30/23)
|
Fund NAV | Market Price |
|---|---|---|
| Year-to-Date | -8.75% | -8.61% |
| 1 Month | 1.01% | -0.24% |
| 3 Months | 2.34% | 4.15% |
| Since Inception | 13.11% | 14.02% |
| Year-to-Date | -2.83% | -3.80% |
| 1 Month | 2.53% | 1.69% |
| 3 Months | 7.58% | 5.01% |
| Since Inception | 20.45% | 20.02% |
Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.
| Net Assets (%) | Security Type | Name | SEDOL | Market Price ($) | Shares Held | Market Value ($) |
|---|---|---|---|---|---|---|
| 29.44 | Mutual Fund | GLOBAL X 1-3 MONTH T-BILL | BNBPYF7 | 25.10 | 42,000 | 1,054,200.00 |
| 11.16 | Treasury Bill | B 10/03/23 | BQRGZD0 | 1.00 | 400,000 | 399,530.33 |
| 11.15 | Treasury Bill | B 10/10/23 | BRBD9J8 | 1.00 | 400,000 | 399,120.00 |
| 11.14 | Treasury Bill | B 10/12/23 | BN6QD36 | 1.00 | 400,000 | 399,002.15 |
| 11.03 | Treasury Bill | B 12/19/23 | BPJP4T7 | 0.99 | 400,000 | 394,992.08 |
| 9.74 | Treasury Bill | B 10/19/23 | BMHVN22 | 1.00 | 350,000 | 348,767.65 |
| 7.55 | Option | SWAPTION 02/16/24 4.20 P | 0.02 | 15,000,000 | 270,343.50 | |
| 5.58 | Treasury Bill | B 09/26/23 | BMJ0DN8 | 1.00 | 200,000 | 199,970.88 |
| 4.55 | Option | SWAPTION 01/08/24 4.00 P | 0.02 | 7,000,000 | 162,921.92 | |
| 4.33 | Cash | CASH | 1.00 | 155,101 | 155,100.58 | |
| 2.78 | Treasury Bill | B 11/07/23 | BRJTVB4 | 0.99 | 100,000 | 99,368.92 |
| -8.44 | Cash | OTHER PAYABLE & RECEIVABLES | 1.00 | -302,125 | -302,125.32 |
Investing involves risk, including the possible loss of principal. 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. Options may subject the Fund to greater volatility than investments in traditional securities and may magnify the Fund’s gains or losses.
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. This Fund is actively managed. There is no guarantee that the Fund will achieve its stated investment objectives. RATE 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. 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.
RATE traded under the ticker IRHG from inception until November 14, 2022.