Interest Rate Hedge ETFActive

Reasons to Consider RATE

Institutional Exposure

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.

Tactical Hedge

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.

Active Management

RATE is an active strategy from the standpoint of interest rate risk management.

Key Information As of 04/23/24

Inception Date 07/05/22
Total Expense Ratio 0.50%
Net Assets $2.15 million
NAV $21.55
Fact Sheet View the document

ETF Summary

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.

ETF Objective

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.

Trading Details As of 04/23/24

Ticker RATE
CUSIP 37960A784
ISIN US37960A7845
Primary Exchange NYSE Arca
Shares Outstanding 100,000
Number of Holdings 2
30-Day Median Bid-Ask Spread 0.18%

Distributions As of 04/23/24

30-Day SEC Yield 4.19%
Distribution Frequency Monthly

ETF Prices As of 04/23/24

NAV $21.55 Daily Change -$0.13 -0.60%
Market Price $21.60 Daily Change -$0.10 -0.46%

Performance History

As of recent month & quarter-end (03/31/24)
As of recent month & quarter-end (03/31/24)
Fund NAV Market Price
1 Year 7.94% 9.19%
Since Inception 10.68% 10.81%
1 Year 7.94% 9.19%
Since Inception 10.68% 10.81%
Year-to-Date 4.14% 4.64%
1 Month -1.90% -1.69%
3 Months 4.14% 4.64%
Since Inception 19.30% 19.54%
Year-to-Date 4.14% 4.64%
1 Month -1.90% -1.69%
3 Months 4.14% 4.64%
Since Inception 19.30% 19.54%

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 04/23/24

Net Assets (%) Security Type Name SEDOL Market Price ($) Shares Held Market Value ($)
80.86 Mutual Fund GLOBAL X 1-3 MONTH T-BILL BNBPYF7 25.10 69,420 1,742,442.00
9.90 Option SWAPTION 09/18/24 4.15 P 0.02 10,000,000 213,217.30
9.27 Cash CASH 1.00 199,697 199,696.76
-0.02 Cash OTHER PAYABLE & RECEIVABLES 1.00 -510 -510.20
Holdings are subject to change. "Cash" denotes U.S. dollars.

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.