YLCO


YieldCo & Renewable Energy Income ETF

Fund Summary

The Global X YieldCo & Renewable Energy Income ETF (YLCO) seeks to provide exposure to an emerging class of income-generating renewable energy assets called YieldCos, along with other companies associated with the production of renewable energy that meet a minimum dividend yield criteria. Such companies may include renewable energy utilities (e.g., solar, wind and hydroelectric power), producers of renewable energy components, producers of biofuels, and other companies involved in the financing, installation, and operation of renewable energy projects, including smart grid technology.

Morningstar Rating Overall rating out of 56 Utilities funds, based on risk-adjusted returns as of 09/30/2020

Fund Objective

The Global X YieldCo & Renewable Energy Income ETF (YLCO) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx YieldCo & Renewable Energy Income Index.

Why YLCO?

High Income Potential

The Fund invests in YieldCos, which seek to return a large percentage of their cash flows as distributions, as well as dividend paying renewable energy companies.

Invest in Renewables

YLCO provides exposure to companies involved in a range of renewable energy projects, including production, components, systems, operations and technology.

Fund Details As of 10/16/20

Key Facts

Ticker YLCO
Inception Date 05/27/15
CUSIP 37954Y707
ISIN US37954Y7076
Bloomberg Index Ticker IYLCOREC
Primary Exchange Nasdaq
Number of Holdings 36

Stats & Fees

Net Assets $65,740,782
NAV $15.47
Shares Outstanding 4,250,000
Total Expense Ratio 0.65%

Distributions

30-Day SEC Yield 3.09%
12-Month Trailing Yield 3.01%
Distribution Yield 3.12%
Distribution Frequency Quarterly

Fund Prices As of 10/16/20

NAV Price 30-Day Median Bid-Ask Spread
Net Asset Value $15.47 Market Price $15.55 0.58%
Daily Change $0.00 -0.02% Daily Change -$0.10 -0.64%  

Performance History

Cumulative %

Data as of month-end (09/30/20)

Fund NAV Market Price Index
Year-to-Date 0.59% 0.78% 0.75%
1 Month -1.01% -1.21% -1.02%
3 Months 7.09% 7.00% 7.21%
6 Months 22.72% 21.97% 22.88%
Since Inception 22.10% 22.17% 24.47%

Avg Annualized %

Data as of month-end (09/30/20)

Fund NAV Market Price Index
1 Year 10.29% 10.02% 10.60%
3 Years 9.71% 9.59% 10.24%
5 Years 12.63% 12.54% 13.03%
Since Inception 3.81% 3.82% 4.18%

Avg Annualized %

Data as of quarter-end (09/30/20)

Fund NAV Market Price Index
1 Year 10.29% 10.02% 10.60%
3 Years 9.71% 9.59% 10.24%
5 Years 12.63% 12.54% 13.03%
Since Inception 3.81% 3.82% 4.18%

The Fund name, investment objective, and investment strategies changed effective November 19, 2018. Index performance reflects the performance of the Indxx Global YieldCo Index through November 16, 2018, and the Indxx YieldCo & Renewable Energy Income Index thereafter.

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.

Fund Characteristics As of 10/16/20

Return on Equity 7.20%
Weighted Avg. Market Cap 5,502 M
2019 2020
Price-to-earnings 20.48 22.81
Price-to-book value 1.65 1.64

Source: AltaVista Research, LLC

Fund Risk Stats As of 10/16/20

Versus Beta
S&P 500 0.70
MSCI EAFE 0.79
MSCI Emg. Mkts 0.61
Standard Deviation 15.70%

Source: AltaVista Research, LLC

Sector Breakdown As of 09/30/20

% of Net Assets
Utilities 89.9
Miscellaneous 4.1
Energy 2.7
Real Estate 2.3
Industrials 1.0

Source: AltaVista Research, LLC

Country Breakdown As of 09/30/20

% of Net Assets
Canada 17.3
United States 14.7
New Zealand 13.2
Chile 10.9
Bermuda 6.9
Britain 6.2
Italy 6.0
Portugal 5.7
China 4.6
Australia 4.4
Brazil 4.2
Other/Cash 5.9

Source: AltaVista Research, LLC

Top 10 Holdings As of 10/16/20

Net Assets (%) Ticker Name SEDOL Market Price ($) Shares Held Market Value ($)
6.74 BEP-U CN BROOKFIELD RENEW B712JY0 53.88 82,277 4,433,033.39
6.33 MEL NZ MERIDIAN ENERGY LTD BWFD052 3.73 1,115,257 4,161,626.59
6.29 AQN CN ALGONQUIN POWER B51BMR7 15.71 263,313 4,135,837.62
5.89 EDP PL EDP 4103596 5.33 725,547 3,869,912.80
5.31 ENELAM CI ENEL AMERICAS SA 2299453 0.13 26,037,464 3,488,311.84
4.64 NPI CN NORTHLAND POWER INC B68XHC3 33.85 90,120 3,050,887.71
4.06 AGL AU AGL ENERGY LTD BSS7GP5 9.52 280,038 2,667,255.21
4.03 EGIE3 BZ ENGIE BRASIL ENERGIA SA BD1WX84 7.23 366,477 2,649,278.33
3.32 MCY NZ MERCURY NZ LTD B8W6K56 3.57 611,852 2,182,126.12
3.27 ENELCHIL CI ENEL CHILE SA BYMLZD6 0.07 31,070,214 2,148,268.64
Holdings are subject to change.

© 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Ratingfor funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales load. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three- year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

As of 9/30, YLCO was rated against the following numbers of Utilities funds over the following time periods: 56 during the last 3 years, 53 during the last 5 years. With respect to these Utilities funds, YLCO received a Morningstar Rating of 5 stars, for both periods. Past performance is not indicative of future results.

Investing involves risk, including the possible loss of principal. Investments in smaller companies typically exhibit higher volatility. The value of securities issued by companies in the energy sector may decline for many reasons, including, without limitation, changes in energy prices; international politics; energy conservation; the success of exploration projects; natural disasters or other catastrophes; changes in exchange rates, interest rates, or economic conditions; changes in demand for energy products and services; and tax and other government regulatory policies. YLCO is non-diversified.

Investments in yieldcos involve risks that differ from investments in traditional operating companies, including risks related to the relationship between the yieldco and the company responsible for the formation of the yieldco. Yieldco securities can be affected by expectations of interest rates, investor sentiment towards yieldcos or the energy sector.

Yieldcos may distribute all or substantially all of the cash available for distribution, which may limit new acquisitions and future growth. Yieldcos may finance its growth strategy with debt, which may increase the yieldco’s leverage and the risks associated with the yieldco. The ability of a yieldco to maintain or grow its dividend distributions may depend on the entity’s ability to minimize its tax liabilities through the use of accelerated depreciation schedules, tax loss carryforwards, and tax incentives.

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. Beginning October 15, 2020, 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. Prior to October 15, 2020, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times. 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. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Indxx, nor does Indxx make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Indxx.