The SuperDividend Report

Transcription

1 The SuperDividend Report In times of economic uncertainty and historically low interest rates in fixed income assets, investors are searching for other sources of income to supplement their portfolios. As with all investments, it is important to diversify among asset classes to help ensure that you are not over-exposed to a single geography, industry, or asset class. To help investors diversify their income sources, we have developed a suite of income-producing ETFs designed to be transparent, cost-effective and seamlessly added to an existing portfolio. High Income Potential Monthly Distributions As of 6/30/7 SDIV ETF DIV U.S. ETF EXPOSURE 30-DAY SEC YIELD -MONTH DIVIDEND YIELD COMPARISON SuperDividend ETF 6.56% 00 of the Highest Dividend ing Equities Globally 8.0% MSCI ACWI Index.43% SuperDividend U.S. ETF 5.3% 50 of the Highest Dividend ing U.S. Equities 5.90% S&P 500 Index.97% EFAS MSCI EAFE ETF 50 of the Highest Dividend ing securities across Europe, Australasia, and the Far East EAFE ETF 5.64% MSCI EAFE Index 3.5% SDEM Emerging Markets ETF 50 of the Highest Dividend ing Emerging Market Equities 3.4% SuperDividend Emerging Markets ETF MSCI Emerging Markets Index 4.76%.45% SRET REIT 30 of the Highest Dividend ing REITs Globally 7.0% SuperDividend REIT ETF MSCI World REIT Index 7.7% 3.9% SPFF SuperIncome Preferred ETF 50 of the Highest ing North American Preferred Stocks 6.69% SuperIncome Preferred ETF 7.6% S&P U.S. Preferred Stock Index 5.95% ALTY Alternatives ETF MLPs & Infrastructure Real Estate Institutional Managers Fixed Income & Derivative Strategies SuperDividend 7.6% Alternatives ETF 7.89% 0-Year Treasury Funds seek investment results that correspond generally to the price and yield performance of their underlying indexes. Index components are determined by the Funds index providers..49% 30-Day SEC as of June 30, 07. To read the Prospectus for more information, please visit globalxfunds.com/sdiv, globalxfunds.com/div, globalxfunds.com/spff, globalxfunds.com/sdem, globalxfunds.com/sret, globalxfunds.com/alty, and globalxfunds.com/efas U.S. Treasury securities, if held to maturity, guarantee a return of principal. Investments in any other securities included in this report carry no such guarantee..3%

2 STANDARD PERFORMANCE Fund Information s Performance As of 6/30/7 ETF Inception Date 06/08/0 U.S. ETF Inception Date 03//03 MSCI EAFE ETF Inception Date /4/06 Emerging Markets ETF Inception Date 03/6/05 REIT ETF Inception Date 03/6/05 SuperIncome Preferred ETF Inception Date 07/6/0 Alternatives ETF Inception Date 07/3/05 Ticker AUM Expense Ratio Distribution -Month Dividend 30-Day SEC 3 SDIV $93 m 0.58% 6.77% 6.56% 8.0% DIV $40 m 0.45% 5.9% 5.3% 5.90% EFAS $.7 m 0.55% 4.05% 5.64% SDEM $.7 m 0.65% 4.48% 4.76% 3.4% SRET $39.7 m 0.58% 7.9% 7.7% 7.0% SPFF $37 m 0.58% 6.98% 7.6% 6.69% ALTY $9.3 m 3.9% (0.75% Management Fee &.44% acquired fees) 7.7% 7.89% 7.6% Since Fund Inception -Year 5-Year Annualized Since Fund Inception NAV 33.69%.64% 7.80% 4.9% Market Price 33.79%.5% 7.67% 4.9% SOLSDIV Index 30.90%.88% 7.6% 4.54% NAV 33.45% 6.8% 6.94% Market Price 34.39% 6.7% 7.% IDIVT Index 38.00% 7.7% 7.77% NAV 8.6% Market Price 8.59% MCXGXC Index 8.80% NAV 8.77% 3.8% 7.80% Market Price 9.3%.60% 7.94% ISDEMT Index 3.07% 5.65% 9.48% NAV.55% 9.65% 8.89% Market Price.80% 9.34% 8.99% SRET Index 6.64% 8.0% 6.95% NAV 0.5%.0% 3.84% Market Price.49%.08% 4.8% SPPEYT Index 4.6%.56% 4.54% NAV 0.55%.09% 9.84% Market Price 0.7% 0.75% 9.85% IALTYT Index.0%.9% 0.74% 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. For performance data current to the most recent month end, please call -888-GX-FUND- ( ), or visit globalxfunds.com. Distribution : The annual yield an investor would receive if the most recent fund distribution remained the same going forward. The yield represents a single distribution from the fund and does not represent total return of the fund. The distribution yield is calculated by annualizing the most recent distribution and dividing by the NAV. -Month Dividend : The yield an investor would have received if they had held the fund over the last twelve months assuming the most recent NAV. The -Month yield is calculated by summing any income distributions over the past twelve months and dividing by the NAV Day SEC : A standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among funds. This figure reflects the interest earned during the period after deducting the fund s expenses for the period.

3 SDIV Component Credit Rating SDIV BBB- to BBB+ BB- to BB+ B- to B+ CCCto 54 of SDIV s 00 components received a rating from at least one of the three 54% of the components which were rated by at least one ratings agency had an investment grade rating. Windstream Holdings, Inc 5.5% 0.5% Ship Finance International Ltd. 3.% 0.9% Texwinca Holdings Ltd. 3.% 0.9% New York Mortgage Trust, Inc..9% 0.9% New Residential Investment Corp..9% 0.9% Nordic American Tankers Ltd..6% 0.7% CBL & Associates Properties, Inc..6% 0.8% Washington Prime Group, Inc..9% 0.9% CYS Investments, Inc..9%.% Cominar Real Estate Investment Trust..6% 0.8% $0.4 4/3/7 DIV Component Credit Rating DIV BBB- to BBB+ BBto BB+ B- to B+ CCCto 33 of DIV s 50 components received a rating from at least one of the three 70% of the components which were rated by at least one ratings agency had New York Mortgage Trust, Inc..9%.9% CYS Investments, Inc..9%.% Ellington Financial LLC.%.0% Chimera Investment Corp. 0.7%.0% Two Harbors Investment Corp. 0.5%.% PennyMac Mortgage Investment Trust 0.3%.% AGNC Investment Corp. 0.%.% Annaly Capital Management, Inc. 0.0%.% Apollo Commercial Real Estate Finance, Inc. 9.9%.% CrossAmerica Partners LP 9.7%.9% $0.6 $0.4 EFAS Component Credit Rating EFAS BBB- to BBB+ BBto BB+ B- to B+ CCCto 4 of EFAS s 50 components received a rating from at least one of the three 90% of the components which were rated by at least one ratings agency had Petrofac Ltd..5%.3% Marine Harvest ASA 9.0%.9% Harvey Norman Holdings Ltd. 8.%.% Fortum OYJ 8.0%.0% Engie SA 7.6%.0% Pearson PLC 7.5%.0% Royal Dutch Shell PLC Class A 7.3%.9% Telstra Corp Ltd. 7.%.0% Royal Dutch Shell PLC Class B 7.%.9% BP PLC 7.0%.9% Bloomberg, 6/30/07 Credit Quality Methodology: All rated securities are rated by S&P, Moody s, and/or Fitch. If a security is rated by more than one of these organizations, the lowest rating assigned is considered for this analysis. Ratings are measured on a scale that generally ranges from (highest) to D (lowest). $0.05 $0.03 $0.0

4 SDEM Component Credit Rating SDEM BBB- to BBB+ BB- to BB+ B- to B+ CCCto 7 of SDEM s 50 components received a rating from at least one of the three major credit rating agencies (S&P, Moody s and Fitch). 4% of the components which were rated by at least one ratings agency had an investment grade rating. Severstral PJSC 4.3%.0% Highwealth Construction Corp. 9.9%.0% Doha Bank QSC 9.5%.9% Novolipetsk Steel PJSC 9.0%.0% Redefine Properties Ltd. 8.5%.9% CEZ AS 8.3%.8% DAMAC Properties Dubai Co PJSC 7.9%.% Dubai Islamic Bank PJSC 7.9%.9% Vedanta Ltd. 7.8%.% MMI Holdings Ltd. 7.8%.8% $0.6 $0.4 SPFF Component Credit Rating SPFF CCC- BBB- to BBB+ BB- to BB+ B- to to B+ 40 of SPFF s 50 components received a rating from at least one of the three 75% of the components which were rated by at least one ratings agency had Frontier Communications 45.8%.6% Southwestern Energy Company.8%.4% Kinder Morgan (Delaware), Inc..4% 4.0% Stericycle, Inc. 8.%.4% Nustar Energy LP 8.% 0.7% CBL & Associates Properties, Inc. 7.9%.% Chimera Investment Corp. 7.8% 0.8% Wells Fargo & Co. 7.7%.6% Aegon N.V. 7.6%.5% Deutsche Bank Contingent Capital Trust V 7.6%.7% SRET Component Credit Rating SRET BBB- to BBB+ BB- to BB+ B- to B+ CCCto 3 of SRET s 30 components received a rating from at least one of the three 69% of the components which were rated by at least one ratings agency had Orchid Island Capital, Inc 7.0%.7% New Residential Investment Corp..9% 3.% Cominar Real Estate Investment Trust..6%.8% Chimera Investment Corp. 0.7% 3.3% Two Harbors Investment Corp. 0.5% 3.6% PennyMac Mortgage Investment Trust 0.3% 3.4% AGNC Investment Corp. 0.% 3.5% Annaly Capital Management, Inc. 0.0% 3.7% Apollo Commercial Real Estate Finance, Inc. 9.9% 3.4% MTGE Investment Corp. 9.6% 3.6% Bloomberg, 6/30/07 Credit Quality Methodology: All rated securities are rated by S&P, Moody s, and/or Fitch. If a security is rated by more than one of these organizations, the lowest rating assigned is considered for this analysis. Ratings are measured on a scale that generally ranges from (highest) to D (lowest). $0.4

5 ALTY Component Credit Rating ALTY to A+ BBB- to BBB+ BB- to BB+ B- CCCto B+ to 8 of ALTY s 44 components received a rating from at least one of the three ** 68% of the components which were rated by at least one ratings agency had ** Out of 44 ALTY s components, 3 are Closed-End Funds which are not rated by ratings agencies Bloomberg, 6/30/07 Credit Quality Methodology: All rated securities are rated by S&P, Moody s, and/or Fitch. If a security is rated by more than one of these organizations, the lowest rating assigned is considered for this analysis. Ratings are measured on a scale that generally ranges from (highest) to D (lowest). Suburban Propane Partners LP 4.9% 0.9% Stone Harbor Emerging Markets Income Fund 3.6% 3.% Prospect Capital Corp..3%.4% Icahn Enterprises LP.6%.3% Martin Midstream Partners LP.4%.% Sunoco LP 0.8%.3% Western Asset Mortgage Defined Opportunity 0.7% 3.3% Fund Inc. Fifth Street Finance Corp. 0.3%.% Medley Capital Corp. 0.0%.% PennantPark Investment Corp. 9.7%.3%

6 INDEX DEFINITIONS SOLSDIV IDIVT SPPEYT ISDEMT IALTYT SRET MCXGXC The Solactive Global SuperDividend Index tracks the performance of 00 equally weighted companies that rank among the highest dividend yielding equity securities in the world. The INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs and REITs that rank among the highest dividend yielding equity securities in the United States. The S&P Enhanced North American Preferred Stock Index tracks the performance of the highest yielding preferred securities in the United States and Canada. The Indxx SuperDividend Emerging Markets Index tracks the performance of 50 equally weighted companies that rank among the highest dividend yielding equity securities in emerging markets, as defined by Indxx. The components of the Underlying Index have paid dividends consistently over the last years. The Indxx SuperDividend Alternatives Index tracks the performance of a variety of liquid income-generating alternatives including MLPs & Infrastructure Companies, REITs, Private Equity & BDCs, and Closed End Funds focused on Derivative & Fixed Income Strategies. The index components rank among the highest yielding in their asset class, as determined by the Index Provider. Solactive Global REIT Index: The Solactive Global REIT Index tracks the performance of Real Estate Investment Trusts ( REITs ) that rank among the highest yielding REITs globally, as determined by the Index Provider. The Underlying Index is maintained by Solactive AG. The MSCI EAFE Top 50 Dividend Index tracks the performance of 50 of the highest yielding equity securities from international developed markets across Europe, Australasia, and the Far East. Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable uctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Diversification may not protect against market loss. Preferred stock is subject to many of the risks associated with debt securities, including interest rate risk. In addition, preferred stock may not pay a dividend, an issuer may suspend payment of dividends on preferred stock at any time, and in certain situations an issuer may call or redeem its preferred stock or convert it to common stock. High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund s performance. The potential benefits of investing in MLPs depend on them being treated as partnerships for federal income tax purposes. Further, if the MLP is deemed to be a corporation then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distributions to the fund which could result in a reduction of the fund s value. The risks associated with real estate investment trusts including interest rate risk which may cause certain REIT holdings to decline in value if interest rates increase. REITs are subject to general risks related to real estate including default risk and the possibility of decreasing property values. Diversi cation does not prevent all investment loss. Real estate is highly sensitive to general and local economic conditions and developments, and characterized by intense competition and periodic overbuilding. Many real estate companies, including REITs, utilize leverage (and some may be highly leveraged), which increases risk and could adversely affect a real estate company s operations and market value in periods of rising interest rates. ALTY may invest in MLPs, infrastructure investments, REITs, mortgage REITs, convertibles, preferred stocks, senior loans, currency trading, long/short credit, business development companies ( BDCs ), private equity, alternative strategy managed portfolios- and option-writing and therefore may be subject to all underlying risks. ALTY is non-diversified. ALTY may invest in derivatives, which are often more volatile than other investments and may magnify the Fund s gains or losses. There is no guarantee that dividends will be paid. This information is not intended to be individual or personalized investment or tax advice. Please consult a nancial advisor or tax professional for more information regarding your tax situation. The fund is required to distribute income and capital gains which may be taxable. Buying and selling shares will result in brokerage commissions and tax consequences. Shares are only available through brokerage accounts which may have minimum requirements. Only whole shares may be purchased. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The market price is the Mid-Point between the Bid and Ask price as of the close of exchange and do not represent the returns you would receive if you traded shares at any other times. This material must be preceded or accompanied by a current summary or full prospectus. Investors should read it carefully before investing or sending money. Funds distributed by SEI Investments Distribution Co. Global X Management Company, LLC serves as an advisor to the Global X Funds. The Global X Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 9456, which is not affiliated with Global X Management Company or any of its affiliates. Published July 07