TORONTO, Dec. 6, 2024 /CNW/ - Global X Investments Canada Inc. ("Global X" or the "Manager") announced today that the swap costs payable by certain corporate class index exchange traded funds (the "ETFs") it manages are changing effective January 1, 2025, as indicated in the table below. These swap costs, payable to an ETF's bank counterparty or counterparties, as applicable, are increasing because of changing swap market conditions.
Currently, each ETF pays to its counterparty or counterparties, monthly in arrears, a net amount equal to no more than a percentage per annum of the notional value of the Swap calculated and applied daily in arrears as set out in the table below (the "Swap Costs") in the "Current Swap Costs" column. It is currently expected that, effective January 1, 2025, the Swap Costs of each ETF will increase as follows:
ETF
Ticker(s)
Current Swap Costs
Estimated Swap Costs beginning January 1, 2025
Global X S&P/TSX 60 Index Corporate Class ETF
HXT, HXT.U
Nil
Up to 0.20%
Global X S&P 500 Index Corporate Class ETF
HXS, HXS.U
Up to 0.30 %
Up to 0.50%
Global X S&P 500 CAD Hedged Index Corporate Class ETF
HSH
Up to 0.30 %
Up to 0.50%
Global X S&P/TSX Capped Energy Index Corporate Class ETF
HXE
Nil
Up to 0.20%
Global X S&P/TSX Capped Financials Index Corporate Class ETF
HXF
Nil
Up to 0.20%
Global X Canadian Select Universe Bond Index Corporate Class ETF
HBB
Up to 0.15%
Up to 0.30%
Global X US 7-10 Year Treasury Bond Index Corporate Class ETF
HTB, HTB.U
Up to 0.05%
Up to 0.20%
Global X Europe 50 Index Corporate Class ETF
HXX
Up to 0.30 %
Up to 0.50%
Global X Canadian High Dividend Index Corporate Class ETF
HXH
Nil
Up to 0.20%
Global X Intl Developed Markets Equity Index Corporate Class ETF
HXDM, HXDM.U
Up to 0.30 %
Up to 0.50%
Global X Equal Weight Canadian REITs Index Corporate Class ETF
HCRE
Nil
Up to 0.20%
Global X Laddered Canadian Preferred Share Index Corporate Class ETF
HLPR
Nil
Up to 0.20%
Global X Equal Weight Canadian Banks Index Corporate Class ETF
HEWB
Nil
Up to 0.20%
Global X S&P/TSX Capped Composite Index Corporate Class ETF
HXCN
Nil
Up to 0.20%
Global X Emerging Markets Equity Index Corporate Class ETF
HXEM
Up to 0.30 %
Up to 0.50%
As disclosed in the prospectus of the ETFs, Swap Costs incurred by an ETF are not fixed, and may increase, decrease, or in the case of the termination of an ETF's Swap or Swaps, be eliminated. Also as disclosed in the prospectus of the ETFs, Global X Canadian Select Universe Bond Index Corporate Class ETF and Global X US 7-10 Year Treasury Bond Index Corporate Class ETF may incur hedging costs.
There are no changes to the management fees of the ETFs as a result of these changes. For greater certainty, there is no increase in any amounts payable by the ETFs to Global X, the Manager of the ETFs, in connection with the Swap Costs increase. The increased Swap Costs will be reflected in the Trading Expense Ratios ("TER") of the ETFs.
Additional information regarding the increased Swap Costs is or will be made available in a prospectus amendment on the Manager's website, www.globalx.ca, and on www.sedarplus.ca.
For further information regarding the ETFs, please visit www.GlobalX.ca.
Global X Investments Canada Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X Fund family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has more than $38 billion of assets under management and 134 ETFs listed on major Canadian stock exchanges. Global X is a wholly-owned subsidiary of the Mirae Asset Financial Group, which manages more than $800 billion of assets across 19 countries and global markets around the world.
Commissions, management fees, and expenses all may be associated with an investment in products (the "Global X Funds") managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently, and past performance may not be repeated. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The Global X Money Market Funds are not covered by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation, or any other government deposit insurer. There can be no assurances that the money market fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the Funds will be returned to you. Past performance may not be repeated. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing.
The Global X ETFs are not sponsored, endorsed, sold, or promoted by S&P, TSX, NASDAQ MX Group, or Morningstar and their affiliated companies and none of these parties make any representation, warranty, or condition regarding the advisability of buying, selling or holding units shares in the Global X ETFs. All trademarks/service marks are registered by their respective owners. None of the owners thereof or any of their affiliates sponsor, endorse, sell, promote or make any representation regarding the advisability of investing in the Global X ETFs. Complete trademark and service-mark information are available at https://www.globalx.ca/disclaimers.
Standard & Poor's®" and "S&P®" are registered trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by Global X Investments Canada Inc. ("Global X") The Global X ETFs are not sponsored, endorsed, sold or promoted by S&P, and S&P makes no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Global X ETFs.
The financial instrument is not sponsored, promoted, sold, or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade name or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade name for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument.
Mirae Asset Global Index Private Limited (an affiliate of the Manager) owns all rights to the trademark, name and intellectual property associated with the Underlying Indices of the Index ETFs (in this disclaimer, the "Mirae Asset Indices"). No representation is made by Mirae Asset Global Index Private Limited that the Mirae Asset Indices are accurate or complete or that investment in a Mirae Asset Index or an Index ETF will be profitable or suitable for any person. The Mirae Asset Indices are administered and calculated by Mirae Asset Global Index Private Limited and Mirae Asset Global Index Private Limited will have no liability for any error in the calculation of the Mirae Asset Indices. Mirae Asset Global Index Private Limited does not guarantee that the Mirae Asset Indices or their underlying methodology is accurate or complete.
Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange traded products managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
Global X Investments Canada Inc. ("Global X") is a wholly owned subsidiary of Mirae Asset Global Investments Co., Ltd. ("Mirae Asset"), the Korea-based asset management entity of Mirae Asset Financial Group. Global X is a corporation existing under the laws of Canada and is the manager and investment manager of the Global X Funds.
