Global X’s Enhanced Growth ETF Suite: Light Leverage Innovation Meets Fee Rebate

Global X’s Enhanced Growth ETFs provide an opportunity to amplify your exposure to some of the world’s most popular indices and asset classes using light leverage.

Whether you’re a seasoned investor or just starting your investing journey, Global X’s Enhanced Growth Exchange Traded Funds (ETFs) offer a balanced approach to enhancing your portfolio returns.  With this range of ETFs, you can incorporate light leverage on popular indices and asset classes – 25%– into your long-term investment strategy.

But why would you want to? Read on to discover how you can potentially take advantage of these innovative strategies and why lightly-levered ETFs deserve consideration for inclusion in your investment portfolio. Lightly leveraged ETFs are a strategic investment tool designed to amplify returns for a long-term focused investing approach.

Explore our Enhanced Growth ETFs →

Global X’s Enhanced Growth suite of ETFs provides an opportunity to potentially amplify returns beyond those of traditional benchmark ETFs. Applying a modest 25% leverage could enhance returns over time compared to a non-levered strategy, potentially helping you achieve your financial goals 1.25x faster.

To incentivize investors to explore the potential of lightly levered investing, Global X is rebating the management fee on the entire suite of Enhanced Growth ETFs to 0.00% effective August 1, 2024, until December 31, 2024, plus applicable sales taxes.

This provides investors with four months to benefit from our lightly leveraged returns without incurring a management fee, enabling them to retain more of their earnings and keep their money actively invested. The rebated ETFs are still subject to operating expenses, including the costs of leverage, which are included in the Management Expense Ratio (“MER”) and are still subject to trading costs which are included in the Trading Expense Ratio (“TER”). See below for how management fees have been rebated across this range of ETFs:

* Plus applicable sales tax.

Here’s how you can take advantage of this incredible offer:

And that’s it  ̶  rebate claimed!

Our rebate offer is designed to make your entry into the world of lightly-levered ETFs more affordable, maximizing your potential for amplified returns over the long term.

Some leveraged ETFs amplify the returns of an underlying reference index, asset class, or sector by typically employing leverage to 2-3 times or higher, as seen in more aggressively levered ETFs.

However, Global X’s Enhanced Growth range takes a more conservative approach. To do this, each of the Enhanced Growth ETFs creates leverage using cash borrowing and invests, on a leveraged basis, in a related ETF managed by Global X.

To ensure risk is limited to the capital invested, each of the Enhanced Growth ETFs is regularly monitored and seeks to maintain a leverage ratio of approximately 125%, or 1.25x, of its net asset value.

This moderate leverage allows investors to:

As you can see from the table below, over the 1-year period ended August 31, 2024, the S&P/TSX 60 returned 19.14% while Global X Enhanced S&P/TSX 60 Index ETF (CANL) returned 21.75%.

*Fund performance since inception on July 5, 2023 as at August 31, 2024

As you can see from the following chart, over a one-year period ending August 31, 2024, with an initial investment of $10,000 in the S&P/TSX 60 Index would have grown to $11,568. If a 1.25x leverage (CANL) was applied throughout that period, that investment would be $12,507.

FOR ILLUSTRATIVE PURPOSES ONLY¹

While this might not seem like a significant difference, consider that this is a one-year period. For long-term investors, this effect likely becomes more significant over a longer period.

Enhanced Growth ETFs offer a compelling way to enhance your investment returns while managing risk. Global X’s rebate makes it easier than ever to incorporate these dynamic instruments into your portfolio. Don’t miss out on this opportunity to amplify your investment potential—take the time to explore our selection of lightly-levered Enhanced Growth ETFs today and claim your rebate to start your journey toward greater financial success.

Keep More of What You Earn: Enhanced Growth ETFs with 0% Management Fees*.

*Management Fees Rebated to 0% until December 31, 2024, plus applicable sales tax.

DISCLAIMERS

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.

Each of the Enhanced ETFs are alternative investment fund (“Alternative ETFs”) within the meaning of the National Instrument 81-102 Investment Funds (“NI 81-102”) and are permitted to use strategies generally prohibited by conventional mutual funds, such as the ability to invest more than 10% of their net asset value in securities of a single issuer, the ability to borrow cash, to short sell beyond the limits prescribed for conventional mutual funds and to employ leverage of up to 300% of net asset value. While these strategies will only be used in accordance with the investment objectives and strategies of the Alternative ETFs, during certain market conditions they may accelerate the risk that an investment in ETF Shares of such Alternative ETF decreases in value. The Alternative ETFs will comply with all requirements of NI 81-102, as such requirements may be modified by exemptive relief obtained on behalf of the ETF.

¹ The Growth of 10K chart above is based on the historical daily net asset value per unit (NAV) of the ETF, and represents the value of an initial investment into the ETF of $10,000 since its inception, on a total return basis. Distributions, if any, are treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses where paid by the fund. The chart is not a performance chart and is not indicative of future value which will vary.

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 funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Global X Investments Canada Inc. and any related funds.

Nasdaq®, Nasdaq-100®, and Nasdaq-100 Index® are trademarks of The Nasdaq Stock Market, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Global X Investments Canada Inc. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

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.

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.

All comments, opinions and views expressed are generally based on information available as of the date of publication and should not be considered as advice to purchase or to sell mentioned securities. Before making any investment decision, please consult your investment advisor or advisors.

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.

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Published September 16, 2024