Weakness in Global X Alternative Income ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The team managing the passive strategy earns a Low People Pillar. The strategy gets a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in the Europe-Developed region and has a substantial overweight in developed markets regions compared with category peers. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Global X Emerging Markets Bond ETF 

Global X NASDAQ 100 Covered Call ETF

Global X U.S. Preferred ETF

Global X SuperDividend REIT ETF

Hess Midstream Partners

Williams

Kinder Morgan

Avangrid

ALLETE

Spire

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. Global X Alternative Income ETF earns a Low Process Pillar rating.  The main detractor from the rating is the fund's weak long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's inferior risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.1 stars, also limits the process. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis. The parent firm's five-year risk-adjusted success ratio of 28% further limits the process. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

 The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks to track, before fees and expenses, the price and yield performance of the Indxx SuperDividend® Alternatives Index ("underlying index").  The fund invests at least 80% of its total assets in the securities of the underlying index and in American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs") based on the securities in the underlying index. The underlying index is intended to provide exposure to five income-producing categories: Master Limited Partnerships ("MLPs") and Infrastructure, Real Estate, Preferreds, and Emerging Market Bonds and Covered Calls.  

 The portfolio is overweight in real estate and utilities relative to the category average by 28.3 and 13.3 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and industrials, underweight the average by 15.1 and 10.8 percentage points , respectively. The portfolio is overweight in North America by 15.0 percentage points compared with the category average, and Developed Asia's allocation is similar to its peers. The regions with low exposure compared to their category peers are Developed Europe and Japan, underweight the average by 8.4 percentage points and 3.7 percentage points, respectively.

Process

Global X’s team receives a Low People Pillar rating. The main determinant of the rating is the instability of management across its parent firm. The firm's asset-weighted manager tenure of six years suggests it could do more to retain portfolio managers. Management team experience, which averages four years at this fund, also limits the team. The parent firm's five-year success ratio of 30% further hinders the team. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

People

Mirae Asset Global Investments is a Korean asset manager and a key player in the Asian financial market. It is a wholly owned subsidiary of Mirae Asset Financial Group, founded by Hyeon Joo Park. Park’s leadership and entrepreneurial spirit have been the driving force behind the global rise of Mirae, and he holds a majority stake in the business. 
Mirae Asset has grown significantly over the years (USD 198 billion as of December 2022) across a diversified platform, of which about 60% of assets are managed in South Korea. We believe that Mirae’s core mutual fund business in the Asia-Pac region is relatively strong. It has a collaborative structure, a strong and large investment team, low manager turnover, competitive fees, and a disciplined approach to product-development pointing toward better stewardship practices relative to peers in these markets. However, this is in stark contrast to its exchange-traded fund business, which accounts for 41% of the total assets. 
The firm’s ETF lineup focuses largely on high-risk thematic strategies that seem gimmicky, emphasizing short-term asset-gathering. The firm appears to leverage trending topics such as robotics and artificial intelligence, virtual reality and gaming, and cloud computing. There’s a notable concern regarding the potential liquidation of these funds since they seem to be designed around investment fads. Furthermore, these products are often expensive, especially compared with broadly diversified index funds and ETFs. Unsurprisingly, Mirae's reflexive product-development strategy has led to an increase in fund closures.
Our experience engaging with the MAGI team to gather critical information for the parent assessment has not been as positive. It hasn’t been as transparent in its disclosures, and unlike its peers, its responsiveness has been inadequate. We prefer firms with a more transparent corporate culture. Overall, these actions hold us back, and the firm retains its Parent Pillar rating of Average.

Average

Parent

Global X SuperDividend Alternatives ETF

ALTY tracks an index consisting of a variety of assets such as equity, debt securities and covered calls. Selected based on high dividend yield and low volatility.

Global X Alternative Income ETF is a multi-asset fund with a 7.3% yield. It has beaten its 3 closest competitors since 2018, and also in 2023. However, the ALTY ETF has lost about 24% in share price and 31% in distributions since inception.

ALTY: 7% Yield ETF Beating Competitors, Yet Unattractive

A lot of ALTY is invested in buy-write strategies that work pretty well in higher volatility environments. Moreover, rates are likely approaching their peaks sooner rather than later, and therefore the longer duration exposures aren't as bad.

ALTY Has Some Advantages In A Higher Volatility Environment

ALTY is an ETF diversified in five high-yield asset categories. Share price and income stream have shrunk by more than 20% since 2016.

ALTY: High Yield ETF With Shrinking Value And Distributions

Invesco KBW High Dividend Yield Financial ETF

FlexShares Credit-Scored US Long Corporate Bond Index Fund

Invesco Global Listed Private Equity ETF

Virtus WMC International Dividend ETF

Consumer Staples Select Sector SPDR Fund

Health Care Select Sector SPDR Fund

The Fed will continue to hike rates to tame inflation. This may slower economic growth and result in stagflation.

Fearing Stagflation? ETF Strategies to Win

ALTY gets the majority of its exposure in preferred shares, emerging market bonds and a REIT focused dividend ETF. Underlying instruments themselves have good yield to support the monthly distribution at almost 8%.

ALTY Achieves Yield With Its Exposures

Benchmark Treasury yields are rising across the board as inflation fears continue to swirl in the capital markets. Even so, the benchmark 10-year yield may not be enough for what fixed income investors are looking for these days.

Get an Added Dose of Yield With ALTY

Goldman Sachs says that stagflation has reached the economy. Here's is how to save your ETF portfolio from stagflation.

ETF Investing Strategies in Times of Stagflation

Fixed income investors are well aware that the safety of governments bonds won't provide supercharged yields. This is where sources like real estate or other alternatives can help outpace inflation.

Don't Know Where to Start With Alternative Income? Check Out ALTY

ALTY is a high yield ETF providing monthly distributions.

ALTY Reshuffled: Higher Yield, Lower Fee, But Still Unattractive

Eagle Point Credit

Huntington Bancshares

Starwood Property

Verizon

After 49 weeks and $4,900 allocated, the Dividend Harvesting portfolio is generating $338.40 in annual dividend income. In week 49, I added to VZ, STWD, and ALTY.

Dividend Harvesting Week 49 Update: $4,900 Allocated $338.40 In Annual Dividends Yielding 6.62% Across 60 Positions

BlackRock Science & Technology

British American Tobacco

Citigroup

Nationwide Risk-Managed Income ETF

PIMCO Corporate & Income Opportunity Fund

After 47 weeks and $4,700 allocated, the Dividend Harvesting portfolio is generating $317.03 in annual dividend income.

Dividend Harvesting Week 47 Update: $4,700 Allocated, $317.03 In Annual Dividends Yielding 6.52% Across 60 Positions

It's difficult to argue against a dividend yield of 7%, but the discerning investors will want to know if it's sustainable over an extended period of time. This is where an exchange traded fund (ETF) like the Global X SuperDividend Alternatives ETF (ALTY) comes into play.

An Income ETF With 6 Years of Monthly Distributions to Consider

The Global X Alternative Income ETF combines 4 high-yield alternative asset ETFs with a separate allocation to high-dividend infrastructure stocks. The fund has outperformed this year with the underlying holdings benefiting from the strong macro environment we expect to continue through 2022.

ALTY: High-Yield Dividends With A Twist Of Diversification

Intel

Kraft Heinz

Omega Healthcare Investors

Tekla World Healthcare Fund

After 31 weeks and $3,100, the Dividend Harvesting Portfolio is generating $215.44 in estimated annual income and $17.95 in monthly estimated income.

Dividend Harvesting: Week 31 Update, $3,100 Allocated, $215.44 In Annual Dividends Yielding 7.02% With 48 Positions

Global X SuperDividend US ETF

iShares Emerging Markets Dividend ETF

Invesco KBW Premium Yield Equity REIT ETF

Global X Superdividend ETF

Global companies are so cash-rich that they are looking forward to roll out dividends, according to a global study by Janus Henderson Investors, as quoted on a Bloomberg article.

Global Dividends to Reach Near-Record Payouts? ETFs to Buy

Cisco Systems

Clearway Energy

Enbridge

JPMorgan Equity Premium Income ETF

ONEOK

AT&T

After 24 weeks and $2,400, the Dividend Harvesting Portfolio is generating $161.04 in estimated annual income and $13.42 in monthly estimated income. In week 24, I added the JPMorgan Equity Premium Income ETF and increased my position in BP and ALTY from Global X.

Dividend Harvesting: Week 24 Update, $2,400 Invested, 45 Positions, 6.58% Yield And $161.04 In Annual Dividends

These dividend ETFs yield at least 5% amid current low-rate environment.

5 Dividend ETFs Yielding 5% or More

Alerian MLP ETF

Bristol-Myers

Altria

Global X Russell 2000 Covered Call ETF

STAG Industrial

After 15 weeks and $1,500, the Dividend Harvesting Portfolio is generating $94.02 in estimated annual income and $7.83 in monthly estimated income.

Dividend Harvesting: Building The Portfolio Brick By Brick On $100 A Week, Week 15 Update

ALTY facts and portfolio. Historical performance.

ALTY: Another High Yield, High Risk ETF

As benchmark Treasury yields continue to flux up and down, fixed income investors can achieve higher yielding asset exposure with the Global X SuperDividend Alternatives ETF (ALTY). As opposed to safe haven debt like Treasury yields, ALTY gives fixed income investors exposure to a variety of sources, such as real estate and business development companies [.

Double Down on Dividends with the Global X ALTY ETF

These ETFs offer at least 7% in annual yield.

Earn 7% Plus Yield With These ETFs

Arbor Realty Trust

B&G Foods

Delek Logistics Partners

Janus Henderson Group

PBF Logistics

SPDR Portfolio S&P 500 High Dividend ETF

WBI Power Factor High Dividend ETF

High-yield dividend ETFs and stocks play a defensive role in a portfolio and can reduce volatility in turbulent times.

5 High-Yield Dividend ETFs & Stocks to Buy Now

First Trust DJ Global Select Dividend Index Fund

Amid market volatility and lower rate environment, investors are seeking consistent and safe income, thereby driving the appeal for dividend investing.

High-Yield Dividend ETFs in Focus

AllianceBernstein Hld

Pacer Global Cash Cows Dividend ETF

Macy's

NuStar Energy

Prudential

Quad/Graphics

Amid the market turmoil and low interest rates environment, investors are in search of juicy yields. And nothing is better than the high-yield dividend ETFs.

High Yield Dividend ETFs & Stocks to Buy as Fed Cuts Rate

WisdomTree Emerging Markets Dividend Fund

Legg Mason International Low Volatility High Dividend ETF

The traditional weight rule of 60/40 for a retirement portfolio should no longer be relied upon, per some strategists. Hawkish investors can play their theory with some dividend-heavy ETFs.

News for Global X SuperDividend Alternatives ETF ETF (ALTY)