Global x yieldco

What is the inception date of the X yieldco ETF?

The Fund inception date reflects the original inception date of the Fund when it was the Global X YieldCo ETF. (2) The Hybrid YieldCo Index consists of the Indxx Global YieldCo Index from the inception of the Fund through November 16, 2018, and the Indxx YieldCo & Renewable Energy Income Index going forward.

What are yieldcos?

YieldCos are an emerging asset class of publicly traded companies that are focused on returning cash flows generated from renewable energy assets to shareholders. These assets largely consist of solar and wind farms that have entered into long-term energy delivery contracts with customers.

When did Global X yieldco change its name?

(1) The Fund’s name, investment objective, and investment strategy changed effective November 19, 2018. The Fund inception date reflects the original inception date of the Fund when it was the Global X YieldCo ETF.

What is the hybrid yieldco index?

(2) The Hybrid YieldCo Index consists of the Indxx Global YieldCo Index from the inception of the Fund through November 16, 2018, and the Indxx YieldCo & Renewable Energy Income Index going forward. Investing involves risk, including the possible loss of principal. Investments in smaller companies typically exhibit higher volatility.

How does a yieldco work?

A YieldCo is created when an energy company (the “parent”) spins off a completed renewable energy project or number of projects that have begun producing stable cash flows. In most cases, the parent company continues to hold a majority interest in the YieldCo and sells a minority stake to public shareholders in an initial public offering.

What are yieldco assets?

These assets largely consist of solar and wind farms that have entered into long-term energy delivery contracts with customers. Many YieldCos are able to distribute a high percentage of their cash flows by utilizing tax incentives to minimize tax liabilities.