July 12, 2018. ALTY is one of those ‘out of the ordinary’ etf’s that nobody has ever heard of. Several years ago we owned SDIV, a similar etf, that provided excellent returns. We ended up selling it.
ALTY has been trading in a range since April 2016 and is relatively stable. At $14.95 pricing is right in the middle of the range. We do consider this position on the riskier side and as such we are starting with a small amount, possibly adding later on. The yield is a very nice 7.6%.
Here is a description that is pulled from the dense copy below: Alternative income investments that are eligible for inclusion in the Index fall into one of four classes: Master Limited Partnerships (MLPs) and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies.
We are placing a Limit Order for ALTY at $14.95 and do NOT expect it to be filled at that price, unless we get lucky. We will watch and possibly raise our bid to $15.00.
Global X SuperDividend Alternatives ETF
Ticker Symbol: ALTY CUSIP: 37954Y806 Exchange: NGM
Security Type: Index ETF — ETF SubType: U.S. Market Sector Index ETF
Company’s Online Profile
FUND DESCRIPTION: Global X SuperDividend Alternatives ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Global X Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Global X SuperDividend Alternatives ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend Alternatives Index. INDEX DESCRIPTION: The Indxx SuperDividend Alternatives Index is comprised of securities that rank among the highest dividend yielding securities in each eligible category of alternative income investments, at the time of index reconstitution, as defined by Indxx, LLC, the Index Provider. Alternative income investments that are eligible for inclusion in the Index fall into one of four classes: Master Limited Partnerships (MLPs) and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies. The Real Estate category provides exposure to global Real Estate Investment Trusts (REITs), and gains this exposure through the Global X SuperDividend REIT ETF. The Institutional Managers category primarily consists of shares of business development companies (BDCs) and publicly listed private equity companies. The Fixed Income and Derivative Strategies category includes exposure to emerging market debt, mortgage and asset backed securities and option-writing primarily through the purchase of publicly traded closed-end funds (CEFs). Each of the Index components are selected from a universe of securities that are publicly traded in the U.S. The Index assigns weights to each of the four categories in a method that seeks to equalize the volatility contribution of each category, which assigns less weight to higher volatility categories and more weight to lower volatility categories. The Index is reconstituted annually, but may rebalance quarterly if any one category deviates more than 3% from its target weight.