Navigating a Higher-For-Longer Rate Environment

With the prospect of rate cuts looking less likely in the short-term, investors may need to recalibrate expectations for the rest of 2024. Amid a potential higher-for-longer rate environment, diversification can be key.

Those looking to diversify their exposure might consider:

Artificial Intelligence & Technology ETF (AIQ)

The only pure play AI-themed ETF with more than $1 billion in AUM,[1] AIQ offers access to the high growth potential of the global artificial intelligence market.

SuperDividend? U.S. ETF (DIV)

With monthly distributions 10 years running, DIV invests in 50 of the highest dividend paying U.S. stocks – offering a strategy for generating high income potential, while also seeking to benefit from possible upside if stocks further rally.

1-3 Month T-Bill ETF (CLIP)

A historically higher-yielding cash alternative, CLIP provides access to the front end of the U.S. treasury curve through an ETF wrapper, which can be an ideal solution for investors seeking to mitigate credit and rate risk relative to other fixed income alternatives.

[1] ETF.com (2024, April 18). Artificial Intelligence ETFs.

Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit or guarantee against a loss. The companies in which AIQ invests may be subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation.

High yielding stocks are often speculative, high-risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and DIV’s performance.

Fixed income securities are subject to loss of principal during periods of rising interest rates. Similar to other issuers, changes to the financial condition or credit rating of the U.S. Government may cause the value of CLIP’s investments in U.S. Treasury obligations to decline. An investment in CLIP is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

This information is not intended to be individual or personalized investment advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your situation.

Carefully consider the Funds’ investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Funds’ full or summary prospectuses, which may be obtained at globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company LLC.