Latest news with #GlobalX
Yahoo
4 days ago
- Business
- Yahoo
Inflation keeps falling despite tariff clamor
Prices are cooling even though President Trump's trade war is dragging on and businesses keep threatening to raise their prices in response to it. The personal consumption expenditures (PCE) price index fell to a 2.1-percent annual increase in April, down from 2.3 percent in March and 2.6 percent in April, the Commerce Department reported Friday. Removing the more volatile categories of food and energy, PCE prices fell to a 2.5-percent increase. 'The impact of tariffs is once again missing from the inflation report,' Scott Helfstein, head of investment strategy at financial company Global X, said in a commentary. 'Each month we keep trying to assess whether tariffs are going to drive inflation higher, but the pauses keep pushing the prospect of higher prices further out,' he wrote. White House trade policy went through another major turnaround this week. Trump's wide-ranging emergency tariff powers, encompassing his national security tariffs and novel 'reciprocal' tariffs, were struck down by a court Wednesday before immediately being reinstated by a higher court Thursday. Cooling PCE inflation follows a similar pattern in the consumer price index (CPI), another pricing benchmark. After ticking up through the fall, the CPI has fallen throughout the first quarter of this year, dropping down to a 2.3-percent annual increase from 3 percent in January. U.S. consumers and businesses are showing themselves to be highly attuned to all the policy changes, which are coming fast and furious from the White House. After Trump's trade war tanked consumer and business sentiment earlier this year, importers executed a massive pull-forward in orders, leading to a 0.3-percent contraction in first-quarter gross domestic product (GDP). Consumers followed suit, increasing spending on automobiles by a whopping 57 percent in March ahead of expected tariffs. Now, just as businesses are holding off on making investments and capital expenditures, consumers are holding off on making purchases amid continued policy fluctuations. The April PCE report showed spending increasing by just 0.2 percent last month, while the personal saving rate increased to 4.9 percent from 4.3 percent in March. 'There is clear evidence that consumers are battening down the hatches, with data showing the highest savings rate since May 2024. However, robust disposable income growth bodes well for future spending,' Olu Sonola, head of U.S. economic research at Fitch Ratings, commented. Sustained hesitance from consumers in response to policy ambiguity could work against the many inflationary prognostications now swirling about the economy, driving down price pressures even as tariffs threaten to raise them. The minutes of the latest Federal Reserve meeting painted a stagflationary picture of the economy, with bankers voicing concerns about higher prices, lower output levels and increased unemployment. 'Tariffs were expected to boost inflation markedly this year,' the minutes say – an increase that has yet to materialize. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
5 days ago
- Business
- The Hill
Inflation keeps falling despite tariff clamor
Prices are cooling even though President Trump's trade war is dragging on and businesses keep threatening to raise their prices in response to it. The personal consumption expenditures (PCE) price index fell to a 2.1-percent annual increase in April, down from 2.3 percent in March and 2.6 percent in April, the Commerce Department reported Friday. Removing the more volatile categories of food and energy, PCE prices fell to a 2.5-percent increase. 'The impact of tariffs is once again missing from the inflation report,' Scott Helfstein, head of investment strategy at financial company Global X, said in a commentary. 'Each month we keep trying to assess whether tariffs are going to drive inflation higher, but the pauses keep pushing the prospect of higher prices further out,' he wrote. White House trade policy went through another major turnaround this week. Trump's wide-ranging emergency tariff powers, encompassing his national security tariffs and novel 'reciprocal' tariffs, were struck down by a court on Wednesday before immediately being reinstated by a higher court on Thursday. Cooling PCE inflation follows a similar pattern in the consumer price index (CPI), another pricing benchmark. After ticking up through the fall, the CPI has fallen throughout the first quarter of this year, dropping down to a 2.3-percent annual increase from 3 percent in January. U.S. consumers and businesses are showing themselves to be highly attuned to all the policy changes, which are coming fast and furious from the White House. After Trump's trade war tanked consumer and business sentiment earlier this year, importers executed a massive pull-forward in orders, leading to a 0.3-percent contraction in first-quarter gross domestic product (GDP). Consumers followed suit, increasing spending on automobiles by a whopping 57 percent in March ahead of expected tariffs. Now, just as businesses are holding off on making investments and capital expenditures, consumers are holding off on making purchases amid continued policy fluctuations. The April PCE report showed spending increasing by just 0.2 percent last month while the personal saving rate increased to 4.9 from 4.3 percent in March. 'There is clear evidence that consumers are battening down the hatches, with data showing the highest savings rate since May 2024. However, robust disposable income growth bodes well for future spending,' Olu Sonola, head of U.S. economic research at Fitch Ratings, commented. Sustained hesitance from consumers in response to policy ambiguity could work against the many inflationary prognostications now swirling about the economy, driving down price pressures even as tariffs threaten to raise them. The minutes of the latest Federal Reserve meeting painted a stagflationary picture of the economy, with bankers voicing concerns about higher prices, lower output levels, and increased unemployment. 'Tariffs were expected to boost inflation markedly this year,' the minutes say – an increase that has yet to materialize.
Globe and Mail
27-05-2025
- Business
- Globe and Mail
As defence spending ramps up, here's where investors see opportunities
As global instability deepens, a new wave of defence spending is capturing investors' attention. Driven by renewed U.S. pressure on NATO allies to meet spending targets and the planned US$175-billion 'Golden Dome' missile defence initiative, nations once reluctant to boost defence budgets are now investing in military capabilities rapidly. The proposed system to expand continental defence against missile and drone attacks is drawing interest from allies, including Canada. 'There are currently up to 56 major conflicts that are ongoing globally, which is the greatest number of countries engaged in conflict since World War II,' says Alexander Smahtin, portfolio manager at Global X Investments Canada Inc., which recently launched Global X Defence Tech Index ETF SHLD-T. 'We're sort of at an inflection point,' Mr. Smahtin says, with spending likely to increase as geopolitical tensions rise. Investors are watching the aerospace and defence sector closely for early opportunities. Petar Pejovic, senior portfolio manager with Wellington-Altus Private Wealth Inc., says the first wave of Golden Dome funding will likely benefit major U.S. defence contractors. 'Ultimately, we're thinking space and we're thinking the big incumbents will likely receive capital first,' he says, citing firms such as Boeing Co. BA-N, Northrop Grumman Corp. NOC-N and RTX Corp. RTX-N. He also cited Denver-based software company Palantir Technologies Inc. PLTR-Q as a potential beneficiary. Mr. Pejovic says the Golden Dome initiative marks a new era in military strategy with the emergence of hypersonic weapons and drone warfare. The initiative's first US$25-billion allotment is expected to flow into companies specializing in interceptors, sensors and systems integration, he says. 'We're basically being told that money is being diverted,' he adds, emphasizing that this broader defence rally is likely just beginning. 'As an investor, you should be paying attention to that.' David Rosenberg, founder of Rosenberg Research in Toronto, says the defence sector is relatively insulated from macroeconomic shocks and policy volatility, with long-term government defence commitments making earnings more predictable. 'This particular sector … is one of the few that has future earnings visibility and is not going to be caught up in a global tariff war,' Mr. Rosenberg says, adding that the opportunities are 'in the early innings.' Mr. Smahtin also points to portfolio diversification benefits because the defence sector tends to be uncorrelated with other segments of the market. One of the most notable increases in defence spending is happening in Germany, where Chancellor Friedrich Merz has proposed raising the country's defence budget to 3.5 per cent of gross domestic product. This shift has boosted investor confidence, with German defence firms such as Rheinmetall AG RNMBY and Hensoldt AG HAGHY seeing strong stock gains. 'The fact that the German coalition government made what can only be described as a radical decision to break its fiscal tourniquet and commit hundreds of billions of dollars toward the defence sector is a really big deal,' Mr. Rosenberg says. He also points to Japan's dramatic military budget increases and highlights that even historically pacifist nations are now making large-scale defence investments. Despite the sector's momentum, defence investing remains controversial for some. ESG-focused investors often steer clear of arms manufacturers and military contractors, citing ethical concerns. Mr. Smahtin acknowledges this sentiment, noting Global X designed its ETF to avoid the most contentious areas. Mr. Rosenberg, however, takes a more direct stance. 'To those people with bleeding hearts, I say, 'It's called defence, not offence,'' he says. 'Imagine if we didn't have a defence to fight World War I and World War II – what the world would look like if we did not have defence?'
Yahoo
24-05-2025
- Business
- Yahoo
Investing $10,000 Into This Supercharged Dividend ETF Could Generate Over $1,000 in Passive Income Each Year
The Global X SuperDividend ETF holds 100 of the highest-yielding dividend stocks in the world. The fund has a higher risk profile. Many of its holdings either pay variable dividends or have cut their payouts in the past. 10 stocks we like better than Global X Funds - Global X SuperDividend ETF › There are many ways to generate passive income. One of the easiest is to invest in an exchange-traded fund (ETF) focused on income-producing investments. These professionally managed funds come with built-in diversification, making them ideal investments to buy and hold for passive income. The Global X SuperDividend ETF (NYSEMKT: SDIV) enables investors to maximize their passive income production. The fund invests in 100 of the highest dividend-paying stocks around the world. Over the past 12 months, the dividend ETF's yield is over 10%. At that rate, a $10,000 investment in the ETF would produce over $1,000 of dividend income each year. The caveat is that with that higher yield comes a higher risk profile. The Global X SuperDividend ETF tracks the Solactive Global SuperDividend Index. That index follows 100 of the highest-yielding dividend stocks in the world. It subjects them to several qualitative checks to determine dividend stability and will remove companies that no longer pass its screening. The index weights companies equally. That reduces the risk that one company will have an outsized impact on performance. Meanwhile, its broad geographic diversity helps lower interest rate risk, which can have a meaningful impact on the values of higher-yielding dividend-paying stocks. The ETF collects dividend income from its 100 holdings and distributes that cash to investors each month. Over the past year, the fund has made distributions equating to a 10.8% yield. The Global X SuperDividend ETF has made monthly income payments to investors for 13 years. However, those payments have fluctuated considerably: That's because, despite the index's qualitative checks on dividend sustainability, higher-yielding dividend stocks tend to have higher risk profiles. These companies often have more volatile earnings, weaker financial profiles, and high dividend payout ratios. As a result, many of the higher-yielding dividend stocks it holds have had to cut their payments more than once. For example, one of the Global X SuperDividend ETF's 100 holdings is AGNC Investment (NASDAQ: AGNC). The mortgage REIT currently has a whopping 16% dividend yield. The company makes money by investing in mortgage-backed securities (pools of residential mortgages) using leverage. That strategy can enable AGNC to earn high returns. However, if market conditions deteriorate, the REIT's earnings fall. As a result, it has had to reduce its dividend payment several times over the years. Other holdings pay variable dividends. For example, oil tanker company Frontline's (NYSE: FRO) earnings tend to be very volatile, ebbing and flowing with global tanker rates, which can move sharply based on demand and the availability of oil tankers. Because of that, Frontline aims to align its dividend with its earnings by adjusting it each quarter based on its profitability in the period. The company has paid an average quarterly dividend of $0.45 per share over the past year, giving it a 10% yield on its share price. However, its payout has been as high as $0.62 per share and as low as $0.20 per share. The Global X SuperDividend ETF enables investors to hold 100 of the highest-yielding dividend stocks in the world through a single fund. That allows them to generate a lot of passive income. However, the fund has a higher risk profile, which means it's not the best option for those seeking a bankable income stream. It's better for those willing to take on more risk to maximize their passive income production. Before you buy stock in Global X Funds - Global X SuperDividend ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Global X Funds - Global X SuperDividend ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Investing $10,000 Into This Supercharged Dividend ETF Could Generate Over $1,000 in Passive Income Each Year was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
23-05-2025
- Business
- Cision Canada
GLOBAL X ANNOUNCES MAY 2025 DISTRIBUTIONS FOR ITS SUITE OF ETFs
TORONTO, May 23, 2025 /CNW/ - Global X Investments Canada Inc. ("Global X") is pleased to announce the distribution amounts per security (the"Distributions") for its exchange traded funds (the " ETFs"), for the period ending May 31, 2025, as indicated in the tables below. The ex-dividend date for the following Distributions is anticipated to be May 30, 2025. The record date for all ETFs will be May 30, 2025. The Distributions for securities of each ETF will be paid in cash or, if the securityholder has enrolled in the respective ETF's dividend reinvestment plan, reinvested in additional securities of the applicable ETF, on or about June 6, 2025. Distributions for the ETFs will vary from period to period. For further information regarding the Distributions, please visit About Global X Investments Canada Inc. ( Global X Investments Canada Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X Fund family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has more than $39 billion of assets under management and 142 ETFs listed on major Canadian stock exchanges. Global X is a wholly-owned subsidiary of the Mirae Asset Financial Group, which manages more than $800 billion of assets across 19 countries and global markets around the world. 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. The payment of distributions, if any, is not guaranteed and may fluctuate at any time. The payment of distributions should not be confused with an exchange traded fund's ("ETF") performance, rate of return, or yield. If distributions paid by the ETF are greater than the performance of the ETF, distributions paid may include a return of capital and an investor's original investment will decrease. A return of capital is not taxable to the investor but will generally reduce the adjusted cost base of the securities held for tax purposes. Distributions are paid as a result of capital gains realized by an ETF, and income and dividends earned by an ETF are taxable to the investor in the year they are paid. The investor's adjusted cost base will be reduced by the amount of any returns of capital. If the investor's adjusted cost base goes below zero, investors will realize capital gains equal to the amount below zero. Future distribution dates may be amended at any time. To recognize that these distributions have been allocated to investors for tax purposes the amounts of these distributions should be added to the adjusted cost base of the units held. The characterization of distributions, if any, for tax purposes, (such as dividends/other income/capital gains, etc.) will not be known for certain until after the ETF's tax year-end. Therefore, investors will be informed of the tax characterization after year-end and not with each distribution if any. For tax purposes, these amounts will be reported annually by brokers on official tax statements. Please refer to the applicable ETF distribution policy in the prospectus for more information. The Global X ETFs are not sponsored, endorsed, sold, or promoted by S&P, TSX, NASDAQ MX Group, or Morningstar and their affiliated companies and none of these parties make any representation, warranty, or condition regarding the advisability of buying, selling or holding units shares in the Global X ETFs. All trademarks/service marks are registered by their respective owners. None of the owners thereof or any of their affiliates sponsor, endorse, sell, promote or make any representation regarding the advisability of investing in the Global X ETFs. Complete trademark and service-mark information are available at 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. 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 Global X Russell 2000 Index ETF and the Global X Russell 2000 Covered Call ETF (in this disclaimer, the "Russell 2000 Funds") have been developed solely by Global X Investments Canada Inc. The Russell 2000 Funds are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the Russell 2000 RIC Capped Index (the "Index") vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license. The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Russell 2000 Funds. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Russell 2000 Funds or the suitability of the Index for the purpose to which it is being put by Global X Investments Canada Inc. 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. ("Global X") and any related funds. 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. 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. © 2025 Global X Investments Canada Inc. All Rights Reserved. SOURCE Global X Investments Canada Inc.
