ETF Report: Global X Alternative Income ETF (ALTY)

What this ETF is trying to do

The Global X Alternative Income ETF, known by its ticker symbol ALTY, is an exchange-traded fund. ETFs are like baskets that hold different types of investments. This specific fund focuses on providing income to its investors.

What the numbers show

As of July 15, 2026, the current price of one share is $12.43. Looking back at the past year, the price has grown by about 7.23%. When you include the money paid out to investors, the total return for the last year was 15.72%.

To see how prices change, let's look at a simple example. Imagine you invested $10,000 into this ETF one year ago when the estimated price was about $11.59 per share. Before any extra payments were made, your $10,000 would have grown in value because the share price went up to $12.43.

Income and distribution explanation

Some investors look for "yield," which is the amount of money an investment pays out compared to its price. This ETF has a distribution yield of 7.42%. Over the last 12 months, it paid out a total of $0.92 per share. These payments usually happen every month, with 12 payments made over the last year.

It is important to remember that a high yield alone can be misleading. A high percentage might look good, but you must also look at whether the actual price of the ETF is staying steady or falling.

NAV erosion explanation

"NAV erosion" is a term used when the value of the underlying investments in the ETF drops over time. If an ETF's share price falls from a high price to a much lower price, it can destroy your "principal." Principal is the original amount of money you put in. If the price collapses, you could lose much more money than you gained from the monthly payments.

However, for ALTY, no price erosion was detected. The data shows a "good" status for its erosion score, meaning the share price has been growing rather than shrinking.

Pros

• The ETF has shown positive total returns over one year (15.72%) and three years (36.94%).

• It provides regular monthly income.

• The share price has been increasing rather than falling.

Cons

• The current share price is relatively low at $12.43.

• Investors must always watch for the risk of price drops that could offset the income earned.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. This is because they want to collect their monthly payments without losing the original money they invested. Since ALTY has shown price growth alongside its distributions, it has avoided the problem of severe NAV erosion.