UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________
FORM N-CSR
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22209
Global X Funds
(Exact name of registrant as specified in charter)
________
605 Third Avenue, 43rd floor
New York, NY 10158
(Address of principal executive offices) (Zip code)
Luis Berruga
Global X Management Company LLC
605 Lexington Ave, 43rd floor
New York, NY 10158
(Name and address of agent for service)
With a copy to:
Global X Management Company LLC 605 Third Avenue, 43rd floor New York, NY 10158 | Eric S. Purple, Esq. Stradley Ronon Stevens & Young, LLP 2000 K Street, N.W., Suite 700 Washington, DC 20006-1871 |
Registrant’s telephone number, including area code: (212) 644-6440
Date of fiscal year end: November 30, 2020
Date of reporting period: November 30, 2020
Item 1. Reports to Stockholders.
A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR § 270.30e-1), is attached hereto.
Global X SuperDividend® Alternatives ETF (ticker: ALTY) |
Global X S&P 500® Quality Dividend ETF (ticker: QDIV) |
Global X U.S. Preferred ETF (ticker: PFFD) |
Global X Variable Rate Preferred ETF (ticker: PFFV) |
Global X MLP ETF (ticker: MLPA) |
Global X MLP & Energy Infrastructure ETF (ticker: MLPX) |
Global X TargetIncomeTM 5 ETF (ticker: TFIV) |
Global X TargetIncomeTM Plus 2 ETF (ticker: TFLT) |
Global X Conscious Companies ETF (ticker: KRMA) |
Global X Adaptive U.S. Factor ETF (ticker: AUSF) |
Global X Founder-Run Companies ETF (ticker: BOSS) |
Annual Report
November 30, 2020
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ (defined below) shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, shareholder reports will be available on the Funds’ website (www.globalxetfs.com/explore), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of Fund shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.
Table of Contents |
Management Discussion of Fund Performance | 1 |
Schedules of Investments | |
Global X SuperDividend® Alternatives ETF | 27 |
Global X S&P 500® Quality Dividend ETF | 32 |
Global X U.S. Preferred ETF | 36 |
Global X Variable Rate Preferred ETF | 51 |
Global X MLP ETF | 58 |
Global X MLP & Energy Infrastructure ETF | 60 |
Global X TargetIncomeTM 5 ETF | 63 |
Global X TargetIncomeTM Plus 2 ETF | 65 |
Global X Conscious Companies ETF | 67 |
Global X Adaptive U.S. Factor ETF | 74 |
Global X Founder-Run Companies ETF | 82 |
Statements of Assets and Liabilities | 87 |
Statements of Operations | 90 |
Statements of Changes in Net Assets | 93 |
Financial Highlights | 99 |
Notes to Financial Statements | 105 |
Report of Independent Registered Public Accounting Firm | 127 |
Disclosure of Fund Expenses | 129 |
Approval of Investment Advisory Agreement | 132 |
Supplemental Information | 140 |
Trustees and Officers of the Trust | 141 |
Notice to Shareholders | 144 |
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Shares may only be redeemed directly from the Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “SEC” or “Commission”) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. The Funds’ Forms N-PORT are available on the Commission’s website at https://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-493-8631; and (ii) on the Commission’s website at https://www.sec.gov.
Management Discussion of Fund Performance (unaudited) |
Global X SuperDividend® Alternatives ETF |
Global X SuperDividend® Alternatives ETF
The Global X SuperDividend® Alternatives ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend® Alternatives Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying 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 Underlying Index reconstitution, as defined by Indxx, LLC, the provider of the Underlying Index. Alternative income investments that are eligible for inclusion in the Underlying Index fall into one of four classes: Master Limited Partnerships (“MLPs”) and Infrastructure, Real Estate, Institutional Managers, and Fixed Income and Derivative Strategies. The MLPs and Infrastructure categories primarily consist of units of MLPs and shares of infrastructure companies. The Real Estate category provides exposure to global Real Estate Investment Trusts (“REITs”), and gains this exposure through investing directly in 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 Underlying Index components is selected from a universe of securities that are publicly traded in the U.S. The Underlying 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 Underlying Index is reconstituted annually, but may rebalance quarterly if any one category deviates more than 3% from its target weight.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund decreased 13.13%, while the Underlying Index decreased 13.77%. The Fund had a net asset value of $14.74 per share on November 30, 2019 and ended the reporting period with a net asset value of $11.51 per share on November 30, 2020.
During the reporting period, the highest returns came from BP Midstream Partners LP and Magellan Midstream Partners, LP, which returned 21.55% and 20.93%, respectively. The worst performers were Alliance Resource Partners, LP and ONEOK, Inc., which returned -72.44% and -60.44%, respectively.
Over the reporting period, the Fund had negative performance as certain alternative segments struggled amid the COVID-19 pandemic. While income-oriented securities generally benefitted from massive stimulus from the U.S. Federal Reserve, including near zero interest rates and trillions in asset purchases, some segments still struggled. The Fund’s real estate allocation significantly detracted from performance. With a weakened economic backdrop, corporate bankruptcies increased alongside unemployment and weaker consumer expectations. This resulted in increased defaults on mortgages across commercial and residential segments, negatively impacting the Fund’s REIT exposure. In addition, falling energy output in the U.S. due to weakened oil demand amid lockdowns hurt MLPs. During the reporting period, the Fund had an average approximate exposure of 22% to REITs, 20% to BDCs, 13% to MLPs and Infrastructure, and 13% to covered call strategies.
1
Management Discussion of Fund Performance (unaudited) |
Global X SuperDividend® Alternatives ETF |
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||||
One Year Return | Three Year Return | Five Year Return | Annualized Inception to Date* | |||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X SuperDividend® Alternatives ETF | -13.13% | -13.22% | -0.92% | -0.96% | 4.11% | 4.07% | 3.42% | 3.37% |
Indxx SuperDividend® Alternatives Index | -13.77% | -13.77% | -0.71% | -0.71% | 4.57% | 4.57% | 3.91% | 3.91% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 13.99% | 13.99% | 12.90% | 12.90% |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on July 13, 2015.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Indxx SuperDividend® Alternatives Index is designed to track the performance of different Alternative asset classes, with an objective of providing a diversified portfolio of assets with a low volatility and high dividend yield.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
2
Management Discussion of Fund Performance (unaudited) |
Global X SuperDividend® Alternatives ETF |
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
3
Management Discussion of Fund Performance (unaudited) |
Global X S&P 500® Quality Dividend ETF |
Global X S&P 500® Quality Dividend ETF
The Global X S&P 500® Quality Dividend ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500® Quality High Dividend Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to U.S. equity securities included in the S&P 500® Index that exhibit high quality and dividend yield characteristics, as determined by Standard & Poor’s Financial Services LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund decreased 1.47%, while the Underlying Index decreased 1.17%. The Fund had a net asset value of $26.51 per share on November 30, 2019 and ended the reporting period with a net asset value of $25.20 per share on November 30, 2020.
During the reporting period, the highest returns came from Celanese Corporation and BlackRock, Inc., which returned 48.27% and 44.95%, respectively. The worst performers were Carnival Corporation and TechnipFMC PLC, which returned -64.31% and -62.38%, respectively.
With the COVID-19 pandemic creating a difficult economic backdrop, many large cap companies looked to preserve cash by freezing dividend increases, or more significantly, reducing or suspending dividend payments altogether. In addition, companies taking emergency loans from the U.S. government were forced to suspend dividends and buybacks as part of the terms of their aid. This hurt the performance of dividend payers broadly. Another headwind for the Fund was its low relative exposure to growth-oriented tech-enabled companies that thrived during the period. Dividend-paying Information Technology and Communication Services equities tended to drag on performance compared to their sector peers that do not pay dividends and are often at a steeper part of their growth cycle. Among the sectors, the Fund had an approximate average exposure of 20% to Financials, 16% to Industrials, 13% to Information Technology, and 12% to Real Estate.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X S&P 500® Quality Dividend ETF | -1.47% | -1.55% | 3.52% | 3.52% |
S&P 500® Quality High Dividend Index | -1.17% | -1.17% | 3.86% | 3.86% |
S&P 500® Index | 17.46% | 17.46% | 13.55% | 13.55% |
4
Management Discussion of Fund Performance (unaudited) |
Global X S&P 500® Quality Dividend ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on July 13, 2018.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The S&P 500® Quality High Dividend Index measures the performance of S&P 500® stocks that exhibit both high quality and high dividend yield characteristics.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
5
Management Discussion of Fund Performance (unaudited) |
Global X U.S. Preferred ETF |
Global X U.S. Preferred ETF
The Global X U.S. Preferred ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE BofAML Diversified Core U.S. Preferred Securities Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally uses a representative sampling strategy with respect to the Underlying Index.
The Underlying Index is designed to track the broad-based performance of the U.S. preferred securities market. The Underlying Index includes different categories of preferred stock, such as floating, variable and fixed-rate preferreds, cumulative and non-cumulative preferreds, and trust preferreds. Qualifying preferred securities must be listed on a U.S. exchange, denominated in U.S. dollars, and have a minimum amount outstanding of $100 million. Qualifying securities must meet minimum price, liquidity, maturity and other requirements as determined by ICE Data Indices, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 8.13%, while the Underlying Index increased 8.27%. The Fund had a net asset value of $24.79 per share on November 30, 2019 and ended the reporting period with a net asset value of $25.36 per share on November 30, 2020.
During the reporting period, the highest returns came from Nabors Industries Ltd 6% and Ford Motor Co 6%, which returned 162.87% and 57.80%, respectively. The worst performers were Chesapeake Energy Corp 4.50% and CBL & Associates Properties Inc. 7.375%, which returned -97.35% and -92.52%, respectively.
The Fund’s holdings consist of broad exposure to U.S. preferred stocks, providing benchmark-like exposure to the asset class. Preferred stocks have historically offered high yield potential given that they are junior in the capital structure to traditional debt instruments. Preferred stocks performed positively during the reporting period, as higher yielding asset classes like preferreds rallied on massive stimulus from the U.S. Federal Reserve and lower for longer interest rate expectations. Investors gravitated towards higher yielding asset classes like preferreds based on this policy guidance. Preferreds also benefitted from credit spread tightening with the global economy recovering from the depths of the COVID-19 pandemic towards the end of the reporting period. During the reporting period, the Fund had an average approximate allocation of 62% to Financials, 15% to Utilities, and 7% to Real Estate.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X U.S. Preferred ETF | 8.13% | 8.20% | 6.32% | 6.28% | 6.12% | 6.35% |
ICE BofAML Diversified Core U.S. Preferred Securities Index | 8.27% | 8.27% | 6.54% | 6.54% | 6.34% | 6.34% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 14.56% | 14.56% |
6
Management Discussion of Fund Performance (unaudited) |
Global X U.S. Preferred ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on September 11, 2017.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The ICE BofAML Diversified U.S. Preferred Securities Index was formerly known as BofA Merrill Lynch Diversified Core U.S. Preferred Securities Index.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
7
Management Discussion of Fund Performance (unaudited) |
Global X Variable Rate Preferred ETF |
Global X Variable Rate Preferred ETF
The Global X Variable Rate Preferred ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE U.S. Variable Rate Preferred Securities Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally uses a representative sampling strategy with respect to the Underlying Index.
The Underlying Index is designed to track the broad-based performance of the U.S.-listed variable rate preferred securities market. Qualifying preferred securities must be listed on a U.S. exchange, denominated in U.S. dollars, have floating or variable dividends or coupons, and have a minimum amount outstanding of $50 million. Qualifying preferred securities may, however, be issued by non-U.S. companies. Qualifying securities must be issued in $25, $50, $100, or $1000 par/liquidation preference increments, must have a traded market value of greater than $6 million in each of the previous three calendar months, and must have at least one year remaining to maturity, as determined by ICE Data Indices, LLC, the provider of the Underlying Index.
For the period from the Fund’s commencement date on June 22, 2020 through November 30, 2020 (the “reporting period”), the Fund increased 10.59%, while the Underlying Index increased 10.75%. The Fund had a net asset value of $24.85 per share on June 22, 2020 and ended the reporting period with a net asset value of $26.97 per share on November 30, 2020.
During the reporting period, the highest returns came from Exantas Capital Corp. and AG Mortgage Investment Trust Inc., which returned 80.79% and 48.81%, respectively. The worst performers were NGL Energy Partners LP and SLM Corp., which returned -35.11% and -5.98%, respectively.
Preferred stocks have historically offered higher yield potential given that they are junior in the capital structure to traditional debt instruments. Variable rate preferreds are a subset of the preferred asset class which includes securities that reset their coupon at certain intervals based on the prevailing interest rate. Therefore, these securities tend to have lower duration compared to fixed rate preferreds. Preferred stocks performed positively during the reporting period, as higher yielding asset classes like preferreds rallied on massive stimulus from the U.S. Federal Reserve and lower for longer interest rate expectations. Yet the lower duration nature of variable rate preferreds weighed on their performance relative to longer duration issuances. Preferreds were also propelled by tighter credit spreads on improving economic expectations towards the end of the reporting period. During the reporting period, the Fund had an average approximate allocation of 85% to Financials, 8% to Energy, and 4% to Utilities.
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X Variable Rate Preferred ETF | 10.59% | 10.75% |
ICE U.S. Variable Rate Preferred Securities Index | 10.75% | 10.75% |
S&P 500® Index | 17.01% | 17.01% |
8
Management Discussion of Fund Performance (unaudited) |
Global X Variable Rate Preferred ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on June 22, 2020.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The ICE U.S. Variable Rate Preferred Securities Index is designed to track the broad-based performance of the U.S. variable rate preferred securities market.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
9
Management Discussion of Fund Performance (unaudited) |
Global X MLP ETF |
Global X MLP ETF
The Global X MLP ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive MLP Infrastructure Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is intended to give investors a means of tracking the performance of the energy infrastructure master limited partnership (“MLP”) asset class in the United States, which includes MLPs engaged in transportation, storage, and processing of natural resources.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund decreased 30.51%, while the Underlying Index decreased 32.34%. The Fund had a net asset value of $7.32 per share on November 30, 2019 and ended the reporting period with a net asset value of $26.73 per share on November 30, 2020, following a 1:6 reverse share split on April 28, 2020.
During the reporting period, the highest returns came from EnLink Midstream LLC and Equitrans Midstream Corp., which returned 34.37% and 5.81%, respectively. The worst performers were NGL Energy Partners LP and Genesis Energy, LP, which returned -74.41% and -62.27%, respectively.
Midstream MLPs operate toll road-like business models in which they are compensated based on the volumes of natural gas or crude oil that they transport, store, or process. The COVID-19 pandemic impacted the energy supply chain in North America. The shutdown measures enacted by governments globally resulted in significantly lower energy demand, causing commodity prices to fall and U.S. energy production to decline dramatically. MLPs, as production-based entities, saw reduced volumes and therefore lower revenues. Some of the MLPs’ losses were later recovered as global economies re-opened and oil prices stabilized, but the overhang of the pandemic did not lead to a complete recovery as U.S. production remained below pre-pandemic levels.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||||
One Year Return | Three Year Return | Five Year Return | Annualized Inception to Date* | |||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X MLP ETF | -30.51% | -30.82% | -13.89% | -13.95% | -7.87% | -7.96% | -5.97% | -5.99% |
Hybrid Solactive MLP Infrastructure Index/Solactive MLP Composite Index** | -32.34% | -32.34% | -15.89% | -15.89% | -9.72% | -9.72% | -6.09% | -6.09% |
Solactive MLP Composite Index | -18.13% | -18.13% | -8.67% | -8.67% | -3.61% | -3.61% | -1.86% | -1.86% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 13.99% | 13.99% | 14.12% | 14.12% |
*The Fund commenced investment operations on April 18, 2012.
**Reflects performance of Solactive MLP Composite Index through March 31, 2015 and Solactive MLP Infrastructure Index thereafter.
10
Management Discussion of Fund Performance (unaudited) |
Global X MLP ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on April 18, 2012.
**Reflects performance of Solactive MLP Composite Index through March 31, 2015 and Solactive MLP Infrastructure Index thereafter.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Solactive MLP Composite Index tracks the price movements in shares of the largest entities that are structured as Master Limited Partnerships (MLP) and that are engaged in the transportation, storage, processing, refining, marketing, exploration, production, or mining of natural resources.
The Solactive MLP Infrastructure Index tracks the price movements in shares of companies that are structured as Master Limited Partnerships (MLP) and that are engaged in own and operate assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
11
Management Discussion of Fund Performance (unaudited) |
Global X MLP ETF |
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices above.
12
Management Discussion of Fund Performance (unaudited) |
Global X MLP & Energy Infrastructure ETF |
Global X MLP & Energy Infrastructure ETF
The Global X MLP and Energy Infrastructure ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive MLP & Energy Infrastructure Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index tracks the performance of midstream master limited partnerships (“MLPs”) and energy infrastructure corporations. Midstream energy infrastructure MLPs and corporations principally own and operate assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund decreased 13.40%, while the Underlying Index decreased 12.85%. The Fund had a net asset value of $11.15 per share on November 30, 2019 and ended the reporting period with a net asset value of $26.59 per share on November 30, 2020, following a 1:3 reverse share split on April 28, 2020.
During the reporting period, the highest returns came from Antero Midstream Corp. and Tallgrass Energy LP, which returned 84.65% and 25.01%, respectively. The worst performers were Genesis Energy, LP and Crestwood Equity Partners LP, which returned -55.45% and -51.58%, respectively.
Midstream MLPs and energy infrastructure companies operate toll road-like business models in which they are compensated based on the volumes of natural gas or crude oil that they transport, store, or process. The COVID-19 pandemic impacted the energy supply chain in North America. The shutdown measures enacted by governments globally resulted in significantly lower energy demand, causing commodity prices to fall and U.S. energy production to decline dramatically. Economic recoveries were also slower than initially anticipated around certain parts of the world, limiting the rebound in energy production. Exploration & Production companies changed their capital expenditure plans to account for the pandemic, reducing energy output by as much as 25% from peak to trough during the reporting period. Midstream companies were impacted by reduced output, causing revenues to fall. Some of the losses were later recovered when economies started the re-opening process and oil output increased.
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||||
One Year Return | Three Year Return | Five Year Return | Annualized Inception to Date* | |||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X MLP & Energy Infrastructure ETF | -13.40% | -13.40% | -5.57% | -5.51% | -2.36% | -2.32% | -2.27% | -2.19% |
Solactive MLP & Energy Infrastructure Index | -12.85% | -12.85% | -4.99% | -4.99% | -1.61% | -1.61% | -1.64% | -1.64% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 13.99% | 13.99% | 13.18% | 13.18% |
13
Management Discussion of Fund Performance (unaudited) |
Global X MLP & Energy Infrastructure ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on August 6, 2013.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Solactive MLP & Energy Infrastructure Index tracks the performance of MLPs and energy infrastructure corporations.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
14
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM 5 ETF |
Global X TargetIncomeTM 5 ETF
The Global X TargetIncomeTM 5 ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Wilshire TargetIncome 5% Plus Index℠ (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally uses a representative sampling strategy with respect to the Underlying Index.
The Underlying Index seeks to provide broad exposure to income-producing asset classes using a portfolio of exchange-traded funds, with the goal, but not the guarantee, of providing exposure that may be sufficient to support an annualized yield of five percent (5.0%) for the Fund, net of fees.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 1.34%, while the Underlying Index increased 1.77%. The Fund had a net asset value of $24.23 per share on November 30, 2019 and ended the reporting period with a net asset value of $23.22 per share on November 30, 2020.
During the reporting period, the highest returns came from Global X SuperDividend® U.S. ETF and iShares 20+ Year Treasury Bond ETF, which returned 32.26% and 15.80%, respectively. The worst performers were Global X SuperDividend® ETF and Global X U.S. Preferred ETF, which returned -22.09% and -2.33%, respectively.
The Fund performed positively during the reporting period as the U.S. Federal Reserve dropped interest rates to nearly zero and engaged in a massive asset purchasing program. Designed to reduce borrowing costs and provide liquidity to the markets, these programs provided a tailwind for income-based investments broadly, particularly longer duration bonds. Long duration treasuries and high yield corporate bonds provided tailwinds to the Fund’s performance during the reporting period. However, high yielding global equities and preferreds struggled in the midst of the COVID-19 pandemic and weak economic backdrop. During the reporting period, the Fund had an average exposure of 20% to Senior Loans, 19% to High Yield Bonds, 18% to Emerging Market Bonds, and 15% to Preferreds.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X TargetIncomeTM 5 ETF | 1.34% | 1.25% | 2.46% | 2.48% |
Wilshire TargetIncome 5% Plus IndexSM | 1.77% | 1.77% | 2.91% | 2.91% |
S&P 500® Index | 17.46% | 17.46% | 13.46% | 13.46% |
Bloomberg Barclays U.S. Aggregate Bond Index | 7.28% | 7.28% | 7.57% | 7.57% |
15
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM 5 ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on July 27, 2018.
The Wilshire TargetIncome 5% Plus IndexSM measures an investment strategy that provides broad exposure to income-producing asset classes, using a universe of exchange-traded funds (ETFs) with the goal of achieving an annualized target income yield in excess of 5%.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
16
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM 5 ETF |
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices above and on the previous page.
17
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM Plus 2 ETF |
Global X TargetIncomeTM Plus 2 ETF
The Global X TargetIncomeTM Plus 2 ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Wilshire TargetIncomeTM 10-Year Treasury +2% Plus Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally uses a representative sampling strategy with respect to the Underlying Index.
The Underlying Index seeks to provide broad exposure to income-producing asset classes using a portfolio of exchange-traded funds, with the goal, but not the guarantee, of providing exposure that may be sufficient to support an annualized yield of the U.S. 10-Year Treasury yield plus two percent (2.0%) for the Fund, net of fees.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 3.22%, while the Underlying Index increased 3.67%. The Fund had a net asset value of $24.37 per share on November 30, 2019 and ended the reporting period with a net asset value of $24.31 per share on November 30, 2020.
During the reporting period, the highest returns came from Schwab US TIPS ETF and iShares Core U.S. Aggregate Bond ETF, which returned 10.05% and 7.33%, respectively. The worst performers were VanEck Vectors J.P. Morgan EM Local Currency Bond ETF and Global X U.S. Preferred ETF, which returned -5.31% and -2.33%, respectively.
The Fund performed positively during the reporting period as the U.S. Federal Reserve dropped interest rates to nearly zero and engaged in a massive asset purchasing program. Designed to reduce borrowing costs and provide liquidity to the markets, these programs provided a tailwind for income-based investments broadly, particularly longer duration bonds. Higher quality exposures like U.S. investment grade bonds and U.S. treasury inflation-protected securities performed well as investors sought investments with lower default risk amid a troubling economic backdrop. The Fund’s exposures to local currency emerging market bonds and preferreds were adversely affected by the COVID-19 pandemic as they tend to have more credit risk, which suffered during the global economic weakness. During the reporting period, the Fund had an average exposure of 21% to Investment Grade Bonds, 20% to Senior Loans, and 20% to High Yield Bonds.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X TargetIncomeTM Plus 2 ETF | 3.22% | 3.14% | 3.28% | 3.30% |
Wilshire TargetIncome 10-Year Treasury +2% Plus IndexSM | 3.67% | 3.67% | 3.71% | 3.71% |
S&P 500® Index | 17.46% | 17.46% | 13.46% | 13.46% |
Bloomberg Barclays U.S. Aggregate Bond Index | 7.28% | 7.28% | 7.57% | 7.57% |
18
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM Plus 2 ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on July 27, 2018.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Wilshire TargetIncome 10-Year Treasury +2% Plus IndexSM measures an investment strategy that provides broad exposure to income-producing asset classes, using a universe of exchange-traded funds (ETFs) with the goal of achieving an annualized target income yield in excess of the U.S. 10-Year Treasury plus 2% (U.S. 10-Year Treasury +2% Plus).
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
19
Management Discussion of Fund Performance (unaudited) |
Global X TargetIncomeTM Plus 2 ETF |
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices above and on the previous page.
20
Management Discussion of Fund Performance (unaudited) |
Global X Conscious Companies ETF |
Global X Conscious Companies ETF
The Global X Conscious Companies ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Concinnity Conscious Companies Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to companies listed in the United States that operate their businesses in a sustainable and responsible manner, as measured by their ability to achieve positive outcomes that are consistent with a multi-stakeholder operating system (“MsOS”), as defined by Concinnity Advisors LP, the provider of the Underlying Index (“Index Provider”). The MsOS is a corporate governance structure that seeks to account for the multiple stakeholders that are critical for the ongoing success of the business, and incorporate the considerations of these stakeholders into the corporate decision-making and problem-solving process. The Index Provider conducts its analysis based on the following five key stakeholder groups: (1) Customers, (2) Employees, (3) Suppliers, (4) Stock and Debt Holders, and (5) Communities in which the companies operate.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 16.01%, while the Underlying Index increased 16.42%. The Fund had a net asset value of $23.10 per share on November 30, 2019 and ended the reporting period with a net asset value of $26.46 per share on November 30, 2020.
During the reporting period, the highest returns came from Square, Inc. and NVIDIA Corporation, which returned 205.21% and 147.67%, respectively. The worst performers were Delta Air Lines, Inc. and Occidental Petroleum Corporation, which returned -54.48% and -53.28%, respectively.
While aligning investments with one’s personal values continues to gain traction, there are a variety of available methods to achieve this goal. Many values-based strategies apply a negative screening approach that starts with a broad market index and removes companies that score poorly in the pillars of Environmental, Social, and Governance. The Fund takes a different approach, looking to positively identify companies that seek beneficial outcomes for a variety of stakeholders, including employees, suppliers, customers, investors, and local communities. This investment adviser believes this approach can more proactively identify companies looking to have a positive influence across a number of measures. However, this approach can also increase the performance differences of the strategy relative to a broad-based index like the S&P 500® Index. During the reporting period, the Fund delivered performance that slightly underperformed the S&P 500® Index. The Fund had the highest average approximate exposure to the Information Technology (23%), Health Care (15%), and Financials (14%) sectors.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Conscious Companies ETF | 16.01% | 15.55% | 13.12% | 13.14% | 15.22% | 15.25% |
Concinnity Conscious Companies Index | 16.42% | 16.42% | 13.65% | 13.65% | 15.73% | 15.73% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 15.01% | 15.01% |
21
Management Discussion of Fund Performance (unaudited) |
Global X Conscious Companies ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on July 11, 2016.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Concinnity Conscious Companies Index is designed to provide exposure to companies listed in the U.S. that operate their businesses in a sustainable and responsible manner, as measured by their ability to achieve positive outcomes that are consistent with a multi-stakeholder operating system (“MsOS”), as defined by Concinnity Advisors LP (“Concinnity”), the provider of the Concinnity Conscious Companies Index.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
22
Management Discussion of Fund Performance (unaudited) |
Global X Adaptive U.S. Factor ETF |
Global X Adaptive U.S. Factor ETF
The Global X Adaptive U.S. Factor ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Adaptive Wealth Strategies U.S. Factor Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to dynamically allocate across three sub-indices that provide exposure to U.S. equities that exhibit characteristics of one of three primary factors: value, momentum and low volatility.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 0.14%, while the Underlying Index increased 0.41%. The Fund had a net asset value of $25.79 per share on November 30, 2019 and ended the reporting period with a net asset value of $24.91 per share on November 30, 2020.
During the reporting period, the highest returns came from Zoom Video Communications, Inc. and Quidel Corporation, which returned 219.78% and 112.18%, respectively. The worst performers were MFA Financial, Inc. and Service Properties Trust, which returned -75.90% and -74.25%, respectively.
The Fund employs a dynamic multifactor investment strategy that allocates across three factors: minimum volatility, value, and momentum. The index methodology allocates weight to the three sub-indices based on the relative performance of each sub-index since the last rebalance of the Underlying Index. While the Fund turned in positive performance over the reporting period, it underperformed major U.S. equity benchmarks like the S&P 500® Index. The Fund’s biases towards the minimum volatility, value and momentum factors provided headwinds amid a more narrow market rally that greatly rewarded large cap technology-focused stocks. During the reporting period, the Fund had an average approximate allocation of 27% to Financials, 13% to Information Technology, and 12% to Real Estate.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Adaptive U.S. Factor ETF | 0.14% | -0.06% | 3.73% | 3.70% |
Adaptive Wealth U.S. Factor Index | 0.41% | 0.41% | 4.06% | 4.06% |
S&P 500® Index | 17.46% | 17.46% | 12.88% | 12.88% |
23
Management Discussion of Fund Performance (unaudited) |
Global X Adaptive U.S. Factor ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on August 24, 2018.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Adaptive Wealth Strategy U.S. Factor Index employs a reversion to the mean process to dictate which investment theme to own at any given time.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
24
Management Discussion of Fund Performance (unaudited) |
Global X Founder-Run Companies ETF |
Global X Founder-Run Companies ETF
The Global X Founder-Run Companies ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive U.S. Founder-Run Companies Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to U.S. companies in which a founder or co-founder of the company is serving as the Chief Executive Officer of the company, as defined by Solactive AG, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 40.29%, while the Underlying Index increased 40.99%. The Fund had a net asset value of $20.50 per share on November 30, 2019 and ended the reporting period with a net asset value of $28.66 per share on November 30, 2020.
During the reporting period, the highest returns came from Tesla Inc. and Trade Desk, Inc., which returned 760.16% and 242.17%, respectively. The worst performers were Pebblebrook Hotel Trust and ViaSat, Inc., which returned -56.02% and -53.74%, respectively.
The Fund seeks to outperform the broad market over the long term by harnessing the unique characteristics of firms run by their original founders. A significant portion of these founders’ personal wealth is often tied to the companies they lead. Therefore, these companies often focus on long-term value creation through innovation and entrepreneurialism and are less concerned with short-term growth targets. In addition, founders tend to pay themselves lower salaries and take on less debt than average. During the reporting period, the Fund saw an average approximate allocation of 33% in the Information Technology sector, 15% in the Health Care sector, and 13% in the Financials sector.
AVERAGE ANNUAL TOTAL RETURNFOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Founder-Run Companies ETF | 40.29% | 39.95% | 19.54% | 19.05% | 19.72% | 19.60% |
Solactive U.S. Founder-Run Companies Index | 40.99% | 40.99 | 20.21 | 20.21 | 20.42 | 20.42 |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 14.56 | 14.56 |
25
Management Discussion of Fund Performance (unaudited) |
Global X Founder-Run Companies ETF |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on February 13, 2017.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Solactive U.S. Founder-Run Companies Index is designed to provide exposure to U.S. companies in which a founder or co-founder of the company is serving as the Chief Executive Officer of the company.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
26
Schedule of Investments | November 30, 2020 | |
Global X SuperDividend® Alternatives ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Note 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 30.0% | ||||||||
Energy — 1.9% | ||||||||
Kinder Morgan | 26,063 | $ | 374,786 | |||||
Financials — 15.8% | ||||||||
Ares Capital | 14,963 | 246,590 | ||||||
Blackstone Group, Cl A | 4,030 | 239,987 | ||||||
Carlyle Group | 8,508 | 241,712 | ||||||
Gladstone Investment (A) | 22,945 | 227,156 | ||||||
Hamilton Lane, Cl A | 3,213 | 224,524 | ||||||
Hercules Capital | 18,527 | 247,150 | ||||||
KKR | 6,124 | 232,283 | ||||||
Main Street Capital (A) | 7,060 | 219,919 | ||||||
New Mountain Finance | 21,879 | 262,329 | ||||||
Oaktree Specialty Lending | 43,260 | 242,689 | ||||||
Owl Rock Capital | 17,478 | 236,303 | ||||||
Prospect Capital (A) | 41,709 | 222,726 | ||||||
Sixth Street Specialty Lending | 12,295 | 253,400 | ||||||
3,096,768 |
27
Schedule of Investments | November 30, 2020 | |
Global X SuperDividend® Alternatives ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Utilities — 12.3% | ||||||||
Dominion Energy | 3,984 | $ | 312,704 | |||||
Duke Energy | 3,573 | 331,074 | ||||||
Edison International | 6,210 | 381,045 | ||||||
Evergy | 6,318 | 350,080 | ||||||
OGE Energy | 10,679 | 345,893 | ||||||
PPL | 11,630 | 330,525 | ||||||
Southern | 5,836 | 349,285 | ||||||
2,400,606 | ||||||||
TOTAL COMMON STOCK | ||||||||
(Cost $5,606,244) | 5,872,160 | |||||||
EXCHANGE TRADED FUNDS — 26.4% | ||||||||
Eaton Vance Tax-Managed Buy-Write Income Fund | 35,297 | 503,335 | ||||||
Global X SuperDividend REIT ETF (A)(B) | 419,288 | 3,618,456 | ||||||
Nuveen Dow 30sm Dynamic Overwrite Fund | 35,300 | 523,499 | ||||||
Nuveen S&P 500 Buy-Write Income Fund (A) | 42,069 | 523,759 | ||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $6,687,638) | 5,169,049 | |||||||
CLOSED-END FUNDS — 26.1% | ||||||||
BlackRock Income Trust | 78,899 | 482,862 | ||||||
Brookfield Real Assets Income Fund (A) | 29,455 | 518,408 | ||||||
Eaton Vance Risk-Managed Diversified Equity Income Fund (A) | 49,907 | 502,064 | ||||||
Morgan Stanley Emerging Markets Domestic Debt Fund | 85,358 | 524,952 | ||||||
Nuveen Mortgage and Income Fund | 25,231 | 492,005 | ||||||
Stone Harbor Emerging Markets Income Fund (A) | 75,171 | 556,265 | ||||||
Templeton Emerging Markets Income Fund | 64,456 | 497,600 | ||||||
Voya Global Equity Dividend and Premium Opportunity Fund | 97,483 | 504,962 | ||||||
Western Asset Emerging Markets Debt Fund | 39,110 | 524,074 | ||||||
Western Asset Mortgage Opportunity Fund (A) | 36,402 | 504,168 | ||||||
28
Schedule of Investments | November 30, 2020 | |
Global X SuperDividend® Alternatives ETF |
Shares | Value | |||||||
CLOSED-END FUNDS — continued | ||||||||
TOTAL CLOSED-END FUNDS | ||||||||
(Cost $5,640,625) | $ | 5,107,360 | ||||||
MASTER LIMITED PARTNERSHIPS — 16.1% | ||||||||
Energy — 11.8% | ||||||||
Black Stone Minerals | 52,052 | 365,405 | ||||||
BP Midstream Partners | 32,863 | 372,666 | ||||||
Energy Transfer | 59,877 | 370,040 | ||||||
Magellan Midstream Partners | 9,485 | 390,308 | ||||||
MPLX | 20,807 | 437,779 | ||||||
Sunoco | 13,344 | 370,830 | ||||||
2,307,028 | ||||||||
Financials — 1.1% | ||||||||
Compass Diversified Holdings | 11,074 | 216,718 | ||||||
Industrials — 1.7% | ||||||||
Icahn Enterprises | 6,595 | 330,212 | ||||||
Utilities — 1.5% | ||||||||
Suburban Propane Partners | 19,668 | 301,314 | ||||||
TOTAL MASTER LIMITED PARTNERSHIPS | ||||||||
(Cost $2,568,591) | 3,155,272 | |||||||
BUSINESS DEVELOPMENT COMPANY — 1.1% | ||||||||
Golub Capital BDC | 15,654 | 218,999 | ||||||
TOTAL BUSINESS DEVELOPMENT COMPANY | ||||||||
(Cost $243,218) | 218,999 | |||||||
SHORT-TERM INVESTMENT(C)(D) — 1.4% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $270,137) | 270,137 | 270,137 | ||||||
29
Schedule of Investments | November 30, 2020 | |
Global X SuperDividend® Alternatives ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(C) — 9.9% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $1,941,382 (collateralized by U.S. Treasury Obligations, ranging in par value $6,748 - $277,266, 2.000%, 07/31/2022, with a total market value of $1,980,091) | ||||||||
(Cost $1,941,378) | $ | 1,941,378 | $ | 1,941,378 | ||||
TOTAL INVESTMENTS — 111.0% | ||||||||
(Cost $22,957,831) | $ | 21,734,355 |
Percentages are based on Net Assets of $19,572,851.
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $2,101,993. |
(B) | Affiliated investment. |
(C) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $2,211,515. |
(D) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
BDC — Business Development Companies
Cl — Class
ETF — Exchange Traded Fund
REIT — Real Estate Investment Trust
S&P — Standard & Poor’s
30
Schedule of Investments | November 30, 2020 | |
Global X SuperDividend® Alternatives ETF |
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 5,872,160 | $ | — | $ | — | $ | 5,872,160 | ||||||||
Exchange Traded Funds | 5,169,049 | — | — | 5,169,049 | ||||||||||||
Closed-End Funds | 5,107,360 | — | — | 5,107,360 | ||||||||||||
Master Limited Partnerships | 3,155,272 | — | — | 3,155,272 | ||||||||||||
Short-Term Investment | 270,137 | — | — | 270,137 | ||||||||||||
Business Development Company | 218,999 | — | — | 218,999 | ||||||||||||
Repurchase Agreement | — | 1,941,378 | — | 1,941,378 | ||||||||||||
Total Investments in Securities | $ | 19,792,977 | $ | 1,941,378 | $ | — | $ | 21,734,355 |
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
The following is a summary of the Fund’s transactions with affiliates for the year ended November 30, 2020:
Value at 11/30/2019 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Depreciation | Realized Loss | Value at 11/30/2020 | Shares | Dividend Income | |||||||||||||||||||||||||
Global X SuperDividend® REIT ETF | ||||||||||||||||||||||||||||||||
$ | 6,423,112 | $ | 1,275,156 | $ | (1,705,567 | ) | $ | (1,827,695 | ) | $ | (546,550 | ) | $ | 3,618,456 | 419,288 | $ | 306,687 |
31
Schedule of Investments | November 30, 2020 | |
Global X S&P 500® Quality Dividend ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
UNITED STATES — 99.8% | ||||||||
COMMON STOCK — 99.8% | ||||||||
Consumer Discretionary — 1.6% | ||||||||
Garmin | 862 | $ | 100,647 | |||||
Consumer Staples — 5.4% | ||||||||
Campbell Soup | 1,662 | 83,134 | ||||||
General Mills | 1,314 | 79,917 | ||||||
Kraft Heinz | 2,486 | 81,889 | ||||||
Procter & Gamble | 684 | 94,987 | ||||||
339,927 | ||||||||
Energy — 7.9% | ||||||||
Chevron | 847 | 73,841 | ||||||
ConocoPhillips | 1,808 | 71,524 | ||||||
Diamondback Energy | 1,684 | 67,293 | ||||||
EOG Resources | 1,490 | 69,851 | ||||||
Exxon Mobil | 1,676 | 63,906 | ||||||
Kinder Morgan | 5,101 | 73,352 | ||||||
Pioneer Natural Resources | 797 | 80,163 | ||||||
499,930 |
32
Schedule of Investments | November 30, 2020 | |
Global X S&P 500® Quality Dividend ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Financials — 23.9% | ||||||||
Ameriprise Financial | 539 | $ | 99,844 | |||||
Assurant | 739 | 95,420 | ||||||
BlackRock, Cl A | 150 | 104,753 | ||||||
Chubb | 623 | 92,098 | ||||||
Citizens Financial Group | 3,062 | 100,005 | ||||||
Comerica | 2,020 | 99,384 | ||||||
Everest Re Group | 368 | 83,657 | ||||||
Franklin Resources | 3,628 | 79,780 | ||||||
Hartford Financial Services Group | 1,975 | 87,295 | ||||||
M&T Bank | 726 | 84,572 | ||||||
Regions Financial | 6,643 | 101,438 | ||||||
Synchrony Financial | 3,326 | 101,343 | ||||||
T Rowe Price Group | 654 | 93,790 | ||||||
Travelers | 698 | 90,496 | ||||||
Unum Group | 4,628 | 102,880 | ||||||
Zions Bancorp | 2,267 | 87,484 | ||||||
1,504,239 | ||||||||
Health Care — 7.0% | ||||||||
Amgen | 363 | 80,601 | ||||||
Johnson & Johnson | 562 | 81,310 | ||||||
Medtronic | 848 | 96,418 | ||||||
Merck | 1,036 | 83,284 | ||||||
Pfizer | 2,501 | 95,813 | ||||||
437,426 | ||||||||
Industrials — 17.6% | ||||||||
CH Robinson Worldwide | 1,017 | 95,567 | ||||||
Cummins | 473 | 109,344 | ||||||
Eaton | 919 | 111,300 | ||||||
Emerson Electric | 1,288 | 98,944 | ||||||
Fastenal | 1,973 | 97,565 | ||||||
Flowserve | 2,823 | 96,208 |
33
Schedule of Investments | November 30, 2020 | |
Global X S&P 500® Quality Dividend ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Honeywell International | 547 | $ | 111,544 | |||||
Illinois Tool Works | 479 | 101,112 | ||||||
Johnson Controls International | 2,294 | 105,616 | ||||||
Lockheed Martin | 207 | 75,555 | ||||||
Snap-On | 585 | 102,872 | ||||||
1,105,627 | ||||||||
Information Technology — 13.7% | ||||||||
Automatic Data Processing | 533 | 92,678 | ||||||
Cisco Systems | 1,754 | 75,457 | ||||||
Hewlett Packard Enterprise | 7,789 | 85,991 | ||||||
NetApp | 1,862 | 99,263 | ||||||
Paychex | 1,072 | 99,857 | ||||||
Seagate Technology | 1,562 | 91,861 | ||||||
TE Connectivity | 1,006 | 114,654 | ||||||
Texas Instruments | 638 | 102,878 | ||||||
Xerox Holdings | 4,633 | 101,416 | ||||||
864,055 | ||||||||
Materials — 10.0% | ||||||||
Celanese, Cl A | 893 | 115,492 | ||||||
Dow | 1,917 | 101,620 | ||||||
DuPont de Nemours | 1,550 | 98,332 | ||||||
Eastman Chemical | 1,124 | 109,478 | ||||||
Nucor | 1,919 | 103,050 | ||||||
Packaging Corp of America | 791 | 102,830 | ||||||
630,802 | ||||||||
Real Estate — 12.7% | ||||||||
AvalonBay Communities ‡ | 478 | 79,630 | ||||||
Digital Realty Trust ‡ | 581 | 78,290 | ||||||
Duke Realty ‡ | 2,236 | 85,102 | ||||||
Equity Residential ‡ | 1,244 | 72,052 | ||||||
Essex Property Trust ‡ | 317 | 77,944 | ||||||
Mid-America Apartment Communities ‡ | 664 | 83,770 |
34
Schedule of Investments | November 30, 2020 | |
Global X S&P 500® Quality Dividend ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Real Estate — continued | ||||||||
ProLogis ‡ | 837 | $ | 83,742 | |||||
Public Storage ‡ | 402 | 90,233 | ||||||
Regency Centers ‡ | 1,636 | 74,569 | ||||||
Vornado Realty Trust ‡ | 1,968 | 76,575 | ||||||
801,907 | ||||||||
TOTAL UNITED STATES | 6,284,560 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $5,840,677) | 6,284,560 | |||||||
TOTAL INVESTMENTS — 99.8% | ||||||||
(Cost $5,840,677) | $ | 6,284,560 |
Percentages are based on Net Assets of $6,300,214.
‡ | Real Estate Investment Trust |
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
35
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Note 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
PREFERRED STOCK — 99.5% | ||||||||
BERMUDA— 1.2% | ||||||||
Financials — 0.9% | ||||||||
Aspen Insurance Holdings, 5.950%, VAR ICE LIBOR USD 3 Month+4.060% | 53,439 | $ | 1,449,800 | |||||
Aspen Insurance Holdings, 5.625% | 48,441 | 1,266,732 | ||||||
Aspen Insurance Holdings, 5.625% | 46,674 | 1,210,724 | ||||||
PartnerRe, 7.250% | 54,835 | 1,405,969 | ||||||
RenaissanceRe Holdings, 5.750% | 48,462 | 1,334,159 | ||||||
RenaissanceRe Holdings, 5.375% | 53,738 | 1,364,408 | ||||||
8,031,792 | ||||||||
Industrials — 0.3% | ||||||||
Triton International, 8.000% | 27,582 | 744,438 | ||||||
Triton International, 7.375% | 31,926 | 838,058 |
36
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Industrials — continued | ||||||||
Triton International, 6.875% | 27,104 | $ | 696,844 | |||||
2,279,340 | ||||||||
TOTAL BERMUDA | 10,311,132 | |||||||
CANADA— 0.4% | ||||||||
Energy — 0.3% | ||||||||
Enbridge, 6.375%, VAR ICE LIBOR USD 3 Month+3.593% | 112,888 | 2,999,434 | ||||||
Utilities — 0.1% | ||||||||
Brookfield Renewable Partners, 5.250% | 41,649 | 1,128,271 | ||||||
TOTAL CANADA | 4,127,705 | |||||||
NETHERLANDS— 0.7% | ||||||||
Financials — 0.7% | ||||||||
Aegon, 5.100% | 174,762 | 4,564,783 | ||||||
Aegon, 4.000%, VAR ICE LIBOR USD 3 Month+0.875% | 51,396 | 1,276,677 | ||||||
TOTAL NETHERLANDS | 5,841,460 | |||||||
UNITED KINGDOM— 1.0% | ||||||||
Financials — 1.0% | ||||||||
HSBC Holdings, 6.200% | 282,777 | 7,366,341 | ||||||
Prudential, 6.500% | 55,982 | 1,538,945 | ||||||
TOTAL UNITED KINGDOM | 8,905,286 | |||||||
UNITED STATES— 96.2% | ||||||||
Communication Services — 5.0% | ||||||||
AT&T, 5.625% | 155,920 | 4,312,747 | ||||||
AT&T, 5.350% | 251,532 | 6,766,211 | ||||||
AT&T, 5.000% | 228,442 | 6,181,640 | ||||||
AT&T, 4.750% | 339,616 | 8,904,732 | ||||||
Qwest, 7.000% | 48,719 | 1,242,334 | ||||||
Qwest, 6.750% | 124,331 | 3,303,475 |
37
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Communication Services — continued | ||||||||
Qwest, 6.500% | 184,703 | $ | 4,711,774 | |||||
Qwest, 6.125% | 146,206 | 3,660,998 | ||||||
United States Cellular, 7.250% | 56,115 | 1,424,199 | ||||||
United States Cellular, 7.250% | 55,954 | 1,420,112 | ||||||
United States Cellular, 6.950% (A) | 69,064 | 1,764,585 | ||||||
43,692,807 | ||||||||
Consumer Discretionary — 2.0% | ||||||||
Brunswick, 6.625% | 27,148 | 764,759 | ||||||
Brunswick, 6.375% | 47,393 | 1,329,374 | ||||||
Dillard’s Capital Trust I, 7.500% | 38,983 | 974,185 | ||||||
eBay, 6.000% | 141,634 | 3,641,410 | ||||||
Ford Motor, 6.200% (A) | 141,152 | 3,636,075 | ||||||
Ford Motor, 6.000% | 150,587 | 3,826,416 | ||||||
QVC, 6.375% | 43,472 | 1,117,231 | ||||||
QVC, 6.250% | 93,761 | 2,334,649 | ||||||
17,624,099 | ||||||||
Consumer Staples — 0.1% | ||||||||
Energizer Holdings, 7.500% * | 9,437 | 852,161 | ||||||
Energy — 1.5% | ||||||||
DCP Midstream, 7.875%, VAR ICE LIBOR USD 3 Month+4.919% | 33,609 | 714,527 | ||||||
Energy Transfer Operating, 7.625%, VAR ICE LIBOR USD 3 Month+4.738% | 87,909 | 1,890,044 | ||||||
Energy Transfer Operating, 7.600%, VAR ICE LIBOR USD 3 Month+5.161% | 150,833 | 3,381,676 | ||||||
Energy Transfer Operating, 7.375%, VAR ICE LIBOR USD 3 Month+4.530% | 90,967 | 1,867,553 | ||||||
NuStar Energy, 9.000%, VAR ICE LIBOR USD 3 Month+6.880% | 36,029 | 765,616 | ||||||
NuStar Energy, 8.500%, VAR ICE LIBOR USD 3 Month+6.766% | 48,035 | 988,080 |
38
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Energy — continued | ||||||||
NuStar Energy, 7.625%, VAR ICE LIBOR USD 3 Month+5.643% | 77,651 | $ | 1,386,847 | |||||
NuStar Logistics, 6.971%, VAR ICE LIBOR USD 3 Month+6.734% | 81,876 | 1,708,752 | ||||||
12,703,095 | ||||||||
Financials — 56.6% | ||||||||
Affiliated Managers Group, 5.875% | 60,774 | 1,664,600 | ||||||
Allstate, 5.625% | 108,310 | 3,006,686 | ||||||
Allstate, 5.100% | 218,993 | 5,976,319 | ||||||
Allstate, 5.100%, VAR ICE LIBOR USD 3 Month+3.165% | 94,016 | 2,514,928 | ||||||
Allstate, 4.750% | 55,945 | 1,507,718 | ||||||
American Equity Investment Life Holding, 6.625%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.297% | 61,113 | 1,627,439 | ||||||
American Equity Investment Life Holding, 5.950%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.322% | 74,819 | 1,934,071 | ||||||
American Financial Group, 5.625% | 32,369 | 890,795 | ||||||
American Financial Group, 5.125% | 36,880 | 984,696 | ||||||
American International Group, 5.850% | 93,997 | 2,566,118 | ||||||
Apollo Global Management, 6.375% | 58,487 | 1,574,470 | ||||||
Arch Capital Group, 5.450% | 61,670 | 1,635,488 | ||||||
Arch Capital Group, 5.250% | 84,420 | 2,172,971 | ||||||
Associated Banc-Corp, 5.625% (A) | 22,871 | 646,792 | ||||||
Assured Guaranty Municipal Holdings, 6.250% | 47,401 | 1,239,536 | ||||||
Athene Holding, 6.375%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+5.970% | 118,429 | 3,253,245 | ||||||
Athene Holding, 6.350%, VAR ICE LIBOR USD 3 Month+4.253% | 169,389 | 4,758,137 | ||||||
Athene Holding, 5.625% | 66,068 | 1,773,265 |
39
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Axis Capital Holdings, 5.500% | 103,448 | $ | 2,660,683 | |||||
BancorpSouth Bank, 5.500% | 31,680 | 831,600 | ||||||
Bank of America, 7.250% * | 14,877 | 22,064,376 | ||||||
Bank of America, 6.450%, VAR ICE LIBOR USD 3 Month+1.327% | 200,557 | 5,298,716 | ||||||
Bank of America, 6.200% | 210,100 | 5,347,045 | ||||||
Bank of America, 6.000% | 170,144 | 4,367,596 | ||||||
Bank of America, 6.000% | 263,341 | 7,176,042 | ||||||
Bank of America, 5.875% | 161,434 | 4,411,991 | ||||||
Bank of America, 5.375% | 272,483 | 7,348,866 | ||||||
Bank of America, 5.000% | 249,135 | 6,582,147 | ||||||
Bank of America, 4.000%, VAR ICE LIBOR USD 3 Month+0.500% | 78,801 | 1,938,505 | ||||||
Bank of America, 4.000%, VAR ICE LIBOR USD 3 Month+0.350% (A) | 61,909 | 1,537,820 | ||||||
Bank of America, 3.000%, VAR ICE LIBOR USD 3 Month+0.650% | 57,534 | 1,234,104 | ||||||
Bank of New York Mellon, 5.200% | 109,754 | 2,777,874 | ||||||
BOK Financial, 5.375% | 32,106 | 832,509 | ||||||
Brighthouse Financial, 6.750% | 80,318 | 2,194,288 | ||||||
Brighthouse Financial, 6.600% | 79,684 | 2,221,590 | ||||||
Brighthouse Financial, 6.250% | 75,190 | 2,012,836 | ||||||
Brightsphere Investment Group, 5.125% | 23,734 | 598,334 | ||||||
Capital One Financial, 6.200% | 93,989 | 2,351,605 | ||||||
Capital One Financial, 6.000% | 94,007 | 2,487,425 | ||||||
Capital One Financial, 5.200% | 112,941 | 2,938,725 | ||||||
Capital One Financial, 5.000% | 292,451 | 7,545,236 | ||||||
Capital One Financial, 4.800% | 243,597 | 6,136,208 | ||||||
Charles Schwab, 6.000% | 112,989 | 2,860,882 | ||||||
Charles Schwab, 5.950% | 141,637 | 3,658,484 | ||||||
CIT Group, 5.625% (A) | 38,170 | 1,001,199 |
40
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Citigroup, Ser J, 7.125%, VAR ICE LIBOR USD 3 Month+4.040% | 185,546 | $ | 5,330,737 | |||||
Citigroup, 6.300% | 202,155 | 5,167,082 | ||||||
Citigroup Capital XIII, 6.584%, VAR ICE LIBOR USD 3 Month+6.370% | 429,671 | 11,790,172 | ||||||
Citizens Financial Group, 6.350%, VAR ICE LIBOR USD 3 Month+3.642% | 60,754 | 1,681,063 | ||||||
Citizens Financial Group, 5.000% | 84,392 | 2,168,874 | ||||||
Dime Community Bancshares, 5.500% | 28,923 | 720,761 | ||||||
Enstar Group, 7.000%, VAR ICE LIBOR USD 3 Month+4.015% | 74,914 | 2,097,592 | ||||||
Equitable Holdings, 5.250% | 151,010 | 3,926,260 | ||||||
Fifth Third Bancorp, 6.625%, VAR ICE LIBOR USD 3 Month+3.710% | 84,536 | 2,427,874 | ||||||
Fifth Third Bancorp, 4.950% (A) | 47,753 | 1,325,623 | ||||||
First Citizens BancShares, 5.375% | 69,516 | 1,819,929 | ||||||
First Horizon, 6.500% | 32,003 | 867,601 | ||||||
First Midwest Bancorp, 7.000% | 24,512 | 663,050 | ||||||
First Midwest Bancorp, 7.000% | 27,271 | 743,407 | ||||||
First Republic Bank, 5.500% (A) | 56,365 | 1,555,674 | ||||||
First Republic Bank, 4.700% (A) | 73,941 | 1,945,388 | ||||||
Globe Life, 6.125% | 58,780 | 1,508,883 | ||||||
GMAC Capital Trust I, Ser 2, 6.007%, VAR ICE LIBOR USD 3 Month+5.785% | 517,021 | 13,437,376 | ||||||
Goldman Sachs Group, 6.375%, VAR ICE LIBOR USD 3 Month+3.550% | 132,094 | 3,744,865 | ||||||
Goldman Sachs Group, 6.300% | 127,355 | 3,367,266 | ||||||
Goldman Sachs Group, 5.500%, VAR ICE LIBOR USD 3 Month+3.640% | 195,995 | 5,276,185 | ||||||
Goldman Sachs Group, 4.000%, VAR ICE LIBOR USD 3 Month+0.750% | 36,634 | 914,018 | ||||||
Goldman Sachs Group, 4.000%, VAR ICE LIBOR USD 3 Month+0.670% | 256,512 | 6,220,416 |
41
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Goldman Sachs Group, 3.750%, VAR ICE LIBOR USD 3 Month+0.750% | 141,211 | $ | 3,325,519 | |||||
Hancock Whitney, 6.250% | 36,623 | 983,328 | ||||||
Hartford Financial Services Group, 7.875%, VAR ICE LIBOR USD 3 Month+5.596% | 113,033 | 3,123,102 | ||||||
Hartford Financial Services Group, 6.000% (A) | 64,529 | 1,815,201 | ||||||
Huntington Bancshares, 6.250% | 112,980 | 2,899,067 | ||||||
JPMorgan Chase, 6.150% | 219,656 | 5,669,321 | ||||||
JPMorgan Chase, 6.100% | 270,949 | 6,925,456 | ||||||
JPMorgan Chase, 6.000% | 358,538 | 10,157,382 | ||||||
JPMorgan Chase, 5.750% | 329,027 | 9,120,628 | ||||||
JPMorgan Chase, 4.750% | 170,114 | 4,526,734 | ||||||
KeyCorp, 6.125%, VAR ICE LIBOR USD 3 Month+3.892% | 94,104 | 2,814,651 | ||||||
KeyCorp, 5.650% | 81,008 | 2,189,646 | ||||||
KeyCorp, 5.625% | 84,484 | 2,283,602 | ||||||
KKR, 6.750% | 65,028 | 1,708,936 | ||||||
KKR, 6.500% | 33,018 | 871,675 | ||||||
MetLife, 5.625% | 151,985 | 4,120,313 | ||||||
MetLife, 4.750% | 196,011 | 5,243,294 | ||||||
MetLife, 4.000%, VAR ICE LIBOR USD 3 Month+1.000% | 112,938 | 2,830,226 | ||||||
Morgan Stanley, Ser E, 7.125%, VAR ICE LIBOR USD 3 Month+4.320% | 169,258 | 4,932,178 | ||||||
Morgan Stanley, Ser F, 6.875%, VAR ICE LIBOR USD 3 Month+3.940% | 161,573 | 4,595,136 | ||||||
Morgan Stanley, 6.375%, VAR ICE LIBOR USD 3 Month+3.708% | 195,164 | 5,593,400 | ||||||
Morgan Stanley, 5.850%, VAR ICE LIBOR USD 3 Month+3.491% | 190,107 | 5,513,103 | ||||||
Morgan Stanley, 4.875% (A) | 93,929 | 2,498,511 |
42
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Morgan Stanley, 4.000%, VAR ICE LIBOR USD 3 Month+0.700% | 214,898 | $ | 5,299,385 | |||||
New York Community Bancorp, 6.375%, VAR ICE LIBOR USD 3 Month+3.821% | 96,912 | 2,628,254 | ||||||
New York Community Capital Trust V, 6.000% * | 15,037 | 694,709 | ||||||
Northern Trust, 4.700% | 74,929 | 2,036,570 | ||||||
People’s United Financial, 5.625%, VAR ICE LIBOR USD 3 Month+4.020% | 48,498 | 1,368,129 | ||||||
PNC Financial Services Group, 6.125%, VAR ICE LIBOR USD 3 Month+4.067% | 291,394 | 7,713,199 | ||||||
Prospect Capital, 6.250% | 43,375 | 1,098,255 | ||||||
Prudential Financial, 5.625% | 106,468 | 2,929,999 | ||||||
Regions Financial, Ser A, 6.375% | 93,983 | 2,413,483 | ||||||
Regions Financial, Ser B, 6.375%, VAR ICE LIBOR USD 3 Month+3.536% | 94,061 | 2,625,242 | ||||||
Regions Financial, 5.700%, VAR ICE LIBOR USD 3 Month+3.148% (A) | 94,038 | 2,651,872 | ||||||
Reinsurance Group of America, 6.200%, VAR ICE LIBOR USD 3 Month+4.370% | 74,959 | 1,973,670 | ||||||
Reinsurance Group of America, 5.750%, VAR ICE LIBOR USD 3 Month+4.040% | 75,295 | 2,124,825 | ||||||
State Street, 5.900%, VAR ICE LIBOR USD 3 Month+3.108% | 141,638 | 3,987,110 | ||||||
State Street, 5.350%, VAR ICE LIBOR USD 3 Month+3.709% | 94,054 | 2,719,101 | ||||||
Stifel Financial, 6.125% | 44,803 | 1,218,194 | ||||||
Stifel Financial, 5.200% | 46,444 | 1,221,942 | ||||||
SVB Financial Group, 5.250% (A) | 65,422 | 1,755,926 | ||||||
Synchrony Financial, 5.625% | 141,317 | 3,674,242 | ||||||
Synovus Financial, 6.300%, VAR ICE LIBOR USD 3 Month+3.352% | 36,781 | 986,834 |
43
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Synovus Financial, 5.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.127% | 70,568 | $ | 1,888,400 | |||||
TCF Financial, 5.700% | 36,894 | 975,846 | ||||||
Truist Financial, 5.625% | 87,383 | 2,236,131 | ||||||
Truist Financial, 5.250% | 113,096 | 3,112,402 | ||||||
Truist Financial, 5.200% | 93,975 | 2,371,929 | ||||||
Truist Financial, 5.200% | 99,191 | 2,527,387 | ||||||
Truist Financial, 4.000%, VAR ICE LIBOR USD 3 Month+0.530% | 31,754 | 818,936 | ||||||
Unum Group, 6.250% | 58,381 | 1,589,131 | ||||||
US Bancorp, 6.500%, VAR ICE LIBOR USD 3 Month+4.468% | 210,098 | 5,628,525 | ||||||
US Bancorp, 5.500% | 108,285 | 3,052,554 | ||||||
US Bancorp, 4.500% * | 93,987 | 2,399,488 | ||||||
US Bancorp, 3.500%, VAR ICE LIBOR USD 3 Month+0.600% | 196,501 | 4,621,704 | ||||||
Voya Financial, 5.350%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.210% | 60,663 | 1,686,431 | ||||||
Wells Fargo, 7.500% * | 19,133 | 26,881,865 | ||||||
Wells Fargo, 6.625%, VAR ICE LIBOR USD 3 Month+3.690% | 158,781 | 4,490,327 | ||||||
Wells Fargo, 6.000% | 189,168 | 4,725,417 | ||||||
Wells Fargo, 5.850%, VAR ICE LIBOR USD 3 Month+3.090% | 334,695 | 8,738,886 | ||||||
Wells Fargo, 5.700% | 189,153 | 4,778,005 | ||||||
Wells Fargo, 5.625% | 130,184 | 3,406,915 | ||||||
Wells Fargo, 5.500% | 219,656 | 5,596,835 | ||||||
Wells Fargo, 5.250% | 117,708 | 2,966,242 | ||||||
Wells Fargo, 5.200% | 141,575 | 3,601,668 | ||||||
Wells Fargo, 5.125% (A) | 122,496 | 3,093,024 |
44
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Wells Fargo, 4.750% | 390,088 | $ | 9,939,442 | |||||
Wintrust Financial, 6.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.507% | 58,516 | 1,618,553 | ||||||
Wintrust Financial, 6.500%, VAR ICE LIBOR USD 3 Month+4.060% | 27,258 | 745,234 | ||||||
WR Berkley, 5.750% | 56,366 | 1,443,533 | ||||||
WR Berkley, 5.700% (A) | 38,716 | 1,067,013 | ||||||
WR Berkley, 5.100% (A) | 55,909 | 1,524,079 | ||||||
491,231,308 | ||||||||
Health Care — 5.7% | ||||||||
Avantor, 6.250% * | 100,754 | 8,699,100 | ||||||
Becton Dickinson and, 6.000% | 166,036 | 8,610,627 | ||||||
Boston Scientific, 5.500% | 49,184 | 5,007,915 | ||||||
Change Healthcare, 6.000% * | 28,284 | 1,736,638 | ||||||
Danaher, 5.000% * | 8,258 | 10,768,019 | ||||||
Danaher, 4.750% * | 8,004 | 12,333,283 | ||||||
Elanco Animal Health, 5.000% * | 51,695 | 2,453,445 | ||||||
49,609,027 | ||||||||
Industrials — 1.5% | ||||||||
Air Lease, 6.150%, VAR ICE LIBOR USD 3 Month+3.650% | 51,735 | 1,358,561 | ||||||
Colfax, 5.750% * | 21,720 | 3,284,281 | ||||||
Pitney Bowes, 6.700% | 82,895 | 1,758,203 | ||||||
Stanley Black & Decker, 5.250% * | 31,797 | 3,532,011 | ||||||
WESCO International, 10.625%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+10.325% | 106,486 | 3,266,990 | ||||||
13,200,046 | ||||||||
Information Technology — 3.0% | ||||||||
Broadcom, 8.000% * | 19,281 | 25,657,419 |
45
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Real Estate — 6.7% | ||||||||
American Homes 4 Rent, 6.500% ‡ | 54,862 | $ | 1,423,669 | |||||
American Homes 4 Rent, 6.350% ‡ | 42,674 | 1,105,257 | ||||||
American Homes 4 Rent, 5.875% ‡ | 33,030 | 863,074 | ||||||
American Homes 4 Rent, 5.875% ‡ | 25,285 | 668,535 | ||||||
Brookfield Property Partners, 6.500% | 36,882 | 902,871 | ||||||
Brookfield Property Partners, 6.375% | 46,187 | 1,115,878 | ||||||
Brookfield Property Partners, 5.750% | 59,585 | 1,343,046 | ||||||
Digital Realty Trust, 6.625% ‡ | 41,925 | 1,090,469 | ||||||
Digital Realty Trust, 5.850% ‡ | 43,373 | 1,222,685 | ||||||
Digital Realty Trust, 5.250% ‡ | 41,621 | 1,115,443 | ||||||
Digital Realty Trust, 5.200% ‡ | 64,463 | 1,763,063 | ||||||
Diversified Healthcare Trust, 6.250% ‡ | 48,418 | 1,096,668 | ||||||
Diversified Healthcare Trust, 5.625% ‡ | 68,177 | 1,491,031 | ||||||
EPR Properties, 5.750% ‡ * | 30,120 | 673,784 | ||||||
Federal Realty Investment Trust, 5.000% ‡ | 32,408 | 863,025 | ||||||
iStar, 7.500% ‡ | 20,680 | 523,411 | ||||||
Kimco Realty, 5.250% ‡ | 51,751 | 1,377,094 | ||||||
Kimco Realty, 5.125% ‡ | 43,432 | 1,157,897 | ||||||
National Retail Properties, 5.200% ‡ | 69,662 | 1,792,403 | ||||||
Office Properties Income Trust, 6.375% ‡ | 34,838 | 916,239 | ||||||
Office Properties Income Trust, 5.875% ‡ | 63,068 | 1,601,927 | ||||||
PS Business Parks, 5.250% ‡ | 44,525 | 1,188,817 | ||||||
PS Business Parks, 5.200% ‡ | 41,640 | 1,110,122 | ||||||
PS Business Parks, 4.875% ‡ | 60,647 | 1,647,173 | ||||||
Public Storage, 5.600% ‡ | 57,735 | 1,649,489 | ||||||
Public Storage, 5.400% ‡ | 58,829 | 1,512,494 | ||||||
Public Storage, 5.150% ‡ | 54,435 | 1,453,959 | ||||||
Public Storage, 5.125% ‡ | 36,909 | 953,729 | ||||||
Public Storage, 4.950% ‡ | 65,712 | 1,707,855 | ||||||
Public Storage, 4.900% ‡ | 65,448 | 1,700,994 |
46
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Real Estate — continued | ||||||||
Public Storage, 4.875% ‡ | 58,993 | $ | 1,639,415 | |||||
Public Storage, 4.750% ‡ (A) | 42,674 | 1,205,114 | ||||||
Public Storage, 4.700% ‡ | 48,144 | 1,315,776 | ||||||
Public Storage, 4.625% ‡ | 111,357 | 2,999,958 | ||||||
QTS Realty Trust, 7.125% ‡ | 24,193 | 667,727 | ||||||
QTS Realty Trust, 6.500% ‡ * | 14,869 | 2,007,612 | ||||||
RLJ Lodging Trust, 1.950% ‡ * | 65,617 | 1,614,834 | ||||||
SITE Centers, 6.375% ‡ | 31,850 | 774,911 | ||||||
SITE Centers, 6.250% ‡ | 27,010 | 660,394 | ||||||
SL Green Realty, 6.500% ‡ | 47,526 | 1,226,171 | ||||||
VEREIT, Ser F, 6.700% ‡ | 93,772 | 2,374,307 | ||||||
Vornado Realty Trust, 5.700% ‡ | 58,667 | 1,482,515 | ||||||
Vornado Realty Trust, 5.400% ‡ | 58,470 | 1,467,012 | ||||||
Vornado Realty Trust, 5.250% ‡ | 62,714 | 1,570,986 | ||||||
58,038,833 | ||||||||
Utilities — 14.1% | ||||||||
Alabama Power, 5.000% | 51,250 | 1,443,200 | ||||||
American Electric Power, 6.125% * | 75,996 | 3,840,078 | ||||||
CMS Energy, 5.875% | 118,815 | 3,247,214 | ||||||
CMS Energy, 5.625% | 36,948 | 996,118 | ||||||
Dominion Energy, 7.250% * | 78,156 | 7,854,678 | ||||||
Dominion Energy, 5.250% | 151,131 | 3,888,601 | ||||||
DTE Energy, 6.250% * | 112,235 | 5,397,381 | ||||||
DTE Energy, 6.000% | 57,242 | 1,517,486 | ||||||
DTE Energy, 5.250% | 74,954 | 2,029,754 | ||||||
Duke Energy, 5.750% | 195,153 | 5,497,460 | ||||||
Duke Energy, 5.625% | 94,058 | 2,646,792 | ||||||
Duke Energy, 5.125% | 93,987 | 2,449,301 | ||||||
Entergy Arkansas, 4.875% | 77,705 | 1,998,573 | ||||||
Entergy New Orleans, 5.500% | 20,370 | 528,194 |
47
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Utilities — continued | ||||||||
Essential Utilities, 6.000% * | 45,590 | $ | 2,681,148 | |||||
Interstate Power and Light, 5.100% (A) | 36,910 | 971,840 | ||||||
National Rural Utilities Cooperative Finance, 5.500% | 49,196 | 1,366,173 | ||||||
NextEra Energy, 5.279% * | 241,903 | 11,797,609 | ||||||
NextEra Energy, 4.872% * | 145,605 | 8,239,787 | ||||||
NextEra Energy Capital Holdings, 5.650% | 129,727 | 3,611,600 | ||||||
NextEra Energy Capital Holdings, 5.250% | 107,286 | 2,766,906 | ||||||
NiSource, 6.500%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.632% | 94,059 | 2,624,246 | ||||||
PG&E, 5.500% | 77,112 | 9,578,081 | ||||||
PPL Capital Funding, Ser B, 5.900% | 84,474 | 2,170,982 | ||||||
SCE Trust II, 5.100% | 47,156 | 1,160,038 | ||||||
SCE Trust V, 5.450%, VAR ICE LIBOR USD 3 Month+3.790% | 58,283 | 1,416,277 | ||||||
SCE Trust VI, 5.000% | 89,092 | 2,102,571 | ||||||
Sempra Energy, 5.750% | 143,044 | 3,905,101 | ||||||
South Jersey Industries, 5.625% | 38,344 | 1,002,695 | ||||||
Southern, 6.750% * | 167,461 | 8,337,883 | ||||||
Southern, 5.250% | 85,069 | 2,275,596 | ||||||
Southern, 5.250% | 151,132 | 3,927,921 | ||||||
Southern, 4.950% | 195,347 | 5,323,206 | ||||||
Spire, 5.900% | 49,234 | 1,379,537 | ||||||
Tennessee Valley Authority, 2.216%, VAR US Treas Yield Curve Rate T Note Const Mat 30 Yr+0.840% | 42,984 | 1,128,760 | ||||||
Tennessee Valley Authority, 2.134%, VAR US Treas Yield Curve Rate T Note Const Mat 30 Yr+0.940% | 51,222 | 1,332,796 | ||||||
122,435,583 | ||||||||
TOTAL UNITED STATES | 835,044,378 |
48
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
Shares/Face Amount | Value | |||||||
PREFERRED STOCK — continued | ||||||||
TOTAL PREFERRED STOCK | ||||||||
(Cost $838,841,871) | $ | 864,229,961 | ||||||
SHORT-TERM INVESTMENT — 0.1%(B)(C) | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $663,973) | 663,973 | 663,973 | ||||||
REPURCHASE AGREEMENT — 0.5%(C) | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $4,771,756 (collateralized by U.S. Treasury Obligations, ranging in par value $16,586 - $681,498, 2.000%, 07/31/2022, with a total market value of $4,866,907) | ||||||||
(Cost $4,771,747) | $ | 4,771,747 | 4,771,747 | |||||
TOTAL INVESTMENTS — 100.1% | ||||||||
(Cost $844,277,591) | $ | 869,665,681 |
Percentages are based on Net Assets of $868,550,136.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $5,283,518. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $5,435,720. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
ICE — Intercontinental Exchange
LIBOR — London Interbank Offered Rate
Ser — Series
USD – U.S. Dollar
VAR – Variable Rate
49
Schedule of Investments | November 30, 2020 | |
Global X U.S. Preferred ETF |
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Preferred Stock | $ | 864,229,961 | $ | — | $ | — | $ | 864,229,961 | ||||||||
Short-Term Investment | 663,973 | — | — | 663,973 | ||||||||||||
Repurchase Agreement | — | 4,771,747 | — | 4,771,747 | ||||||||||||
Total Investments in Securities | $ | 864,893,934 | $ | 4,771,747 | $ | — | $ | 869,665,681 |
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
50
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
PREFERRED STOCK — 99.6% | ||||||||
BERMUDA— 0.6% | ||||||||
Financials — 0.6% | ||||||||
Aspen Insurance Holdings, 5.950%, VAR ICE LIBOR USD 3 Month+4.060% | 326 | $ | 8,844 | |||||
CANADA— 3.4% | ||||||||
Energy — 1.5% | ||||||||
Enbridge, 6.375%, VAR ICE LIBOR USD 3 Month+3.593% | 742 | 19,715 | ||||||
Industrials — 0.3% | ||||||||
Atlas, 8.000%, VAR ICE LIBOR USD 3 Month+5.008% | 192 | 4,733 | ||||||
Utilities — 1.6% | ||||||||
Algonquin Power & Utilities, 6.875%, VAR ICE LIBOR USD 3 Month+3.677% | 342 | 9,408 | ||||||
Algonquin Power & Utilities, 6.200%, VAR ICE LIBOR USD 3 Month+4.010% | 418 | 11,587 | ||||||
20,995 | ||||||||
TOTAL CANADA | 45,443 | |||||||
NETHERLANDS— 0.6% | ||||||||
Financials — 0.6% | ||||||||
Aegon, 4.000%, VAR ICE LIBOR USD 3 Month+0.875% | 322 | 7,998 |
51
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
UNITED STATES— 95.0% | ||||||||
Consumer Staples — 2.2% | ||||||||
CHS, Ser 2, 7.100%, VAR ICE LIBOR USD 3 Month+4.298% | 501 | $ | 13,923 | |||||
CHS, Ser 3, 6.750%, VAR ICE LIBOR USD 3 Month+4.155% | 589 | 15,897 | ||||||
29,820 | ||||||||
Energy — 6.1% | ||||||||
DCP Midstream, 7.875%, VAR ICE LIBOR USD 3 Month+4.919% | 207 | 4,401 | ||||||
Energy Transfer Operating, 7.625%, VAR ICE LIBOR USD 3 Month+4.738% | 530 | 11,395 | ||||||
Energy Transfer Operating, 7.600%, VAR ICE LIBOR USD 3 Month+5.161% | 982 | 22,016 | ||||||
Energy Transfer Operating, 7.375%, VAR ICE LIBOR USD 3 Month+4.530% | 536 | 11,004 | ||||||
NGL Energy Partners, 9.000%, VAR ICE LIBOR USD 3 Month+7.213% | 405 | 4,038 | ||||||
NuStar Energy, 9.000%, VAR ICE LIBOR USD 3 Month+6.880% | 223 | 4,739 | ||||||
NuStar Energy, 8.500%, VAR ICE LIBOR USD 3 Month+6.766% | 291 | 5,986 | ||||||
NuStar Energy, 7.625%, VAR ICE LIBOR USD 3 Month+5.643% | 457 | 8,162 | ||||||
NuStar Logistics, 6.971%, VAR ICE LIBOR USD 3 Month+6.734% | 479 | 9,997 | ||||||
81,738 | ||||||||
Financials — 81.6% | ||||||||
AGNC Investment, 7.000%, VAR ICE LIBOR USD 3 Month+5.111%‡ | 386 | 9,206 | ||||||
AGNC Investment, 6.875%, VAR ICE LIBOR USD 3 Month+4.332%‡ | 302 | 7,076 | ||||||
AGNC Investment, 6.500%, VAR ICE LIBOR USD 3 Month+4.993%‡ | 479 | 11,070 | ||||||
AGNC Investment, 6.125%, VAR ICE LIBOR USD 3 Month+4.697%‡ | 687 | 15,320 |
52
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Allstate, 5.100%, VAR ICE LIBOR USD 3 Month+3.165% | 598 | $ | 15,996 | |||||
American Equity Investment Life Holding, 6.625%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.297% | 374 | 9,960 | ||||||
American Equity Investment Life Holding, 5.950%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.322% | 476 | 12,305 | ||||||
Annaly Capital Management, 6.950%, VAR ICE LIBOR USD 3 Month+4.993%‡ | 890 | 21,031 | ||||||
Annaly Capital Management, 6.750%, VAR ICE LIBOR USD 3 Month+4.989%‡ | 527 | 12,516 | ||||||
Annaly Capital Management, 6.500%, VAR ICE LIBOR USD 3 Month+4.172%‡ | 506 | 11,233 | ||||||
Athene Holding, 6.375%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+5.970% | 742 | 20,383 | ||||||
Athene Holding, 6.350%, VAR ICE LIBOR USD 3 Month+4.253% | 1,063 | 29,860 | ||||||
Bank of America, 6.450%, VAR ICE LIBOR USD 3 Month+1.327% | 1,294 | 34,187 | ||||||
Bank of America, 4.000%, VAR ICE LIBOR USD 3 Month+0.350% | 395 | 9,812 | ||||||
Bank of America, 4.000%, VAR ICE LIBOR USD 3 Month+0.500% | 523 | 12,866 | ||||||
Chimera Investment, 8.000%, VAR ICE LIBOR USD 3 Month+5.379%‡ | 257 | 6,042 | ||||||
Chimera Investment, 8.000%, VAR ICE LIBOR USD 3 Month+5.791%‡ | 385 | 9,028 | ||||||
Chimera Investment, 7.750%, VAR ICE LIBOR USD 3 Month+4.743%‡ | 334 | 7,662 | ||||||
Citigroup, Ser J, 7.125%, VAR ICE LIBOR USD 3 Month+4.040% | 1,170 | 33,614 | ||||||
Citizens Financial Group, 6.350%, VAR ICE LIBOR USD 3 Month+3.642% | 357 | 9,878 |
53
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Compass Diversified Holdings, 7.875%, VAR ICE LIBOR USD 3 Month+4.985% | 130 | $ | 3,237 | |||||
Enstar Group, 7.000%, VAR ICE LIBOR USD 3 Month+4.015% | 477 | 13,356 | ||||||
Exantas Capital, 8.625%, VAR ICE LIBOR USD 3 Month+5.927%‡ | 135 | 2,985 | ||||||
Fifth Third Bancorp, 6.625%, VAR ICE LIBOR USD 3 Month+3.710% | 538 | 15,451 | ||||||
Goldman Sachs Group, 6.375%, VAR ICE LIBOR USD 3 Month+3.550% | 857 | 24,296 | ||||||
Goldman Sachs Group, 5.500%, VAR ICE LIBOR USD 3 Month+3.640% | 1,222 | 32,896 | ||||||
Goldman Sachs Group, 4.000%, VAR ICE LIBOR USD 3 Month+0.750% | 256 | 6,387 | ||||||
Goldman Sachs Group, 4.000%, VAR ICE LIBOR USD 3 Month+0.670% | 1,644 | 39,867 | ||||||
Goldman Sachs Group, 3.750%, VAR ICE LIBOR USD 3 Month+0.750% | 915 | 21,548 | ||||||
Hartford Financial Services Group, 7.875%, VAR ICE LIBOR USD 3 Month+5.596% | 742 | 20,501 | ||||||
Heartland Financial USA, 7.000%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.675% | 146 | 4,132 | ||||||
Invesco Mortgage Capital, 7.500%, VAR ICE LIBOR USD 3 Month+5.289%‡ | 340 | 7,650 | ||||||
KeyCorp, 6.125%, VAR ICE LIBOR USD 3 Month+3.892% | 618 | 18,484 | ||||||
Merchants Bancorp, 6.000%, VAR ICE LIBOR USD 3 Month+4.569% | 161 | 4,257 | ||||||
MetLife, 4.000%, VAR ICE LIBOR USD 3 Month+1.000% | 742 | 18,595 | ||||||
MFA Financial, 6.500%, VAR ICE LIBOR USD 3 Month+5.345%‡ | 324 | 7,332 | ||||||
Morgan Stanley, 6.375%, VAR ICE LIBOR USD 3 Month+3.708% | 1,014 | 29,061 |
54
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Morgan Stanley, 5.850%, VAR ICE LIBOR USD 3 Month+3.491% | 1,014 | $ | 29,406 | |||||
Morgan Stanley, 4.000%, VAR ICE LIBOR USD 3 Month+0.700% | 1,116 | 27,521 | ||||||
Morgan Stanley, Ser E, 7.125%, VAR ICE LIBOR USD 3 Month+4.320% | 861 | 25,089 | ||||||
Morgan Stanley, Ser F, 6.875%, VAR ICE LIBOR USD 3 Month+3.940% | 847 | 24,089 | ||||||
Mortgage Investment Trust, 8.000%, VAR ICE LIBOR USD 3 Month+6.476%‡ | 130 | 2,581 | ||||||
New Residential Investment, 7.500%, VAR ICE LIBOR USD 3 Month+5.802%‡ | 200 | 4,720 | ||||||
New Residential Investment, 7.125%, VAR ICE LIBOR USD 3 Month+5.640%‡ | 334 | 7,572 | ||||||
New Residential Investment, 6.375%, VAR ICE LIBOR USD 3 Month+4.969%‡ | 478 | 9,493 | ||||||
New York Community Bancorp, 6.375%, VAR ICE LIBOR USD 3 Month+3.821% | 637 | 17,275 | ||||||
New York Mortgage Trust, 8.000%, VAR ICE LIBOR USD 3 Month+5.695%‡ | 197 | 4,409 | ||||||
New York Mortgage Trust, 7.875%, VAR ICE LIBOR USD 3 Month+6.429%‡ | 239 | 5,270 | ||||||
PennyMac Mortgage Investment Trust, 8.000%, VAR ICE LIBOR USD 3 Month+5.990%‡ | 229 | 5,704 | ||||||
People’s United Financial, 5.625%, VAR ICE LIBOR USD 3 Month+4.020% | 296 | 8,350 | ||||||
PNC Financial Services Group, 6.125%, VAR ICE LIBOR USD 3 Month+4.067% | 1,846 | 48,864 | ||||||
Regions Financial, 5.700%, VAR ICE LIBOR USD 3 Month+3.148% | 598 | 16,864 | ||||||
Regions Financial, Ser B, 6.375%, VAR ICE LIBOR USD 3 Month+3.536% | 614 | 17,137 | ||||||
Reinsurance Group of America, 6.200%, VAR ICE LIBOR USD 3 Month+4.370% | 477 | 12,559 |
55
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Financials — continued | ||||||||
Reinsurance Group of America, 5.750%, VAR ICE LIBOR USD 3 Month+4.040% | 477 | $ | 13,461 | |||||
State Street, 5.900%, VAR ICE LIBOR USD 3 Month+3.108% | 925 | 26,039 | ||||||
State Street, 5.350%, VAR ICE LIBOR USD 3 Month+3.709% | 614 | 17,751 | ||||||
Synovus Financial, 6.300%, VAR ICE LIBOR USD 3 Month+3.352% | 257 | 6,895 | ||||||
Synovus Financial, 5.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.127% | 417 | 11,159 | ||||||
Truist Financial, 4.000%, VAR ICE LIBOR USD 3 Month+0.530% | 223 | 5,751 | ||||||
Two Harbors Investment, 8.125%, VAR ICE LIBOR USD 3 Month+5.660%‡ | 184 | 4,457 | ||||||
Two Harbors Investment, 7.625%, VAR ICE LIBOR USD 3 Month+5.352%‡ | 341 | 7,945 | ||||||
Two Harbors Investment, 7.250%, VAR ICE LIBOR USD 3 Month+5.011%‡ | 350 | 7,595 | ||||||
US Bancorp, 6.500%, VAR ICE LIBOR USD 3 Month+4.468% | 1,226 | 32,844 | ||||||
US Bancorp, 3.500%, VAR ICE LIBOR USD 3 Month+0.600% | 1,115 | 26,225 | ||||||
Voya Financial, 5.350%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.210% | 357 | 9,925 | ||||||
Wells Fargo, 6.625%, VAR ICE LIBOR USD 3 Month+3.690% | 1,028 | 29,072 | ||||||
Wells Fargo, 5.850%, VAR ICE LIBOR USD 3 Month+3.090% | 2,105 | 54,962 | ||||||
Wintrust Financial, 6.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.507% | 358 | 9,902 | ||||||
1,099,966 | ||||||||
Industrials — 2.6% | ||||||||
Air Lease, 6.150%, VAR ICE LIBOR USD 3 Month+3.650% | 322 | 8,456 |
56
Schedule of Investments | November 30, 2020 | |
Global X Variable Rate Preferred ETF |
Shares | Value | |||||||
PREFERRED STOCK — continued | ||||||||
Industrials — continued | ||||||||
Altera Infrastructure, 8.875%, VAR ICE LIBOR USD 3 Month+6.407% | 155 | $ | 3,332 | |||||
Fortress Transportation and Infrastructure Investors, 8.000%, VAR ICE LIBOR USD 3 Month+6.447% | 147 | 3,400 | ||||||
WESCO International, 10.625%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+10.325% | 668 | 20,494 | ||||||
35,682 | ||||||||
Utilities — 2.5% | ||||||||
NiSource, 6.500%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.632% | 614 | 17,131 | ||||||
Tennessee Valley Authority, 2.216%, VAR US Treas Yield Curve Rate T Note Const Mat 30 Yr+0.840% | 296 | 7,773 | ||||||
Tennessee Valley Authority, 2.134%, VAR US Treas Yield Curve Rate T Note Const Mat 30 Yr+0.940% | 349 | 9,081 | ||||||
33,985 | ||||||||
TOTAL UNITED STATES | 1,281,191 | |||||||
TOTAL PREFERRED STOCK | ||||||||
(Cost $1,246,481) | 1,343,476 | |||||||
TOTAL INVESTMENTS — 99.6% | ||||||||
(Cost $1,246,481) | $ | 1,343,476 |
Percentages are based on Net Assets of $1,348,641.
‡ | Real Estate Investment Trust |
ICE — Intercontinental Exchange
LIBOR — London Interbank Offered Rate
Ser — Series
USD – U.S. Dollar
VAR – Variable Rate
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the period ended November 30, 2020, there have been no transfers in or out of Level 3.
57
Schedule of Investments | November 30, 2020 | |
Global X MLP ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
MASTER LIMITED PARTNERSHIPS — 97.8% | ||||||||
UNITED STATES— 97.8% | ||||||||
Energy — 97.8% | ||||||||
BP Midstream Partners | 1,985,086 | $ | 22,510,875 | |||||
Cheniere Energy Partners | 833,481 | 31,755,626 | ||||||
Crestwood Equity Partners | 2,013,660 | 32,842,795 | ||||||
DCP Midstream | 2,005,406 | 32,387,307 | ||||||
Enable Midstream Partners | 68,300 | 347,647 | ||||||
Energy Transfer | 12,311,528 | 76,085,243 | ||||||
Enterprise Products Partners | 3,904,588 | 75,749,007 | ||||||
Genesis Energy | 4,445,253 | 28,582,977 | ||||||
Holly Energy Partners | 1,893,206 | 25,634,009 | ||||||
Magellan Midstream Partners | 1,496,287 | 61,572,210 | ||||||
MPLX | 2,683,201 | 56,454,549 | ||||||
NGL Energy Partners | 152,700 | 332,886 | ||||||
NuStar Energy | 2,617,004 | 34,779,983 | ||||||
PBF Logistics | 48,925 | 456,470 | ||||||
Phillips 66 Partners | 1,217,343 | 32,722,180 | ||||||
Plains All American Pipeline | 6,149,073 | 48,823,640 | ||||||
Shell Midstream Partners | 3,211,577 | 32,950,780 | ||||||
TC PipeLines | 1,023,564 | 31,628,128 | ||||||
Western Midstream Partners | 3,612,319 | 46,598,915 | ||||||
TOTAL MASTER LIMITED PARTNERSHIP | ||||||||
(Cost $718,355,905) | 672,215,227 |
58
Schedule of Investments | November 30, 2020 | |
Global X MLP ETF |
Shares | Value | |||||||
COMMON STOCK — 2.2% | ||||||||
UNITED STATES— 2.2% | ||||||||
Energy — 2.2% | ||||||||
EnLink Midstream | 4,099,059 | $ | 15,166,518 | |||||
TOTAL COMMON STOCK | ||||||||
(Cost $12,119,412) | 15,166,518 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $730,475,317) | $ | 687,381,745 |
Percentages are based on Net Assets of $687,576,690.
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
59
Schedule of Investments | November 30, 2020 | |
Global X MLP & Energy Infrastructure ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Note 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 76.3% | ||||||||
CANADA— 24.4% | ||||||||
Energy — 24.4% | ||||||||
Enbridge | 1,558,247 | $ | 48,632,889 | |||||
Pembina Pipeline (A) | 1,417,274 | 36,126,314 | ||||||
TC Energy | 1,061,839 | 46,646,587 | ||||||
TOTAL CANADA | 131,405,790 | |||||||
UNITED STATES— 51.9% | ||||||||
Energy — 51.9% | ||||||||
Antero Midstream | 3,469,418 | 23,383,877 | ||||||
Archrock | 1,803,756 | 14,015,184 | ||||||
Cheniere Energy * | 425,116 | 24,099,826 | ||||||
EnLink Midstream | 5,818,185 | 21,527,284 | ||||||
Equitrans Midstream | 3,144,536 | 25,659,414 | ||||||
Kinder Morgan | 3,374,037 | 48,518,652 | ||||||
ONEOK | 1,088,159 | 39,032,263 | ||||||
Plains GP Holdings, Cl A | 2,112,033 | 16,748,422 | ||||||
Targa Resources | 1,078,299 | 25,340,027 | ||||||
Williams | 1,964,771 | 41,220,896 | ||||||
Total Energy | 279,545,845 |
60
Schedule of Investments | November 30, 2020 | |
Global X MLP & Energy Infrastructure ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TOTAL UNITED STATES | $ | 279,545,845 | ||||||
TOTAL COMMON STOCK | ||||||||
(Cost $491,613,000) | 410,951,635 | |||||||
MASTER LIMITED PARTNERSHIPS — 23.6% | ||||||||
UNITED STATES— 23.6% | ||||||||
Energy — 23.6% | ||||||||
Cheniere Energy Partners | 99,408 | 3,787,445 | ||||||
DCP Midstream | 231,475 | 3,738,321 | ||||||
Enable Midstream Partners | 226,311 | 1,151,923 | ||||||
Energy Transfer | 4,130,089 | 25,523,950 | ||||||
Enterprise Products Partners | 1,195,807 | 23,198,656 | ||||||
Magellan Midstream Partners | 554,878 | 22,833,230 | ||||||
MPLX | 865,373 | 18,207,448 | ||||||
Phillips 66 Partners | 150,797 | 4,053,423 | ||||||
Plains All American Pipeline | 1,222,661 | 9,707,928 | ||||||
Shell Midstream Partners | 314,951 | 3,231,397 | ||||||
TC PipeLines | 155,385 | 4,801,397 | ||||||
Western Midstream Partners | 514,338 | 6,634,960 | ||||||
TOTAL MASTER LIMITED PARTNERSHIP | ||||||||
(Cost $142,132,463) | 126,870,078 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.3% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $1,549,015) | 1,549,015 | 1,549,015 |
61
Schedule of Investments | November 30, 2020 | |
Global X MLP & Energy Infrastructure ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(B) — 2.1% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $11,132,257 (collateralized by U.S. Treasury Obligations, ranging in par value $38,695 - $1,589,899, 2.000%, 07/31/2022, with a total market value of $11,354,238) | ||||||||
(Cost $11,132,235) | $ | 11,132,235 | $ | 11,132,235 | ||||
TOTAL INVESTMENTS — 102.3% | ||||||||
(Cost $646,426,713) | $ | 550,502,963 |
Percentages are based on Net Assets of $538,343,587.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $12,107,750. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $12,681,250. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 410,951,635 | $ | — | $ | — | $ | 410,951,635 | ||||||||
Master Limited Partnerships | 126,870,078 | — | — | 126,870,078 | ||||||||||||
Short-Term Investment | 1,549,015 | — | — | 1,549,015 | ||||||||||||
Repurchase Agreement | — | 11,132,235 | — | 11,132,235 | ||||||||||||
Total Investments in Securities | $ | 539,370,728 | $ | 11,132,235 | $ | — | $ | 550,502,963 |
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
62
Schedule of Investments | November 30, 2020 | |
Global X TargetIncomeTM 5 ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 100.0% | ||||||||
Global X SuperDividend® ETF (A) | 80,423 | $ | 985,182 | |||||
Global X SuperDividend® U.S. ETF (A) | 14,111 | 233,537 | ||||||
iShares 20+ Year Treasury Bond ETF | 5,589 | 894,352 | ||||||
iShares Core U.S. Aggregate Bond ETF | 1,907 | 225,827 | ||||||
SPDR Blackstone | 15,161 | 684,064 | ||||||
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF | 28,775 | 930,871 | ||||||
Xtrackers USD High Yield Corporate Bond ETF | 13,936 | 690,111 | ||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $4,717,630) | 4,643,944 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $4,717,630) | $ | 4,643,944 |
Percentages are based on Net Assets of $4,644,162.
(A) | Affiliated investment. |
ETF — Exchange Traded Fund
EM — Emerging Markets
SPDR — Standard & Poor’s Depository Receipts
USD — U.S. Dollar
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
63
Schedule of Investments | November 30, 2020 | |
Global X TargetIncomeTM 5 ETF |
The following is a summary of the transactions with affiliates for the year ended November 30, 2020:
Value at 11/30/2019 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Appreciation/(Depreciation) | Realized Gain/(Loss) | Value at 11/30/2020 | Shares | Dividend Income | |||||||||||||||||||||||||
Global X SuperDividend® ETF | $ | 191,394 | $ | 1,795,887 | $ | (815,509 | ) | $ | (53,856 | ) | $ | (132,734 | ) | $ | 985,182 | 80,423 | $ | 50,718 | ||||||||||||||
Global X SuperDividend® U.S. ETF | $ | 0 | $ | 424,253 | $ | (229,289 | ) | $ | 20,038 | $ | 18,535 | $ | 233,537 | 14,111 | $ | 4,529 | ||||||||||||||||
Global X U.S. Preferred ETF | $ | 240,642 | $ | 1,464,276 | $ | (1,635,214 | ) | $ | (3,796 | ) | $ | (65,908 | ) | $ | 0 | 0 | $ | 24,334 | ||||||||||||||
Totals: | $ | 432,036 | $ | 3,684,416 | $ | (2,680,012 | ) | $ | (37,614 | ) | $ | (180,107 | ) | $ | 1,218,719 | 94,534 | $ | 79,581 |
64
Schedule of Investments | November 30, 2020 | |
Global X TargetIncomeTM Plus 2 ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 99.9% | ||||||||
iShares 20+ Year Treasury Bond ETF | 4,463 | $ | 714,169 | |||||
iShares Core U.S. Aggregate Bond ETF | 8,156 | 965,834 | ||||||
Schwab US TIPS ETF | 11,689 | 719,458 | ||||||
SPDR Blackstone ETF | 10,760 | 485,491 | ||||||
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF | 30,649 | 991,495 | ||||||
Xtrackers USD High Yield Corporate Bond ETF | 19,800 | 980,496 | ||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $4,786,402) | 4,856,943 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $4,786,402) | $ | 4,856,943 |
Percentages are based on Net Assets of $4,861,354.
ETF — Exchange Traded Fund
EM — Emerging Markets
SPDR — Standard & Poor’s Depository Receipts
TIPS — Treasury Inflation Protected Security
USD — U.S. Dollar
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
65
Schedule of Investments | November 30, 2020 | |
Global X TargetIncomeTM Plus 2 ETF |
The following is a summary of the transactions with affiliates for the year ended November 30, 2020:
Value at 11/30/2019 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Appreciation | Realized Loss | Value at 11/30/2020 | Shares | Dividend Income | |||||||||||||||||||||||||
Global X U.S. Preferred ETF | $ | 1,950,330 | $ | 5,936,077 | $ | (6,829,200 | ) | $ | 3,919 | $ | (1,061,126 | ) | $ | 0 | 0 | $ | 95,656 |
66
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
CANADA— 0.6% | ||||||||
Financials — 0.6% | ||||||||
Toronto-Dominion Bank | 42,545 | $ | 2,285,943 | |||||
UNITED STATES— 99.3% | ||||||||
Communication Services — 8.0% | ||||||||
Alphabet, Cl A * | 5,404 | 9,480,777 | ||||||
AT&T | 70,440 | 2,025,150 | ||||||
Comcast, Cl A | 43,493 | 2,185,088 | ||||||
Discovery, Cl A * | 92,868 | 2,499,078 | ||||||
Facebook, Cl A * | 18,034 | 4,994,877 | ||||||
Netflix * | 4,017 | 1,971,142 | ||||||
Omnicom Group | 37,164 | 2,341,332 | ||||||
T-Mobile US * | 17,437 | 2,318,075 | ||||||
Verizon Communications | 33,812 | 2,042,583 | ||||||
Walt Disney * | 15,268 | 2,259,817 | ||||||
32,117,919 |
67
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — 13.3% | ||||||||
Amazon.com * | 4,481 | $ | 14,195,986 | |||||
Best Buy | 16,590 | 1,804,992 | ||||||
Booking Holdings * | 1,075 | 2,180,584 | ||||||
BorgWarner | 49,330 | 1,916,471 | ||||||
Choice Hotels International * | 21,244 | 2,116,965 | ||||||
Darden Restaurants | 19,688 | 2,125,910 | ||||||
eBay | 36,458 | 1,838,577 | ||||||
Etsy * | 14,217 | 2,284,672 | ||||||
General Motors * | 53,247 | 2,334,348 | ||||||
Hilton Worldwide Holdings * | 20,711 | 2,146,281 | ||||||
Home Depot | 6,930 | 1,922,451 | ||||||
Lowe’s | 11,392 | 1,775,101 | ||||||
Marriott International, Cl A * | 19,255 | 2,442,881 | ||||||
NIKE, Cl B | 15,086 | 2,032,084 | ||||||
Ross Stores * | 20,532 | 2,207,602 | ||||||
Starbucks | 21,600 | 2,117,232 | ||||||
Target | 12,230 | 2,195,652 | ||||||
Tiffany | 15,865 | 2,085,930 | ||||||
VF | 26,186 | 2,183,913 | ||||||
Whirlpool | 9,893 | 1,925,277 | ||||||
53,832,909 | ||||||||
Consumer Staples — 8.3% | ||||||||
Campbell Soup | 40,363 | 2,018,958 | ||||||
Church & Dwight | 21,321 | 1,871,344 | ||||||
Clorox | 9,290 | 1,885,498 | ||||||
Coca-Cola | 38,788 | 2,001,461 | ||||||
Colgate-Palmolive | 24,700 | 2,115,309 | ||||||
Costco Wholesale | 5,231 | 2,049,349 | ||||||
Estee Lauder, Cl A | 8,337 | 2,045,233 | ||||||
General Mills | 31,720 | 1,929,210 | ||||||
Hershey | 13,390 | 1,980,247 | ||||||
Hormel Foods | 39,502 | 1,863,704 | ||||||
J M Smucker | 16,962 | 1,987,947 |
68
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Staples — continued | ||||||||
Kellogg | 29,353 | $ | 1,875,950 | |||||
Kimberly-Clark | 14,316 | 1,994,362 | ||||||
McCormick | 9,980 | 1,866,060 | ||||||
PepsiCo | 14,042 | 2,025,277 | ||||||
Procter & Gamble | 13,776 | 1,913,073 | ||||||
Walgreens Boots Alliance | 51,507 | 1,957,781 | ||||||
33,380,763 | ||||||||
Energy — 1.7% | ||||||||
Chevron | 27,002 | 2,354,034 | ||||||
ConocoPhillips | 60,213 | 2,382,026 | ||||||
ONEOK | 64,148 | 2,300,989 | ||||||
7,037,049 | ||||||||
Financials — 10.1% | ||||||||
Aflac | 51,769 | 2,274,213 | ||||||
Allstate | 21,475 | 2,197,966 | ||||||
American Express | 19,404 | 2,301,120 | ||||||
Bank of America | 78,698 | 2,216,136 | ||||||
BlackRock, Cl A | 3,077 | 2,148,823 | ||||||
Capital One Financial | 25,125 | 2,151,705 | ||||||
Citigroup | 43,442 | 2,392,350 | ||||||
FactSet Research Systems | 5,973 | 1,993,548 | ||||||
Hartford Financial Services Group | 48,254 | 2,132,827 | ||||||
JPMorgan Chase | 18,876 | 2,225,103 | ||||||
Moody’s | 7,214 | 2,036,801 | ||||||
Morgan Stanley | 37,807 | 2,337,607 | ||||||
Northern Trust | 23,214 | 2,161,688 | ||||||
PNC Financial Services Group | 17,068 | 2,356,579 | ||||||
Progressive | 20,710 | 1,804,048 | ||||||
Prudential Financial | 28,628 | 2,164,849 | ||||||
S&P Global | 5,812 | 2,044,545 | ||||||
T Rowe Price Group | 13,240 | 1,898,748 | ||||||
US Bancorp | 48,193 | 2,082,420 | ||||||
40,921,076 |
69
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — 13.8% | ||||||||
Abbott Laboratories | 18,195 | $ | 1,969,063 | |||||
AbbVie | 22,722 | 2,376,267 | ||||||
Agilent Technologies | 18,471 | 2,159,261 | ||||||
Amgen | 8,633 | 1,916,871 | ||||||
Becton Dickinson | 8,163 | 1,916,999 | ||||||
Biogen Idec * | 7,394 | 1,775,817 | ||||||
Boston Scientific * | 52,715 | 1,747,502 | ||||||
Bristol-Myers Squibb | 32,590 | 2,033,617 | ||||||
Edwards Lifesciences * | 24,387 | 2,045,825 | ||||||
Eli Lilly | 13,773 | 2,006,037 | ||||||
Gilead Sciences | 32,236 | 1,955,758 | ||||||
Humana | 4,413 | 1,767,495 | ||||||
IDEXX Laboratories * | 4,561 | 2,102,531 | ||||||
Illumina * | 6,046 | 1,947,356 | ||||||
IQVIA Holdings * | 11,710 | 1,978,873 | ||||||
Johnson & Johnson | 13,491 | 1,951,878 | ||||||
Masimo * | 8,005 | 2,037,192 | ||||||
Merck | 24,546 | 1,973,253 | ||||||
Mettler-Toledo International * | 1,862 | 2,141,375 | ||||||
PerkinElmer | 15,761 | 2,096,213 | ||||||
Pfizer | 51,322 | 1,966,146 | ||||||
Quest Diagnostics | 15,414 | 1,911,027 | ||||||
Regeneron Pharmaceuticals * | 3,383 | 1,745,729 | ||||||
Stryker | 8,830 | 2,060,922 | ||||||
Thermo Fisher Scientific | 4,084 | 1,898,978 | ||||||
Vertex Pharmaceuticals * | 9,261 | 2,109,193 | ||||||
Viatris, Cl W * | 6,367 | 107,093 | ||||||
Waters * | 8,830 | 2,048,648 | ||||||
Zoetis, Cl A | 11,988 | 1,922,635 | ||||||
55,669,554 | ||||||||
Industrials — 9.7% | ||||||||
3M | 11,540 | 1,993,304 | ||||||
Caterpillar | 11,632 | 2,019,199 |
70
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Cummins | 8,666 | $ | 2,003,319 | |||||
Deere | 8,187 | 2,141,883 | ||||||
FedEx | 6,916 | 1,981,987 | ||||||
Honeywell International | 11,163 | 2,276,359 | ||||||
Illinois Tool Works | 9,504 | 2,006,199 | ||||||
Owens Corning | 27,621 | 2,012,742 | ||||||
Raytheon Technologies | 31,312 | 2,245,697 | ||||||
Republic Services, Cl A | 21,100 | 2,040,791 | ||||||
Rockwell Automation | 8,067 | 2,061,603 | ||||||
Southwest Airlines * | 45,793 | 2,122,048 | ||||||
Union Pacific | 10,423 | 2,127,126 | ||||||
United Parcel Service, Cl B | 11,408 | 1,951,567 | ||||||
Verisk Analytics, Cl A | 10,354 | 2,053,302 | ||||||
Waste Connections | 18,912 | 1,966,470 | ||||||
Waste Management | 16,791 | 2,000,312 | ||||||
WW Grainger | 5,428 | 2,270,532 | ||||||
Xylem | 21,395 | 2,053,278 | ||||||
39,327,718 | ||||||||
Information Technology — 26.0% | ||||||||
Accenture, Cl A | 8,538 | 2,126,730 | ||||||
Adobe * | 4,014 | 1,920,579 | ||||||
Advanced Micro Devices * | 23,909 | 2,215,408 | ||||||
Akamai Technologies * | 18,370 | 1,901,479 | ||||||
Analog Devices | 15,388 | 2,140,163 | ||||||
Apple | 187,030 | 22,265,922 | ||||||
Applied Materials | 32,178 | 2,654,041 | ||||||
Arista Networks * | 9,152 | 2,477,446 | ||||||
Automatic Data Processing | 13,137 | 2,284,262 | ||||||
Cisco Systems | 50,361 | 2,166,530 | ||||||
Cognizant Technology Solutions, Cl A | 26,460 | 2,067,320 | ||||||
F5 Networks * | 15,269 | 2,485,947 | ||||||
Intel | 40,653 | 1,965,573 | ||||||
Intuit | 5,864 | 2,064,245 |
71
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Jack Henry & Associates | 12,378 | $ | 1,991,125 | |||||
Keysight Technologies * | 18,163 | 2,180,287 | ||||||
Lam Research | 5,539 | 2,507,284 | ||||||
Littelfuse | 9,693 | 2,331,457 | ||||||
Mastercard, Cl A | 5,944 | 2,000,215 | ||||||
Micron Technology * | 37,079 | 2,376,393 | ||||||
Microsoft | 83,161 | 17,802,275 | ||||||
NVIDIA | 3,608 | 1,934,104 | ||||||
ON Semiconductor * | 74,969 | 2,155,359 | ||||||
Oracle | 32,713 | 1,888,194 | ||||||
Paychex | 23,046 | 2,146,735 | ||||||
Paycom Software * | 5,043 | 2,103,334 | ||||||
QUALCOMM | 15,218 | 2,239,633 | ||||||
salesforce.com * | 7,829 | 1,924,368 | ||||||
Square, Cl A * | 11,094 | 2,340,390 | ||||||
Texas Instruments | 13,078 | 2,108,828 | ||||||
Visa, Cl A | 9,896 | 2,081,624 | ||||||
Workday, Cl A * | 8,743 | 1,965,339 | ||||||
104,812,589 | ||||||||
Materials — 2.5% | ||||||||
Air Products & Chemicals | 6,671 | 1,868,814 | ||||||
Ecolab | 9,571 | 2,126,198 | ||||||
International Flavors & Fragrances | 17,722 | 1,986,636 | ||||||
Newmont | 32,434 | 1,907,768 | ||||||
Steel Dynamics | 60,149 | 2,177,995 | ||||||
10,067,411 | ||||||||
Real Estate — 2.6% | ||||||||
American Tower, Cl A ‡ | 8,243 | 1,905,781 | ||||||
CBRE Group, Cl A * | 42,038 | 2,570,203 | ||||||
Equinix ‡ | 2,521 | 1,759,129 | ||||||
Jones Lang LaSalle * | 17,520 | 2,317,721 | ||||||
ProLogis ‡ | 18,980 | 1,898,949 | ||||||
10,451,783 |
72
Schedule of Investments | November 30, 2020 | |
Global X Conscious Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Utilities — 3.3% | ||||||||
American Water Works | 12,720 | $ | 1,950,994 | |||||
Duke Energy | 21,122 | 1,957,164 | ||||||
Entergy | 17,986 | 1,957,775 | ||||||
Exelon | 46,436 | 1,907,127 | ||||||
NextEra Energy | 25,205 | 1,854,836 | ||||||
Sempra Energy | 14,639 | 1,866,180 | ||||||
WEC Energy Group | 19,183 | 1,821,426 | ||||||
13,315,502 | ||||||||
TOTAL UNITED STATES | 400,934,273 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $336,500,907) | 403,220,216 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $336,500,907) | $ | 403,220,216 |
Percentages are based on Net Assets of $403,499,233.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
Cl — Class
S&P — Standard & Poor’s
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
73
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.7% | ||||||||
UNITED STATES— 99.7% | ||||||||
Communication Services — 8.0% | ||||||||
AT&T | 53,239 | $ | 1,530,621 | |||||
Cable One | 98 | 194,106 | ||||||
CenturyLink | 67,668 | 707,131 | ||||||
Charter Communications, Cl A * | 2,120 | 1,382,219 | ||||||
Discovery, Cl A * | 32,272 | 868,439 | ||||||
Interpublic Group | 35,756 | 796,644 | ||||||
Liberty Broadband, Cl C * | 1,063 | 167,263 | ||||||
Nexstar Media Group, Cl A | 7,631 | 803,163 | ||||||
Omnicom Group | 1,976 | 124,488 | ||||||
TEGNA | 53,754 | 774,595 | ||||||
T-Mobile US * | 1,880 | 249,927 | ||||||
Verizon Communications | 47,536 | 2,871,650 | ||||||
ViacomCBS, Cl B | 23,483 | 828,480 | ||||||
Walt Disney * | 917 | 135,725 | ||||||
Zynga, Cl A * | 11,348 | 93,621 | ||||||
Total Communication Services | 11,528,072 |
74
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — 8.4% | ||||||||
AutoZone * | 116 | $ | 131,968 | |||||
Dollar General | 754 | 164,809 | ||||||
Dunkin’ Brands Group | 1,180 | 125,481 | ||||||
Foot Locker | 17,266 | 645,748 | ||||||
Ford Motor * | 85,189 | 773,516 | ||||||
Garmin | 20,588 | 2,403,855 | ||||||
General Motors * | 18,697 | 819,677 | ||||||
H&R Block | 36,851 | 692,799 | ||||||
Kohl’s * | 31,122 | 1,002,128 | ||||||
McDonald’s | 8,888 | 1,932,607 | ||||||
MGM Resorts International | 31,232 | 882,304 | ||||||
Starbucks | 1,243 | 121,839 | ||||||
Tiffany | 16,498 | 2,169,157 | ||||||
Yum! Brands | 2,135 | 225,883 | ||||||
Total Consumer Discretionary | 12,091,771 | |||||||
Consumer Staples — 9.1% | ||||||||
Archer-Daniels-Midland | 13,166 | 655,272 | ||||||
BJ’s Wholesale Club Holdings * | 2,311 | 94,728 | ||||||
Church & Dwight | 1,739 | 152,632 | ||||||
Clorox | 419 | 85,040 | ||||||
Coca-Cola | 40,532 | 2,091,451 | ||||||
Costco Wholesale | 288 | 112,830 | ||||||
Flowers Foods | 77,423 | 1,718,016 | ||||||
Hershey | 695 | 102,784 | ||||||
J M Smucker | 5,845 | 685,034 | ||||||
Kraft Heinz | 21,269 | 700,601 | ||||||
Kroger | 77,550 | 2,559,150 | ||||||
Molson Coors Beverage, Cl B * | 19,322 | 888,812 | ||||||
Mondelez International, Cl A | 2,227 | 127,941 | ||||||
PepsiCo | 5,454 | 786,630 | ||||||
Procter & Gamble | 1,635 | 227,053 | ||||||
Walmart | 14,038 | 2,144,866 | ||||||
Total Consumer Staples | 13,132,840 |
75
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Energy — 3.3% | ||||||||
Exxon Mobil | 20,166 | $ | 768,930 | |||||
HollyFrontier | 34,923 | 816,849 | ||||||
Kinder Morgan | 53,384 | 767,662 | ||||||
ONEOK | 23,520 | 843,662 | ||||||
Valero Energy | 16,499 | 887,151 | ||||||
Williams | 34,653 | 727,020 | ||||||
Total Energy | 4,811,274 | |||||||
Financials — 22.3% | ||||||||
AGNC Investment ‡ | 146,113 | 2,232,607 | ||||||
American Financial Group | 9,068 | 810,770 | ||||||
Annaly Capital Management ‡ | 44,600 | 356,800 | ||||||
Assured Guaranty | 24,819 | 747,797 | ||||||
Bank of New York Mellon | 18,351 | 717,891 | ||||||
Bank OZK | 29,123 | 814,279 | ||||||
Blackstone Mortgage Trust, Cl A ‡ | 30,201 | 784,622 | ||||||
Citigroup | 15,548 | 856,228 | ||||||
Citizens Financial Group | 24,267 | 792,560 | ||||||
Comerica | 15,758 | 775,294 | ||||||
Fifth Third Bancorp | 28,451 | 720,948 | ||||||
First Hawaiian | 41,409 | 907,685 | ||||||
First Horizon | 61,688 | 753,827 | ||||||
FNB | 87,819 | 775,442 | ||||||
Hanover Insurance Group | 6,601 | 741,622 | ||||||
Houlihan Lokey, Cl A | 6,678 | 432,601 | ||||||
Huntington Bancshares | 68,970 | 833,158 | ||||||
Invesco | 48,386 | 785,305 | ||||||
Jefferies Financial Group | 33,284 | 756,545 | ||||||
KeyCorp | 53,818 | 832,026 | ||||||
Lincoln National | 19,365 | 914,415 | ||||||
M&T Bank | 6,750 | 786,308 | ||||||
MetLife | 17,217 | 794,909 | ||||||
MGIC Investment | 67,935 | 812,503 | ||||||
Morningstar | 603 | 120,660 | ||||||
New York Community Bancorp | 80,471 | 779,764 |
76
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Financials — continued | ||||||||
People’s United Financial | 63,300 | $ | 784,920 | |||||
PNC Financial Services Group | 6,042 | 834,219 | ||||||
Principal Financial Group | 16,275 | 810,332 | ||||||
Progressive | 1,071 | 93,295 | ||||||
Prudential Financial | 10,243 | 774,576 | ||||||
Regions Financial | 52,263 | 798,056 | ||||||
Reinsurance Group of America, Cl A | 6,385 | 736,063 | ||||||
Starwood Property Trust ‡ | 44,426 | 797,002 | ||||||
Synovus Financial | 26,782 | 845,508 | ||||||
United Bankshares | 26,960 | 789,389 | ||||||
Unum Group | 35,622 | 791,877 | ||||||
Valley National Bancorp | 89,789 | 820,671 | ||||||
W R Berkley | 1,807 | 117,690 | ||||||
Webster Financial | 22,670 | 857,833 | ||||||
Wells Fargo | 29,464 | 805,840 | ||||||
White Mountains Insurance Group | 109 | 104,640 | ||||||
Zions Bancorp | 22,232 | 857,933 | ||||||
Total Financials | 32,256,410 | |||||||
Health Care — 10.8% | ||||||||
AbbVie | 8,065 | 843,438 | ||||||
Anthem | 2,259 | 703,724 | ||||||
Cerner | 4,369 | 326,976 | ||||||
Chemed | 277 | 132,475 | ||||||
Cigna | 3,830 | 801,006 | ||||||
CVS Health | 11,291 | 765,417 | ||||||
Danaher | 992 | 222,833 | ||||||
DENTSPLY SIRONA | 8,078 | 411,089 | ||||||
Eli Lilly | 851 | 123,948 | ||||||
Johnson & Johnson | 13,430 | 1,943,052 | ||||||
Medtronic | 1,177 | 133,825 | ||||||
Merck | 14,350 | 1,153,597 | ||||||
Perrigo | 14,910 | 718,960 |
77
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Pfizer | 72,708 | $ | 2,785,444 | |||||
QIAGEN * | 40,110 | 1,935,709 | ||||||
Quest Diagnostics | 1,293 | 160,306 | ||||||
Royalty Pharma, Cl A | 17,149 | 730,547 | ||||||
Universal Health Services, Cl B * | 5,976 | 780,346 | ||||||
Viatris, Cl W * | 53,192 | 894,689 | ||||||
Total Health Care | 15,567,381 | |||||||
Industrials — 8.9% | ||||||||
Air Lease, Cl A | 21,965 | 803,260 | ||||||
CH Robinson Worldwide | 1,358 | 127,611 | ||||||
FTI Consulting * | 848 | 89,057 | ||||||
General Dynamics | 4,894 | 730,919 | ||||||
L3Harris Technologies | 594 | 114,042 | ||||||
Landstar System | 5,253 | 690,349 | ||||||
Lockheed Martin | 5,412 | 1,975,380 | ||||||
ManpowerGroup | 9,386 | 813,297 | ||||||
MSC Industrial Direct, Cl A | 10,049 | 837,283 | ||||||
Northrop Grumman | 323 | 97,630 | ||||||
nVent Electric | 34,939 | 803,597 | ||||||
PACCAR | 7,356 | 640,413 | ||||||
Republic Services, Cl A | 22,094 | 2,136,932 | ||||||
TransDigm Group * | 1,384 | 801,599 | ||||||
Waste Management | 17,744 | 2,113,843 | ||||||
Watsco | 493 | 112,088 | ||||||
Total Industrials | 12,887,300 | |||||||
Information Technology — 15.2% | ||||||||
Accenture, Cl A | 657 | 163,652 | ||||||
Akamai Technologies * | 954 | 98,749 | ||||||
Amdocs | 34,205 | 2,251,031 | ||||||
Automatic Data Processing | 647 | 112,500 | ||||||
Avnet | 24,332 | 738,476 | ||||||
Black Knight * | 2,461 | 225,477 |
78
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Cisco Systems | 17,126 | $ | 736,761 | |||||
Citrix Systems | 14,664 | 1,817,163 | ||||||
Fidelity National Information Services | 11,113 | 1,649,280 | ||||||
Hewlett Packard Enterprise | 71,753 | 792,153 | ||||||
HP | 34,800 | 763,164 | ||||||
Intel | 12,513 | 605,004 | ||||||
International Business Machines | 5,813 | 718,022 | ||||||
Jack Henry & Associates | 10,386 | 1,670,692 | ||||||
Juniper Networks | 30,621 | 666,619 | ||||||
Motorola Solutions | 731 | 125,388 | ||||||
NortonLifeLock | 129,709 | 2,364,595 | ||||||
Paychex | 1,295 | 120,629 | ||||||
Qualys * | 1,054 | 100,141 | ||||||
Seagate Technology | 12,940 | 761,001 | ||||||
Tyler Technologies * | 5,108 | 2,184,181 | ||||||
Western Digital * | 15,910 | 714,041 | ||||||
Xerox Holdings | 34,233 | 749,360 | ||||||
Zoom Video Communications, Cl A * | 3,960 | 1,894,306 | ||||||
Total Information Technology | 22,022,385 | |||||||
Materials — 4.3% | ||||||||
Air Products & Chemicals | 650 | 182,091 | ||||||
AptarGroup | 1,526 | 192,764 | ||||||
Corteva | 20,327 | 778,931 | ||||||
Eastman Chemical | 7,836 | 763,227 | ||||||
Ecolab | 509 | 113,074 | ||||||
International Paper | 14,388 | 711,918 | ||||||
LyondellBasell Industries, Cl A | 8,735 | 743,349 | ||||||
NewMarket | 241 | 89,112 | ||||||
Newmont | 7,080 | 416,446 | ||||||
Royal Gold | 11,892 | 1,313,709 | ||||||
Silgan Holdings | 2,868 | 96,938 | ||||||
Sonoco Products | 2,140 | 124,248 | ||||||
Westrock | 16,587 | 700,137 | ||||||
Total Materials | 6,225,944 |
79
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Real Estate — 6.2% | ||||||||
Brixmor Property Group ‡ | 59,325 | $ | 905,893 | |||||
CoreSite Realty ‡ | 770 | 96,550 | ||||||
CubeSmart ‡ | 3,845 | 125,078 | ||||||
Digital Realty Trust ‡ | 662 | 89,204 | ||||||
Equity Commonwealth ‡ * | 76,579 | 2,030,109 | ||||||
Equity LifeStyle Properties ‡ | 27,695 | 1,622,650 | ||||||
Equity Residential ‡ | 1,727 | 100,028 | ||||||
Essex Property Trust ‡ | 574 | 141,135 | ||||||
Extra Space Storage ‡ | 1,112 | 125,356 | ||||||
Kimco Realty ‡ | 61,947 | 894,515 | ||||||
Public Storage ‡ | 542 | 121,657 | ||||||
Sabra Health Care ‡ | 48,660 | 801,917 | ||||||
SL Green Realty ‡ | 14,511 | 840,187 | ||||||
Sun Communities ‡ | 1,643 | 228,377 | ||||||
Vornado Realty Trust ‡ | 20,801 | 809,367 | ||||||
Total Real Estate | 8,932,023 | |||||||
Utilities — 3.2% | ||||||||
Alliant Energy | 2,190 | 115,194 | ||||||
Ameren | 1,436 | 111,692 | ||||||
American Electric Power | 1,583 | 134,381 | ||||||
CMS Energy | 2,098 | 129,111 | ||||||
Consolidated Edison | 1,270 | 96,838 | ||||||
Duke Energy | 6,214 | 575,789 | ||||||
Evergy | 1,599 | 88,601 | ||||||
Eversource Energy | 1,576 | 137,916 | ||||||
Hawaiian Electric Industries | 49,872 | 1,786,914 | ||||||
National Fuel Gas | 2,960 | 121,863 | ||||||
NextEra Energy | 3,924 | 288,767 | ||||||
PPL | 23,965 | 681,085 | ||||||
Southern | 5,064 | 303,080 | ||||||
Total Utilities | 4,571,231 |
80
Schedule of Investments | November 30, 2020 | |
Global X Adaptive U.S. Factor ETF |
Value | ||||
COMMON STOCK — continued | ||||
TOTAL UNITED STATES | $ | 144,026,631 | ||
TOTAL COMMON STOCK | ||||
(Cost $135,895,065) | 144,026,631 | |||
TOTAL INVESTMENTS — 99.7% | ||||
(Cost $135,895,065) | $ | 144,026,631 |
Percentages are based on Net Assets of $144,484,338.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
81
Schedule of Investments | November 30, 2020 | |
Global X Founder-Run Companies ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 100.0% | ||||||||
UNITED STATES— 100.0% | ||||||||
Communication Services — 10.2% | ||||||||
Cargurus, Cl A * | 1,862 | $ | 46,643 | |||||
Facebook, Cl A * | 195 | 54,009 | ||||||
Netflix * | 87 | 42,691 | ||||||
Nexstar Media Group, Cl A | 638 | 67,150 | ||||||
Roku, Cl A * | 293 | 86,016 | ||||||
Snap, Cl A * | 2,291 | 101,766 | ||||||
TripAdvisor * | 2,014 | 52,565 | ||||||
Twitter * | 1,292 | 60,091 | ||||||
World Wrestling Entertainment, Cl A | 829 | 35,680 | ||||||
Zillow Group, Cl C * | 345 | 37,195 | ||||||
Total Communication Services | 583,806 | |||||||
Consumer Discretionary — 10.2% | ||||||||
Amazon.com * | 15 | 47,521 | ||||||
Carvana, Cl A * | 398 | 99,584 | ||||||
Grubhub * | 853 | 60,000 |
82
Schedule of Investments | November 30, 2020 | |
Global X Founder-Run Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — continued | ||||||||
Las Vegas Sands * | 848 | $ | 47,242 | |||||
Skechers USA, Cl A * | 1,451 | 48,565 | ||||||
Tesla * | 255 | 144,738 | ||||||
Texas Roadhouse, Cl A * | 810 | 61,398 | ||||||
Wayfair, Cl A * | 301 | 76,562 | ||||||
Total Consumer Discretionary | 585,610 | |||||||
Consumer Staples — 2.0% | ||||||||
J & J Snack Foods | 315 | 45,798 | ||||||
National Beverage * | 712 | 69,797 | ||||||
Total Consumer Staples | 115,595 | |||||||
Energy — 0.9% | ||||||||
Pioneer Natural Resources | 480 | 48,278 | ||||||
Financials — 13.6% | ||||||||
Apollo Global Management, Cl A | 954 | 41,614 | ||||||
Athene Holding, Cl A * | 1,571 | 69,674 | ||||||
BlackRock, Cl A | 78 | 54,471 | ||||||
Blackstone Group, Cl A | 767 | 45,675 | ||||||
Capital One Financial | 662 | 56,693 | ||||||
Essent Group | 1,521 | 66,711 | ||||||
First Republic Bank | 371 | 48,067 | ||||||
Intercontinental Exchange | 418 | 44,103 | ||||||
KKR | 1,573 | 59,664 | ||||||
LendingTree * | 172 | 43,960 | ||||||
MarketAxess Holdings | 88 | 47,448 | ||||||
SEI Investments | 760 | 40,090 | ||||||
Signature Bank NY | 395 | 44,315 | ||||||
Starwood Property Trust ‡ | 3,482 | 62,467 | ||||||
Wintrust Financial | 1,031 | 56,179 | ||||||
Total Financials | 781,131 | |||||||
Health Care — 12.2% | ||||||||
Allogene Therapeutics * | 1,255 | 38,968 | ||||||
Guardant Health * | 479 | 58,016 |
83
Schedule of Investments | November 30, 2020 | |
Global X Founder-Run Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Ionis Pharmaceuticals * | 639 | $ | 32,288 | |||||
Jazz Pharmaceuticals * | 347 | 48,827 | ||||||
LHC Group * | 297 | 58,307 | ||||||
Masimo * | 176 | 44,790 | ||||||
Merit Medical Systems * | 924 | 50,885 | ||||||
Neurocrine Biosciences * | 378 | 35,887 | ||||||
Penumbra * | 195 | 43,271 | ||||||
Regeneron Pharmaceuticals * | 64 | 33,026 | ||||||
Seagen * | 254 | 43,259 | ||||||
Ultragenyx Pharmaceutical * | 552 | 65,434 | ||||||
United Therapeutics * | 334 | 44,302 | ||||||
Universal Health Services, Cl B * | 365 | 47,662 | ||||||
Veeva Systems, Cl A * | 198 | 54,820 | ||||||
Total Health Care | 699,742 | |||||||
Industrials — 5.3% | ||||||||
Axon Enterprise * | 517 | 64,982 | ||||||
Clean Harbors * | 734 | 53,120 | ||||||
CoStar Group * | 62 | 56,455 | ||||||
FedEx | 302 | 86,547 | ||||||
Lyft, Cl A * | 1,162 | 44,353 | ||||||
Total Industrials | 305,457 | |||||||
Information Technology — 34.4% | ||||||||
Akamai Technologies * | 361 | 37,367 | ||||||
Avalara * | 436 | 74,883 | ||||||
Dell Technologies, Cl C * | 936 | 64,612 | ||||||
Dropbox, Cl A * | 1,838 | 36,705 | ||||||
EPAM Systems * | 180 | 58,020 | ||||||
Euronet Worldwide * | 446 | 59,960 | ||||||
Fortinet * | 355 | 43,747 | ||||||
HubSpot * | 252 | 99,371 | ||||||
IPG Photonics * | 307 | 63,552 | ||||||
Microchip Technology | 453 | 60,878 |
84
Schedule of Investments | November 30, 2020 | |
Global X Founder-Run Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Monolithic Power Systems | 197 | $ | 63,032 | |||||
New Relic * | 718 | 42,886 | ||||||
Nutanix, Cl A * | 2,088 | 57,190 | ||||||
NVIDIA | 128 | 68,616 | ||||||
Okta, Cl A * | 239 | 58,565 | ||||||
Paycom Software * | 175 | 72,989 | ||||||
Pegasystems | 484 | 63,346 | ||||||
RealPage * | 612 | 42,222 | ||||||
RingCentral, Cl A * | 153 | 45,449 | ||||||
salesforce.com * | 238 | 58,500 | ||||||
Square, Cl A * | 593 | 125,099 | ||||||
SS&C Technologies Holdings | 725 | 49,945 | ||||||
Synopsys * | 243 | 55,283 | ||||||
Trade Desk, Cl A * | 143 | 128,853 | ||||||
Twilio, Cl A * | 334 | 106,910 | ||||||
Ubiquiti | 240 | 59,546 | ||||||
VeriSign * | 175 | 35,126 | ||||||
ViaSat * | 899 | 30,566 | ||||||
Workday, Cl A * | 256 | 57,546 | ||||||
Zendesk * | 506 | 67,551 | ||||||
Zscaler * | 542 | 84,417 | ||||||
Total Information Technology | 1,972,732 | |||||||
Materials — 1.0% | ||||||||
Steel Dynamics | 1,578 | 57,139 | ||||||
Real Estate — 10.2% | ||||||||
American Campus Communities ‡ | 1,272 | 50,626 | ||||||
American Homes 4 Rent, Cl A ‡ | 1,614 | 46,354 | ||||||
Apartment Investment & Management, Cl A ‡ | 1,682 | 51,049 | ||||||
Brandywine Realty Trust ‡ | 3,871 | 43,084 | ||||||
Camden Property Trust ‡ | 444 | 43,880 | ||||||
Healthcare Trust of America, Cl A ‡ | 1,627 | 42,351 | ||||||
Invitation Homes ‡ | 1,706 | 48,758 |
85
Schedule of Investments | November 30, 2020 | |
Global X Founder-Run Companies ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Real Estate — continued | ||||||||
Medical Properties Trust ‡ | 2,403 | $ | 46,618 | |||||
ProLogis ‡ | 417 | 41,721 | ||||||
QTS Realty Trust, Cl A ‡ | 1,428 | 84,837 | ||||||
STAG Industrial ‡ | 1,505 | 44,819 | ||||||
Vornado Realty Trust ‡ | 1,014 | 39,455 | ||||||
Total Real Estate | 583,552 | |||||||
TOTAL UNITED STATES | 5,733,042 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $4,631,880) | 5,733,042 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $4,631,880) | $ | 5,733,042 |
Percentages are based on Net Assets of $5,732,255.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there have been no transfers in or out of Level 3.
86
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X SuperDividend® Alternatives ETF | Global X S&P 500® Quality Dividend ETF | Global X U.S. Preferred ETF | Global X Variable Rate Preferred ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 15,752,799 | $ | 5,840,677 | $ | 839,505,844 | $ | 1,246,481 | ||||||||
Cost of Repurchase Agreement | 1,941,378 | — | 4,771,747 | — | ||||||||||||
Cost of Affiliated Investments | 5,263,654 | — | — | — | ||||||||||||
Investments, at Value | $ | 16,174,521 | * | $ | 6,284,560 | $ | 864,893,934 | * | $ | 1,343,476 | ||||||
Repurchase Agreement, at Value | 1,941,378 | — | 4,771,747 | — | ||||||||||||
Cash | 17,966 | 3,114 | 1,675,927 | — | ||||||||||||
Affiliated Investments, at Value | 3,618,456 | — | — | — | ||||||||||||
Dividend and Interest Receivable | 43,733 | 13,457 | 4,853,479 | 6,000 | ||||||||||||
Receivable for Capital Shares Sold | — | — | 11,426,741 | — | ||||||||||||
Reclaim Receivable | — | 96 | — | — | ||||||||||||
Due from Broker | — | — | 8,775 | — | ||||||||||||
Total Assets | 21,796,054 | 6,301,227 | 887,630,603 | 1,349,476 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | 2,211,515 | — | 5,435,720 | — | ||||||||||||
Payable due to Investment Adviser | 11,688 | 1,013 | 154,175 | 362 | ||||||||||||
Payable for Investment Securities Purchased | — | — | 13,463,275 | — | ||||||||||||
Cash Overdraft | — | — | — | 473 | ||||||||||||
Due to Broker | — | — | 27,297 | — | ||||||||||||
Total Liabilities | 2,223,203 | 1,013 | 19,080,467 | 835 | ||||||||||||
Net Assets | $ | 19,572,851 | $ | 6,300,214 | $ | 868,550,136 | $ | 1,348,641 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 25,219,869 | $ | 6,735,544 | $ | 856,735,694 | $ | 1,241,193 | ||||||||
Total Distributable Earnings/(Loss) | (5,647,018 | ) | (435,330 | ) | 11,814,442 | 107,448 | ||||||||||
Net Assets | $ | 19,572,851 | $ | 6,300,214 | $ | 868,550,136 | $ | 1,348,641 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 1,700,000 | 250,002 | 34,250,000 | 50,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 11.51 | $ | 25.20 | $ | 25.36 | $ | 26.97 | ||||||||
*Includes Market Value of Securities on Loan | $ | 2,101,993 | $ | — | $ | 5,283,518 | $ | — |
Amounts designated as “—” are either $0 or have been rounded to $0.
87
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | Global X TargetIncomeTM 5 ETF | Global X TargetIncomeTM Plus 2 ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 730,475,317 | $ | 635,294,478 | $ | 3,440,227 | $ | 4,786,402 | ||||||||
Cost of Repurchase Agreement | — | 11,132,235 | — | — | ||||||||||||
Cost of Affiliated Investments | — | — | 1,277,403 | — | ||||||||||||
Investments, at Value | $ | 687,381,745 | $ | 539,370,728 | * | $ | 3,425,225 | $ | 4,856,943 | |||||||
Repurchase Agreement, at Value | — | 11,132,235 | — | — | ||||||||||||
Cash | 3,485,165 | 721,401 | 1,691 | 5,965 | ||||||||||||
Affiliated Investments, at Value | — | — | 1,218,719 | — | ||||||||||||
Receivable for Investment Securities Sold | 38,162,285 | 26,043,179 | — | — | ||||||||||||
Receivable for Capital Shares Sold | 5,347,781 | — | — | — | ||||||||||||
Dividend and Interest Receivable | — | 943,384 | — | — | ||||||||||||
Reclaim Receivable | — | 379,712 | — | — | ||||||||||||
Due from Broker | — | 1,123 | — | — | ||||||||||||
Alternative Minimum Tax Credit | 41,496 | — | — | — | ||||||||||||
Total Assets | 734,418,472 | 578,591,762 | 4,645,635 | 4,862,908 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | — | 12,681,250 | — | — | ||||||||||||
Payable for Investment Securities Purchased | 38,944,213 | 25,981,714 | — | — | ||||||||||||
Payable for Capital Shares Redeemed | 4,182,705 | 1,370,731 | — | — | ||||||||||||
Payable due to Investment Adviser | 240,723 | 183,969 | 1,473 | 1,554 | ||||||||||||
Due to Custodian | 71,141 | 30,511 | — | — | ||||||||||||
Other Accrued Expenses | 8,597 | — | — | — | ||||||||||||
Franchise Tax Payable | 30,383 | — | — | — | ||||||||||||
Income Tax Payable | 3,364,020 | — | — | — | ||||||||||||
Total Liabilities | 46,841,782 | 40,248,175 | 1,473 | 1,554 | ||||||||||||
Net Assets | $ | 687,576,690 | $ | 538,343,587 | $ | 4,644,162 | $ | 4,861,354 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 1,202,436,679 | $ | 867,113,514 | $ | 4,957,530 | $ | 5,011,343 | ||||||||
Total Distributable Loss | (514,859,989 | ) | (328,769,927 | ) | (313,368 | ) | (149,989 | ) | ||||||||
Net Assets | $ | 687,576,690 | $ | 538,343,587 | $ | 4,644,162 | $ | 4,861,354 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 25,718,637 | 20,247,506 | 200,002 | 200,002 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 26.73 | $ | 26.59 | $ | 23.22 | $ | 24.31 | ||||||||
*Includes Market Value of Securities on Loan | $ | — | $ | 12,107,750 | $ | — | $ | — |
Amounts designated as “—” are either $0 or have been rounded to $0.
88
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Conscious Companies ETF | Global X Adaptive U.S. Factor ETF | Global X Founder-Run Companies ETF | ||||||||||
Assets: | ||||||||||||
Cost of Investments | $ | 336,500,907 | $ | 135,895,065 | $ | 4,631,880 | ||||||
Investments, at Value | $ | 403,220,216 | $ | 144,026,631 | $ | 5,733,042 | ||||||
Cash | — | 44,950 | 7,929 | |||||||||
Dividend and Interest Receivable | 624,689 | 444,251 | 905 | |||||||||
Reclaim Receivable | — | 671 | — | |||||||||
Total Assets | 403,844,905 | 144,516,503 | 5,741,876 | |||||||||
Liabilities: | ||||||||||||
Cash Overdraft | 205,924 | — | — | |||||||||
Payable due to Investment Adviser | 139,748 | 30,947 | 2,027 | |||||||||
Payable for Investment Securities Purchased | — | — | 7,594 | |||||||||
Due to Custodian | — | 10 | — | |||||||||
Due to Broker | — | 1,208 | — | |||||||||
Total Liabilities | 345,672 | 32,165 | 9,621 | |||||||||
Net Assets | $ | 403,499,233 | $ | 144,484,338 | $ | 5,732,255 | ||||||
Net Assets Consist of: | ||||||||||||
Paid-in Capital | $ | 338,526,725 | $ | 165,997,674 | $ | 4,711,187 | ||||||
Total Distributable Earnings/(Loss) | 64,972,508 | (21,513,336 | ) | 1,021,068 | ||||||||
Net Assets | $ | 403,499,233 | $ | 144,484,338 | $ | 5,732,255 | ||||||
Outstanding Shares of Beneficial Interest | ||||||||||||
(unlimited authorization — no par value) | 15,250,000 | 5,800,002 | 200,000 | |||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 26.46 | $ | 24.91 | $ | 28.66 |
Amounts designated as “—” are either $0 or have been rounded to $0.
89
Statements of Operations | ||
For the year/period ended November 30, 2020 |
Global X SuperDividend® Alternatives ETF | Global X S&P 500® Quality Dividend ETF | Global X U.S. Preferred ETF | Global X Variable Rate Preferred ETF* | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 758,106 | $ | 199,593 | $ | 39,138,947 | $ | 59,775 | ||||||||
Dividend Income, from Affiliated Investments | 306,686 | — | — | — | ||||||||||||
Interest Income | 153 | — | 45,172 | — | ||||||||||||
Security Lending Income | 167,226 | — | 408,712 | — | ||||||||||||
Less: Foreign Taxes Withheld | — | — | — | (12 | ) | |||||||||||
Total Investment Income | 1,232,171 | 199,593 | 39,592,831 | 59,763 | ||||||||||||
Supervision and Administration Fees(1) | 145,270 | 11,507 | 1,591,934 | 2,652 | ||||||||||||
Custodian Fees(2) | 271 | 15 | 2,841 | 3 | ||||||||||||
Total Expenses | 145,541 | 11,522 | 1,594,775 | 2,655 | ||||||||||||
Waiver of Supervision and Administration Fees | – | – | (733 | ) | – | |||||||||||
Net Expenses | 145,541 | 11,522 | 1,594,042 | 2,655 | ||||||||||||
Net Investment Income | 1,086,630 | 188,071 | 37,998,789 | 57,108 | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(3) | (3,565,668 | ) | 471,553 | (6,299,727 | ) | 84,037 | ||||||||||
Affiliated Investments | (546,550 | ) | — | — | — | |||||||||||
Net Realized Gain (Loss) on Investments | (4,112,218 | ) | 471,553 | (6,299,727 | ) | 84,037 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investments | 1,004,060 | (252,255 | ) | 18,485,011 | 98,014 | |||||||||||
Affiliated Investments | (1,827,694 | ) | — | — | — | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (823,634 | ) | (252,255 | ) | 18,485,011 | 98,014 | ||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (4,935,852 | ) | 219,298 | 12,185,284 | 182,051 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (3,849,222 | ) | $ | 407,369 | $ | 50,184,073 | $ | 239,159 |
* | Commencement date June 22, 2020. |
(1) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(2) | See Note 2 in the Notes to Financial Statements. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
90
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | Global X TargetIncomeTM 5 ETF | Global X TargetIncomeTM Plus 2 ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Distributions from Master Limited Partnerships | $ | 85,869,955 | $ | — | $ | — | $ | — | ||||||||
Less: Return of Capital Distributions | (85,869,955 | ) | — | — | — | |||||||||||
Dividend Income | 433,388 | 18,617,164 | 127,238 | 415,627 | ||||||||||||
Dividend Income, from Affiliated Investments | — | — | 79,581 | — | ||||||||||||
Interest Income | 11,157 | 3,328 | — | (10 | ) | |||||||||||
Security Lending Income | — | 249,245 | — | — | ||||||||||||
Less: Foreign Taxes Withheld | — | (1,216,466 | ) | — | — | |||||||||||
Total Investment Income | 444,545 | 17,653,271 | 206,819 | 415,617 | ||||||||||||
Supervision and Administration Fees(1) | 3,364,907 | 2,551,708 | 17,701 | 41,329 | ||||||||||||
Franchise Tax Expense | 26,614 | — | — | — | ||||||||||||
Custodian Fees(2) | 5,448 | 4,327 | 1 | 4 | ||||||||||||
Net Expenses | 3,396,969 | 2,556,035 | 17,702 | 41,333 | ||||||||||||
Net Investment Income (Loss), Before Taxes | (2,952,424 | ) | 15,097,236 | 189,117 | 374,284 | |||||||||||
Tax Benefit/(Expense), net of valuation allowance | (3,406,920 | ) | — | — | — | |||||||||||
Net Investment Income (Loss), Net of Taxes | (6,359,344 | ) | 15,097,236 | 189,117 | 374,284 | |||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(3) | (324,548,352 | ) | (91,676,583 | ) | 25,073 | (3,386,649 | ) | |||||||||
Affiliated Investments | — | — | (180,107 | ) | — | |||||||||||
Net Realized Loss on Investments | (324,548,352 | ) | (91,676,583 | ) | (155,034 | ) | (3,386,649 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investments | (4,748,459 | ) | (34,621,560 | ) | (21,585 | ) | 60,661 | |||||||||
Affiliated Investments | — | — | (37,614 | ) | 3,919 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (4,748,459 | ) | (34,621,560 | ) | (59,199 | ) | 64,580 | |||||||||
Net Realized and Unrealized Loss on Investments | (329,296,811 | ) | (126,298,143 | ) | (214,233 | ) | (3,322,069 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | $ | (335,656,155 | ) | $ | (111,200,907 | ) | $ | (25,116 | ) | $ | (2,947,785 | ) |
(1) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(2) | See Note 2 in the Notes to Financial Statements. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
91
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Conscious Companies ETF | Global X Adaptive U.S. Factor ETF | Global X Founder-Run Companies ETF | ||||||||||
Investment Income: | ||||||||||||
Dividend Income | $ | 4,297,485 | $ | 4,737,916 | $ | 47,249 | ||||||
Interest Income | 439 | — | 17 | |||||||||
Less: Foreign Taxes Withheld | (20,179 | ) | — | — | ||||||||
Total Investment Income | 4,277,745 | 4,737,916 | 47,266 | |||||||||
Supervision and Administration Fees(1) | 977,170 | 419,978 | 25,320 | |||||||||
Custodian Fees(2) | 122 | 2,551 | 1 | |||||||||
Total Expenses | 977,292 | 422,529 | 25,321 | |||||||||
Net Expenses | 977,292 | 422,529 | 25,321 | |||||||||
Net Investment Income | 3,300,453 | 4,315,387 | 21,945 | |||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments(3) | 28,263,788 | (11,538,028 | ) | (1,120,416 | ) | |||||||
Net Realized Gain (Loss) on Investments | 28,263,788 | (11,538,028 | ) | (1,120,416 | ) | |||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | 53,212,614 | (1,379,090 | ) | 942,221 | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 53,212,614 | (1,379,090 | ) | 942,221 | ||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 81,476,402 | (12,917,118 | ) | (178,195 | ) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 84,776,855 | $ | (8,601,731 | ) | $ | (156,250 | ) |
(1) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(2) | See Note 2 in the Notes to Financial Statements. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
92
Statements of Changes in Net Assets | ||
Global X SuperDividend® Alternatives ETF | Global X S&P 500® Quality Dividend ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 1,086,630 | $ | 1,424,973 | $ | 188,071 | $ | 199,835 | ||||||||
Net Realized Gain (Loss) on Investments (1) | (4,112,218 | ) | 315,095 | 471,553 | 197,625 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (823,634 | ) | 188,022 | (252,255 | ) | 740,007 | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,849,222 | ) | 1,928,090 | 407,369 | 1,137,467 | |||||||||||
Distributions | (1,871,599 | ) | (1,722,480 | ) | (208,533 | ) | (188,336 | ) | ||||||||
Return of Capital | (218,100 | ) | — | (950 | ) | — | ||||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 3,221,003 | 12,578,798 | 8,382,103 | 9,451,209 | ||||||||||||
Redeemed | (5,721,323 | ) | (1,470,485 | ) | (11,557,981 | ) | (3,581,825 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | (2,500,320 | ) | 11,108,313 | (3,175,878 | ) | 5,869,384 | ||||||||||
Total Increase (Decrease) in Net Assets | (8,439,241 | ) | 11,313,923 | (2,977,992 | ) | 6,818,515 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 28,012,092 | 16,698,169 | 9,278,206 | 2,459,691 | ||||||||||||
End of Year | $ | 19,572,851 | $ | 28,012,092 | $ | 6,300,214 | $ | 9,278,206 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 300,000 | 850,000 | 350,000 | 400,000 | ||||||||||||
Redeemed | (500,000 | ) | (100,000 | ) | (450,000 | ) | (150,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | (200,000 | ) | 750,000 | (100,000 | ) | 250,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
93
Statements of Changes in Net Assets | ||
Global X U.S. Preferred ETF | Global X Variable Rate Preferred ETF | |||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Period Ended November 30, 2020(1) | ||||||||||
Operations: | ||||||||||||
Net Investment Income | $ | 37,998,789 | $ | 18,731,741 | $ | 57,108 | ||||||
Net Realized Gain (Loss) on Investments (2) | (6,299,727 | ) | 1,186,141 | 84,307 | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 18,485,011 | 15,846,079 | 98,014 | |||||||||
Net Increase in Net Assets Resulting from Operations | 50,184,073 | 35,763,961 | 239,159 | |||||||||
Distributions | (37,989,950 | ) | (17,959,180 | ) | (49,000 | ) | ||||||
Capital Share Transactions: | ||||||||||||
Issued | 520,184,945 | 435,976,798 | 2,485,001 | |||||||||
Redeemed | (248,979,070 | ) | (56,945,881 | ) | (1,326,519 | ) | ||||||
Increase in Net Assets from Capital Share Transactions | 271,205,875 | 379,030,917 | 1,158,482 | |||||||||
Total Increase in Net Assets | 283,399,998 | 396,835,698 | 1,348,642 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year | 585,150,138 | 188,314,440 | — | |||||||||
End of Year | $ | 868,550,136 | $ | 585,150,138 | $ | 1,348,641 | ||||||
Share Transactions: | ||||||||||||
Issued | 21,150,000 | 17,750,000 | 100,000 | |||||||||
Redeemed | (10,500,000 | ) | (2,350,000 | ) | (50,000 | ) | ||||||
Net Increase in Shares Outstanding from Share Transactions | 10,650,000 | 15,400,000 | 50,000 |
(1) | The Fund commenced operations on June 22, 2020. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
94
Statements of Changes in Net Assets | ||
Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income (Loss), Net of Taxes | $ | (6,359,344 | ) | $ | (4,078,779 | ) | $ | 15,097,236 | $ | 22,064,964 | ||||||
Net Realized Loss on Investments (1) | (324,548,352 | ) | (14,517,319 | ) | (91,676,583 | ) | (4,353,061 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (4,748,459 | ) | (49,933,515 | ) | (34,621,560 | ) | (23,439,187 | ) | ||||||||
Net Decrease in Net Assets Resulting from Operations | (335,656,155 | ) | (68,529,613 | ) | (111,200,907 | ) | (5,727,284 | ) | ||||||||
Distributions | — | — | (41,140,675 | ) | (40,058,250 | ) | ||||||||||
Return of Capital | (95,194,445 | ) | (77,728,975 | ) | (6,129,052 | ) | (3,644,335 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 448,082,413 | 389,112,928 | 261,977,997 | 494,176,845 | ||||||||||||
Redeemed | (276,699,657 | ) | (124,431,906 | ) | (177,463,590 | ) | (372,827,734 | ) | ||||||||
Increase in Net Assets from Capital Share Transactions | 171,382,756 | 264,681,022 | 84,514,407 | 121,349,111 | ||||||||||||
Total Increase (Decrease) in Net Assets | (259,467,844 | ) | 118,422,434 | (73,956,227 | ) | 71,919,242 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 947,044,534 | 828,622,100 | 612,299,814 | 540,380,572 | ||||||||||||
End of Year | $ | 687,576,690 | $ | 947,044,534 | $ | 538,343,587 | $ | 612,299,814 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 13,991,667 | 47,050,000 | 9,016,667 | 40,550,000 | ||||||||||||
Redeemed | (9,823,030 | ) | (14,800,000 | ) | (7,069,161 | ) | (30,200,000 | ) | ||||||||
Net Increase in Shares Outstanding from Share Transactions | 4,168,637 | 32,250,000 | 1,947,506 | 10,350,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
95
Statements of Changes in Net Assets | ||
Global X TargetIncomeTM 5 ETF | Global X TargetIncomeTM Plus 2 ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 189,117 | $ | 96,513 | $ | 374,284 | $ | 120,186 | ||||||||
Net Realized Loss on Investments(1) | (155,034 | ) | (75,388 | ) | (3,386,649 | ) | (77,274 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | (59,199 | ) | 105,935 | 64,580 | 120,084 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (25,116 | ) | 127,060 | (2,947,785 | ) | 162,996 | ||||||||||
Distributions | (200,326 | ) | (106,201 | ) | (384,302 | ) | (129,966 | ) | ||||||||
Return of Capital | (31,932 | ) | — | (10,725 | ) | — | ||||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 8,365,342 | — | 30,643,465 | 8,525,580 | ||||||||||||
Redeemed | (4,675,523 | ) | (1,204,575 | ) | (32,186,390 | ) | (1,210,064 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 3,689,819 | (1,204,575 | ) | (1,542,925 | ) | 7,315,516 | ||||||||||
Total Increase (Decrease) in Net Assets | 3,432,445 | (1,183,716 | ) | (4,885,737 | ) | 7,348,546 | ||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 1,211,717 | 2,395,433 | 9,747,091 | 2,398,545 | ||||||||||||
End of Year | $ | 4,644,162 | $ | 1,211,717 | $ | 4,861,354 | $ | 9,747,091 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 350,000 | — | 1,250,000 | 350,000 | ||||||||||||
Redeemed | (200,000 | ) | (50,000 | ) | (1,450,000 | ) | (50,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | 150,000 | (50,000 | ) | (200,000 | ) | 300,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
96
Statements of Changes in Net Assets | ||
Global X Conscious Companies ETF | Global X Adaptive U.S. Factor ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 3,300,453 | $ | 1,109,548 | $ | 4,315,387 | $ | 5,342,279 | ||||||||
Net Realized Gain (Loss) on Investments (1) | 28,263,788 | 1,212,313 | (11,538,028 | ) | 1,114,850 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 53,212,614 | 7,322,687 | (1,379,090 | ) | 10,482,959 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 84,776,855 | 9,644,548 | (8,601,731 | ) | 16,940,088 | |||||||||||
Distributions | (1,877,907 | ) | (1,418,777 | ) | (5,174,718 | ) | (6,134,537 | ) | ||||||||
Return of Capital | — | — | (635,325 | ) | — | |||||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 312,745,124 | 26,031,211 | 158,831,557 | 80,979,739 | ||||||||||||
Redeemed | (77,604,275 | ) | (5,301,803 | ) | (189,499,311 | ) | (4,658,957 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 235,140,849 | 20,729,408 | (30,667,754 | ) | 76,320,782 | |||||||||||
Total Increase (Decrease) in Net Assets | 318,039,797 | 28,955,179 | (45,079,528 | ) | 87,126,333 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 85,459,436 | 56,504,257 | 189,563,866 | 102,437,533 | ||||||||||||
End of Year | $ | 403,499,233 | $ | 85,459,436 | $ | 144,484,338 | $ | 189,563,866 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 14,850,000 | 1,200,000 | 6,650,000 | 3,350,000 | ||||||||||||
Redeemed | (3,300,000 | ) | (250,000 | ) | (8,200,000 | ) | (200,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | 11,550,000 | 950,000 | (1,550,000 | ) | 3,150,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
97
Statements of Changes in Net Assets | ||
Global X Founder-Run Companies ETF | ||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||
Operations: | ||||||||
Net Investment Income | $ | 21,945 | $ | 12,129 | ||||
Net Realized Gain (Loss) on Investments (1) | (1,120,416 | ) | 117,490 | |||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 942,221 | 409,468 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (156,250 | ) | 539,087 | |||||
Distributions | (13,936 | ) | (73,673 | ) | ||||
Capital Share Transactions: | ||||||||
Issued | 6,247,607 | — | ||||||
Redeemed | (4,444,963 | ) | (1,022,118 | ) | ||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 1,802,644 | (1,022,118 | ) | |||||
Total Increase (Decrease) in Net Assets | 1,632,458 | (556,704 | ) | |||||
Net Assets: | ||||||||
Beginning of Year | 4,099,797 | 4,656,501 | ||||||
End of Year | $ | 5,732,255 | $ | 4,099,797 | ||||
Share Transactions: | ||||||||
Issued | 300,000 | — | ||||||
Redeemed | (300,000 | ) | (50,000 | ) | ||||
Net Decrease in Shares Outstanding from Share Transactions | — | (50,000 | ) |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
98
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
Global X SuperDividend® Alternatives ETF | ||||||||||||||||||||||||||||
2020 | 14.74 | 0.66 | (2.64 | ) | (1.98 | ) | (0.98 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||||||
2019 | 14.52 | 0.94 | 0.44 | 1.38 | (1.07 | ) | (0.09 | ) | — | |||||||||||||||||||
2018 | 15.40 | 0.92 | (0.64 | ) | 0.28 | (1.16 | ) | — | — | |||||||||||||||||||
2017 | 14.65 | 1.04 | 0.85 | 1.89 | (1.01 | ) | — | (0.13 | ) | |||||||||||||||||||
2016 | 14.43 | 0.99 | # | 0.53 | ^ | 1.52 | (1.15 | ) | — | (0.15 | ) | |||||||||||||||||
Global X S&P 500® Quality Dividend ETF | ||||||||||||||||||||||||||||
2020 | 26.51 | 0.75 | (1.24 | ) | (0.49 | ) | (0.82 | ) | — | *** | ||||||||||||||||||
2019 | 24.60 | 0.75 | 1.89 | 2.64 | (0.73 | ) | — | — | ||||||||||||||||||||
2018(1) | 25.00 | 0.26 | (0.44 | ) | (0.18 | ) | (0.22 | ) | — | — | ||||||||||||||||||
Global X U.S. Preferred ETF | ||||||||||||||||||||||||||||
2020 | 24.79 | 1.33 | 0.58 | 1.91 | (1.34 | ) | — | — | ||||||||||||||||||||
2019 | 22.97 | 1.36 | 1.83 | 3.19 | (1.37 | ) | — | — | ||||||||||||||||||||
2018 | 25.03 | 1.44 | (2.08 | ) | (0.64 | ) | (1.42 | ) | — | — | ||||||||||||||||||
2017(2) | 25.08 | 0.44 | (0.25 | ) | 0.19 | (0.24 | ) | — | — |
99
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(1.25 | ) | 11.51 | (13.13 | ) | 19,573 | 0.75 | 5.61 | 52.78 | ||||||||||||||||||
(1.16 | ) | 14.74 | 9.89 | 28,012 | 0.75 | 6.39 | 18.16 | |||||||||||||||||||
(1.16 | ) | 14.52 | 1.89 | 16,698 | 0.75 | 6.19 | 18.32 | |||||||||||||||||||
(1.14 | ) | 15.40 | 13.24 | 11,549 | 0.75 | 6.75 | 34.84 | |||||||||||||||||||
(1.30 | ) | 14.65 | 11.04 | 5,127 | 0.75 | 6.78 | 30.80 | |||||||||||||||||||
(0.82 | ) | 25.20 | (1.47 | ) | 6,300 | 0.20 | 3.27 | 93.40 | ||||||||||||||||||
(0.73 | ) | 26.51 | 11.01 | 9,278 | 0.28 | ‡ | 2.99 | 49.18 | ||||||||||||||||||
(0.22 | ) | 24.60 | (0.72 | ) | 2,460 | 0.36 | † | 2.70 | † | 1.18 | ||||||||||||||||
(1.34 | ) | 25.36 | 8.13 | 868,550 | 0.23 | ^^ | 5.49 | 39.14 | ||||||||||||||||||
(1.37 | ) | 24.79 | 14.25 | 585,150 | 0.24 | 5.57 | 32.93 | |||||||||||||||||||
(1.42 | ) | 22.97 | (2.72 | ) | 188,314 | 0.23 | 5.98 | 42.90 | ||||||||||||||||||
(0.24 | ) | 25.03 | 0.75 | 26,276 | 0.23 | † | 8.01 | † | 3.82 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
*** | Amount is less than $0.005 |
# | Effective November 1, 2015, the Fund changed its method for estimating the characterization of amounts distributed by master limited partnerships, which correspondingly impacted the financial highlight ratios and per share disclosures to the extent that the fund recorded investment income that differed from amounts previously estimated. |
^ | The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund. |
^^ | Effective April 1, 2020, the ratio of Expenses to Average Net Assets includes the effect of a waiver. If these offsets were excluded, the ratio would have been 0.23%. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
‡ | Effective April 1, 2019, the Fund’s fees were permanently lowered to 0.20%. Prior to April 1, 2019, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.31% and 0.35%, for the years ended November 30, 2019 and 2018, respectively. |
(1) | The Fund commenced operations on July 13, 2018. |
(2) | The Fund commenced operations on September 11, 2017. |
Amounts designated as “—” are either $0 or have been rounded to $0.
100
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
Global X Variable Rate Preferred ETF | ||||||||||||||||||||||||||||
2020(1) | 24.85 | 0.61 | 2.00 | 2.61 | (0.49 | ) | — | — | ||||||||||||||||||||
Global X MLP ETF | ||||||||||||||||||||||||||||
2020(2) | 43.92 | (0.26 | ) | (13.13 | ) | (13.39 | ) | — | — | (3.80 | ) | |||||||||||||||||
2019(2) | 51.24 | (0.24 | ) | (2.76 | ) | (3.00 | ) | — | — | (4.32 | ) | |||||||||||||||||
2018(2) | 56.52 | (0.24 | ) | (0.42 | ) | (0.66 | ) | (0.12 | ) | — | (4.50 | ) | ||||||||||||||||
2017(2) | 67.44 | (0.30 | ) | (5.88 | ) | (6.18 | ) | *** | — | (4.74 | ) | |||||||||||||||||
2016(2) | 63.36 | (0.42 | ) | 9.48 | 9.06 | (0.12 | ) | — | (4.86 | ) | ||||||||||||||||||
Global X MLP & Energy Infrastructure ETF | ||||||||||||||||||||||||||||
2020(3) | 33.45 | 0.71 | (5.33 | ) | (4.62 | ) | (1.95 | ) | — | (0.29 | ) | |||||||||||||||||
2019(3) | 36.39 | 1.14 | (1.89 | ) | (0.75 | ) | (2.01 | ) | — | (0.18 | ) | |||||||||||||||||
2018(3) | 38.40 | 1.05 | (1.11 | ) | (0.06 | ) | (1.56 | ) | — | (0.39 | ) | |||||||||||||||||
2017(3) | 44.46 | 0.93 | (4.62 | ) | (3.69 | ) | (2.16 | ) | — | (0.21 | ) | |||||||||||||||||
2016(3) | 40.41 | 1.08 | 4.77 | 5.85 | (1.80 | ) | — | — | ||||||||||||||||||||
Global X TargetIncomeTM 5 ETF | ||||||||||||||||||||||||||||
2020 | 24.23 | 0.95 | (0.68 | ) | 0.27 | (1.10 | ) | — | (0.18 | ) | ||||||||||||||||||
2019 | 23.95 | 1.43 | 0.30 | 1.73 | (1.44 | ) | (0.01 | ) | — | |||||||||||||||||||
2018(4) | 25.00 | 0.48 | (1.19 | ) | (0.71 | ) | (0.34 | ) | — | — |
101
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Tax Expenses (%) | Tax Benefit (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||||||||
(0.49 | ) | 26.97 | 10.59 | 1,349 | 0.25 | † | — | — | 5.38 | † | 10.96 | |||||||||||||||||||||||
(3.80 | ) | 26.73 | (30.51 | ) | 687,577 | 0.46 | 0.46 | — | ^ | (0.85 | ) | 33.78 | ||||||||||||||||||||||
(4.32 | ) | 43.92 | (6.54 | ) | 947,045 | 0.46 | — | ‡ | — | ^ | (0.46 | ) | 55.65 | |||||||||||||||||||||
(4.62 | ) | 51.24 | (1.72 | ) | 822,622 | 0.45 | (0.00 | )‡ | — | ^ | (0.45 | ) | 30.35 | |||||||||||||||||||||
(4.74 | ) | 56.52 | (9.85 | ) | 692,954 | 0.35 | (0.11 | )‡ | — | ^ | (0.46 | ) | 35.11 | |||||||||||||||||||||
(4.98 | ) | 67.44 | 15.34 | 373,566 | 0.50 | 0.03 | ‡ | (0.23) | ^ | (0.70 | ) | 37.20 | ||||||||||||||||||||||
(2.24 | ) | 26.59 | (13.34 | ) | 538,344 | 0.45 | — | — | 2.66 | 35.86 | ||||||||||||||||||||||||
(2.19 | ) | 33.45 | (2.34 | ) | 612,300 | 0.45 | — | — | 3.03 | 36.57 | ||||||||||||||||||||||||
(1.95 | ) | 36.39 | (0.43 | ) | 540,381 | 0.45 | — | — | 2.65 | 25.68 | ||||||||||||||||||||||||
(2.37 | ) | 38.40 | (8.71 | ) | 305,980 | 0.45 | — | — | 2.20 | 40.42 | ||||||||||||||||||||||||
(1.80 | ) | 44.46 | 15.45 | 130,451 | 0.45 | — | — | 2.79 | 56.14 | |||||||||||||||||||||||||
(1.28 | ) | 23.22 | 1.34 | 4,644 | 0.39 | — | — | 4.16 | 58.11 | |||||||||||||||||||||||||
(1.45 | ) | 24.23 | 7.54 | 1,212 | 0.40 | — | — | 5.98 | 63.30 | |||||||||||||||||||||||||
(0.34 | ) | 23.95 | (2.86 | ) | 2,395 | 0.39 | † | — | — | 5.65 | † | 16.00 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
*** | Amount is less than $0.005. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
‡ | The Before Net Deferred tax expense ratios for periods ending November 30, 2016, 2017, 2018, 2019 and 2020 was 0.47%, 0.46%, 0.45%, 0.46%, and 0.45%. |
^ | The Before Net Tax Benefit for the periods ending November 30, 2016, 2017, 2018, 2019 and 2020 was (0.47%), (0.46%), (0.45%), (0.46%), and (0.39%). |
(1) | The Fund commenced operations on June 22, 2020. |
(2) | Per share amounts have been adjusted for a 1 for 6 reverse share split on April 28, 2020 (See Note 9 in the Notes to Financial Statements). |
(3) | Per share amounts have been adjusted for a 1 for 3 reverse share split on April 28, 2020 (See Note 9 in the Notes to Financial Statements). |
(4) | The Fund commenced operations on July 27, 2018. |
Amounts designated as “—” are either $0 or have been rounded to $0.
102
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
Global X TargetIncomeTM Plus 2 ETF | ||||||||||||||||||||||||||||
2020 | 24.37 | 0.85 | (0.09 | ) | 0.76 | (0.80 | ) | — | (0.02 | ) | ||||||||||||||||||
2019 | 23.98 | 1.06 | 0.67 | 1.73 | (1.33 | ) | (0.01 | ) | — | |||||||||||||||||||
2018(1) | 25.00 | 0.47 | (1.15 | ) | (0.68 | ) | (0.34 | ) | — | — | ||||||||||||||||||
Global X Conscious Companies ETF | ||||||||||||||||||||||||||||
2020 | 23.10 | 0.33 | 3.32 | 3.65 | (0.27 | ) | (0.02 | ) | — | |||||||||||||||||||
2019 | 20.55 | 0.37 | 2.68 | 3.05 | (0.50 | ) | — | — | ||||||||||||||||||||
2018 | 19.23 | 0.33 | 1.22 | 1.55 | (0.23 | ) | — | — | ||||||||||||||||||||
2017 | 15.79 | 0.26 | 3.33 | 3.59 | (0.15 | ) | — | — | ||||||||||||||||||||
2016(2) | 15.09 | 0.15 | 0.55 | 0.70 | — | — | — | |||||||||||||||||||||
Global X Adaptive U.S. Factor ETF | ||||||||||||||||||||||||||||
2020 | 25.79 | 0.63 | (0.67 | ) | (0.04 | ) | (0.70 | ) | (0.05 | ) | (0.09 | ) | ||||||||||||||||
2019 | 24.39 | 0.89 | 1.53 | 2.42 | (1.02 | ) | *** | — | ||||||||||||||||||||
2018(3) | 25.00 | 0.22 | (0.61 | ) | (0.39 | ) | (0.19 | ) | — | (0.03 | ) | |||||||||||||||||
Global X Founder-Run Companies ETF | ||||||||||||||||||||||||||||
2020 | 20.50 | 0.09 | 8.14 | 8.23 | (0.07 | ) | — | — | ||||||||||||||||||||
2019 | 18.63 | 0.05 | 2.12 | 2.17 | (0.07 | ) | (0.23 | ) | — | |||||||||||||||||||
2018 | 17.41 | 0.04 | 1.45 | 1.49 | (0.04 | ) | (0.23 | ) | — | |||||||||||||||||||
2017(4) | 15.02 | 0.04 | 2.35 | 2.39 | — | — | — |
103
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(0.82 | ) | 24.31 | 3.22 | 4,861 | 0.39 | 3.53 | 28.85 | |||||||||||||||||||
(1.34 | ) | 24.37 | 7.44 | 9,747 | 0.39 | 4.37 | 31.54 | |||||||||||||||||||
(0.34 | ) | 23.98 | (2.74 | ) | 2,399 | 0.39 | † | 5.57 | † | 11.11 | ||||||||||||||||
(0.29 | ) | 26.46 | 16.01 | 403,499 | 0.43 | 1.45 | 48.73 | |||||||||||||||||||
(0.50 | ) | 23.10 | 15.35 | 85,459 | 0.43 | 1.73 | 34.97 | |||||||||||||||||||
(0.23 | ) | 20.55 | 8.16 | 56,504 | 0.43 | 1.65 | 36.35 | |||||||||||||||||||
(0.15 | ) | 19.23 | 22.95 | 48,065 | 0.43 | 1.50 | 41.77 | |||||||||||||||||||
— | 15.79 | 4.64 | 33,163 | 0.43 | † | 2.57 | † | 37.35 | ||||||||||||||||||
(0.84 | ) | 24.91 | 0.14 | 144,484 | 0.27 | 2.78 | 159.91 | |||||||||||||||||||
(1.02 | ) | 25.79 | 10.27 | 189,564 | 0.27 | 3.63 | 112.43 | |||||||||||||||||||
(0.22 | ) | 24.39 | (1.58 | ) | 102,438 | 0.27 | † | 3.31 | † | 28.89 | ||||||||||||||||
(0.07 | ) | 28.66 | 40.29 | 5,732 | 0.45 | 0.39 | 31.51 | |||||||||||||||||||
(0.30 | ) | 20.50 | 12.05 | 4,100 | 0.52 | 0.29 | 33.82 | |||||||||||||||||||
(0.27 | ) | 18.63 | 8.67 | 4,657 | 0.65 | 0.13 | 25.22 | |||||||||||||||||||
— | 17.41 | 15.91 | 3,483 | 0.65 | † | 0.33 | † | 21.61 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
*** | Amount is less than $0.005. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
(1) | The Fund commenced operations on July 27, 2018. |
(2) | The Fund commenced operations on July 11, 2016. |
(3) | The Fund commenced operations on August 24, 2018. |
(4) | The Fund commenced operations on February 13, 2017. |
Amounts designated as “—” are either $0 or have been rounded to $0.
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Notes to Financial Statements | ||
November 30, 2020 |
1. ORGANIZATION
The Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of November 30, 2020, the Trust had eighty-seven portfolios, seventy-eight of which were operational. The financial statements herein and the related notes pertain to the Global X SuperDividend® Alternatives ETF, Global X S&P 500® Quality Dividend ETF, Global X U.S. Preferred ETF, Global X Variable Rate Preferred ETF, Global X MLP ETF, Global X MLP & Energy Infrastructure ETF, Global X TargetIncomeTM 5 ETF, Global X TargetIncomeTM Plus 2 ETF, Global X Conscious Companies ETF, Global X Adaptive U.S. Factor ETF and Global X Founder-Run Companies ETF (each a “Fund” and collectively, the “Funds”). Each Fund, other than the Global X SuperDividend® Alternatives ETF and Global X Conscious Companies ETF, has elected non-diversified status.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds:
USE OF ESTIMATES – The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.
RETURN OF CAPITAL ESTIMATES – Distributions received by the Funds from underlying master limited partnership (“MLP”) and real estate investment trust (“REIT”) investments generally are comprised of income and return of capital. The Funds record investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on historical information available from the MLPs, REITs and other industry sources. These estimates may subsequently be revised based on information received from the MLPs and REITs after their tax reporting periods are concluded.
MLPs – Certain Funds may invest in MLPs in addition to other exchange-traded securities. MLPs are publicly-traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity-level taxation. To qualify as an MLP, and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include natural
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
resource-based activities, such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners, the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly-traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.
SECURITY VALUATION – Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (“NASDAQ”)), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm Eastern Standard Time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less will be valued at their market value. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates as of the reporting date. The exchange rates used by the Trust for valuation are captured as of the New York or London close each day.
Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a fair value committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using the Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the securities’ last close and the time that the Funds calculate their net asset values. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC, the Funds’ investment adviser (the “Adviser”), becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate their net asset values, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of November 30, 2020, there were no securities priced using the Fair Value Procedures.
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;
Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments and fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost); and
Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments, and fair value of investments for which the Funds do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term).
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
For the period ended November 30, 2020, there have been no significant changes to the Funds’ fair valuation methodologies.
REPURCHASE AGREEMENTS – Securities pledged as collateral for repurchase agreements by BNP Paribas are held by Brown Brothers Harriman & Co. (“BBH”), the Funds’ custodian (“custodian”) and are designated as being held on each Fund’s behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest.
It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the other party to a repurchase agreement defaults on its obligations, and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period.
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under an MRA with collateral held and/or posted to the counterparty, and create one single net payment due to or from the Funds.
As of November 30, 2020, the open repurchase agreements by counterparty which are subject to an MRA on a net payment basis are as follows:
Repurchase Agreements | Fair Value of Non-cash Collateral Received(1) | Cash Collateral Received | Net Amount(2) | |||||||||||||
Global X SuperDividend® Alternatives ETF | ||||||||||||||||
BNP Paribas | $ | 1,941,378 | $ | 1,941,378 | $ | – | $ | – | ||||||||
Global X U.S. Preferred ETF | ||||||||||||||||
BNP Paribas | 4,771,747 | 4,771,747 | – | – | ||||||||||||
Global X MLP & Energy Infrastructure ETF | ||||||||||||||||
BNP Paribas | 11,132,235 | 11,132,235 | – | – |
(1) | Excess collateral received is not presented in the table above. Please refer to the Schedules of Investments for the market value of the collateral received for each Fund. |
(2) | Net Amount represents the net amount receivable due from the counterparty in the event of default. |
FEDERAL INCOME TAXES – It is each Fund’s intention, except for Global X MLP ETF, to continue to qualify as a regulated investment company for federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Code. Accordingly, no provisions for federal income taxes have been made in the financial statements, except for Global X MLP ETF.
The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax positions in the current period; however, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), and on-going analysis of and changes to tax laws and regulations, and interpretations thereof. Any foreign tax filings that have not been made will be filed within the prescribed period.
As of and during the year ended November 30, 2020, the Funds, except for Global X MLP ETF, did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as in income
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
tax expense on the Statement of Operations. During the reporting period, the Funds did not incur any interest or penalties. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.
Global X MLP ETF is taxed as a regular C‐corporation for federal income tax purposes and as such is obligated to pay federal and applicable state corporate income tax. Currently, the federal income tax rate for a corporation is 21%. This differs from most investment companies, which elect to be treated as “regulated investment companies” under Subchapter M of the Code in order to avoid paying entity level income taxes. Under current law, Global X MLP ETF is not eligible to elect treatment as regulated investment company due to its investments primarily in MLPs invested in energy assets. As a result, Global X MLP ETF will be obligated to pay applicable federal and state corporate income taxes on its taxable income as opposed to most other investment companies, which are not so obligated. Global X MLP ETF expects that a portion of the distributions that are received from MLPs may be treated as a tax‐deferred return of capital, thus reducing Global X MLP ETF’s current tax liability. However, the amount of taxes currently paid by Global X MLP ETF will vary depending on the amount of income and gains derived from investments and/or sales of MLP interests and such taxes have the potential to reduce an investor’s return from an investment in Global X MLP ETF.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION – The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS – The Funds distribute their net investment income on a pro rata basis. Any net realized capital gains are distributed annually. All distributions are recorded on the ex-dividend date.
Cash distributions from MLPs to Global X MLP ETF that exceed the Global X MLP ETF’s allocable share of such MLP’s net taxable income are considered tax‐deferred return of capital that will reduce Global X MLP ETF’s adjusted tax basis in the equity securities of the MLP. These reductions in Global X MLP ETF’s adjusted tax basis in MLP equity securities will increase the amount of gain (or decrease the amount of loss) recognized by Global X MLP ETF on a subsequent sale of the securities. Global X MLP ETF will accrue deferred income taxes for any future tax liability associated with (i) that portion of MLP distributions considered to be a tax‐deferred return of capital as well as (ii) capital appreciation of its investments. Upon the sale of an MLP security, Global X MLP ETF may be liable for previously deferred taxes. Global X MLP ETF will rely to some extent on information provided by the MLPs, which may not necessarily be timely, to estimate deferred tax liability for purposes of financial statement reporting and determining Global X MLP ETF’s net asset value (“NAV”). From time to time, the Adviser will modify the estimates or assumptions related to Global X MLP ETF’s deferred tax liabilities as new information becomes available. Global X MLP ETF will generally compute deferred income taxes based on the federal income tax rate applicable to corporations and an estimated rate attributable to state taxes.
CASH OVERDRAFT CHARGES – Per the terms of an agreement with BBH, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of LIBOR plus 2.00%. Cash overdraft charges are included in custodian fees on the Statements of Operations.
CREATION UNITS – The Funds issue and redeem their shares (“Shares”) on a continuous basis at net asset value (“NAV”) and only in large blocks of 50,000 Shares, referred to as “Creation Units”. Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an Authorized Participant on the same day.
An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to BBH, the Funds’ custodian, on the date of such redemption, regardless of the number of Creation Units redeemed that day.
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
If a Creation Unit is purchased or redeemed for cash, an additional variable fee may be charged. The following table discloses Creation Unit breakdown:
Creation Unit Shares | Creation Fee | Value at November 30, 2020 | Redemption Fee | |||||||||||||
Global X SuperDividend® Alternatives ETF | 50,000 | $ | 300 | $ | 575,500 | $ | 300 | |||||||||
Global X S&P 500® Quality Dividend ETF | 50,000 | 500 | 1,260,000 | 500 | ||||||||||||
Global X U.S. Preferred ETF | 50,000 | 650 | 1,268,000 | 650 | ||||||||||||
Global X Variable Rate Preferred ETF | 50,000 | 300 | 1,348,500 | 300 | ||||||||||||
Global X MLP ETF | 50,000 | 250 | 1,336,500 | 250 | ||||||||||||
Global X MLP & Energy Infrastructure ETF | 50,000 | 250 | 1,329,500 | 250 | ||||||||||||
Global X TargetIncomeTM 5 ETF | 50,000 | 250 | 1,161,000 | 250 | ||||||||||||
Global X TargetIncomeTM Plus 2 ETF | 50,000 | 250 | 1,215,500 | 250 | ||||||||||||
Global X Conscious Companies ETF | 50,000 | 750 | 1,323,000 | 750 | ||||||||||||
Global X Adaptive U.S. Factor ETF | 50,000 | 700 | 1,245,500 | 700 | ||||||||||||
Global X Founder-Run Companies ETF | 50,000 | 400 | 1,433,000 | 400 |
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS
On July 2, 2018, the Adviser consummated a transaction pursuant to which it became an indirect, wholly-owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae”). In this manner, the Adviser is ultimately controlled by Mirae, which is a leading financial services company in Korea and is the headquarters for the Mirae Asset Global Investments Group.
The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate distribution agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate investment advisory agreement), under what is essentially an “all-in” fee structure. For the Adviser’s services to the respective Funds, under the supervision and administration agreement, the Funds pay a monthly fee to the Adviser at the annual rate below (stated as a percentage of the average daily net assets of the respective Fund) (the “Supervision and Administration Fee”). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the supervision and administration agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees,
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS (continued)
commissions, acquired fund fees and expenses, and other transaction expenses, interest expenses and extraordinary expenses (such as litigation and indemnification expenses).
The following table discloses the rates of Supervision and Administration Fees paid by the Funds pursuant to the supervision and administration agreement:
Supervision and Administration Fee | ||||
Global X SuperDividend® Alternatives ETF | 0.75 | % | ||
Global X S&P 500® Quality Dividend ETF | 0.20 | % | ||
Global X U.S. Preferred ETF* | 0.23 | % | ||
Global X Variable Rate Preferred ETF | 0.25 | % | ||
Global X MLP ETF | 0.45 | % | ||
Global X MLP & Energy Infrastructure ETF | 0.45 | % | ||
Global X TargetIncomeTM 5 ETF | 0.39 | % | ||
Global X TargetIncomeTM Plus 2 ETF | 0.39 | % | ||
Global X Conscious Companies ETF | 0.43 | % | ||
Global X Adaptive U.S. Factor ETF | 0.27 | % | ||
Global X Founder-Run Companies ETF | 0.45 | % |
* Pursuant to an expense limitation agreement in existence between the Global X U.S. Preferred ETF (the “Fund”) and the Adviser, the Adviser agreed to waive or reimburse fees and/or limit fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses and extraordinary expenses (such as litigation and indemnification expenses)) will not exceed 0.23% of the Fund’s average daily net assets per year, effective April 1, 2020, until at least April 1, 2021.
SEI Investments Global Funds Services (“SEIGFS”) serves as sub-administrator to the Funds. As sub-administrator, SEIGFS provides the Funds with required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAVs; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, SEIGFS receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser.
SEI Investments Distribution Co. (“SIDCO”) serves as the Funds’ underwriter and distributor of Creation Units pursuant to a distribution agreement. SIDCO has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (1) the costs of processing and
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS (continued)
maintaining records of creations of Creation Units; (2) all costs of maintaining the records required of a registered broker/dealer; (3) the expenses of maintaining its registration or qualification as a dealer or broker under federal or state laws; (4) filing fees; and (5) all other expenses incurred in connection with the distribution services as contemplated in the distribution agreement. SIDCO receives no fee from the Funds for its distribution services under the distribution agreement; rather, the Adviser compensates SIDCO for certain expenses, out-of-pocket costs, and transaction fees.
BBH serves as custodian and transfer agent of the Funds’ assets. As custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Funds, (2) collect and receive all income and other payments and distributions on account of the Funds’ portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties, and (4) make periodic reports to the Funds concerning the Funds’ operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As transfer agent, BBH has agreed to (1) issue and redeem Shares of each Fund, (2) make dividend and other distributions to shareholders of each Fund, (3) respond to correspondence by shareholders and others relating to its duties, (4) maintain shareholder accounts, and (5) make periodic reports to the Funds. As compensation for these services, BBH receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.
4. INVESTMENT TRANSACTIONS
For the period ended November 30, 2020, the purchases and sales of investments in securities, excluding in-kind transactions, long-term U.S. Government, and short-term securities were:
2020 | Purchases | Sales and Maturities | ||||||
Global X SuperDividend® Alternatives ETF | $ | 10,303,297 | $ | 11,678,474 | ||||
Global X S&P 500® Quality Dividend ETF | 5,598,763 | 5,583,294 | ||||||
Global X U.S. Preferred ETF | 268,182,064 | 267,767,502 | ||||||
Global X Variable Rate Preferred ETF | 263,580 | 257,764 | ||||||
Global X MLP ETF | 253,331,458 | 631,641,629 | ||||||
Global X MLP & Energy Infrastructure ETF | 202,545,668 | 267,563,595 | ||||||
Global X TargetIncomeTM 5 ETF | 2,496,772 | 2,507,987 | ||||||
Global X TargetIncomeTM Plus 2 ETF | 2,843,446 | 2,857,458 | ||||||
Global X Conscious Companies ETF | 116,345,796 | 112,913,445 | ||||||
Global X Adaptive U.S. Factor ETF | 246,595,913 | 247,489,921 | ||||||
Global X Founder-Run Companies ETF | 1,703,809 | 1,688,203 |
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Notes to Financial Statements (continued) | ||
November 30, 2020 |
4. INVESTMENT TRANSACTIONS (continued)
For the periods ended November 30, 2020 and November 30, 2019, in-kind transactions associated with creations and redemptions were, respectively:
2020 | Purchases | Sales | Realized Gain / (Loss) | |||||||||
Global X SuperDividend® Alternatives ETF | $ | 3,217,688 | $ | 5,040,683 | $ | (384,435 | ) | |||||
Global X S&P 500® Quality Dividend ETF | 8,364,729 | 11,544,814 | 1,162,033 | |||||||||
Global X U.S. Preferred ETF | 517,546,492 | 248,422,827 | 7,241,591 | |||||||||
Global X Variable Rate Preferred ETF | 2,484,728 | 1,326,703 | 81,942 | |||||||||
Global X MLP ETF | 447,418,366 | – | – | |||||||||
Global X MLP & Energy Infrastructure ETF | 261,376,336 | 136,501,476 | 15,168,807 | |||||||||
Global X TargetIncomeTM 5 ETF | 8,358,749 | 4,693,154 | 3,385 | |||||||||
Global X TargetIncomeTM Plus 2 ETF | 30,636,646 | 32,171,555 | (3,229,381 | ) | ||||||||
Global X Conscious Companies ETF | 310,608,247 | 77,589,333 | 31,368,246 | |||||||||
Global X Adaptive U.S. Factor ETF | 157,955,935 | 188,910,310 | 17,541,617 | |||||||||
Global X Founder-Run Companies ETF | 6,242,948 | 4,435,220 | (1,104,663 | ) |
2019 | Purchases | Sales | Realized Gain / (Loss) | |||||||||
Global X SuperDividend® Alternatives ETF | $ | 12,537,203 | $ | 1,303,100 | $ | 94,283 | ||||||
Global X S&P 500® Quality Dividend ETF | 9,443,686 | 3,574,879 | 393,983 | |||||||||
Global X U.S. Preferred ETF | 435,632,340 | 55,599,414 | 2,931,505 | |||||||||
Global X MLP ETF | 388,407,175 | – | – | |||||||||
Global X MLP & Energy Infrastructure ETF | 493,182,191 | 284,980,056 | 31,252,724 | |||||||||
Global X TargetIncomeTM 5 ETF | – | 1,204,732 | 1,260 | |||||||||
Global X TargetIncomeTM Plus 2 ETF | 8,518,609 | 1,210,230 | (22,076 | ) | ||||||||
Global X Conscious Companies ETF | 25,986,382 | 5,288,419 | 1,691,105 | |||||||||
Global X Adaptive U.S. Factor ETF | 80,114,085 | 4,658,062 | 329,700 | |||||||||
Global X Founder-Run Companies ETF | – | 1,021,446 | 192,373 |
During the period ended November 30, 2020, there were no purchases or sales of long-term U.S. Government securities by the Funds.
5. TAX INFORMATION
Global X MLP ETF recognizes interest and penalties, if any, related to unrecognized tax benefits within the income tax expense line in the accompanying Statement of Operations. Accrued interest and penalties, if any, are included within the related tax liability line in the Statement of Assets and Liabilities. For the period ended November 30, 2020, Global X MLP ETF did not incur any interest or penalties.
Since Global X MLP ETF will be subject to taxation on its taxable income, the NAV of Global X MLP ETF shares will also be reduced by the accrual of any current and deferred tax liabilities.
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Notes to Financial Statements (continued) | ||
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5. TAX INFORMATION (continued)
Global X MLP ETF’s income tax expense/(benefit) consists of the following for the period ended November 30, 2020:
Current MLP | Deferred MLP | Total MLP | ||||||||||
Federal | $ | 2,906,395 | $ | (72,076,308 | ) | $ | (69,169,913 | ) | ||||
State | 500,525 | (7,515,704 | ) | (7,015,179 | ) | |||||||
Valuation allowance | – | 79,592,012 | 79,592,012 | |||||||||
Total tax expense (benefit) | $ | 3,406,920 | $ | – | $ | 3,406,920 |
For the year ended November 30, 2020, Global X MLP ETF’s blended state income tax rate decreased from 2.28% to 2.22% due to anticipated change in state apportionment of income and gains.
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and tax purposes.
Components of the Global X MLP ETF’s deferred tax assets and liabilities are as follows:
For the year ended November 30, 2020:
MLP | ||||
Deferred tax assets: | ||||
Capital loss carryforward | $ | 43,460,597 | ||
Net unrealized loss on investments | 74,584,207 | |||
Other | 1,829,426 | |||
Less valuation allowance | (119,874,230 | ) | ||
Net Deferred Tax Asset | $ | – |
Global X MLP ETF reviews the recoverability of its deferred tax assets based upon the weight of available evidence. When assessing the recoverability of its deferred tax assets, significant weight was given to the effects of potential future realized and unrealized gains on investments and the period over which these deferred tax assets can be realized. Currently, any capital losses that may be generated by the Global X MLP ETF are eligible to be carried back up to three years and can be carried forward for five years to offset capital gains recognized by Global X MLP ETF in those years. Prior to the passing of the CARES Act, Net Operating Losses (“NOLs”) were subject to the Tax Cuts and Jobs Act (TCJA) but are now governed under the CARES Act. Under the CARES Act, NOLs arising in tax years beginning after December 31, 2017, and before January 1, 2021 may be carried back five tax years and carried forward twenty years. Since the enactment of the TCJA, NOLs generally could not be carried back but could be carried
116
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
forward indefinitely. Further, the TCJA limited NOL absorption to 80% of taxable income. The CARES Act temporarily removes the 80% limitation, reinstating it for tax years beginning after December 31, 2020. Global X MLP ETF is anticipating to utilize all net operating loss carryforwards in the current year.
Global X MLP ETF has estimated capital loss carryforwards for federal income tax purposes as follows:
Year Ended | Amount | Expiration | ||||||
Global X MLP ETF | 11/30/2016 | $ | 9,483,687 | 11/30/2021 | ||||
11/30/2019 | 54,795,128 | 11/30/2024 | ||||||
11/30/2020 | 122,889,991 | 11/30/2025 |
Based upon Global X MLP ETF’s assessment, it has been determined that it is not more likely than not that Global X MLP ETF’s deferred tax assets will be realized through future taxable income of the appropriate character. Accordingly, a valuation allowance has been established for Global X MLP ETF’s deferred tax assets. Global X MLP ETF will continue to assess the need for a valuation allowance in the future. Significant increases or declines in the fair value of its portfolio of investments may change Global X MLP ETF’s assessment of the recoverability of these assets and may result in the recording or removal of a valuation allowance against all or a portion of the Global X MLP ETF’s gross deferred tax assets.
Total income tax expense/(benefit) (current and deferred) during the period ended November 30, 2020, differs from the amount computed by applying the federal statutory income tax rate of 21% for Global X MLP ETF to net investment and realized and unrealized gain/(losses) on investment before taxes as follows:
For the year ended November 30, 2020:
MLP | ||||||||
Income tax (benefit) at statutory rate | $ | (69,772,339 | ) | 21.00 | % | |||
State income taxes (net of federal benefit) | (7,375,933 | ) | 2.22 | % | ||||
Permanent differences, net | (74,765 | ) | 0.02 | % | ||||
Effect of state tax rate change | 103,809 | (0.03 | )% | |||||
Other adjustments | 934,136 | (0.28 | )% | |||||
Change in valuation allowance | 79,592,012 | (23.96 | )% | |||||
Net income tax expense/(benefit) | $ | 3,406,920 | (1.03 | )% |
117
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X MLP ETF recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed Global X MLP ETF’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. tax returns and state tax returns filed since inception of Global X MLP ETF. No U.S. federal or state income tax returns are currently under examination. The tax years ended November 30, 2020, 2019, 2018, and 2017, remain subject to examination by tax authorities in the United States. Due to the nature of Global X MLP ETF’s investments, Global X MLP ETF may be required to file income tax returns in several states. Global X MLP ETF is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
State franchise taxes are separate and distinct from state income taxes. State franchise taxes are imposed on a corporation for the right to conduct business in the state and typically are based off the net worth or capital apportioned to a state. Due to the nature of Global X MLP ETF’s investments, Global X MLP ETF may be required to file franchise state tax returns in several states.
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.
The permanent differences primarily consist of REIT adjustments, reclassification of distributions, investments in publically traded partnerships, and preferred stock adjustments. The permanent differences that are credited or charged to Paid In Capital and distributable earnings are primarily related to redemptions in kind and return of capital distributions. These differences have been reclassified to/from the following accounts during the fiscal year ended November 30, 2020:
118
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | Paid-in Capital | Distributable Earnings (Loss) | ||||||
Global X SuperDividend® Alternatives ETF | $ | (456,033 | ) | $ | 456,033 | |||
Global X S&P 500® Quality Dividend ETF | 1,148,955 | (1,148,955 | ) | |||||
Global X U.S. Preferred ETF | 5,941,966 | (5,941,966 | ) | |||||
Global X Variable Rate Preferred ETF | 82,711 | (82,711 | ) | |||||
Global X MLP & Energy Infrastructure ETF | (1,116,975 | ) | 1,116,975 | |||||
Global X TargetIncomeTM 5 ETF | 3,061 | (3,061 | ) | |||||
Global X TargetIncomeTM Plus 2 ETF | (3,228,371 | ) | 3,228,371 | |||||
Global X Conscious Companies ETF | 31,250,258 | (31,250,258 | ) | |||||
Global X Adaptive U.S. Factor ETF | 17,078,988 | (17,078,988 | ) | |||||
Global X Founder-Run Companies ETF | (1,113,528 | ) | 1,113,528 |
The tax character of dividends and distributions declared during the years or periods ended November 30, 2020 and November 30, 2019 were as follows:
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
Global X SuperDividend® Alternatives ETF | ||||||||||||||||
2020 | $ | 1,871,599 | $ | – | $ | 218,100 | $ | 2,089,699 | ||||||||
2019 | 1,697,638 | 24,842 | – | 1,722,480 | ||||||||||||
Global X S&P 500® Quality Dividend ETF | ||||||||||||||||
2020 | $ | 208,533 | $ | – | $ | 950 | $ | 209,483 | ||||||||
2019 | 187,572 | 764 | – | 188,336 | ||||||||||||
Global X U.S. Preferred ETF | ||||||||||||||||
2020 | $ | 37,989,950 | $ | – | $ | – | $ | 37,989,950 | ||||||||
2019 | 17,959,180 | – | – | 17,959,180 | ||||||||||||
Global X Variable Rate Preferred ETF | ||||||||||||||||
2020 | $ | 49,000 | $ | – | $ | – | $ | 49,000 | ||||||||
Global X MLP ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | 95,194,445 | $ | 95,194,445 | ||||||||
2019 | – | – | 77,728,975 | 77,728,975 | ||||||||||||
Global X MLP & Energy Infrastructure ETF | ||||||||||||||||
2020 | $ | 41,140,675 | $ | – | $ | 6,129,052 | $ | 47,269,727 | ||||||||
2019 | 40,058,250 | – | 3,644,335 | 43,702,585 | ||||||||||||
Global X TargetIncomeTM 5 ETF | ||||||||||||||||
2020 | $ | 200,326 | $ | – | $ | 31,932 | $ | 232,258 | ||||||||
2019 | 106,201 | – | – | 106,201 | ||||||||||||
Global X TargetIncomeTM Plus 2 ETF | ||||||||||||||||
2020 | $ | 384,302 | $ | – | $ | 10,725 | $ | 395,027 | ||||||||
2019 | 129,966 | – | – | 129,966 | ||||||||||||
Global X Conscious Companies ETF | ||||||||||||||||
2020 | $ | 1,788,344 | $ | 89,563 | $ | – | $ | 1,877,907 | ||||||||
2019 | 1,418,777 | – | – | 1,418,777 |
119
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
Global X Adaptive U.S. Factor ETF | ||||||||||||||||
2020 | $ | 4,904,671 | $ | 270,047 | $ | 635,325 | $ | 5,810,043 | ||||||||
2019 | 5,613,976 | 520,561 | – | 6,134,537 | ||||||||||||
Global X Founder-Run Companies ETF | ||||||||||||||||
2020 | $ | 13,936 | $ | – | $ | – | $ | 13,936 | ||||||||
2019 | 70,597 | 3,076 | – | 73,673 |
As of November 30, 2020, the components of tax basis distributable earnings (accumulated losses) were as follows:
Global X Funds | ||||||||||||||||
Global X SuperDividend® Alternatives ETF | Global X S&P 500® Quality Dividend ETF | Global X U.S. Preferred ETF | Global X Variable Rate Preferred ETF | |||||||||||||
Undistributed Ordinary Income | $ | – | $ | – | $ | 1,771,520 | $ | 3,941 | ||||||||
Capital Loss Carryforwards | (3,378,584 | ) | (840,623 | ) | (12,846,320 | ) | – | |||||||||
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | (2,262,033 | ) | 405,294 | 23,906,150 | 97,649 | |||||||||||
Other Temporary Differences | (6,401 | ) | (1 | ) | (1,016,908 | ) | 5,858 | |||||||||
Total Distributable Earnings (Accumulated Losses) | $ | (5,647,018 | ) | $ | (435,330 | ) | $ | 11,814,442 | $ | 107,448 |
Global X Funds | ||||||||||||
Global X MLP & Energy Infrastructure ETF | Global X TargetIncomeTM 5 ETF | Global X TargetIncomeTM Plus 2 ETF | ||||||||||
Capital Loss Carryforwards | $ | (147,418,883 | ) | $ | (227,414 | ) | $ | (214,016 | ) | |||
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | (181,351,039 | ) | (85,954 | ) | 64,026 | |||||||
Other Temporary Differences | (5 | ) | – | 1 | ||||||||
Total Accumulated Losses | $ | (328,769,927 | ) | $ | (313,368 | ) | $ | (149,989 | ) |
120
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | ||||||||||||
Global X Conscious Companies ETF | Global X Adaptive U.S. Factor ETF | Global X Founder-Run Companies ETF | ||||||||||
Undistributed Ordinary Income | $ | 2,055,988 | $ | – | $ | 17,871 | ||||||
Capital Loss Carryforwards | (3,105,676 | ) | (25,615,402 | ) | (93,685 | ) | ||||||
Unrealized Appreciation on Investments and Foreign Currency | 66,022,197 | 4,102,064 | 1,096,883 | |||||||||
Other Temporary Differences | (1 | ) | 2 | (1 | ) | |||||||
Total Distributable Earnings (Accumulated Losses) | $ | 64,972,508 | $ | (21,513,336 | ) | $ | 1,021,068 |
For taxable years beginning after December 22, 2010, a registered investment company is permitted to carry forward net capital losses to offset capital gains realized in later years, and the losses carried forward retain their original character as either long-term or short-term losses. Losses carried forward under these provisions are as follows:
Global X Funds | Short-Term Loss | Long-Term Loss | Total | |||||||||
Global X SuperDividend® Alternatives ETF | $ | 1,529,102 | $ | 1,849,482 | $ | 3,378,584 | ||||||
Global X S&P 500® Quality Dividend ETF | $ | 712,760 | $ | 127,863 | $ | 840,623 | ||||||
Global X U.S. Preferred ETF | $ | 9,636,726 | $ | 3,209,593 | $ | 12,846,319 | ||||||
Global X MLP ETF | $ | 9,483,687 | $ | 177,685,119 | $ | 187,168,806 | ||||||
Global X MLP & Energy Infrastructure ETF | $ | 37,542,091 | $ | 109,876,792 | $ | 147,418,883 | ||||||
Global X TargetIncomeTM 5 ETF | $ | 225,711 | $ | 1,703 | $ | 227,414 | ||||||
Global X TargetIncomeTM Plus 2 ETF | $ | 189,882 | $ | 24,134 | $ | 214,016 | ||||||
Global X Conscious Companies ETF | $ | 1,834,857 | $ | 1,270,819 | $ | 3,105,676 | ||||||
Global X Adaptive U.S.Factor ETF | $ | 17,888,392 | $ | 7,727,010 | $ | 25,615,402 | ||||||
Global X Founder-Run Companies ETF | $ | – | $ | 93,685 | $ | 93,685 |
During the year ended November 30, 2020 the following funds utilized capital loss carryforwards to offset capital gains amounting to:
Global X Funds | Short-Term Loss | Long-Term Loss | Total | |||||||||
Global X Founder-Run Companies ETF | $ | 24,238 | $ | – | $ | 24,238 |
121
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
The adjusted cost basis of investments and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at November 30, 2020 for federal income tax purposes, were as follows:
Global X Funds | Federal Tax Cost | Aggregated Gross Unrealized Appreciation | Aggregated Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Global X SuperDividend® Alternatives ETF | $ | 23,996,388 | $ | 1,240,712 | $ | (3,502,745 | ) | $ | (2,262,033 | ) | ||||||
Global X S&P 500® Quality Dividend ETF | 5,879,266 | 705,021 | (299,727 | ) | 405,294 | |||||||||||
Global X U.S. Preferred ETF | 845,759,530 | 30,135,426 | (6,229,276 | ) | 23,906,150 | |||||||||||
Global X Variable Rate Preferred ETF | 1,245,827 | 99,790 | (2,141 | ) | 97,649 | |||||||||||
Global X MLP ETF | 1,008,588,471 | 10,866,295 | (332,073,021 | ) | (321,206,726 | ) | ||||||||||
Global X MLP & Energy Infrastructure ETF | 731,854,004 | 12,692,894 | (194,043,933 | ) | (181,351,039 | ) | ||||||||||
Global X TargetIncomeTM 5 ETF | 4,729,897 | 29,701 | (115,654 | ) | (85,953 | ) | ||||||||||
Global X TargetIncomeTM Plus 2 ETF | 4,792,916 | 106,973 | (42,946 | ) | 64,027 | |||||||||||
Global X Conscious Companies ETF | 337,198,019 | 67,187,596 | (1,165,399 | ) | 66,022,197 | |||||||||||
Global X Adaptive U.S. Factor ETF | 139,924,567 | 12,432,704 | (8,330,640 | ) | 4,102,064 | |||||||||||
Global X Founder-Run Companies ETF | 4,636,160 | 1,418,373 | (321,491 | ) | 1,096,882 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Funds’ net unrealized appreciation difference is attributable primarily to wash sales, mark-to-market treatment of passive foreign investment companies and adjustments in preferred stock and partnerships.
6. CONCENTRATION OF RISKS
The Funds may invest in securities in a particular asset class. Securities and other assets held in each Fund’s portfolio may underperform in comparison to the general securities markets, a particular securities market or other asset classes. The Funds, except for Global X U.S. Preferred ETF, Global X Variable Rate Preferred ETF, Global X TargetIncomeTM 5 ETF and Global X TargetIncomeTM Plus 2 ETF, use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of an underlying index in approximately the same proportions as in the underlying index. These Funds may utilize a representative sampling strategy with respect to their underlying index when a replication strategy might be detrimental to its shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow its underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to the Funds but not the underlying index). The Global X U.S. Preferred ETF, Global X Variable Rate Preferred ETF, Global X TargetIncomeTM 5 ETF and Global X TargetIncomeTM Plus 2 ETF use a representative sampling strategy. Representative sampling is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Fund’s underlying index in terms of key risk factors, performance attributes and other characteristics. A more complete description of risks is included in each Fund’s prospectus and statement of additional information.
122
Notes to Financial Statements (continued) | ||
November 30, 2020 |
6. CONCENTRATION OF RISKS (continued)
The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.
The London Interbank Offered Rate, or “LIBOR,” the offered rate for short-term Eurodollar deposits between major international banks, is used extensively in the United States and globally as a reference rate in various financing and commercial transactions. Plans are underway to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the financial markets generally, transactions that use LIBOR as a reference rate and financial institutions that engage in such transactions, including issuers of securities in which a Fund may invest. As such, the potential effect of a transition away from LIBOR on a Fund’s investments cannot yet be determined.
Economic conditions, such as volatile currency exchange rates and interest rates, political events, military action and other conditions may, without prior warning, lead to foreign government intervention (including intervention by the U.S. government with respect to foreign governments, economic sectors, foreign companies and related securities and interests) and the imposition of capital controls (i.e., government measures designed to limit the flow of foreign capital in and out of the domestic economy) and/or sanctions, which may also include retaliatory actions of one government against another government, such as seizure of assets. Capital controls and/or sanctions include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. Capital controls and/or sanctions may also impact the ability of a Fund to buy, sell or otherwise transfer securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and price for shares of a Fund, and cause a Fund to decline in value.
7. LOANS OF PORTFOLIO SECURITIES
The Funds may lend portfolio securities having a market value up to one-third of the Funds’ total assets. Security loans made pursuant to a securities lending agreement with BBH are required at all times to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign-based securities. Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements, short-term investments or U.S. Treasury obligations and is recognized in the Schedule of Investments and Statement of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statement of Assets and Liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.
123
Notes to Financial Statements (continued) | ||
November 30, 2020 |
7. LOANS OF PORTFOLIO SECURITIES (continued)
Lending securities entails a risk of loss to the Funds if and to the extent that the market values of the securities loaned were to increase and the borrower did not increase the collateral accordingly and the borrower failed to return the securities. The Funds could also experience delays and costs gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested.
As of November 30, 2020, the value of securities on loan was $2,101,993, $5,283,518, and $12,107,750 for the Global X SuperDividend® Alternatives ETF, Global X U.S. Preferred ETF, and Global X MLP & Energy Infrastructure ETF, respectively, and the cash collateral received from securities on loan was $2,211,515, $5,435,720 and $12,681,250 for Global X MLP & Energy Infrastructure ETF, Global X U.S. Preferred ETF, and Global X SuperDividend® Alternatives ETF, respectively.
As of November 30, 2020, the following Funds had securities on loan, by counterparty:
Market Value | Cash Collateral | |||||||
Global X SuperDividend® Alternatives ETF | ||||||||
BofA Securities, Inc. | $ | 26,400 | $ | 27,000 | ||||
JPMorgan | 1,791,331 | 1,889,750 | ||||||
Morgan Stanley | 284,262 | 294,765 | ||||||
Global X U.S. Preferred ETF | ||||||||
JPMorgan | 437,429 | 452,625 | ||||||
National Financial Services | 4,296,750 | 4,413,440 | ||||||
UBS Securities, LLC | 7,899 | 8,055 | ||||||
Wells Fargo Securities, LLC | 541,440 | 561,600 | ||||||
Global X MLP & Energy Infrastructure | ||||||||
Barclays Capital, Inc. | 5,735,250 | 6,018,750 | ||||||
Goldman Sachs & Co. | 6,372,500 | 6,662,500 |
8. CONTRACTUAL OBLIGATIONS
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown; however, the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.
124
Notes to Financial Statements (continued) | ||
November 30, 2020 |
9. REVERSE SHARE SPLIT
Effective April 28, 2020, the Global X MLP ETF executed a 1-for-6 reverse share split for shareholders of record after the close of markets on April 27, 2020. The effect of this transaction for the Fund was to divide the number of outstanding Shares of the Fund by six, resulting in a corresponding increase in the NAV per Share. The capital share activity presented in the statement of changes in net assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended, have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.
Effective April 28, 2020, the Global X MLP & Energy Infrastructure ETF executed a 1-for-3 reverse share split for shareholders of record after the close of markets on April 27, 2020. The effect of this transaction for the Fund was to divide the number of outstanding Shares of the Fund by three, resulting in a corresponding increase in the NAV per Share. The capital share activity presented in the statement of changes in net assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended, have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.
10. SUBSEQUENT EVENTS
The Funds have been evaluated regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional adjustments were required to the financial statements.
125
Notes to Financial Statements (concluded) | ||
November 30, 2020 |
11. OTHER MATTER
The rapid and global spread of a highly contagious novel coronavirus respiratory disease, designated COVID-19, has resulted in extreme volatility in the financial markets and severe losses; reduced liquidity of many instruments; restrictions on international and, in some cases, local travel; significant disruptions to business operations (including business closures); strained healthcare systems; disruptions to supply chains, consumer demand and employee availability; and widespread uncertainty regarding the duration and long term effects of this pandemic. Some sectors of the economy and individual issuers have experienced particularly large losses. In addition, the COVID-19 pandemic may result in a sustained economic downturn or a global recession, domestic and foreign political and social instability, damage to diplomatic and international trade relations and increased volatility and/or decreased liquidity in the securities markets. The COVID-19 pandemic could adversely affect the value and liquidity of the Funds’ investments and negatively impact Fund performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Funds by their service providers.
126
Report of Independent Registered Public Accounting Firm | ||
To the Board of Trustees and Shareholders of each of the eleven funds indicated in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (eleven of the funds constituting the Global X Funds, hereafter collectively referred to as the “Funds”) as of November 30, 2020, the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of November 30, 2020, the results of each of their operations and changes in each of their net assets for each of the periods indicated in the table below, and each of their financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Global X SuperDividend® Alternatives ETF (1) | Global X MLP & Energy Infrastructure ETF (1) |
Global X S&P 500® Quality Dividend ETF (1) | Global X TargetIncome™ 5 ETF (1) |
Global X U.S. Preferred ETF (1) | Global X TargetIncome™ Plus 2 ETF (1) |
Global X Conscious Companies ETF (1) | Global X Founder-Run Companies ETF (1) |
Global X Adaptive U.S. Factor ETF (1) | Global X Variable Rate Preferred ETF (2) |
Global X MLP ETF (1) |
(1) | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for each of the two years in the period ended November 30, 2020 |
(2) | The related statements of operations and changes in net assets for the period June 22, 2020 (commencement of operations) through November 30, 2020 |
127
Report of Independent Registered Public Accounting Firm | ||
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
January 27, 2021
We have served as the auditor of one or more investment companies in the Global X Funds since 2016.
128
Disclosure of Fund Expenses (unaudited) | ||
All exchange traded funds (“ETFs”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for any brokerage fees as a result of his or her investment in the Fund. Shareholders may incur brokerage commissions on their purchases and sales of Fund shares, which are not reflected in the examples below.
Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire period (June 1, 2020 to November 30, 2020).
The table below illustrates your Fund’s costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
129
Disclosure of Fund Expenses (unaudited) | ||
Beginning Account Value 6/1/2020 | Ending Account Value 11/30/2020 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
Global X SuperDividend® Alternatives ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,122.90 | 0.75 | % | $ | 3.98 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.25 | 0.75 | 3.79 | ||||||||||||
Global X S&P 500® Quality Dividend ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,190.80 | 0.20 | % | $ | 1.10 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,024.00 | 0.20 | 1.01 | ||||||||||||
Global X U.S. Preferred ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,091.10 | 0.23 | % | $ | 1.20 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,023.85 | 0.23 | 1.16 | ||||||||||||
Global X Variable Rate Preferred ETF* | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,105.90 | 0.25 | % | $ | 1.17 | (2) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,023.75 | 0.25 | 1.26 | ||||||||||||
Global X MLP ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 971.70 | 1.49 | % | $ | 7.34 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,017.55 | 1.49 | 7.52 | ||||||||||||
Global X MLP & Energy Infrastructure ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,084.00 | 0.45 | % | $ | 2.34 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.75 | 0.45 | 2.28 | ||||||||||||
Global X TargetIncomeTM 5 ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,075.00 | 0.39 | % | $ | 2.02 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,023.05 | 0.39 | 1.97 | ||||||||||||
Global X TargetIncomeTM Plus 2 ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,045.80 | 0.39 | % | $ | 1.99 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,023.05 | 0.39 | 1.97 | ||||||||||||
Global X Conscious Companies ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,226.20 | 0.43 | % | $ | 2.39 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.85 | 0.43 | 2.17 | ||||||||||||
Global X Adaptive U.S. Factor ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,223.30 | 0.27 | % | $ | 1.50 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,023.65 | 0.27 | 1.37 | ||||||||||||
Global X Founder-Run Companies ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,323.20 | 0.45 | % | $ | 2.61 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.75 | 0.45 | 2.28 |
130
Disclosure of Fund Expenses (unaudited) | ||
(1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period.) |
(2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 162/366 (to reflect the period from inception to date). |
* | The Fund commenced operations on June 22, 2020. |
131
Approval of Investment Advisory Agreement (unaudited) | ||
Approval of New Investment Advisory and Supervision and Administration Agreements
Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), requires that the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not “interested persons” of the ETF, as defined in the 1940 Act (“Independent Trustees”), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each ETF’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.
At a Board meeting of the Global X Funds (the “Trust”) held in person on February 18, 2020 (the “New Fund Board Meeting”), the Board of Trustees (the “Board”) (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved (i) the initial Investment Advisory Agreement (the “New Investment Advisory Agreement”) for the Global X Variable Rate Preferred ETF (the “New Fund”) and (ii) the initial Supervision and Administration Agreement between the Trust (the “New Supervision and Administration Agreement”), on behalf of the New Fund, and Global X Management Company LLC (“Global X Management”). The New Advisory Agreement and New Supervision and Administration Agreement are referred to collectively as the “New Fund Agreements.”
At a Board meeting of the Trust held via videoconference November 11, 2020(1), called for such purpose, the Board (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved the continuation of (i) the Investment Advisory Agreement (“Renewal Investment Advisory Agreement”) for each Fund included in this Annual Report (each, a “Renewal Fund”); and (ii) the Supervision and Administration Agreement between the Trust (“Renewal Supervision and Administration Agreement”), on behalf of each Renewal Fund, and Global X Management. The Renewal Investment Advisory Agreement and the Renewal Supervision and Administration Agreement are referred to herein as the “Renewal Agreements.”
In advance of the Board meetings, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management in connection with the Board’s consideration of the Renewal Agreements and New Fund Agreements and received and reviewed written responses from Global X Management and supporting materials relating to those requests for information. In the course of their consideration of the Renewal Agreements and New Fund Agreements, the Trust’s Independent Trustees were advised by their independent legal counsel and, in addition to meetings with management of Global X Management, the Independent Trustees met separately in executive sessions with their counsel.
NEW FUND AGREEMENTS
(1) This meeting was held via videoconference in reliance on an exemptive order issued by the Securities and Exchange Commission on March 25, 2020. Reliance on the exemptive order is necessary and appropriate due to circumstances related to current or potential effects of COVID-19. All Trustees participating in the telephonic meeting were able to hear each other simultaneously during the meeting. Reliance on the exemptive order requires Trustees, including a majority of the Independent Trustees, to ratify actions taken pursuant to the exemptive order by vote cast at the next in-person meeting.
132
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
In determining to approve the New Fund Agreements for the New Fund, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
• the terms of the New Fund Agreements and the range of services proposed to be provided to the New Fund in accordance with the New Fund Agreements;
• Global X Management’s key personnel and the portfolio managers who would provide investment advisory, supervision and administrative services to the New Fund;
• Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of the New Fund and the composition of the New Funds’ assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New Fund, (iv) select broker-dealers to execute portfolio transactions for the New Fund when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the New Fund, and the periodic updating of the registration statements, prospectuses, statements of additional information, and other reports and documents for the New Fund that are required to be filed by the Trust with the U.S. Securities and Exchange Commission (“SEC”) and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the New Fund by shareholders and new investors;
• the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that are proposed to be provided by Global X Management or made available to the New Fund; and
• the quality of Global X Management’s resources and personnel that would be made available to the New Fund, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that it was satisfied with the nature, extent and quality of the services proposed to be provided to the New Fund by Global X Management.
Performance
The Board determined that, because the New Fund had not yet begun investment operations as of the dates of the New Fund Board Meeting, meaningful data relating to the investment performance of the New Fund was not available and, therefore, could not be a factor in approving the New Fund Agreements.
Cost of Services and Profitability
133
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
With respect to this factor, the Board considered:
• Global X Management’s expected costs to provide investment management, supervision and administrative and related services to the New Fund;
• The management fee (including the proposed investment advisory fee) (“Management Fee”) that was proposed to be borne by the New Fund under the respective New Fund Agreement for the various investment advisory, supervisory and administrative services that the New Fund requires under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the New Fund); and
• the expected profitability to Global X Management, if any, from all of the services proposed to be provided to the New Fund by Global X Management and all aspects of the relationship between Global X Management and the New Fund.
Based on these considerations, the Board concluded that the proposed Management Fee to be paid by the New Fund to Global X Management, in light of the nature, extent and quality of the services to be provided, was reasonable and in the best interests of the New Fund’s shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the proposed Management Fee to be paid to Global X Management by the New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for the New Fund, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs, and/or other similar registered funds. The Board considered Global X Management’s detailed explanation of the proposed fee structures of any New Fund that was above the average or median for the New Fund’s peer group;
• the structure of the proposed unitary Management Fee (which includes as one component the proposed investment advisory fee for the New Fund) and the expected total expense ratios for the New Fund. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the New Fund was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratios (i.e., the total fees) of the New Fund and that the proposed Management Fee for the New Fund was set at a competitive level to make the New Fund viable in the marketplace; and
• that, under the proposed unified Management Fee structure, Global X Management would be responsible for most ordinary expenses of the New Fund, including the costs of various third-party services required by the New Fund, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal,
134
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
transfer agency and printing costs, but that the New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that the services to be received and the fees to be charged under the applicable New Fund Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the New Fund grows and whether the proposed unitary Management Fees for the New Fund reflected these economies of scale;
• the significant investment of time, personnel and other resources that Global X Management intends to make in the New Fund in order to seek to assure that the New Fund is attractive to investors; and
• that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for the New Fund and its shareholders.
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that the proposed unitary Management Fees for the New Fund appropriately addressed economies of scale.
Other Benefits
In considering each New Fund Agreement, in addition to the factors discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Fund. As a result, the Board concluded that, in the case of the New Fund, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the applicable New Fund Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in their consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the New Fund Agreements were fair and reasonable and in the best interest of the New Fund.
135
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
RENEWAL AGREEMENTS
In determining to approve the continuation of the Renewal Agreements for the Renewal Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
• the terms of the Renewal Agreements and the range of services that would continue to be provided to each Renewal Fund in accordance with the Renewal Agreements;
• Global X Management’s key personnel and the portfolio managers who would continue to provide investment advisory, supervision and administrative services to each Renewal Fund;
• Global X Management’s responsibilities under the Renewal Agreements, among other things, to: (i) manage the investment operations of the Renewal Funds and the composition of the Renewal Funds’ assets, including the purchase, retention and disposition of their holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights relating to securities and assets held by the Renewal Funds, (iv) select broker-dealers to execute portfolio transactions for the Renewal Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the Renewal Funds, and the periodic updating of the registration statement, prospectuses, statements of additional information, and other reports and documents for the Renewal Funds that are required to be filed by the Trust with the SEC and other regulatory and governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the Renewal Funds by shareholders and new investors;
• the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that have been provided by Global X Management or made available to the Renewal Funds; and
• the quality of Global X Management’s resources and personnel that would continue to be made available to the Renewal Funds, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
136
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Renewal Funds by Global X Management.
Performance
The Board considered the performance of each Renewal Fund. They examined the performance of the Renewal Funds for the one-year, three-year, five-year and since-inception periods, as applicable. Also, the Board considered the total return and investments performance of the Renewal Funds relative to (i) the performance of unaffiliated comparable ETFs and/or other registered funds, which performance information is publicly available from such registered funds, as well as other third party sources; and (ii) the performance of pertinent indexes. The Board considered instances of under-performance and over-performance with respect to the competitor funds. The Board also considered the Renewal Funds’ tracking against their underlying indexes in absolute terms.
Based on these considerations and comparisons, the Board concluded that the investment performance of the Renewal Funds did not adversely affect the Board’s approval of the continuance of the Renewal Agreements.
Cost of Services and Profitability
The Board considered Global X Management’s cost to provide investment management, supervision and administrative and related services to the Renewal Funds. In this regard, the Board considered the management fee (“Management Fee”) that has been borne or is expected to be borne by the Renewal Funds under the Renewal Agreements for the various investment advisory, supervisory and administrative services that the Renewal Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the Renewal Funds).
In addition, the Board considered expected profitability to Global X Management, as applicable, from all services provided or expected to be provided to the Renewal Funds and all aspects of Global X Management’s relationship with the Renewal Funds. In connection with these considerations, Global X Management provided the Board with financial information regarding its operations and the services provided to the Renewal Funds and discussed with the Board its current and expected, as applicable, profitability with respect to the Renewal Funds.
Based on these considerations, the Board concluded that the Management Fee rate paid by the Renewal Funds to Global X Management, in light of the nature, extent and quality of the services provided, was reasonable and in the best interests of the Renewal Funds’ shareholders.
137
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the Management Fee paid to Global X Management by the Renewal Funds. In connection with this consideration, Global X Management provided the Board with comparative expense data for the Renewal Funds, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs and/or other comparable registered funds. The Board considered the Global X Management’s detailed explanation of the fee structures of any Renewal Fund that was above the average or median for its peer group;
• the structure of the unitary Management Fee (which includes as one component the investment advisory fee for the Renewal Funds) and the current total expense ratios for the Renewal Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the Renewal Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of the Renewal Funds and that the proposed Management Fees for the Renewal Funds were set at a competitive levels to make the Renewal Funds viable in the marketplace; and
• that, under the unified Management Fee structure, Global X Management is responsible for most ordinary expenses of the Renewal Funds, including the costs of various third-party services required by the Renewal Funds, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that the Renewal Funds would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded that the services received and the fees charged under the Renewal Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the Renewal Funds grow and whether the unitary Management Fee for the Renewal Funds reflected these economies of scale;
• the significant investment of time, personnel and other resources that Global X Management has made and intends to continue to make in the Renewal Funds in order to seek to assure that the Renewal Funds are attractive to investors; and
138
Approval of Investment Advisory Agreement (unaudited) (concluded) | ||
• that the unitary Management Fee would provide a high level of certainty as to the total level of expenses for the Renewal Funds and their shareholders.
Based on these considerations, the Board concluded that the unitary Management Fee for the Renewal Funds appropriately addressed economies of scale.
Other Benefits
In considering the Renewal Agreements, in addition to the factors above, the Board considered any other benefits realized by Global X Management as a result of its relationships with the Renewal Funds and concluded that, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the continuation of the Renewal Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in its consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the Renewal Agreements were fair and reasonable and in the best interest of each Renewal Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
139
Supplemental Information (unaudited) | ||
Net asset value, or “NAV”, is the price per Share at which a Fund issues and redeems Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of the Fund’s holdings. The Market Price of a Fund will fluctuate in accordance with changes in their NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Funds’ website at www.globalxetfs.com.
140
Trustees and Officers of the Trust (unaudited) | ||
Set forth below are the names, addresses, years of birth, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of Funds in fund complex overseen by Trustee, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.
Name, Address (Year of Birth) | Position(s) Held with Trust | Principal Occupation(s) During the Past 5 Years | Number of Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Independent Trustees | ||||
Charles A. Baker 605 3rd Avenue, 43rd Floor New York, NY 10158 (1953) | Trustee (since 07/2018) | Chief Executive Officer of Investment Innovations LLC (investment consulting) (since 2013); Managing Director of NYSE Euronext (2003 to 2012). | 782 | Trustee of OSI ETF Trust (since 2016) |
Susan M. Ciccarone 605 3rd Avenue, 43rd Floor New York, NY 10158 (1973) | Trustee (since 09/2019) | Partner, Further Global Capital Management (private equity) (since 2017); formerly Chief Operating Officer (2014-2016) and Chief Financial Officer (2012-2016), Emerging Global Advisors, LLC (ETF issuer). | 782 | Chairman, Payment Alliance International, Inc. (since 2019); Director, Casa Holdco LP, parent of Celink (since 2018). |
Clifford J. Weber 605 3rd Avenue, 43rd Floor New York, NY 10158 (1963) | Trustee (since 07/2018) | Owner, Financial Products Consulting Group LLC (consulting services to financial institutions) (since 2015); Formerly, Executive Vice President of Global Index and Exchange-Traded Products, NYSE Market, Inc., a subsidiary of Intercontinental Exchange (ETF/ETP listing exchange) (2013-2015). | 782 | Chairman (since 2017) and Trustee ofClough Funds Trust (since 2015); Chairman and Trustee of Clayton Street Trust (since 2016); Chairman and Trustee of Janus Detroit Street Trust (since 2016); Chairman and Trustee of Elevation ETF Trust (2016-2018); Trustee of Clough Global Equity Fund (since 2017); Trustee of Clough Global Dividend and Income Fund (since 2017); and Trustee ofClough Global Opportunities Fund (since 2017). |
141
Trustees and Officers of the Trust (unaudited) | ||
The Trust’s SAI includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of November 30, 2020.
Name, Address (Year of Birth) | Position(s) Held with Funds | Principal Occupation(s) During the Past 5 Years | Number of Operational Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Interested Trustee / Officers1 | ||||
Luis Berruga 605 3rd Avenue, 43rd Floor New York, NY 10158 (1977) | Trustee (since 07/2018); President (since 2018) | Chief Executive Officer, GXMC (since 07/2018), Chief Financial Officer (since 2/2014) and Chief Operating Officer (9/2015 - 7/2018); Investment Banker, Jefferies (2012-2014) | 782 | None |
Chang Kim 605 3rd Avenue, 43rd Floor New York, NY 10158 (1984) | Chief Operating Officer; Treasurer, Principal Accounting Officer; and Chief Financial Officer (since 7/2018) | Chief Operating Officer, GXMC (since 7/2018), Head of Portfolio Management & Portfolio Administration (1/2017-7/2018); and Portfolio Manager (since 9/2009) | N/A | None |
Matt Snyder3 One Freedom Valley Drive Oaks, PA 19456 (1984) | Assistant Treasurer (since 11/2020) | Director of Fund Accounting, SEI Investments (since 9/2019); Assistant Vice President, State Street Bank and Trust (10/2006-7/2016 and 5/2017-8/2019); and JPMorgan (Corporate & Investment Bank) (8/2016-4/2017) | N/A | None |
Susan Lively 605 Third Avenue, 43rd Floor New York, NY 10158 (1981) | Secretary (since 9/2020) | General Counsel, GXMC (since 9/2020); Senior Corporate Counsel at Franklin Templeton (previously, Managing Director and Associate General Counsel at Legg Mason & Co., LLC) (2014-2020). | N/A | None |
Eric Griffith3 One Freedom Valley Drive Oaks, PA 19456 (1969) | Assistant Secretary (since 2/2020) | Counsel, SEI Investments (since 10/2019); Vice President and Assistant General Counsel, JPMorgan Chase & Co. (2012-2018). | N/A | None |
142
Trustees and Officers of the Trust (unaudited) | ||
Name, Address (Year of Birth) | Position(s) Held with Funds | Principal Occupation(s) During the Past 5 Years | Number of Operational Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Interested Trustee / Officers1 | ||||
Joe Costello 605 3rd Avenue, 43rd Floor New York, NY 10158 (1974) | Chief Compliance Officer (since 9/2016) | Chief Compliance Officer, FlexShares Funds (2011-2015); Vice President, Northern Trust Investments (2003 - 2015) | N/A | None |
1 | Each Trustee serves until his successor is duly elected or appointed and qualified. |
2 | As of November 30, 2020, the Trust had eighty-seven investment portfolios, seventy-eight of which were operational. |
3 | These officers of the Trust also serve as officers of one or more funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor. |
143
Notice to Shareholders (unaudited) | ||
For shareholders that do not have a November 30, 2020 tax year end, this notice is for informational purposes only. For shareholders with a November 30, 2020 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended November 30, 2020, the Fund has designated the following items with regard to distributions paid during the year.
Long-Term Capital Gain Distributions | Ordinary Income Distributions | Return of Capital | Total Distributions | Qualifying for Corporate Dividends Received Deduction (1) | Qualifying Dividend Income (2) | |||||||||||||||||||
Global X SuperDividend® Alternatives ETF | 0.00 | % | 88.35 | % | 11.65 | % | 100.00 | % | 66.87 | % | 63.88 | % | ||||||||||||
Global X S&P 500® Quality Dividend ETF | 0.00 | % | 99.54 | % | 0.46 | % | 100.00 | % | 80.67 | % | 86.93 | % | ||||||||||||
Global X U.S. Preferred ETF | 0.00 | % | 100.00 | % | 0.00 | % | 100.00 | % | 15.07 | % | 15.85 | % | ||||||||||||
Global X Variable Rate Preferred ETF | 0.00 | % | 100.00 | % | 0.00 | % | 100.00 | % | 92.64 | % | 97.56 | % | ||||||||||||
Global X MLP ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | 0.00 | % | ||||||||||||
Global X MLP & Energy Infrastructure ETF | 0.00 | % | 85.10 | % | 14.90 | % | 100.00 | % | 40.13 | % | 60.58 | % | ||||||||||||
Global X TargetIncomeTM 5 ETF | 0.00 | % | 84.06 | % | 15.94 | % | 100.00 | % | 69.11 | % | 70.18 | % | ||||||||||||
Global X TargetIncomeTM Plus 2 ETF | 0.00 | % | 97.21 | % | 2.79 | % | 100.00 | % | 52.66 | % | 45.49 | % | ||||||||||||
Global X Conscious Companies ETF | 4.77 | % | 95.23 | % | 0.00 | % | 100.00 | % | 72.01 | % | 72.01 | % | ||||||||||||
Global X Adaptive U.S. Factor ETF | 5.22 | % | 82.50 | % | 12.28 | % | 100.00 | % | 65.47 | % | 65.70 | % | ||||||||||||
Global X Founder-Run Companies Preferred ETF | 0.00 | % | 100.00 | % | 0.00 | % | 100.00 | % | 70.46 | % | 70.46 | % |
(1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). |
(2) | The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of the Fund to designate the maximum amount permitted by law. |
144
Notice to Shareholders (unaudited) | ||
U.S. Government Interest(3) | Interest Related Dividends(4) | Short Term Capital Gain Dividends(5) | Qualifying Business Income(6) | Foreign Tax Credit | ||||||||||||||||
Global X SuperDividend® Alternatives ETF | 0.00 | % | 0.20 | % | 100.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X S&P 500® Quality Dividend ETF | 0.00 | % | 0.00 | % | 0.00 | % | 6.79 | % | 0.00 | % | ||||||||||
Global X U.S. Preferred ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.91 | % | 0.00 | % | ||||||||||
Global X Variable Rate Preferred ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X MLP ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X MLP & Energy Infrastructure ETF | 0.00 | % | 0.39 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X TargetIncomeTM 5 ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X TargetIncomeTM Plus 2 ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Conscious Companies ETF | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Adaptive U.S. Factor ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Founder-Run Companies ETF | 0.00 | % | 0.05 | % | 0.00 | % | 0.00 | % | 0.00 | % |
(3) | “U.S. Government Interest” represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income. |
(4) | The percentage in this column represents the amount of “Qualifying Interest Income” as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors. |
(5) | The percentage of this column represents the amount of “Short Term Capital Gain Dividend” and is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors. |
(6) | The percentage of this column represents that amount of ordinary dividend income that qualified for 20% Business Income Deduction. |
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2020. Complete information will be computed and reported in conjunction with your 2020 Form 1099-DIV.
145
Notes | ||
146
Notes | ||
147
Notes | ||
148
605 3rd Avenue, 43rd Floor
New York, NY 10158
1-888-493-8631
www.globalxetfs.com
Investment Adviser and Administrator:
Global X Management Company LLC
605 3rd Avenue, 43rd Floor
New York, NY 10158
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Sub-Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Counsel for Global X Funds and the Independent Trustees:
Stradley Ronon Stevens & Young, LLP
2000 K Street, N.W.
Suite 700
Washington, DC 20006-1871
Custodian and Transfer Agent:
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Independent Registered Public Accounting Firm:
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Funds described.
GLX-AR-006-0800
Global X Robotics & Artificial Intelligence ETF (ticker: BOTZ) |
Global X Internet of Things ETF (ticker: SNSR) |
Global X FinTech ETF (ticker: FINX) |
Global X Video Games and Esports ETF (ticker: HERO) |
Global X Autonomous & Electric Vehicles ETF (ticker: DRIV) |
Global X Cloud Computing ETF (ticker: CLOU) |
Global X Data Center REITs & Digital Infrastructure ETF (ticker: VPN) |
Global X Cybersecurity ETF (ticker: BUG) |
Global X Artificial Intelligence & Technology ETF (ticker: AIQ) |
Global X Millennials Thematic ETF (ticker: MILN) |
Global X Education ETF (ticker: EDUT) |
Global X Cannabis ETF (ticker: POTX) |
Global X Genomics & Biotechnology ETF (ticker: GNOM) |
Global X China Biotech Innovation ETF (ticker: CHB) |
Global X Telemedicine & Digital Health ETF (ticker: EDOC) |
Global X Longevity Thematic ETF (ticker: LNGR) |
Global X Health & Wellness Thematic ETF (ticker: BFIT) |
Global X CleanTech ETF (ticker: CTEC) |
Global X U.S. Infrastructure Development ETF (ticker: PAVE) |
Global X Thematic Growth ETF (ticker: GXTG) |
Annual Report
November 30, 2020
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ (defined below) shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, shareholder reports will be available on the Funds’ website (www.globalxetfs.com/explore), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of Fund shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.
Table of Contents |
Management Discussion of Fund Performance | 1 |
Schedules of Investments | |
Global X Robotics & Artificial Intelligence ETF | 46 |
Global X Internet of Things ETF | 50 |
Global X FinTech ETF | 55 |
Global X Video Games & Esports ETF | 59 |
Global X Autonomous & Electric Vehicles ETF | 63 |
Global X Cloud Computing ETF | 69 |
Global X Data Center REITs & Digital Infrastructure ETF | 72 |
Global X Cybersecurity ETF | 75 |
Global X Artificial Intelligence & Technology ETF | 77 |
Global X Millennials Thematic ETF | 83 |
Global X Education ETF | 88 |
Global X Cannabis ETF | 91 |
Global X Genomics & Biotechnology ETF | 94 |
Global X China Biotech Innovation ETF | 97 |
Global X Telemedicine & Digital Health ETF | 99 |
Global X Longevity Thematic ETF | 103 |
Global X Health & Wellness Thematic ETF | 109 |
Global X CleanTech ETF | 113 |
Global X U.S. Infrastructure Development ETF | 117 |
Global X Thematic Growth ETF | 122 |
Statements of Assets and Liabilities | 125 |
Statements of Operations | 131 |
Statements of Changes in Net Assets | 136 |
Financial Highlights | 147 |
Notes to Financial Statements | 157 |
Report of Independent Registered Public Accounting Firm | 181 |
Disclosure of Fund Expenses | 184 |
Approval of Investment Advisory Agreement | 188 |
Supplemental Information | 197 |
Trustees and Officers of the Trust | 198 |
Notice to Shareholders | 200 |
Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “SEC” or “Commission”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Forms N-PORT are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-493-8631; and (ii) on the Commission’s website at http://www.sec.gov
Management Discussion of Fund Performance (unaudited) |
Global X Robotics & Artificial Intelligence ETF |
Global X Robotics & Artificial Intelligence ETF
The Global X Robotics & Artificial Intelligence ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Robotics & Artificial Intelligence Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed markets that are involved in the development of robotics and/or artificial intelligence, including companies involved in developing industrial robots and production systems, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments, as defined by Indxx, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 48.90%, while the Underlying Index increased 49.93%. The Fund had a net asset value of $21.43 per share on November 30, 2019 and ended the reporting period with a net asset value of $31.78 per share on November 30, 2020.
During the reporting period, the highest returns came from Veritone, Inc. and Maxar Technologies Inc., which returned 392.05% and 161.28%, respectively. The worst performers were TransEnterix, Inc. and Helix Energy Solutions Group, Inc., which returned -79.30% and -54.70%, respectively.
Robotics and artificial intelligence (AI) combine the rapidly improving abilities of both mechanical and cognitive technologies. Increasingly, these technologies disrupt existing processes in areas such as industrial manufacturing, transportation, defense, health care, and agriculture, automating functions to reduce costs and/or improve efficiency and quality. Additionally, robotics and AI have visible use cases in everyday life, including in electronic toys, drones, personal assistants, and home appliances. Amid the COVID-19 pandemic during the reporting period, the need for automation accelerated. For example, companies increasingly sought new supply chain strategies to mitigate cross-border risks. Reshoring manufacturing to their home countries and diversifying supply chains are now priorities for many firms as they look to maintain greater control and avoid costly interruptions. But robotics plays an important role in reshoring as advanced economies typically have much higher labor costs. Outside of manufacturing, sectors like health care, retail, and food and beverages looked towards robotics to limit human to human contact amid the pandemic. During the reporting period, the Fund saw an average approximate allocation of 28% to Industrial Machinery, 14% to Electronic Equipment and Instruments, 11% to Semiconductors, and 8% to Healthcare Equipment. During the reporting period, the Fund was exposed predominately to Japan (44%), followed by the United States (37%) and Switzerland (11%).
1
Management Discussion of Fund Performance (unaudited) |
Global X Robotics & Artificial Intelligence ETF |
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Robotics & Artificial Intelligence ETF | 48.90% | 48.09% | 10.82% | 10.73% | 20.54% | 20.43% |
Indxx Global Robotics & Artificial Intelligence Thematic Index | 49.93% | 49.93% | 11.16% | 11.16% | 20.82% | 20.82% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 8.99% | 8.99% | 11.98% | 11.98% |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on September 12, 2016.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
2
Management Discussion of Fund Performance (unaudited) |
Global X Robotics & Artificial Intelligence ETF |
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.
3
Management Discussion of Fund Performance (unaudited) |
Global X Internet of Things ETF |
Global X Internet of Things ETF
The Global X Internet of Things ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Internet of Things Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the Internet of Things industry, including companies involved in wearable technology, home automation, connected automotive technology, sensors, networking infrastructure/software, smart metering and energy control devices, as defined by Indxx, LLC, the provider of the Underlying Index. The Internet of Things refers to the network of physical objects (devices, vehicles, equipment, homes, buildings) that are connected to the internet through embedded devices and software, which allows these physical objects to collect, analyze and exchange data.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 31.88%, while the Underlying Index increased 32.32%. The Fund had a net asset value of $22.89 per share on November 30, 2019 and ended the reporting period with a net asset value of $29.95 per share on November 30, 2020.
During the reporting period, the highest returns came from Xiaomi Corp. and Nordic Semiconductor ASA, which returned 198.96% and 148.94%, respectively. The worst performers were Garrett Motion, Inc. and Senseonics Holdings, Inc., which returned -84.87% and -62.50%, respectively.
With the advent of highspeed wireless internet and cheap internet-capable chips, devices are getting “smarter.” From home appliances and cars, to public infrastructure and factories, many everyday objects are now connected to networks and the worldwide web. The Internet of Things (IoT), via increased connectivity and sensor-based technologies, adds a level of digital intelligence to these proliferating devices. The rapid development of 5G network could drive an increase in the number of IoT devices worldwide as devices are expected to benefit from reduced latency and greater capacity and speed. The IoT is also helping fight the impacts of the COVID-19 pandemic, both in terms of public health and business impacts, as connected devices are used to measure temperatures, conduct contact-tracing, and use personal health data to predict COVID-19 infections. During the reporting period, the Fund had an average approximate allocation of 39% to the Semiconductors sub-industry, followed by 13% to Electrical Components and Equipment, and 9% to Healthcare Equipment. Geographically, during the reporting period, the Fund’s exposures came predominately from the United States at 60%, followed by Switzerland at 17%.
4
Management Discussion of Fund Performance (unaudited) |
Global X Internet of Things ETF |
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Internet of Things ETF | 31.88% | 31.22% | 15.54% | 15.44% | 18.83% | 18.81% |
Indxx Global Internet of Things Thematic Index | 32.32% | 32.32% | 15.89% | 15.89% | 19.20% | 19.20% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 8.99% | 8.99% | 11.98% | 11.98% |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on September 12, 2016.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
5
Management Discussion of Fund Performance (unaudited) |
Global X Internet of Things ETF |
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.
6
Management Discussion of Fund Performance (unaudited) |
Global X FinTech ETF |
Global X FinTech ETF
The Global X FinTech ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global FinTech Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer and marketplace lending, financial analytics software and alternative currencies, as defined by Indxx, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 40.21%, while the Underlying Index increased 40.95%. The Fund had a net asset value of $30.49 per share on November 30, 2019 and ended the reporting period with a net asset value of $42.75 per share on November 30, 2020.
During the reporting period, the highest returns came from Afterpay Limited and Square, Inc., which returned 227.53% and 205.21%, respectively. The worst performers were Wirecard AG and On Deck Capital, Inc., which returned -97.22% and -82.52%, respectively.
Financial Technology, or FinTech, is the application of cutting edge software and hardware to facilitate or improve traditional financial services. In some instances, FinTech companies can be disruptive to entrenched industry players, such as peer-to-peer lenders looking to disintermediate banks from the lending process. In other instances, FinTech firms can help companies improve existing processes or reduce costs, such as creating customized software to help a real estate firm manage their properties. During the reporting period, digitalization in financial services, adoption of digital payment options, and penetration of financial technology among the emerging market middle class accelerated due to the COVID-19 pandemic, helping to drive the Fund’s returns. In particular, there was strong growth in areas like online payments, as consumers shifted to buying more from e-commerce platforms, and mobile payments, as merchants offered contactless payment solutions to limit COVID-19 transmission risks. During the reporting period, the Fund saw large exposures to Other Diversified Financial Services (46% average exposure) and Application Software (31% average exposure). Geographically, during the reporting period, the Fund maintained an allocation of 59% to stocks in the United States, followed by Netherlands, Brazil at 7%, and Australia at 6%.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X FinTech ETF | 40.21% | 39.96% | 25.31% | 25.21% | 28.12% | 28.11% |
Indxx Global Fintech Thematic Index | 40.95% | 40.95% | 26.14% | 26.14% | 28.91% | 28.91% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 8.99% | 8.99% | 11.98% | 11.98% |
7
Management Discussion of Fund Performance (unaudited) |
Global X FinTech ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on September 12, 2016.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
8
Management Discussion of Fund Performance (unaudited) |
Global X Video Games & Esports ETF |
Global X Video Games & Esports ETF
The Global X Video Games & Esports ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Video Games & Esports Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies that are positioned to benefit from increased video game- and esports-related consumption, including those whose principal business is in video game development/publishing, video game and esports content distribution and streaming, operating/owning esports leagues/teams, and producing video game/esports hardware. To be eligible for the Underlying Index, a company must generate at least 50% of its revenues from video games and esports activities, as determined by Solactive AG, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 82.04%, while the Underlying Index increased 82.91%. The Fund had a net asset value of $15.73 per share on November 30, 2019 and ended the reporting period with a net asset value of $28.57 per share on November 30, 2020.
During the reporting period, the highest returns came from Sea Ltd. (Singapore) and Gravity Co., Ltd., which returned 386.96% and 348.54%, respectively. The worst performers were Aeria Inc. and Chinese Gamer International Corporation, which returned -50.50% and -22.37%, respectively.
Amid the COVID-19 pandemic and the ensuing stay-at-home orders, many turned to video games and esports for entertainment. With limited live events and social opportunities, video games and esports provided a physically distant, engaging, and social experience for experienced and novice gamers around the world. As such, revenues across the video game industry surged during the reporting period as games, hardware, and peripherals saw significantly increased purchases. In addition, while still early in its adoption cycle, esports gained significant traction amid lockdowns as limited live sports led to professional athletes competing in the virtual world in live streamed events. This served to pull in millions of new esports viewers to this fast-growing area of gaming. During the reporting period, we also saw the releases of much-awaited consoles in the market: Microsoft’s Xbox Series X and Sony’s PlayStation 5. Console launches occur infrequently, but when they do happen, they can spur a super cycle of software and hardware purchases as gamers look to utilize the latest technology, prompting greater forward expectations for gaming companies.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Video Games & Esports ETF | 82.04% | 81.56% | 80.16% | 80.45% |
Solactive Video Games & Esports Index | 82.91% | 82.91% | 80.80% | 80.80% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 16.59% | 16.59% |
9
Management Discussion of Fund Performance (unaudited) |
Global X Video Games & Esports ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on October 25, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
10
Management Discussion of Fund Performance (unaudited) |
Global X Autonomous & Electric Vehicles ETF |
Global X Autonomous & Electric Vehicles ETF
The Global X Autonomous & Electric Vehicles ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies that are involved in the development of electric vehicles and/or autonomous vehicles, including companies that produce electric/hybrid vehicles, electric/hybrid vehicle components and materials, autonomous driving technology, and network connected services for transportation, as defined by Solactive AG, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 54.98%, while the Underlying Index increased 55.38%. The Fund had a net asset value of $14.15 per share on November 30, 2019 and ended the reporting period with a net asset value of $21.75 per share on November 30, 2020.
During the reporting period, the highest returns came from Tesla Inc. and Plug Power Inc., which returned 760.16% and 576.67%, respectively. The worst performers were Carpenter Technology Corporation and Allegheny Technologies Incorporated, which returned -51.86% and -41.50%, respectively.
Global electric vehicle (EV) sales grew at a steady pace despite the COVID-19 pandemic, as the transition from fossil fuels to renewable energy continues. China remains the world’s leader in the EV market even though it witnessed a slowdown during the reporting period, as the government scaled back some of the subsidies offered to EV-buyers. With the introduction of worldwide harmonized light vehicle test procedure (WLTP) by the European Union (E.U.), Europe saw nearly a 44% increase in EV sales. In the U.S., President-elect Joe Biden plans to push the widespread use of electric cars, in an effort to meet ambitious carbon neutrality goals by 2050, further spurring demand. The lithium industry, which produces the critical metal used to make EV batteries, performed well thanks to increasing demand and slow supply growth. While pure-play EV makers generate the headlines, legacy automakers are entering the EV segment aggressively, creating further tailwinds for the industry. Autonomous and electric vehicle technologies continue to progress as battery costs fall, artificial intelligence improves, and self-driving cars collect more driving data.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Autonomous & Electric Vehicles ETF | 54.98% | 55.41% | 17.12% | 17.24% |
Solactive Autonomous & Electric Vehicles Index | 55.38% | 55.38% | 17.16% | 17.16% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 9.61% | 9.61% |
11
Management Discussion of Fund Performance (unaudited) |
Global X Autonomous & Electric Vehicles ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on April 13, 2018.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
12
Management Discussion of Fund Performance (unaudited) |
Global X Cloud Computing ETF |
Global X Cloud Computing ETF
The Global X Cloud Computing ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Cloud Computing Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed and emerging markets that are positioned to benefit from the increased adoption of cloud computing technology, including but not limited to companies whose principal business is in offering computing Software-as-a Service (“SaaS”), Platform-as-a-Service (“PaaS”), Infrastructure-as-a-Service (“IaaS”), managed server storage space and data center REITs, and/or cloud and edge computing infrastructure and hardware (collectively, “Cloud Computing Companies”), as defined by Indxx LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 61.68%, while the Underlying Index increased 62.71%. The Fund had a net asset value of $15.99 per share on November 30, 2019 and ended the reporting period with a net asset value of $25.84 per share on November 30, 2020.
During the reporting period, the highest returns came from 21Vianet Group, Inc. and Shopify, Inc., which returned 318.61% and 223.80%, respectively. The worst performers were Benefitfocus, Inc. and Cornerstone Ondemand, Inc., which returned -39.99% and -28.41%, respectively.
Cloud technology has become an integrated part of our lives as it fundamentally alters how we consume, process, and share information in the digital age. It is increasingly touching many aspects of our lives, from work to entertainment, health care, and education. Prior to the COVID-19 pandemic, many companies were already in the process of transitioning much of their information technology infrastructure to the cloud to allow for greater efficiency, outsourcing, and remote access to data and software. But the COVID-19 pandemic accelerated the shift to cloud-based solutions. Many governments shuttered non-essential businesses and encouraged workers to stay at home, if possible. Cloud computing made this possible for millions by facilitating teleconferencing, remote access, and seamless communications. As a result, many SaaS providers saw increasing revenues and expanding valuations amid the pandemic despite a weak economic backdrop.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Cloud Computing ETF | 61.68% | 62.03% | 39.21% | 39.69% |
Indxx Global Cloud Computing Index | 62.71% | 62.71% | 39.89% | 39.89% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 13.04% | 13.04% |
13
Management Discussion of Fund Performance (unaudited) |
Global X Cloud Computing ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on April 12, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
14
Management Discussion of Fund Performance (unaudited) |
Global X Data Center REITs & Digital Infrastructure ETF |
Global X Data Center REITs & Digital Infrastructure ETF
The Global X Data Center REITs & Digital Infrastructure ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Data Center REITs & Digital Infrastructure Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to companies that have business operations in the fields of data centers, cellular towers, and/or digital infrastructure hardware. Specifically, the Underlying Index will include securities issued by “Data Center REITs & Digital Infrastructure Companies” as defined by Solactive AG, the provider of the Underlying Index.
For the period from the Fund’s commencement date on October 27, 2020 through November 30, 2020 (the “reporting period”), the Fund decreased 0.20%, while the Underlying Index decreased 0.16%. The Fund had a net asset value of $14.97 per share on October 27, 2020 and ended the reporting period with a net asset value of $14.94 per share on November 30, 2020.
During the reporting period, the highest returns came from Microchip Technology Incorporated and Micron Technology, Inc., which returned 24.85% and 23.34%, respectively. The worst performers were Nextdc Limited and Digital Realty Trust, Inc., which returned -11.32% and -10.56%, respectively.
Data centers are traditionally large, windowless, warehouse-like buildings that host their tenant’s networked computer servers. In exchange for regular rent payments and fees, data centers provide physical space, cooling, power management, and security to their tenants, but rarely own or operate their own servers. Unlike other REITs, data center leases are primarily based on power capacity usage ($/kW) rather than square footage. This business model gives tenants significant flexibility to scale their infrastructure and computing needs. Similar to data centers, cellular towers own and operate critical physical infrastructure for the digital world, including wireless and broadcast communications towers. Even though the number of potential customers is limited to a handful of telecoms, the need for towers is greater than ever with the rapid accent of smart phones and the internet of things.
Data centers and cellular towers marry elements of growth-oriented technology investing, with income-oriented real estate. As disruptive technologies like the Internet of Things, Artificial Intelligence, and Video Games & Esports require vast amounts of data storage and processing, demand for data centers and cell towers could continue to surge, along with hardware that powers these structures. The world’s growing reliance on connectivity and cloud computing, particularly among stay-at-home orders during the coronavirus pandemic, makes digital infrastructure more important than ever and is generally increasing growth expectations for the industry. Beyond that, the low yield environment around the world has made certain dividend-paying stocks more attractive as investors search for yield. During the reporting period, the Fund had an average approximate exposure of 66% to Real Estate and 27% to Information Technology.
15
Management Discussion of Fund Performance (unaudited) |
Global X Data Center REITs & Digital Infrastructure ETF |
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X Data Center REITs & Digital Infrastructure ETF | -0.20% | 0.47% |
Solactive Data Center REITs & Digital Infrastructure Index | -0.16% | -0.16% |
MSCI ACWI Index (Net) | 8.31% | 8.31% |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on October 27, 2020.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
16
Management Discussion of Fund Performance (unaudited) |
Global X Data Center REITs & Digital Infrastructure |
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.
17
Management Discussion of Fund Performance (unaudited) |
Global X Cybersecurity ETF |
Global X Cybersecurity ETF
The Global X Cybersecurity ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies that are positioned to benefit from increased adoption of cybersecurity technology, including but not limited to companies whose principal business is in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers, and mobile devices. To be eligible for the Underlying Index as a Cybersecurity Company, a company must generate at least 50% of its revenues from cybersecurity activities.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 33.78%, while the Underlying Index increased 34.60%. The Fund had a net asset value of $17.14 per share on November 30, 2019 and ended the reporting period with a net asset value of $22.75 per share on November 30, 2020.
During the reporting period, the highest returns came from Zscaler, Inc. and CrowdStrike Holdings, Inc., which returned 198.77% and 164.28%, respectively. The worst performers were Tufin Software Technologies Ltd. and FFRI Security, Inc., which returned -59.45% and -19.31%, respectively.
During the COVID-19 pandemic, digitalization accelerated across many aspects of the economy. Workers used cloud computing services to access data and software remotely; shoppers used online platforms to order goods and services to their door; patients leveraged telemedicine to connect with doctors securely from their homes. While this rise in digitalization has protected people physically, it has also created new opportunities for digital crimes like hacking, cyberthefts, and ransomware. Reports indicate that cyberattacks became more frequent and sophisticated amid the pandemic. Large-scale data breaches rose nearly 300% during the first half of 2020. Increasingly, cybersecurity firms are incorporating artificial intelligence and machine learning applications to provide automated and customized endpoint security solutions. Given its central role in protecting firms, consumers, and government bodies around the world amid the trend of digitalization, the cybersecurity theme and firms in the space were well-positioned during the reporting period.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Cybersecurity ETF | 33.78% | 33.32% | 44.74% | 47.58% |
Indxx Cybersecurity Index | 34.60% | 34.60% | 45.48% | 45.48% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 16.59% | 16.59% |
18
Management Discussion of Fund Performance (unaudited) |
Global X Cybersecurity ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on October 25, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
19
Management Discussion of Fund Performance (unaudited) |
Global X Artificial Intelligence & Technology ETF |
Global X Artificial Intelligence & Technology ETF
The Global X Artificial Intelligence & Technology ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence and Big Data Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to track the performance of companies listed or incorporated in developed markets that are positioned to benefit from the development and utilization of Artificial Intelligence (“AI”) technology in their products and services, as well as companies that produce hardware used in Artificial Intelligence applied for the analysis of Big Data.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 49.84%, while the Underlying Index increased 50.40%. The Fund had a net asset value of $17.35 per share on November 30, 2019 and ended the reporting period with a net asset value of $25.84 per share on November 30, 2020.
During the reporting period, the highest returns came from Trade Desk, Inc. and Shopify, Inc., which returned 242.17% and 223.80%, respectively. The worst performers were DXC Technology Co. and PROS Holdings, Inc., which returned -40.15% and -28.52%, respectively.
In the digital age, data is becoming an increasingly valuable asset. Data can be sold directly or harvested to sell targeted advertisements, recommend products, or develop new features, among other uses. To potentially benefit from this trend, the Fund seeks to invest in companies that own large proprietary data sets and/or are developing software or hardware to process this data through advanced artificial intelligence (AI) techniques, such as machine and deep learning. During the reporting period, increased online activity and the dire need for digitization in response to the COVID-19 pandemic accelerated AI and analytics investments across sectors, benefiting the Fund. Over the reporting period, the Fund, on average, allocated 61% of its assets to Information Technology, 16% to Communication Services, and 12% to Industrials. On average, over the reporting period, the Fund allocated 72% to the United States, 11% to China, and 5% to Canada.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Artificial Intelligence & Technology ETF | 49.84% | 50.80% | 24.44% | 24.66% |
Indxx Artificial Intelligence and Big Data Index | 50.40% | 50.40% | 24.81% | 24.81% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 9.06% | 9.06% |
20
Management Discussion of Fund Performance (unaudited) |
Global X Artificial Intelligence & Technology ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on May 11, 2018.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
21
Management Discussion of Fund Performance (unaudited) |
Global X Millennials Thematic ETF |
Global X Millennials Thematic ETF
The Global X Millennials Thematic ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Millennials Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the performance of U.S. listed companies that provide exposure to the millennial generation, as defined by Indxx, LLC, the provider of the Underlying Index.. The millennial generation refers to the demographic generational group in the United States with birth years ranging from 1980 to 2000.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 38.47%, while the Underlying Index increased 39.27%. The Fund had a net asset value of $25.55 per share on November 30, 2019 and ended the reporting period with a net asset value of $35.23 per share on November 30, 2020.
During the reporting period, the highest returns came from Etsy, Inc. and Peloton Interactive, Inc., which returned 270.36% and 247.42%, respectively. The worst performers were TrueCar, Inc. and Designer Brands Inc., which returned -57.90% and -50.58%, respectively.
Millennials, currently the largest generation in the U.S., are growing into their prime earning and spending years. The U.S. workforce now consists of nearly 60 million millennials, making up more than 35% of the labor force. Importantly, millennials spend differently than past generations, favoring particular types of companies and businesses models. Over the long term, as millennials spending power increases, companies focused on social media, live experiences, fast casual dining, health and wellness, education, employment, housing and home goods, and financial software and services are advantageously positioned to resonate with this unique and powerful generation. During the reporting period, the Fund broadly benefitted from consumer shifts towards preferences that have long been favored by millennials. Namely, e-commerce, streaming, digital payments, athleisure, and other trends that accelerated during the pandemic and the stay-at-home economy. To gain exposure to these various segments, the Fund made average approximate allocations of 40% to Consumer Discretionary, 26% to Communication Services, and 17% to Information Technology during the reporting period.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X MillennialsThematic ETF | 38.47% | 38.11% | 23.37% | 23.31% | 21.19% | 21.06% |
Indxx Millennials Thematic Index | 39.27% | 39.27% | 24.01% | 24.01% | 21.72% | 21.72% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.77% | 15.52% | 15.52% |
22
Management Discussion of Fund Performance (unaudited) |
Global X Millennials Thematic ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on May 4, 2016.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
23
Management Discussion of Fund Performance (unaudited) |
Global X Education ETF |
Global X Education ETF
The Global X Education ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Education Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to track the performance of companies listed in developed and emerging markets that provide products and services that facilitate education, including but not limited to companies involved in online learning and educational content/publishing, as well as early childhood education, higher education and professional education.
For the period from the Fund’s commencement date on July 10, 2020 through November 30, 2020 (the “reporting period”), the Fund increased 12.76%, while the Underlying Index increased 12.99%. The Fund had a net asset value of $15.20 per share on July 10, 2020 and ended the reporting period with a net asset value of $17.14 per share on November 30, 2020.
During the reporting period, the highest returns came from V-cube, Inc. and Rosetta Stone Inc., which returned 178.69% and 88.14%, respectively. The worst performers were Stride, Inc. and GSX Techedu, Inc., which returned -31.24% and -26.63%, respectively.
Despite the devastation caused by the COVID-19 pandemic, the education theme largely benefitted from the virus as students increasingly leveraged remote learning technology and software to continue learning from the comfort of their homes. In addition, limited work opportunities amid closures helped provide a tailwind for individuals seeking to enhance or supplement their education with further learning. Education-as-a-Service (EaaS) seeks to provide affordable and accessible classes for those who may not want to enroll in a holistic program. Massive Open Online Courses (MOOCs) fall under EaaS and allow for thousands of individuals to enroll in them concurrently, utilizing remote technologies to deliver educational content at scale. These segments not only facilitated learning during the stay-at-home economy, but also are showing promise beyond the pandemic. Governments and individuals are increasingly seeking to improve educational outcomes to increase standards of living, particularly alongside the rise of automation, which could displace certain low-value-add work. Investments in human capital through education and training could prove critical in mitigating this risk. The Fund since its inception had an average approximation exposure of 61% to Education services and 25% to Application Software.
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X Education ETF | 12.76% | 13.03% |
Indxx Global Education Thematic Index | 12.99% | 12.99% |
MSCI ACWI Index (Net) | 14.73% | 14.73% |
24
Management Discussion of Fund Performance (unaudited) |
Global X Education ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on July 10, 2020.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
25
Management Discussion of Fund Performance (unaudited) |
Global X Cannabis ETF |
Global X Cannabis ETF
The Global X Cannabis ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cannabis Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index provide exposure to exchange-listed companies that are active in the cannabis industry. In order to be eligible for inclusion in the Underlying Index, a company is considered by the Solactive AG, the provider of the Underlying Index to be a Cannabis Company if it derives at least 50% of its revenue, operating income, or assets from the cannabis industry. These companies include those involved in the following areas of the cannabis industry: (i) the legal production, growth and distribution of marijuana, as well as extracts, derivative products or synthetic versions thereof; (ii) the legal production, growth and distribution of hemp, as well as extracts, derivative products or synthetic versions thereof; (iii) financial services (insurance offerings, property leasing, financing, capital markets activity and investments) provided to companies involved in the production, growth and distribution of cannabis; (iv) pharmaceutical applications of cannabis; (v) cannabidiol (better known as CBD) and cannabis oil products, edibles, topicals, drinks and other products; and (vi) products that may be used to consume cannabis.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund decreased 17.03%, while the Underlying Index decreased 24.35%. The Fund had a net asset value of $15.31 per share on November 30, 2019 and ended the reporting period with a net asset value of $12.05 per share on November 30, 2020.
During the reporting period, the highest returns came from Aphria Inc. and Canopy Growth Corporation, which returned 77.78% and 56.07%, respectively. The worst performers were Sundial Growers Inc. and Medipharm Labs Corp, which returned -88.43% and -84.42%, respectively.
In the U.S., currently 35 states have legalized marijuana for medical use, 15 of which allow adults to legally use the drug for recreational use. In the first quarter of 2020, the lockdown as a result of the COVID-19 pandemic saw consumers stocking up on medicinal and recreational cannabis, as many cannabis dispensaries received “essential business” status. This led to strong sales figures for the cannabis companies despite the slowdown. However, the cannabis stocks broadly suffered during the quarter amid heightened market volatility. They bounced back in the second quarter of 2020 as the market rebounded from its lows. Later during the reporting period, cannabis stocks gained on hopes that President-elect Joe Biden would provide a path for the federal decriminalization of cannabis. In addition, four states passed ballot measures to legalize adult recreational use of cannabis. However, during the reporting period, the Fund suffered due to weaker than expected earnings and reduced investor confidence in the emerging industry. During the reporting period, the Fund has had an average approximate exposure of 89% to Pharmaceuticals, 4% to Biotechnology, and 2% to Health care facilities.
26
Management Discussion of Fund Performance (unaudited) |
Global X Cannabis ETF |
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Cannabis ETF | -17.03% | -17.27% | -41.90% | -42.91% |
Cannabis Index | -24.35% | -24.35% | -46.53% | -46.53% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 16.22% | 16.22% |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on September 17, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not
27
Management Discussion of Fund Performance (unaudited) |
Global X Cannabis ETF |
reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.
28
Management Discussion of Fund Performance (unaudited) |
Global X Genomics & Biotechnology ETF |
Global X Genomics & Biotechnology ETF
The Global X Genomics & Biotechnology ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Genomics Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index tracks the companies that generate revenues from Genomics related business. Genomics business operations include the following: (i) gene editing (ii) genomic sequencing (iii) development and testing of genetic medicine/therapies, (iv) computational genomics and genetic diagnostics, and/or (v) biotechnology.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 34.59%, while the Underlying Index increased 35.34%. The Fund had a net asset value of $15.61 per share on November 30, 2019 and ended the reporting period with a net asset value of $21.01 per share on November 30, 2020.
During the reporting period, the highest returns came from Pacific Biosciences of California, Inc. and Ultragenyx Pharmaceutical, Inc. which returned 207.59% and 198.97%, respectively. The worst performers were Wave Life Sciences Ltd. and ProQR Therapeutic N.V., which returned -73.39% and -52.34%, respectively.
Genomic sub-sciences like genomic sequencing and computational genomics gives insight into genomes’ functionality, while genetic therapies and gene editing seek to use that information for medical or other purposes. As the COVID-19 pandemic spread, attention was immediately cast upon the ability to test for the virus as well as develop treatments and vaccines to limit its impact. Genomics techniques enabled fast action in understanding the genetic composition of the virus, to test for its presence in human biological samples, and became critical in the development of revolutionary vaccines. Beyond the pandemic, use cases and markets for genetic medicines could continue to expand and evolve as the world learns more about the human genome, and ways to interact with and even manipulate it. The Fund benefitted during the reporting period from advancements in genomics, which could offer the first solid opportunity to cure illness that was previously deemed fatal or without recourse. Greater scale, more computing power, and ever-growing data sets have made genomics-based analysis and treatment more affordable for the masses.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Genomics & Biotechnology ETF | 34.59% | 34.29% | 21.25% | 22.68% |
Solactive Genomics Index | 35.34% | 35.34% | 21.92% | 21.92% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 13.20% | 13.20% |
29
Management Discussion of Fund Performance (unaudited) |
Global X Genomics & Biotechnology ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on April 5, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
30
Management Discussion of Fund Performance (unaudited) |
Global X China Biotech Innovation ETF |
Global X China Biotech Innovation ETF
The Global X China Biotech Innovation ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Biotech Innovation Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies that are directly involved in China’s biotechnology industry. In constructing the Underlying Index, Solactive AG, the provider of the Underlying Index utilizes FactSet Industry classifications to identify companies that are directly involved in the biotechnology industry. Only those securities classified in the biotechnology industry according to FactSet as of each rebalance date are eligible for inclusion in the Underlying Index. The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and re-weighted semi-annually.
For the period from the Fund’s commencement date on September 22, 2020 through November 30, 2020 (the “reporting period”), the Fund decreased 1.39%, while the Underlying Index decreased 1.24%. The Fund had a net asset value of $15.09 per share on September 22, 2020 and ended the reporting period with a net asset value of $14.88 per share on November 30, 2020.
During the reporting period, the highest returns came from Zai Lab Ltd. and Wuxi Biologics (Cayman) Inc., which returned 45.71% and 22.74%, respectively. The worst performers were Berry Genomics Co. Ltd. and Viva Biotech Holdings, which returned -28.58% and -24.55%, respectively.
The biotech industry – a segment of the health-care sector – encompasses companies undertaking research and development of innovative pharmaceuticals, devices, and processes to treat various ailments and illnesses. Biotech is often on the cutting edge of the health-care sector, but its disruptive impact can reach other sectors as well, given further applications of biological organisms, processes, and technologies, such as in agriculture. Recognizing the power and potential of biotechnology, Chinese authorities, businesses, and universities are increasingly focusing on developing the country’s domestic biotech industry. The rise of the broader health-care sector has propelled China’s biotech industry into a fast-growing industry that could eventually turn into a global bellwether. Biotech companies stand at the critical intersection of changing demographics and consumer behavior as well as rapid advancements in technology, which make them key beneficiaries in the government’s “Made in China 2025” strategy. Aided by friendly regulatory policies and growing access to capital, the gap between Chinese biotech firms and their U.S. counterparts is converging with China inching toward global leadership.
31
Management Discussion of Fund Performance (unaudited) |
Global X China Biotech Innovation ETF |
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X China Biotech Innovation ETF | -1.39% | -1.19% |
Solactive China Biotech Innovation Index | -1.24% | -1.24% |
MSCI Emerging Markets Index (Net) | 11.46% | 11.46% |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on September 22, 2020.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
32
Management Discussion of Fund Performance (unaudited) |
Global X China Biotech Innovation ETF |
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.
33
Management Discussion of Fund Performance (unaudited) |
Global X Telemedicine & Digital Health ETF |
Global X Telemedicine & Digital Health ETF
The Global X Telemedicine & Digital Health ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Telemedicine & Digital Health Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies that are positioned to benefit from further advances in the field of telemedicine and digital health, as well as applications thereof (collectively, “Telemedicine & Digital Health Companies”), as defined by Solactive AG, the provider of the Underlying Index (the “Index Provider”). In order to be eligible for inclusion in the Underlying Index, a company is considered by the Index Provider to be a Telemedicine & Digital Health Company if it derives at least 50% of its revenue, operating income, or assets from telemedicine and/or digital health. Telemedicine & Digital Health Companies include those involved in the following business activities: (i) telemedicine, (ii) healthcare analytics, (iii) connected healthcare devices, and/or (iv) administrative digitization.
For the period from the Fund’s commencement date on July 29, 2020 through November 30, 2020 (the “reporting period”), the Fund increased 20.88%, while the Underlying Index increased 21.09%. The Fund had a net asset value of $15.23 per share on July 29, 2020 and ended the reporting period with a net asset value of $18.41per share on November 30, 2020.
During the reporting period, the highest returns came from iRhythm Technologies, Inc. and M3, Inc., which returned 94.19% and 89.43%, respectively. The worst performers were Tabula Rasa Healthcare, Inc. and DexCom, Inc., which returned -38.32% and -25.15%, respectively.
Telemedicine allows health-care professionals to evaluate, diagnose, and treat patients remotely using telecommunications technology, saving time and mitigating risks for both the physician and the patient. Telemedicine and digital health have gained traction throughout the ongoing COVID-19 pandemic. With large swaths of the global population under stay-at-home orders, technology-based tools that facilitate remote communication with doctors and enable patient monitoring have become critical. Structural trends, like health-care inequality, human longevity, systemic inefficiency, and improving connectivity, served as kindling for the seemingly inevitable, albeit gradual, adoption of technology in the health care sector. Telemedicine and digital health can widen the reach of health care by making it more geographically and financially accessible and presenting opportunities for large-scale adoption. Additional opportunities lie in the technologies’ potential to revolutionize treatment options, improve patient outcomes, and streamline health-care systems.
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X Telemedicine & Digital Health ETF | 20.88% | 21.01% |
Solactive Telemedicine & Digital Health Index | 21.09% | 21.09% |
MSCI ACWI Index (Net) | 11.84% | 11.84% |
34
Management Discussion of Fund Performance (unaudited) |
Global X Telemedicine & Digital Health ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on July 29, 2020.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
35
Management Discussion of Fund Performance (unaudited) |
Global X Longevity Thematic ETF |
Global X Longevity Thematic ETF
The Global X Longevity Thematic ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Longevity Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed markets that facilitate the demographic trend of longer average life spans and the aging of the global population, including but not limited to companies involved in biotechnology, medical devices, pharmaceuticals, senior living facilities and specialized health care services, as defined by Indxx, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 14.79%, while the Underlying Index increased 15.04%. The Fund had a net asset value of $23.55 per share on November 30, 2019 and ended the reporting period with a net asset value of $26.82 per share on November 30, 2020.
During the reporting period, the highest returns came from Celltrion, Inc. and Pennant Group Inc., which returned 119.00% and 116.44%, respectively. The worst performers were Amarin Corporation Plc and Spectrum Pharmaceuticals, Inc., which returned -76.68% and -69.49%, respectively.
Around the world, people are living longer. At the same time, fertility rates have declined in many advanced and developing economies as families have fewer children. Combined, these trends create a powerful demographic trend where the population is rapidly aging: the cohort of senior-aged individuals is growing both in total size and as a percentage of the overall population. Senior citizens have distinct needs that vary from those of other age-demographics, including depending more heavily on pharmaceuticals, biomedical devices, senior housing and care. The Fund’s exposures to these segments tilts heavily towards the Health Care sector with some Real Estate exposure, many of which were impacted by the COVID-19 pandemic as the world’s health care systems sought contain and treat the virus. During the reporting period, the Fund saw an average approximate allocation of 35% to Healthcare Equipment, 31% to Biotechnology, and 15% to Pharmaceuticals. During the reporting period, the Fund was predominately exposed to the United States (62%), followed by Japan (8%) and Denmark (7%).
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Longevity Thematic ETF | 14.79% | 14.05% | 12.17% | 11.94% | 14.10% | 14.65% |
Indxx Global Longevity Thematic Index | 15.04% | 15.04% | 12.40% | 12.40% | 14.41% | 14.41% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 8.99% | 8.99% | 12.44% | 12.44% |
36
Management Discussion of Fund Performance (unaudited) |
Global X Longevity Thematic ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on May 9, 2016.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
37
Management Discussion of Fund Performance (unaudited) |
Global X Health & Wellness Thematic ETF |
Global X Health & Wellness Thematic ETF
The Global X Health & Wellness Thematic ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global Health & Wellness Thematic Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to provide exposure to exchange-listed companies in developed markets that provide products and services that facilitate physical wellness through active and healthy lifestyles, including but not limited to companies involved in fitness equipment, fitness technology, athletic apparel, nutritional supplements, and organic/natural food offerings, as defined by Indxx, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 14.34%, while the Underlying Index increased 14.82%. The Fund had a net asset value of $21.17 per share on November 30, 2019 and ended the reporting period with a net asset value of $24.11 per share on November 30, 2020.
During the reporting period, the highest returns came from Peloton Interactive, Inc. and Medifast, Inc., which returned 247.42% and 142.34%, respectively. The worst performers were Tivity Health, Inc. and Tosho Co., Ltd., which returned -70.24% and -62.24%, respectively.
Population and average life expectancies are rising globally amid a backdrop of rapidly increasing health care costs. These trends have contributed to an increased desire among consumers to proactively lead healthy lifestyles. Rather than wait to treat symptoms as they appear, many are seeking to optimize their health and improve their quality of life by enhancing their physical and mental well-being. During the reporting period, the COVID-19 pandemic put in focus the limitations of the world’s health care systems as well as highlighted the importance of an individual’s commitment to their own health. Further, as gyms and fitness centers faced temporary closures, many consumers turned their homes into areas that allowed them to work out and create spaces for health and wellness. Additionally, the work-from-home environment accelerated a trend towards athleisure, as many working professionals sought more comfortable clothing than traditional business attire. During the reporting period, the Fund had an average allocation of approximately 38% in the Apparel, Accessories and Luxury Goods sub-industry, 14% in the Packaged Foods and Meats sub-industry, and 8% in the Leisure products sub-industry. Geographically, during the reporting period, the Fund’s exposures came mainly from the United States at 41% and Japan at 15%.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Health & Wellness Thematic ETF | 14.34% | 14.25% | 14.46% | 14.49% | 11.89% | 12.16% |
Indxx Global Health & Wellness Thematic Index | 14.82% | 14.82% | 14.91% | 14.91% | 12.37% | 12.37% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 8.99% | 8.99% | 12.44% | 12.44% |
38
Management Discussion of Fund Performance (unaudited) |
Global X Health & Wellness Thematic ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on May 9, 2016.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
39
Management Discussion of Fund Performance (unaudited) |
Global X CleanTech ETF |
Global X CleanTech ETF
The Global X CleanTech ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global CleanTech Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to track the performance of companies that develop technology or equipment that enables the production of energy from renewable sources, efficient utilization of energy and reduction of negative environmental influences.
For the period from the Fund’s commencement date on October 27, 2020 through November 30, 2020 (the “reporting period”), the Fund increased 26.21%, while the Underlying Index increased 26.26%. The Fund had a net asset value of $15.07 per share on October 27, 2020 and ended the reporting period with a net asset value of $19.02 per share on November 30, 2020.
During the reporting period, the highest returns came from FuelCell Energy, Inc. and GCL-Poly Energy Holdings Limited, which returned 360.50% and 113.44%, respectively. The worst performers were United Renewable Energy Co., Ltd. and Flat Glass Group Co., Ltd., which returned -7.76% and -2.95%, respectively.
The need to mitigate the negative environmental impacts of human activity is more immediate than ever. Clean technologies like those involved in renewable energy production, energy storage, smart grid implementation, energy efficiency, and pollution-reduction are essential to tackling negative environmental impacts like climate change.
As the economic and societal implications of these impacts continue to mount, governments and companies are ramping up carbon neutrality efforts by setting aggressive emissions targets and committing to CleanTech adoption. The European Union (EU), China, and Japan are aggressively committing to carbon neutrality in the coming decades and so are leading companies like Amazon, Apple and Walmart. Domestically, expectations for CleanTech’s growth accelerated further with the election of Joe Biden. His administration will seek to pass a broad infrastructure bill with billions earmarked for cleantech investments to reduce the country’s carbon footprint. During the reporting period the Fund had approximate exposure of 49% to Industrials, 36% to Information Technology, and 11% to Materials.
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X CleanTech ETF | 26.21% | 26.08% |
Indxx Global CleanTech Index | 26.26% | 26.26% |
MSCI ACWI Index (Net) | 8.31% | 8.31% |
40
Management Discussion of Fund Performance (unaudited) |
Global X CleanTech ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on October 27, 2020.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
41
Management Discussion of Fund Performance (unaudited) |
Global X U.S. Infrastructure Development ETF |
Global X U.S. Infrastructure Development ETF
The Global X U.S. Infrastructure Development ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx U.S. Infrastructure Development Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the performance of U.S. listed companies that provide exposure to domestic infrastructure development, including companies involved in construction and engineering; production of infrastructure raw materials, composites and products; industrial transportation; and producers/distributors of heavy construction equipment, defined by Indxx, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 16.77%, while the Underlying Index increased 17.25%. The Fund had a net asset value of $17.43 per share on November 30, 2019 and ended the reporting period with a net asset value of $20.24 per share on November 30, 2020.
During the reporting period, the highest returns came from Arconic Corp. and Calix, Inc., which returned 297.54% and 205.55%, respectively. The worst performers were MRC Global Inc. and Matrix Service Company which returned -56.67% and -54.25%, respectively.
The Fund invests in companies that are expected to benefit from increased spending on infrastructure activities in the United States. These activities could include the development of new public or private infrastructure, as well as repairs to existing infrastructure. The Fund suffered in the initial period of the year, as the COVID-19 pandemic created a risk-off environment for equities and many infrastructure projects stalled due to stay-at-home orders. The Fund rebounded in the later part of the reporting period as markets recovered and investors became increasingly bullish on infrastructure spending as a key component of fiscal stimulus. President-elect Biden has pledged to support $2 trillion in infrastructure spending to rebuild and modernize the nation’s infrastructure assets, creating further bullishness in the space. During the reporting period, the Fund saw an average approximate allocation of 70% to Industrials, 23% to Materials, and 4% to Information Technology.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||||
One Year Return | Three Year Return | Annualized Inception to Date* | ||||
Net Asset Value | Market Price | Net Asset Value | Net Asset Value | Market Price | Net Asset Value | |
Global X U.S. Infrastructure Development ETF | 16.77% | 16.93% | 8.53% | 8.53% | 8.99% | 9.05% |
Indxx U.S. Infrastructure Development Index | 17.25% | 17.25% | 9.02% | 9.02% | 9.48% | 9.48% |
S&P 500® Index | 17.46% | 17.46% | 13.17% | 13.17% | 14.14% | 14.14% |
42
Management Discussion of Fund Performance (unaudited) |
Global X U.S. Infrastructure Development ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on March 6, 2017.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
43
Management Discussion of Fund Performance (unaudited) |
Global X Thematic Growth ETF |
Global X Thematic Growth ETF
The Global X Thematic Growth ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Thematic Growth Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index seeks to provide broad exposure to thematic growth strategies using a portfolio of exchange-traded funds, each of which is issued by Global X Funds® (the “Underlying ETFs”). The share prices of the Underlying ETFs are expected to track the performance of equities in developed or emerging markets that provide exposure to structurally disruptive macro-trends.
For the 12-month period ended November 30, 2020 (the “reporting period”), the Fund increased 60.81%, while the Underlying Index increased 60.74%. The Fund had a net asset value of $26.50 per share on November 30, 2019 and ended the reporting period with a net asset value of $42.45 per share on November 30, 2020.
During the reporting period, the highest returns came from Global X Lithium & Battery Tech ETF and Global X Social Media ETF which returned 108.62% and 71.27%, respectively. The Fund’s worst performers still had positive performance, with the Global X Longevity Thematic ETF and Global X Cloud Computing ETF returning 9.12% and 6.07%, respectively.
The Fund seeks to gain exposure to multiple disruptive trends by selecting those with the highest revenue growth within various sectors of the economy. During the reporting period, the COVID-19 pandemic raged, causing the adoption of numerous themes to accelerate. The shift to the stay-at-home economy benefited certain themes like Social Media and E-commerce, as society shifted to digital communications and online shopping. Other themes like FinTech, Robotics & Artificial Intelligence, and the Internet of Things also benefitted in this environment as companies, organizations, and governments looked to increasingly implement digital technologies to avoid person-to-person contact. During the reporting period, the Fund had an average approximate allocation of 19% to Financials, 18% to Communication Services, 17% to Health Care, 14% to Consumer Discretionary, 13% to Information Technology, 10% to Industrials, and 10% to Energy and Transportation sector.
AVERAGE TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2020 | ||||
One Year Return | Annualized Inception to Date* | |||
Net Asset Value | Market Price | Net Asset Value | Market Price | |
Global X Thematic Growth ETF | 60.81% | 60.60% | 61.08% | 62.57% |
Solactive Thematic Growth Index | 60.74% | 60.74% | 60.91% | 60.91% |
MSCI ACWI Index (Net) | 15.01% | 15.01% | 16.59% | 16.59% |
44
Management Discussion of Fund Performance (unaudited) |
Global X Thematic Growth ETF |
Growth of a 10,000 Investment
(at Net Asset Value)
* The Fund commenced operations on October 25, 2019.
The MSCI ACWI (Net) (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page and above.
45
Schedule of Investments | November 30, 2020 | |
Global X Robotics & Artificial Intelligence ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
CANADA— 1.5% | ||||||||
Industrials — 1.5% | ||||||||
ATS Automation Tooling Systems * | 1,913,953 | $ | 32,034,602 | |||||
FINLAND— 2.1% | ||||||||
Industrials — 2.1% | ||||||||
Cargotec, Cl B | 1,146,054 | 45,925,511 | ||||||
JAPAN— 44.7% | ||||||||
Communication Services — 0.4% | ||||||||
RPA Holdings (A)* | 1,180,490 | 7,618,986 | ||||||
Health Care — 1.1% | ||||||||
CYBERDYNE (A)* | 2,800,084 | 23,818,504 | ||||||
Industrials — 28.1% | ||||||||
Daifuku | 854,637 | 99,171,496 | ||||||
FANUC | 711,826 | 173,152,401 | ||||||
Hirata | 218,389 | 17,466,931 | ||||||
Idec | 674,760 | 11,938,933 | ||||||
Mitsubishi Electric | 5,553,937 | 81,677,894 | ||||||
Nachi-Fujikoshi | 510,355 | 21,094,510 | ||||||
Shibaura Machine | 614,792 | 13,566,400 | ||||||
SMC | 139,379 | 88,646,514 |
46
Schedule of Investments | November 30, 2020 | |
Global X Robotics & Artificial Intelligence ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Yaskawa Electric | 2,086,939 | $ | 100,669,415 | |||||
607,384,494 | ||||||||
Information Technology — 15.1% | ||||||||
AI inside (A)* | 76,457 | 50,005,921 | ||||||
Autonomous Control Systems Laboratory (A)* | 210,550 | 5,692,069 | ||||||
Keyence | 309,636 | 158,240,254 | ||||||
Omron | 1,092,334 | 98,784,077 | ||||||
PKSHA Technology (A)* | 627,642 | 13,849,957 | ||||||
326,572,278 | ||||||||
TOTAL JAPAN | 965,394,262 | |||||||
SWITZERLAND— 11.5% | ||||||||
Health Care — 4.2% | ||||||||
Tecan Group | 206,245 | 90,717,728 | ||||||
Industrials — 7.3% | ||||||||
ABB | 5,909,659 | 156,472,469 | ||||||
TOTAL SWITZERLAND | 247,190,197 | |||||||
UNITED KINGDOM— 5.2% | ||||||||
Information Technology — 5.2% | ||||||||
Renishaw | 1,491,055 | 111,474,794 | ||||||
UNITED STATES— 34.8% | ||||||||
Consumer Discretionary — 2.1% | ||||||||
iRobot (A)* | 575,574 | 45,142,269 | ||||||
Energy — 0.5% | ||||||||
Helix Energy Solutions Group * | 3,104,346 | 11,672,341 | ||||||
Health Care — 7.4% | ||||||||
Intuitive Surgical * | �� | 218,866 | 158,907,659 | |||||
Industrials — 6.9% | ||||||||
AeroVironment (A)* | 495,067 | 42,273,771 | ||||||
John Bean Technologies | 655,113 | 72,429,293 | ||||||
Maxar Technologies (A) | 1,247,984 | 34,736,309 | ||||||
149,439,373 | ||||||||
Information Technology — 17.9% | ||||||||
Brooks Automation | 1,529,368 | 111,628,570 |
47
Schedule of Investments | November 30, 2020 | |
Global X Robotics & Artificial Intelligence ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Cerence * | 758,373 | $ | 68,822,349 | |||||
FARO Technologies * | 367,774 | 24,317,217 | ||||||
NVIDIA | 338,435 | 181,421,466 | ||||||
386,189,602 | ||||||||
TOTAL UNITED STATES | 751,351,244 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $1,713,570,039) | 2,153,370,610 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.3% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $5,544,968) | 5,544,968 | 5,544,968 | ||||||
REPURCHASE AGREEMENT(B) — 1.8% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $39,849,849 (collateralized by U.S. Treasury Obligations, ranging in par value $138,515 - $5,691,320, 2.000%, 07/31/2022, with a total market value of $40,644,470) | ||||||||
(Cost $39,849,772) | $ | 39,849,772 | 39,849,772 | |||||
TOTAL INVESTMENTS — 101.9% | ||||||||
(Cost $1,758,964,779) | $ | 2,198,765,350 |
Percentages are based on Net Assets of $2,158,174,587.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $43,274,134. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $45,394,740. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
48
Schedule of Investments | November 30, 2020 | |
Global X Robotics & Artificial Intelligence ETF |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 2,153,370,610 | $ | — | $ | — | $ | 2,153,370,610 | ||||||||
Short-Term Investment | 5,544,968 | — | — | 5,544,968 | ||||||||||||
Repurchase Agreement | — | 39,849,772 | — | 39,849,772 | ||||||||||||
Total Investments in Securities | $ | 2,158,915,578 | $ | 39,849,772 | $ | — | $ | 2,198,765,350 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
49
Schedule of Investments | November 30, 2020 | |
Global X Internet of Things ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
AUSTRIA— 5.6% | ||||||||
Information Technology — 5.6% | ||||||||
AMS | 538,979 | $ | 13,812,342 | |||||
S&T (A) | 128,671 | 2,952,116 | ||||||
TOTAL AUSTRIA | 16,764,458 | |||||||
CANADA— 0.4% | ||||||||
Information Technology — 0.4% | ||||||||
Sierra Wireless * | 78,521 | 1,146,407 | ||||||
CHINA— 3.4% | ||||||||
Information Technology — 3.4% | ||||||||
Xiaomi, Cl B * | 2,971,386 | 10,156,947 | ||||||
FRANCE— 3.4% | ||||||||
Industrials — 3.4% | ||||||||
Legrand | 46,745 | 3,968,947 | ||||||
Schneider Electric | 44,427 | 6,199,203 | ||||||
TOTAL FRANCE | 10,168,150 | |||||||
ITALY— 0.6% | ||||||||
Information Technology — 0.6% | ||||||||
Datalogic | 117,181 | 1,874,100 |
50
Schedule of Investments | November 30, 2020 | |
Global X Internet of Things ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
JAPAN— 1.4% | ||||||||
Information Technology — 1.4% | ||||||||
Nippon Ceramic | 52,870 | $ | 1,453,640 | |||||
Renesas Electronics * | 302,500 | 2,692,112 | ||||||
TOTAL JAPAN | 4,145,752 | |||||||
NETHERLANDS— 2.2% | ||||||||
Information Technology — 2.2% | ||||||||
NXP Semiconductors | 40,915 | 6,481,754 | ||||||
NORWAY— 1.7% | ||||||||
Information Technology — 1.7% | ||||||||
Nordic Semiconductor * | 351,920 | 5,070,229 | ||||||
SWEDEN— 0.2% | ||||||||
Information Technology — 0.2% | ||||||||
Fingerprint Cards, Cl B (A) | 387,066 | 685,647 | ||||||
SWITZERLAND— 10.6% | ||||||||
Industrials — 2.0% | ||||||||
ABB | 219,414 | 5,809,515 | ||||||
Information Technology — 8.6% | ||||||||
Landis+Gyr Group | 57,141 | 4,127,937 | ||||||
STMicroelectronics | 542,251 | 21,288,401 | ||||||
25,416,338 | ||||||||
TOTAL SWITZERLAND | 31,225,853 | |||||||
TAIWAN— 8.6% | ||||||||
Information Technology — 8.6% | ||||||||
Advantech | 1,513,121 | 16,297,803 | ||||||
eMemory Technology | 147,662 | 2,968,523 | ||||||
MediaTek | 247,800 | 6,120,558 | ||||||
TOTAL TAIWAN | 25,386,884 | |||||||
UNITED KINGDOM— 0.3% | ||||||||
Information Technology — 0.3% | ||||||||
Spirent Communications | 239,933 | 828,029 |
51
Schedule of Investments | November 30, 2020 | |
Global X Internet of Things ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
UNITED STATES— 61.4% | ||||||||
Consumer Discretionary — 8.4% | ||||||||
Garmin | 148,035 | $ | 17,284,567 | |||||
Vivint Smart Home * | 347,939 | 7,665,096 | ||||||
24,949,663 | ||||||||
Health Care — 3.8% | ||||||||
DexCom * | 35,520 | 11,355,034 | ||||||
Industrials — 17.8% | ||||||||
ADT | 1,494,121 | 11,609,320 | ||||||
Emerson Electric | 77,925 | 5,986,199 | ||||||
Honeywell International | 33,039 | 6,737,313 | ||||||
Johnson Controls International | 137,056 | 6,310,058 | ||||||
Resideo Technologies * | 61,002 | 1,127,927 | ||||||
Rockwell Automation | 22,730 | 5,808,879 | ||||||
Sensata Technologies Holding * | 309,023 | 15,089,592 | ||||||
52,669,288 | ||||||||
Information Technology — 31.4% | ||||||||
Alarm.com Holdings * | 95,369 | 7,239,461 | ||||||
Ambarella * | 67,118 | 5,243,929 | ||||||
Analog Devices | 39,748 | 5,528,152 | ||||||
Badger Meter | 56,909 | 4,691,578 | ||||||
Belden | 86,979 | 3,346,952 | ||||||
Cisco Systems | 106,027 | 4,561,281 | ||||||
Digi International * | 66,126 | 1,134,722 | ||||||
Fitbit, Cl A * | 464,388 | 3,334,306 | ||||||
Impinj * | 44,179 | 1,846,240 | ||||||
InterDigital | 60,460 | 3,622,159 | ||||||
International Business Machines | 39,551 | 4,885,339 | ||||||
Itron * | 78,617 | 6,180,082 | ||||||
NETGEAR * | 57,610 | 1,832,574 | ||||||
PTC * | 20,001 | 2,157,108 | ||||||
QUALCOMM | 54,110 | 7,963,369 | ||||||
Rambus * | 221,374 | 3,479,999 |
52
Schedule of Investments | November 30, 2020 | |
Global X Internet of Things ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Silicon Laboratories * | 85,465 | $ | 10,017,353 | |||||
Skyworks Solutions | 113,141 | 15,972,115 | ||||||
93,036,719 | ||||||||
TOTAL UNITED STATES | 182,010,704 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $234,364,827) | 295,944,914 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.1% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $265,330) | 265,330 | 265,330 | ||||||
REPURCHASE AGREEMENT(B) — 0.6% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $1,906,841 (collateralized by U.S. Treasury Obligations, ranging in par value $6,628 - $272,333, 2.000%, 07/31/2022, with a total market value of $1,944,862) | ||||||||
(Cost $1,906,837) | $ | 1,906,837 | 1,906,837 | |||||
TOTAL INVESTMENTS — 100.5% | ||||||||
(Cost $236,536,994) | $ | 298,117,081 |
Percentages are based on Net Assets of $296,507,952.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $2,007,461. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $2,172,167. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
53
Schedule of Investments | November 30, 2020 | |
Global X Internet of Things ETF |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 295,944,914 | $ | — | $ | — | $ | 295,944,914 | ||||||||
Short-Term Investment | 265,330 | — | — | 265,330 | ||||||||||||
Repurchase Agreement | — | 1,906,837 | — | 1,906,837 | ||||||||||||
Total Investments in Securities | $ | 296,210,244 | $ | 1,906,837 | $ | — | $ | 298,117,081 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
54
Schedule of Investments | November 30, 2020 | |
Global X FinTech ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
AUSTRALIA— 8.1% | ||||||||
Financials — 1.3% | ||||||||
HUB24 (A) | 267,117 | $ | 4,235,672 | |||||
Zip (A)* | 1,621,532 | 7,240,636 | ||||||
11,476,308 | ||||||||
Information Technology — 6.8% | ||||||||
Afterpay * | 761,258 | 53,294,174 | ||||||
IRESS | 788,855 | 6,050,990 | ||||||
59,345,164 | ||||||||
TOTAL AUSTRALIA | 70,821,472 | |||||||
BRAZIL— 10.3% | ||||||||
Information Technology — 10.3% | ||||||||
Pagseguro Digital, Cl A * | 750,068 | 35,523,220 | ||||||
StoneCo, Cl A * | 745,699 | 54,600,081 | ||||||
TOTAL BRAZIL | 90,123,301 | |||||||
DENMARK— 2.5% | ||||||||
Information Technology — 2.5% | ||||||||
SimCorp | 168,590 | 22,189,668 | ||||||
GERMANY— 1.6% | ||||||||
Financials — 1.6% | ||||||||
Hypoport * | 26,996 | 14,241,054 |
55
Schedule of Investments | November 30, 2020 | |
Global X FinTech ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
ISRAEL— 0.7% | ||||||||
Information Technology — 0.7% | ||||||||
Sapiens International | 208,420 | $ | 6,221,337 | |||||
ITALY— 3.9% | ||||||||
Information Technology — 3.9% | ||||||||
Nexi * | 1,790,297 | 33,836,566 | ||||||
JAPAN— 0.6% | ||||||||
Industrials — 0.6% | ||||||||
Makuake (A)* | 47,720 | 4,905,859 | ||||||
NETHERLANDS— 6.1% | ||||||||
Information Technology — 6.1% | ||||||||
Adyen * | 27,973 | 53,605,046 | ||||||
NEW ZEALAND— 5.6% | ||||||||
Information Technology — 5.6% | ||||||||
Xero (A)* | 498,470 | 48,666,875 | ||||||
SWITZERLAND— 3.2% | ||||||||
Financials — 0.3% | ||||||||
Leonteq | 78,048 | 2,870,870 | ||||||
Information Technology — 2.9% | ||||||||
Temenos | 202,291 | 25,652,277 | ||||||
TOTAL SWITZERLAND | 28,523,147 | |||||||
UNITED STATES— 57.3% | ||||||||
Financials — 3.6% | ||||||||
Blucora * | 197,115 | 2,570,380 | ||||||
LendingClub * | 401,262 | 3,202,071 | ||||||
LendingTree * | 54,349 | 13,890,517 | ||||||
Virtu Financial, Cl A (A) | 500,939 | 11,416,399 | ||||||
31,079,367 | ||||||||
Health Care — 2.4% | ||||||||
HealthEquity (A)* | 297,118 | 21,300,389 | ||||||
Information Technology — 51.3% | ||||||||
Bill.com Holdings * | 322,931 | 39,626,863 |
56
Schedule of Investments | November 30, 2020 | |
Global X FinTech ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Black Knight * | 418,079 | $ | 38,304,398 | |||||
Bottomline Technologies * | 182,526 | 8,330,487 | ||||||
Envestnet * | 222,665 | 17,871,093 | ||||||
Fidelity National Information Services | 290,792 | 43,156,441 | ||||||
Fiserv * | 398,928 | 45,948,527 | ||||||
GreenSky, Cl A * | 392,771 | 1,673,204 | ||||||
Guidewire Software * | 279,996 | 34,293,910 | ||||||
Intuit | 137,420 | 48,374,588 | ||||||
Mitek Systems * | 205,905 | 2,425,561 | ||||||
PayPal Holdings * | 237,361 | 50,823,737 | ||||||
Square, Cl A * | 388,110 | 81,875,686 | ||||||
SS&C Technologies Holdings | 514,801 | 35,464,641 | ||||||
448,169,136 | ||||||||
TOTAL UNITED STATES | 500,548,892 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $589,803,068) | 873,683,217 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.6% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $5,304,606) | 5,304,606 | 5,304,606 |
57
Schedule of Investments | November 30, 2020 | |
Global X FinTech ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(B) — 4.4% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $38,122,445 (collateralized by U.S. Treasury Obligations, ranging in par value $132,510 - $5,444,614, 2.000%, 07/31/2022, with a total market value of $38,882,622) | ||||||||
(Cost $38,122,371) | $ | 38,122,371 | $ | 38,122,371 | ||||
TOTAL INVESTMENTS — 104.9% | ||||||||
(Cost $633,230,045) | $ | 917,110,194 |
Percentages are based on Net Assets of $874,174,549.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $41,388,438. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $43,426,977. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 873,683,217 | $ | — | $ | — | $ | 873,683,217 | ||||||||
Short-Term Investment | 5,304,606 | — | — | 5,304,606 | ||||||||||||
Repurchase Agreement | — | 38,122,371 | — | 38,122,371 | ||||||||||||
Total Investments in Securities | $ | 878,987,823 | $ | 38,122,371 | $ | — | $ | 917,110,194 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
58
Schedule of Investments | November 30, 2020 | |
Global X Video Games & Esports ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
CHINA— 17.7% | ||||||||
Communication Services — 17.7% | ||||||||
Bilibili ADR * | 424,556 | $ | 26,687,590 | |||||
DouYu International Holdings ADR * | 962,482 | 12,762,511 | ||||||
HUYA ADR (A)* | 190,366 | 3,938,673 | ||||||
JOYY ADR | 207,058 | 18,442,656 | ||||||
NetEase ADR | 259,350 | 23,437,460 | ||||||
TOTAL CHINA | 85,268,890 | |||||||
FRANCE— 4.5% | ||||||||
Communication Services — 4.5% | ||||||||
Ubisoft Entertainment * | 228,961 | 21,850,413 | ||||||
IRELAND— 1.3% | ||||||||
Information Technology — 1.3% | ||||||||
Keywords Studios | 202,450 | 6,205,613 | ||||||
JAPAN— 26.1% | ||||||||
Communication Services — 26.1% | ||||||||
Akatsuki | 33,566 | 1,443,716 | ||||||
Capcom | 402,130 | 22,675,851 | ||||||
DeNA | 282,280 | 4,953,943 | ||||||
Gumi | 133,918 | 1,114,753 | ||||||
GungHo Online Entertainment | 233,822 | 5,948,979 | ||||||
KLab | 177,780 | 1,735,603 |
59
Schedule of Investments | November 30, 2020 | |
Global X Video Games & Esports ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Communication Services — continued | ||||||||
Konami Holdings | 315,513 | $ | 16,551,006 | |||||
Nexon | 800,690 | 24,226,104 | ||||||
Nintendo | 53,395 | 30,344,643 | ||||||
Square Enix Holdings | 272,790 | 16,768,966 | ||||||
TOTAL JAPAN | 125,763,564 | |||||||
SINGAPORE— 0.6% | ||||||||
Communication Services — 0.6% | ||||||||
IGG | 2,888,400 | 2,887,469 | ||||||
SOUTH KOREA— 9.5% | ||||||||
Communication Services — 9.5% | ||||||||
Com2uSCorp | 23,999 | 2,906,209 | ||||||
Gravity ADR | 22,376 | 3,891,186 | ||||||
JoyCity * | 75,039 | 1,356,269 | ||||||
NCSoft | 24,360 | 17,831,639 | ||||||
Neowiz * | 53,338 | 1,115,878 | ||||||
Netmarble | 83,056 | 9,382,314 | ||||||
Nexon GT * | 111,837 | 1,329,047 | ||||||
Pearl Abyss * | 24,880 | 4,656,498 | ||||||
Webzen * | 62,008 | 1,905,266 | ||||||
Wemade | 36,773 | 1,362,517 | ||||||
TOTAL SOUTH KOREA | 45,736,823 | |||||||
SWEDEN— 6.8% | ||||||||
Communication Services — 6.8% | ||||||||
Embracer Group, Cl B * | 979,599 | 19,947,740 | ||||||
Stillfront Group * | 110,103 | 12,710,507 | ||||||
TOTAL SWEDEN | 32,658,247 | |||||||
TAIWAN— 8.5% | ||||||||
Communication Services — 8.5% | ||||||||
Chinese Gamer International * | 395,000 | 812,104 | ||||||
Gamania Digital Entertainment | 471,600 | 1,093,685 | ||||||
Sea ADR * | 217,534 | 39,236,609 |
60
Schedule of Investments | November 30, 2020 | |
Global X Video Games & Esports ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TOTAL TAIWAN | $ | 41,142,398 | ||||||
UNITED STATES— 24.9% | ||||||||
Communication Services — 18.1% | ||||||||
Activision Blizzard | 301,688 | 23,978,162 | ||||||
Electronic Arts | 171,461 | 21,904,143 | ||||||
Glu Mobile * | 418,658 | 4,232,632 | ||||||
Take-Two Interactive Software * | 118,147 | 21,326,715 | ||||||
Zynga, Cl A * | 1,882,351 | 15,529,396 | ||||||
86,971,048 | ||||||||
Consumer Discretionary — 0.3% | ||||||||
Turtle Beach * | 68,992 | 1,289,460 | ||||||
Information Technology — 6.5% | ||||||||
NVIDIA | 58,179 | 31,187,434 | ||||||
TOTAL UNITED STATES | 119,447,942 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $411,313,484) | 480,961,359 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.1% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $378,237) | 378,237 | 378,237 | ||||||
61
Schedule of Investments | November 30, 2020 | |
Global X Video Games & Esports ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(B) — 0.6% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $2,718,266 (collateralized by U.S. Treasury Obligations, ranging in par value $9,448 - $388,220, 2.000%, 07/31/2022, with a total market value of $2,772,470) | ||||||||
(Cost $2,718,261) | $ | 2,718,261 | $ | 2,718,261 | ||||
TOTAL INVESTMENTS — 100.6% | ||||||||
(Cost $414,409,982) | $ | 484,057,857 |
Percentages are based on Net Assets of $481,340,715.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $2,917,373. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $3,096,498. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
ADR — American Depositary Receipt
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 480,961,359 | $ | — | $ | — | $ | 480,961,359 | ||||||||
Short-Term Investment | 378,237 | — | — | 378,237 | ||||||||||||
Repurchase Agreement | — | 2,718,261 | — | 2,718,261 | ||||||||||||
Total Investments in Securities | $ | 481,339,596 | $ | 2,718,261 | $ | — | $ | 484,057,857 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
62
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 98.9% | ||||||||
AUSTRALIA— 2.6% | ||||||||
Materials — 2.6% | ||||||||
Orocobre * | 460,382 | $ | 1,401,029 | |||||
Pilbara Minerals * | 4,155,699 | 2,174,107 | ||||||
TOTAL AUSTRALIA | 3,575,136 | |||||||
BELGIUM— 0.7% | ||||||||
Materials — 0.7% | ||||||||
Umicore | 21,135 | 949,834 | ||||||
CANADA— 1.5% | ||||||||
Industrials — 0.7% | ||||||||
Ballard Power Systems * | 44,908 | 921,961 | ||||||
Information Technology — 0.8% | ||||||||
BlackBerry * | 193,843 | 1,137,859 | ||||||
TOTAL CANADA | 2,059,820 | |||||||
CHILE— 2.0% | ||||||||
Materials — 2.0% | ||||||||
Lundin Mining | 150,785 | 1,207,769 | ||||||
Sociedad Quimica y Minera de Chile ADR | 31,496 | 1,482,517 | ||||||
TOTAL CHILE | 2,690,286 |
63
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
CHINA— 7.8% | ||||||||
Communication Services — 1.2% | ||||||||
Baidu ADR * | 11,488 | $ | 1,596,717 | |||||
Consumer Discretionary — 5.6% | ||||||||
BYD, Cl H | 98,345 | 2,310,045 | ||||||
Geely Automobile Holdings | 474,900 | 1,320,102 | ||||||
NIO ADR * | 79,252 | 4,004,604 | ||||||
7,634,751 | ||||||||
Materials — 1.0% | ||||||||
Ganfeng Lithium, Cl H | 149,824 | 1,302,566 | ||||||
TOTAL CHINA | 10,534,034 | |||||||
FRANCE— 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Renault * | 35,095 | 1,400,265 | ||||||
GERMANY— 2.8% | ||||||||
Consumer Discretionary — 2.8% | ||||||||
Continental | 10,609 | 1,449,254 | ||||||
Daimler | 34,931 | 2,358,735 | ||||||
TOTAL GERMANY | 3,807,989 | |||||||
JAPAN— 7.2% | ||||||||
Consumer Discretionary — 6.3% | ||||||||
Denso | 28,702 | 1,356,722 | ||||||
Honda Motor | 56,436 | 1,554,121 | ||||||
Nissan Motor * | 260,804 | 1,231,800 | ||||||
Panasonic | 125,200 | 1,335,747 | ||||||
Toyota Motor | 45,050 | 3,023,783 | ||||||
8,502,173 | ||||||||
Industrials — 0.9% | ||||||||
GS Yuasa | 50,350 | 1,218,733 | ||||||
TOTAL JAPAN | 9,720,906 |
64
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
LUXEMBOURG— 0.9% | ||||||||
Materials — 0.9% | ||||||||
APERAM | 31,090 | $ | 1,190,076 | |||||
NETHERLANDS— 2.0% | ||||||||
Consumer Discretionary — 0.6% | ||||||||
TomTom * | 98,559 | 807,001 | ||||||
Information Technology — 1.4% | ||||||||
NXP Semiconductors | 11,744 | 1,860,484 | ||||||
TOTAL NETHERLANDS | 2,667,485 | |||||||
RUSSIA— 1.0% | ||||||||
Communication Services — 1.0% | ||||||||
Yandex, Cl A * | 20,608 | 1,421,128 | ||||||
SOUTH KOREA— 4.6% | ||||||||
Consumer Discretionary — 2.7% | ||||||||
Hyundai Motor | 11,886 | 1,949,581 | ||||||
Kia Motors | 33,746 | 1,762,703 | ||||||
3,712,284 | ||||||||
Information Technology — 1.9% | ||||||||
Samsung Electronics | 43,636 | 2,630,266 | ||||||
TOTAL SOUTH KOREA | 6,342,550 | |||||||
SWEDEN— 2.1% | ||||||||
Consumer Discretionary — 2.1% | ||||||||
Autoliv * | 14,309 | 1,274,216 | ||||||
Veoneer (A)* | 78,186 | 1,558,247 | ||||||
TOTAL SWEDEN | 2,832,463 | |||||||
UNITED KINGDOM— 1.9% | ||||||||
Consumer Discretionary — 1.2% | ||||||||
Fiat Chrysler Automobiles * | 101,331 | 1,583,759 | ||||||
Materials — 0.7% | ||||||||
Johnson Matthey | 32,550 | 966,453 | ||||||
TOTAL UNITED KINGDOM | 2,550,212 |
65
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
UNITED STATES— 60.8% | ||||||||
Communication Services — 2.6% | ||||||||
Alphabet, Cl A * | 1,980 | $ | 3,473,712 | |||||
Consumer Discretionary — 14.6% | ||||||||
American Axle & Manufacturing Holdings * | 118,752 | 945,266 | ||||||
Aptiv * | 15,101 | 1,792,489 | ||||||
BorgWarner | 26,585 | 1,032,827 | ||||||
Dana * | 68,974 | 1,161,522 | ||||||
Ford Motor * | 194,007 | 1,761,584 | ||||||
General Motors * | 54,500 | 2,389,280 | ||||||
Gentherm * | 22,296 | 1,267,751 | ||||||
Harley-Davidson | 32,687 | 1,316,959 | ||||||
Lear | 8,723 | 1,246,953 | ||||||
Tesla * | 9,624 | 5,462,582 | ||||||
Visteon * | 12,612 | 1,524,160 | ||||||
19,901,373 | ||||||||
Industrials — 11.6% | ||||||||
Bloom Energy, Cl A * | 50,737 | 1,244,071 | ||||||
EnerSys | 13,597 | 1,112,371 | ||||||
General Electric | 266,896 | 2,717,001 | ||||||
Honeywell International | 13,101 | 2,671,556 | ||||||
Hyster-Yale Materials Handling | 22,721 | 1,250,564 | ||||||
ITT | 15,840 | 1,150,459 | ||||||
Johnson Controls International | 36,204 | 1,666,832 | ||||||
Plug Power * | 101,545 | 2,679,773 | ||||||
Westinghouse Air Brake Technologies | 17,098 | 1,253,283 | ||||||
15,745,910 | ||||||||
Information Technology — 25.6% | ||||||||
Advanced Micro Devices * | 34,294 | 3,177,682 | ||||||
Ambarella * | 19,205 | 1,500,487 | ||||||
Apple | 30,512 | 3,632,453 | ||||||
CEVA * | 23,167 | 910,000 | ||||||
Cisco Systems | 64,195 | 2,761,669 |
66
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
II-VI * | 20,714 | $ | 1,401,302 | |||||
Intel | 50,454 | 2,439,451 | ||||||
Maxim Integrated Products * | 16,733 | 1,389,508 | ||||||
Micron Technology * | 35,694 | 2,287,628 | ||||||
Microsoft | 14,282 | 3,057,348 | ||||||
NVIDIA | 7,264 | 3,893,940 | ||||||
ON Semiconductor * | 47,131 | 1,355,016 | ||||||
QUALCOMM | 28,157 | 4,143,866 | ||||||
Rogers * | 7,153 | 1,050,847 | ||||||
Xilinx | 12,815 | 1,865,223 | ||||||
34,866,420 | ||||||||
Materials — 6.4% | ||||||||
Albemarle | 11,841 | 1,610,021 | ||||||
Allegheny Technologies * | 82,558 | 1,113,707 | ||||||
Cabot | 23,101 | 956,612 | ||||||
Carpenter Technology | 36,774 | 898,757 | ||||||
Freeport-McMoRan Copper & Gold * | 88,338 | 2,066,226 | ||||||
Livent * | 134,611 | 2,042,049 | ||||||
8,687,372 | ||||||||
TOTAL UNITED STATES | 82,674,787 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $114,035,554) | 134,416,971 | |||||||
PREFERRED STOCK — 1.0% | ||||||||
GERMANY— 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Volkswagen(B) | ||||||||
(Cost $1,499,620) | 8,475 | 1,432,877 | ||||||
SHORT-TERM INVESTMENT(C)(D) — 0.0% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $49,226) | 49,226 | 49,226 |
67
Schedule of Investments | November 30, 2020 | |
Global X Autonomous & Electric Vehicles ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(C) — 0.3% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $353,770 (collateralized by U.S. Treasury Obligations, ranging in par value $1,230 - $50,525, 2.000%, 07/31/2022, with a total market value of $360,824) | ||||||||
(Cost $353,769) | $ | 353,769 | $ | 353,769 | ||||
TOTAL INVESTMENTS — 100.2% | ||||||||
(Cost $115,938,169) | $ | 136,252,843 |
Percentages are based on Net Assets of $135,922,537.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $388,635. |
(B) | There is currently no stated interest rate. |
(C) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $402,995. |
(D) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
ADR — American Depositary Receipt
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 134,416,971 | $ | — | $ | — | $ | 134,416,971 | ||||||||
Preferred Stock | 1,432,877 | — | — | 1,432,877 | ||||||||||||
Short-Term Investment | 49,226 | — | — | 49,226 | ||||||||||||
Repurchase Agreement | — | 353,769 | — | 353,769 | ||||||||||||
Total Investments in Securities | $ | 135,899,074 | $ | 353,769 | $ | — | $ | 136,252,843 |
As of November 30, 2020, there were no transfers in or out of Level 3.
68
Schedule of Investments | November 30, 2020 | |
Global X Cloud Computing ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 100.0% | ||||||||
CANADA— 4.1% | ||||||||
Information Technology — 4.1% | ||||||||
Shopify, Cl A * | 52,554 | $ | 57,303,831 | |||||
CHINA— 4.2% | ||||||||
Consumer Discretionary — 1.5% | ||||||||
Alibaba Group Holding ADR * | 80,133 | 21,103,827 | ||||||
Information Technology — 2.7% | ||||||||
21Vianet Group ADR * | 1,202,276 | 34,072,502 | ||||||
Kingsoft | 710,000 | 3,562,593 | ||||||
37,635,095 | ||||||||
TOTAL CHINA | 58,738,922 | |||||||
NEW ZEALAND— 4.4% | ||||||||
Information Technology — 4.4% | ||||||||
Xero * | 631,218 | 61,627,393 | ||||||
UNITED STATES— 87.3% | ||||||||
Communication Services — 4.8% | ||||||||
Alphabet, Cl A * | 8,877 | 15,573,809 | ||||||
Netflix * | 106,058 | 52,042,660 | ||||||
67,616,469 | ||||||||
Consumer Discretionary — 1.9% | ||||||||
Amazon.com * | 8,290 | 26,263,051 | ||||||
Information Technology — 75.6% | ||||||||
2U * | 820,706 | 26,517,011 | ||||||
Akamai Technologies * | 530,497 | 54,911,744 | ||||||
Anaplan * | 885,878 | 62,002,600 | ||||||
Benefitfocus * | 374,017 | 5,382,105 | ||||||
Box, Cl A * | 1,783,099 | 33,326,120 |
69
Schedule of Investments | November 30, 2020 | |
Global X Cloud Computing ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Cornerstone OnDemand * | 735,090 | $ | 32,454,224 | |||||
Coupa Software * | 174,867 | 57,515,505 | ||||||
Dropbox, Cl A * | 2,707,695 | 54,072,669 | ||||||
Everbridge * | 390,350 | 49,551,029 | ||||||
Fastly, Cl A * | 735,243 | 62,326,549 | ||||||
International Business Machines | 35,517 | 4,387,060 | ||||||
Microsoft | 123,029 | 26,336,818 | ||||||
Mimecast * | 727,818 | 32,737,254 | ||||||
Paycom Software * | 146,009 | 60,897,434 | ||||||
Paylocity Holding * | 285,220 | 56,074,252 | ||||||
Proofpoint * | 549,057 | 56,821,909 | ||||||
Qualys * | 442,752 | 42,065,868 | ||||||
salesforce.com * | 209,346 | 51,457,247 | ||||||
SPS Commerce * | 398,159 | 41,038,248 | ||||||
Twilio, Cl A * | 177,140 | 56,700,743 | ||||||
Workday, Cl A * | 241,932 | 54,383,894 | ||||||
Workiva, Cl A * | 447,435 | 33,553,151 | ||||||
Zoom Video Communications, Cl A * | 109,611 | 52,433,518 | ||||||
Zscaler * | 362,940 | 56,527,905 | ||||||
1,063,474,857 | ||||||||
Real Estate — 5.0% | ||||||||
CoreSite Realty ‡ | 55,540 | 6,964,161 | ||||||
CyrusOne ‡ | 156,899 | 10,968,809 | ||||||
Digital Realty Trust ‡ | 348,357 | 46,941,106 | ||||||
QTS Realty Trust, Cl A ‡ | 83,317 | 4,949,863 | ||||||
69,823,939 | ||||||||
TOTAL UNITED STATES | 1,227,178,316 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $1,152,604,799) | 1,404,848,462 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $1,152,604,799) | $ | 1,404,848,462 |
Percentages are based on Net Assets of $1,405,489,005.
70
Schedule of Investments | November 30, 2020 | |
Global X Cloud Computing ETF |
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
ADR — American Depositary Receipt
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
71
Schedule of Investments | November 30, 2020 | |
Global X Data Center REITs & Digital Infrastructure ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 100.0% | ||||||||
AUSTRALIA— 3.8% | ||||||||
Information Technology — 3.8% | ||||||||
NEXTDC * | 17,280 | $ | 143,243 | |||||
CHINA— 12.3% | ||||||||
Communication Services — 4.1% | ||||||||
China Tower, Cl H | 980,000 | 154,222 | ||||||
Information Technology — 8.2% | ||||||||
21Vianet Group ADR * | 4,275 | 121,153 | ||||||
GDS Holdings ADR * | 2,035 | 183,211 | ||||||
304,364 | ||||||||
TOTAL CHINA | 458,586 | |||||||
HONG KONG— 0.6% | ||||||||
Information Technology — 0.6% | ||||||||
SUNeVision Holdings | 21,850 | 20,434 | ||||||
INDONESIA— 2.8% | ||||||||
Communication Services — 2.8% | ||||||||
Sarana Menara Nusantara | 956,320 | 74,162 | ||||||
Tower Bersama Infrastructure | 316,025 | 31,893 | ||||||
TOTAL INDONESIA | 106,055 | |||||||
SINGAPORE— 2.9% | ||||||||
Real Estate — 2.9% | ||||||||
Keppel ‡ | 51,465 | 107,947 | ||||||
TAIWAN— 1.8% | ||||||||
Information Technology — 1.8% | ||||||||
Winbond Electronics | 104,585 | 67,149 |
72
Schedule of Investments | November 30, 2020 | |
Global X Data Center REITs & Digital Infrastructure ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
UNITED STATES— 75.8% | ||||||||
Information Technology — 14.4% | ||||||||
Advanced Micro Devices * | 925 | $ | 85,711 | |||||
Microchip Technology | 685 | 92,057 | ||||||
Micron Technology * | 1,540 | 98,699 | ||||||
NVIDIA | 135 | 72,368 | ||||||
Super Micro Computer * | 1,755 | 49,509 | ||||||
Switch, Cl A | 3,105 | 49,028 | ||||||
Western Digital * | 2,035 | 91,330 | ||||||
538,702 | ||||||||
Real Estate — 61.4% | ||||||||
American Tower, Cl A ‡ | 1,900 | 439,280 | ||||||
CoreSite Realty ‡ | 1,360 | 170,530 | ||||||
Crown Castle International ‡ | 2,785 | 466,683 | ||||||
CyrusOne ‡ | 2,195 | 153,452 | ||||||
Digital Realty Trust ‡ | 2,210 | 297,798 | ||||||
Equinix ‡ | 560 | 390,762 | ||||||
QTS Realty Trust, Cl A ‡ | 2,330 | 138,425 | ||||||
SBA Communications, Cl A ‡ | 560 | 160,821 | ||||||
Uniti Group ‡ | 7,250 | 74,530 | ||||||
2,292,281 | ||||||||
TOTAL UNITED STATES | 2,830,983 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $3,743,236) | 3,734,397 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $3,743,236) | $ | 3,734,397 |
Percentages are based on Net Assets of $3,735,557.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
ADR — American Depositary Receipt
Cl — Class
73
Schedule of Investments | November 30, 2020 | |
Global X Data Center REITs & Digital Infrastructure ETF |
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
74
Schedule of Investments | November 30, 2020 | |
Global X Cybersecurity ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
ISRAEL— 7.7% | ||||||||
Information Technology — 7.7% | ||||||||
Check Point Software Technologies * | 22,880 | $ | 2,692,518 | |||||
Radware * | 28,644 | 722,115 | ||||||
Tufin Software Technologies * | 19,987 | 155,699 | ||||||
TOTAL ISRAEL | 3,570,332 | |||||||
JAPAN— 5.8% | ||||||||
Information Technology — 5.8% | ||||||||
Digital Arts | 8,775 | 751,482 | ||||||
Trend Micro * | 35,630 | 1,937,397 | ||||||
TOTAL JAPAN | 2,688,879 | |||||||
SOUTH KOREA— 0.7% | ||||||||
Information Technology — 0.7% | ||||||||
Ahnlab | 6,140 | 351,238 | ||||||
UNITED KINGDOM— 4.6% | ||||||||
Information Technology — 4.6% | ||||||||
Avast | 317,663 | 2,154,395 | ||||||
UNITED STATES— 81.1% | �� | |||||||
Information Technology — 81.1% | ||||||||
A10 Networks * | 47,035 | 375,339 | ||||||
Crowdstrike Holdings, Cl A * | 19,968 | 3,060,695 | ||||||
CyberArk Software * | 19,172 | 2,202,288 | ||||||
FireEye * | 137,928 | 2,073,058 | ||||||
Fortinet * | 23,210 | 2,860,168 | ||||||
Mimecast * | 39,700 | 1,785,706 | ||||||
NortonLifeLock | 94,439 | 1,721,623 | ||||||
Okta, Cl A * | 11,895 | 2,914,751 | ||||||
OneSpan * | 24,786 | 490,267 |
75
Schedule of Investments | November 30, 2020 | |
Global X Cybersecurity ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Palo Alto Networks * | 11,359 | $ | 3,338,637 | |||||
Ping Identity Holding * | 50,374 | 1,132,911 | ||||||
Proofpoint * | 20,959 | 2,169,047 | ||||||
Qualys * | 22,096 | 2,099,341 | ||||||
Rapid7 * | 30,357 | 2,274,954 | ||||||
Sailpoint Technologies Holdings * | 43,934 | 2,045,567 | ||||||
Tenable Holdings * | 53,096 | 1,911,987 | ||||||
Varonis Systems * | 16,486 | 1,988,871 | ||||||
VirnetX Holding * | 43,411 | 235,288 | ||||||
Zix * | 34,860 | 250,992 | ||||||
Zscaler * | 18,483 | 2,878,727 | ||||||
TOTAL UNITED STATES | 37,810,217 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $41,871,725) | 46,575,061 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $41,871,725) | $ | 46,575,061 |
Percentages are based on Net Assets of $46,633,552.
* | Non-income producing security. |
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
76
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
BRAZIL— 0.4% | ||||||||
Information Technology — 0.4% | ||||||||
StoneCo, Cl A * | 7,026 | $ | 514,444 | |||||
CANADA— 4.7% | ||||||||
Industrials — 1.1% | ||||||||
Thomson Reuters | 16,869 | 1,338,218 | ||||||
Information Technology — 3.6% | ||||||||
BlackBerry (A)* | 63,713 | 373,995 | ||||||
Open Text | 9,220 | 407,888 | ||||||
Shopify, Cl A * | 3,273 | 3,568,814 | ||||||
4,350,697 | ||||||||
TOTAL CANADA | 5,688,915 | |||||||
CHINA— 10.3% | ||||||||
Communication Services — 4.0% | ||||||||
Baidu ADR * | 9,275 | 1,289,132 | ||||||
Tencent Holdings | 42,251 | 3,068,341 | ||||||
Tencent Music Entertainment Group ADR * | 22,765 | 381,541 | ||||||
4,739,014 | ||||||||
Consumer Discretionary — 6.3% | ||||||||
Alibaba Group Holding ADR * | 12,079 | 3,181,126 | ||||||
Meituan, Cl B * | 118,411 | 4,429,434 | ||||||
7,610,560 |
77
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TOTAL CHINA | $ | 12,349,574 | ||||||
GERMANY— 4.3% | ||||||||
Industrials — 2.8% | ||||||||
Siemens | 22,825 | 3,057,968 | ||||||
Siemens Energy * | 11,137 | 331,720 | ||||||
3,389,688 | ||||||||
Information Technology — 1.5% | ||||||||
Infineon Technologies | 44,609 | 1,575,226 | ||||||
Software | 6,435 | 277,574 | ||||||
1,852,800 | ||||||||
TOTAL GERMANY | 5,242,488 | |||||||
ISRAEL— 0.4% | ||||||||
Information Technology — 0.4% | ||||||||
Wix.com * | 1,754 | 448,024 | ||||||
JAPAN— 0.4% | ||||||||
Industrials — 0.4% | ||||||||
Toshiba | 15,530 | 435,182 | ||||||
NEW ZEALAND— 0.4% | ||||||||
Information Technology — 0.4% | ||||||||
Xero * | 4,896 | 478,009 | ||||||
SOUTH KOREA— 4.5% | ||||||||
Information Technology — 4.5% | ||||||||
Samsung Electronics | 67,266 | 4,054,622 | ||||||
SK Hynix | 14,657 | 1,291,453 | ||||||
TOTAL SOUTH KOREA | 5,346,075 | |||||||
SWEDEN— 0.8% | ||||||||
Information Technology — 0.8% | ||||||||
Hexagon, Cl B | 11,981 | 997,465 | ||||||
SWITZERLAND— 1.0% | ||||||||
Information Technology — 1.0% | ||||||||
STMicroelectronics | 30,837 | 1,211,008 |
78
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TAIWAN— 0.9% | ||||||||
Information Technology — 0.9% | ||||||||
Macronix International | 273,000 | $ | 368,757 | |||||
Phison Electronics | 27,390 | 310,393 | ||||||
Winbond Electronics | 647,600 | 415,791 | ||||||
TOTAL TAIWAN | 1,094,941 | |||||||
UNITED KINGDOM— 1.2% | ||||||||
Industrials — 0.9% | ||||||||
Experian | 31,300 | 1,105,679 | ||||||
Information Technology — 0.3% | ||||||||
Computacenter | 12,013 | 356,682 | ||||||
TOTAL UNITED KINGDOM | 1,462,361 | |||||||
UNITED STATES— 70.6% | ||||||||
Communication Services — 11.5% | ||||||||
Alphabet, Cl A * | 2,013 | 3,531,607 | ||||||
Facebook, Cl A * | 13,083 | 3,623,599 | ||||||
Netflix * | 6,362 | 3,121,833 | ||||||
Snap, Cl A * | 41,197 | 1,829,971 | ||||||
Twitter * | 26,679 | 1,240,840 | ||||||
Yelp, Cl A * | 12,670 | 404,680 | ||||||
13,752,530 | ||||||||
Consumer Discretionary — 3.7% | ||||||||
Amazon.com * | 1,017 | 3,221,897 | ||||||
eBay | 23,901 | 1,205,327 | ||||||
4,427,224 | ||||||||
Industrials — 5.1% | ||||||||
Nielsen Holdings | 19,928 | 322,236 | ||||||
Northrop Grumman | 5,669 | 1,713,512 | ||||||
Uber Technologies * | 59,420 | 2,950,797 | ||||||
Verisk Analytics, Cl A | 5,519 | 1,094,473 | ||||||
6,081,018 |
79
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — 50.3% | ||||||||
Adobe * | 7,028 | $ | 3,362,687 | |||||
Advanced Micro Devices * | 40,015 | 3,707,790 | ||||||
Ambarella * | 6,668 | 520,971 | ||||||
Anaplan * | 6,798 | 475,792 | ||||||
Cisco Systems | 63,926 | 2,750,097 | ||||||
Cloudera * | 26,165 | 305,607 | ||||||
Cornerstone OnDemand * | 8,299 | 366,401 | ||||||
Crowdstrike Holdings, Cl A * | 5,140 | 787,859 | ||||||
DXC Technology * | 17,219 | 377,268 | ||||||
Envestnet * | 3,901 | 313,094 | ||||||
Fair Isaac * | 997 | 471,362 | ||||||
FireEye * | 22,629 | 340,114 | ||||||
Fortinet * | 5,487 | 676,163 | ||||||
Genpact | 7,812 | 317,558 | ||||||
Hewlett Packard Enterprise | 43,635 | 481,730 | ||||||
HubSpot * | 1,513 | 596,621 | ||||||
Intel | 50,165 | 2,425,478 | ||||||
International Business Machines | 23,894 | 2,951,387 | ||||||
Juniper Networks | 12,039 | 262,089 | ||||||
Lattice Semiconductor * | 10,338 | 432,645 | ||||||
LivePerson * | 7,674 | 448,315 | ||||||
Microchip Technology | 8,641 | 1,161,264 | ||||||
Micron Technology * | 19,166 | 1,228,349 | ||||||
Microsoft | 15,011 | 3,213,405 | ||||||
NetApp | 7,515 | 400,625 | ||||||
NortonLifeLock | 20,061 | 365,712 | ||||||
Nuance Communications * | 11,375 | 490,604 | ||||||
NVIDIA | 7,511 | 4,026,347 | ||||||
Oracle | 54,546 | 3,148,395 | ||||||
Pegasystems | 2,913 | 381,253 | ||||||
PROS Holdings * | 7,578 | 325,020 | ||||||
PTC * | 4,032 | 434,851 | ||||||
Pure Storage, Cl A * | 16,784 | 306,644 |
80
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
QUALCOMM | 33,925 | $ | 4,992,742 | |||||
salesforce.com * | 16,125 | 3,963,525 | ||||||
Seagate Technology | 8,709 | 512,176 | ||||||
ServiceNow * | 7,041 | 3,763,767 | ||||||
Splunk * | 5,396 | 1,101,755 | ||||||
Synopsys * | 5,119 | 1,164,573 | ||||||
Teradata * | 14,748 | 323,424 | ||||||
Trade Desk, Cl A * | 1,414 | 1,274,113 | ||||||
Twilio, Cl A * | 4,402 | 1,409,036 | ||||||
Verint Systems * | 6,859 | 390,689 | ||||||
Workday, Cl A * | 5,948 | 1,337,051 | ||||||
Xilinx | 8,265 | 1,202,971 | ||||||
Zebra Technologies, Cl A * | 1,789 | 676,993 | ||||||
Zendesk * | 3,957 | 528,259 | ||||||
60,494,571 | ||||||||
TOTAL UNITED STATES | 84,755,343 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $95,743,400) | 120,023,829 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.0% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $25,545) | 25,545 | 25,545 | ||||||
81
Schedule of Investments | November 30, 2020 | |
Global X Artificial Intelligence & Technology ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(B) — 0.2% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $183,580 (collateralized by U.S. Treasury Obligations, ranging in par value $638 - $26,219, 2.000%, 07/31/2022, with a total market value of $187,242) | ||||||||
(Cost $183,580) | $ | 183,580 | $ | 183,580 | ||||
TOTAL INVESTMENTS — 100.1% | ||||||||
(Cost $95,952,525) | $ | 120,232,954 |
Percentages are based on Net Assets of $120,168,509.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $195,471. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $209,125. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
ADR — American Depositary Receipt
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 120,023,829 | $ | — | $ | — | $ | 120,023,829 | ||||||||
Short-Term Investment | 25,545 | — | — | 25,545 | ||||||||||||
Repurchase Agreement | — | 183,580 | — | 183,580 | ||||||||||||
Total Investments in Securities | $ | 120,049,374 | $ | 183,580 | $ | — | $ | 120,232,954 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
82
Schedule of Investments | November 30, 2020 | |
Global X Millennials Thematic ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
UNITED STATES— 99.9% | ||||||||
Communication Services — 28.1% | ||||||||
Activision Blizzard | 33,868 | $ | 2,691,829 | |||||
Alphabet, Cl A * | 1,712 | 3,003,532 | ||||||
Cargurus, Cl A * | 10,758 | 269,488 | ||||||
Cars.com * | 46,086 | 514,781 | ||||||
Facebook, Cl A * | 11,869 | 3,287,356 | ||||||
IAC * | 5,703 | 809,769 | ||||||
iHeartMedia * | 31,518 | 376,798 | ||||||
Live Nation Entertainment * | 15,469 | 1,015,540 | ||||||
Match Group * | 17,536 | 2,441,187 | ||||||
Netflix * | 5,575 | 2,735,653 | ||||||
Snap, Cl A * | 84,078 | 3,734,744 | ||||||
Spotify Technology * | 13,410 | 3,907,271 | ||||||
TripAdvisor * | 11,816 | 308,398 | ||||||
Twitter * | 56,553 | 2,630,280 | ||||||
Walt Disney * | 20,464 | 3,028,876 | ||||||
Yelp, Cl A * | 9,497 | 303,334 | ||||||
Zillow Group, Cl A * | 5,316 | 586,621 |
83
Schedule of Investments | November 30, 2020 | |
Global X Millennials Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Communication Services — continued | ||||||||
Zynga, Cl A * | 68,919 | $ | 568,582 | |||||
32,214,039 | ||||||||
Consumer Discretionary — 40.6% | ||||||||
Amazon.com * | 1,015 | 3,215,560 | ||||||
AutoNation * | 6,811 | 417,446 | ||||||
Bed Bath & Beyond * | 36,075 | 756,132 | ||||||
Booking Holdings * | 1,506 | 3,054,846 | ||||||
Bright Horizons Family Solutions * | 4,196 | 713,782 | ||||||
Capri Holdings * | 14,910 | 527,516 | ||||||
CarMax * | 11,765 | 1,099,792 | ||||||
Carter’s * | 3,133 | 278,806 | ||||||
Carvana, Cl A * | 4,604 | 1,151,967 | ||||||
Chegg * | 8,966 | 698,720 | ||||||
Children’s Place Retail Stores (A)* | 9,066 | 389,657 | ||||||
Chipotle Mexican Grill, Cl A * | 2,006 | 2,586,597 | ||||||
Columbia Sportswear * | 4,855 | 397,770 | ||||||
Designer Brands, Cl A * | 39,167 | 309,419 | ||||||
Dick’s Sporting Goods | 8,089 | 459,536 | ||||||
eBay | 62,659 | 3,159,892 | ||||||
Etsy * | 8,504 | 1,366,593 | ||||||
Expedia Group * | 9,695 | 1,206,931 | ||||||
GoPro, Cl A * | 75,330 | 526,557 | ||||||
Graham Holdings, Cl B | 578 | 258,378 | ||||||
Groupon, Cl A * | 11,429 | 344,699 | ||||||
Grubhub * | 6,607 | 464,736 | ||||||
Home Depot | 10,615 | 2,944,707 | ||||||
K12 * | 8,854 | 206,564 | ||||||
L Brands * | 19,886 | 771,776 | ||||||
Laureate Education, Cl A * | 20,752 | 294,678 | ||||||
Lowe’s | 21,919 | 3,415,418 | ||||||
Lululemon Athletica * | 8,965 | 3,319,022 | ||||||
NIKE, Cl B | 24,247 | 3,266,071 | ||||||
Peloton Interactive, Cl A * | 7,494 | 871,927 |
84
Schedule of Investments | November 30, 2020 | |
Global X Millennials Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — continued | ||||||||
Planet Fitness, Cl A * | 5,751 | $ | 419,535 | |||||
Skechers USA, Cl A * | 9,664 | 323,454 | ||||||
Starbucks | 28,900 | 2,832,778 | ||||||
Strategic Education | 1,598 | 150,036 | ||||||
Under Armour, Cl A * | 21,095 | 349,544 | ||||||
VF | 28,507 | 2,377,484 | ||||||
Wayfair, Cl A * | 4,850 | 1,233,646 | ||||||
WW International * | 10,898 | 321,600 | ||||||
46,483,572 | ||||||||
Consumer Staples — 2.5% | ||||||||
Costco Wholesale | 6,760 | 2,648,366 | ||||||
Sprouts Farmers Market * | 10,926 | 231,303 | ||||||
2,879,669 | ||||||||
Financials — 1.2% | ||||||||
Blucora * | 16,011 | 208,783 | ||||||
LendingClub * | 25,578 | 204,112 | ||||||
LendingTree * | 1,106 | 282,671 | ||||||
Nelnet, Cl A | 4,537 | 308,063 | ||||||
SLM | 30,361 | 322,131 | ||||||
1,325,760 | ||||||||
Industrials — 4.5% | ||||||||
Avis Budget Group * | 14,260 | 501,524 | ||||||
Lyft, Cl A * | 21,481 | 819,930 | ||||||
Uber Technologies * | 76,766 | 3,812,200 | ||||||
5,133,654 | ||||||||
Information Technology — 17.0% | ||||||||
2U * | 9,468 | 305,911 | ||||||
Apple | 31,104 | 3,702,931 | ||||||
Fiserv * | 21,017 | 2,420,738 | ||||||
Fitbit, Cl A * | 31,177 | 223,851 | ||||||
Intuit | 8,408 | 2,959,784 | ||||||
PayPal Holdings * | 19,687 | 4,215,380 | ||||||
Pluralsight, Cl A * | 17,873 | 292,760 |
85
Schedule of Investments | November 30, 2020 | |
Global X Millennials Thematic ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Square, Cl A * | 25,621 | $ | 5,405,007 | |||||
19,526,362 | ||||||||
Real Estate — 6.0% | ||||||||
American Campus Communities ‡ | 9,909 | 394,378 | ||||||
AvalonBay Communities ‡ | 10,162 | 1,692,888 | ||||||
Camden Property Trust ‡ | 7,187 | 710,291 | ||||||
Equity Residential ‡ | 26,858 | 1,555,616 | ||||||
Independence Realty Trust ‡ (A) | 24,205 | 311,760 | ||||||
Investors Real Estate Trust ‡ | 3,877 | 269,064 | ||||||
Invitation Homes ‡ | 39,109 | 1,117,735 | ||||||
UDR ‡ | 21,508 | 827,413 | ||||||
6,879,145 | ||||||||
TOTAL UNITED STATES | 114,442,201 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $85,977,714) | 114,442,201 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.1% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $64,355) | 64,355 | 64,355 | ||||||
REPURCHASE AGREEMENT(B) — 0.4% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $462,499 (collateralized by U.S. Treasury Obligations, ranging in par value $1,608 - $66,054, 2.000%, 07/31/2022, with a total market value of $471,724) | ||||||||
(Cost $462,498) | $ | 462,498 | 462,498 | |||||
TOTAL INVESTMENTS — 100.4% | ||||||||
(Cost $86,504,567) | $ | 114,969,054 |
86
Schedule of Investments | November 30, 2020 | |
Global X Millennials Thematic ETF |
Percentages are based on Net Assets of $114,510,674.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $498,051. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $526,853. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 114,442,201 | $ | — | $ | — | $ | 114,442,201 | ||||||||
Short-Term Investment | 64,355 | — | — | 64,355 | ||||||||||||
Repurchase Agreement | — | 462,498 | — | 462,498 | ||||||||||||
Total Investments in Securities | $ | 114,506,556 | $ | 462,498 | $ | — | $ | 114,969,054 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
87
Schedule of Investments | November 30, 2020 | |
Global X Education ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 100.0% | ||||||||
AUSTRALIA— 5.1% | ||||||||
Consumer Discretionary — 5.1% | ||||||||
G8 Education * | 51,016 | $ | 44,358 | |||||
IDP Education | 16,824 | 303,348 | ||||||
TOTAL AUSTRALIA | 347,706 | |||||||
BRAZIL— 2.8% | ||||||||
Consumer Discretionary — 2.8% | ||||||||
Arco Platform, Cl A * | 1,828 | 79,975 | ||||||
YDUQS Participacoes | 18,900 | 115,306 | ||||||
TOTAL BRAZIL | 195,281 | |||||||
CHINA— 33.4% | ||||||||
Consumer Discretionary — 33.4% | ||||||||
China East Education Holdings | 133,000 | 296,451 | ||||||
GSX Techedu ADR * | 4,209 | 270,597 | ||||||
Koolearn Technology Holding * | 56,900 | 231,930 | ||||||
New Oriental Education & Technology Group ADR * | 3,803 | 626,925 | ||||||
Puxin ADR * | 5,305 | 42,175 | ||||||
RISE Education Cayman ADR * | 3,412 | 22,042 | ||||||
Scholar Education Group | 33,400 | 69,536 | ||||||
TAL Education Group ADR * | 9,854 | 690,371 | ||||||
Youdao ADR * | 1,373 | 40,860 | ||||||
TOTAL CHINA | 2,290,887 |
88
Schedule of Investments | November 30, 2020 | |
Global X Education ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
JAPAN— 6.1% | ||||||||
Communication Services — 1.4% | ||||||||
Gakken Holdings | 2,547 | $ | 39,912 | |||||
V-Cube | 1,672 | 54,036 | ||||||
93,948 | ||||||||
Consumer Discretionary — 3.4% | ||||||||
Benesse Holdings | 6,250 | 131,383 | ||||||
Media Do | 892 | 64,157 | ||||||
RareJob * | 600 | 13,085 | ||||||
Riso Kyoiku | 9,465 | 28,592 | ||||||
237,217 | ||||||||
Industrials — 0.7% | ||||||||
Insource | 1,290 | 45,649 | ||||||
Information Technology — 0.6% | ||||||||
Edulab * | 594 | 43,521 | ||||||
TOTAL JAPAN | 420,335 | |||||||
NORWAY— 3.0% | ||||||||
Communication Services — 3.0% | ||||||||
Kahoot! * | 26,925 | 203,687 | ||||||
SOUTH KOREA— 0.4% | ||||||||
Consumer Discretionary — 0.4% | ||||||||
MegaStudyEdu | 730 | 25,135 | ||||||
UNITED KINGDOM— 5.4% | ||||||||
Communication Services — 5.4% | ||||||||
Pearson | 43,043 | 371,794 | ||||||
UNITED STATES— 43.8% | ||||||||
Communication Services — 5.3% | ||||||||
Bandwidth, Cl A * | 1,415 | 214,769 | ||||||
John Wiley & Sons, Cl A | 2,869 | 99,095 | ||||||
Scholastic | 1,984 | 47,060 | ||||||
360,924 |
89
Schedule of Investments | November 30, 2020 | |
Global X Education ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — 17.3% | ||||||||
Bright Horizons Family Solutions * | 3,340 | $ | 568,167 | |||||
Chegg * | 6,872 | 535,535 | ||||||
Houghton Mifflin Harcourt * | 7,593 | 22,855 | ||||||
K12 * | 2,523 | 58,862 | ||||||
1,185,419 | ||||||||
Information Technology — 21.2% | ||||||||
2U * | 4,305 | 139,095 | ||||||
8x8 * | 7,184 | 142,028 | ||||||
Brightcove * | 2,717 | 45,374 | ||||||
Pluralsight, Cl A * | 6,753 | 110,614 | ||||||
RingCentral, Cl A * | 1,036 | 307,744 | ||||||
Slack Technologies, Cl A * | 10,263 | 440,077 | ||||||
Zoom Video Communications, Cl A * | 564 | 269,795 | ||||||
1,454,727 | ||||||||
TOTAL UNITED STATES | 3,001,070 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $6,395,983) | 6,855,895 | |||||||
TOTAL INVESTMENTS — 100.0% | ||||||||
(Cost $6,395,983) | $ | 6,855,895 |
Percentages are based on Net Assets of $6,855,745.
* | Non-income producing security. |
ADR — American Depositary Receipt
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
90
Schedule of Investments | November 30, 2020 | |
Global X Cannabis ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
AUSTRALIA— 3.3% | ||||||||
Health Care — 3.3% | ||||||||
Cann Group (A)* | 3,157,487 | $ | 1,198,195 | |||||
CANADA— 72.3% | ||||||||
Health Care — 72.3% | ||||||||
Aleafia Health * | 2,671,543 | 1,113,229 | ||||||
Aphria * | 397,793 | 3,348,963 | ||||||
Aurora Cannabis (A)* | 441,250 | 5,153,801 | ||||||
Auxly Cannabis Group (A)* | 5,810,982 | 1,390,080 | ||||||
Canopy Growth * | 95,197 | 2,741,533 | ||||||
Cronos Group * | 337,027 | 3,045,440 | ||||||
Green Organic Dutchman Holdings (A)* | 5,894,592 | 1,546,540 | ||||||
HEXO (A)* | 1,649,638 | 1,820,343 | ||||||
MediPharm Labs (A)* | 1,619,719 | 712,431 | ||||||
Organigram Holdings (A)* | 840,044 | 1,192,747 | ||||||
Tilray, Cl 2 (A)* | 312,971 | 2,829,258 | ||||||
Valens (A)* | 824,764 | 1,272,882 | ||||||
TOTAL CANADA | 26,167,247 | |||||||
UNITED KINGDOM— 7.7% | ||||||||
Health Care — 7.7% | ||||||||
GW Pharmaceuticals ADR * | 19,854 | 2,781,148 | ||||||
UNITED STATES— 16.5% | ||||||||
Health Care — 16.5% | ||||||||
cbdMD (A)* | 458,594 | 1,380,368 | ||||||
Charlottes Web Holdings (A)* | 362,247 | 1,917,597 |
91
Schedule of Investments | November 30, 2020 | |
Global X Cannabis ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Corbus Pharmaceuticals Holdings (A)* | 1,066,704 | $ | 1,301,379 | |||||
Zynerba Pharmaceuticals * | 292,113 | 1,355,404 | ||||||
TOTAL UNITED STATES | 5,954,748 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $30,588,833) | 36,101,338 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 3.3% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $1,196,648) | 1,196,648 | 1,196,648 | ||||||
REPURCHASE AGREEMENT(B) — 23.8% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $8,599,911 (collateralized by U.S. Treasury Obligations, ranging in par value $29,893 - $1,228,232, 2.000%, 07/31/2022, with a total market value of $8,771,399) | ||||||||
(Cost $8,599,894) | $ | 8,599,894 | 8,599,894 | |||||
TOTAL INVESTMENTS — 126.9% | ||||||||
(Cost $40,385,375) | $ | 45,897,880 |
Percentages are based on Net Assets of $36,159,865.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $9,539,729. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $9,796,542. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
ADR — American Depositary Receipt
92
Schedule of Investments | November 30, 2020 | |
Global X Cannabis ETF |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 36,101,338 | $ | — | $ | — | $ | 36,101,338 | ||||||||
Short-Term Investment | 1,196,648 | — | — | 1,196,648 | ||||||||||||
Repurchase Agreement | — | 8,599,894 | — | 8,599,894 | ||||||||||||
Total Investments in Securities | $ | 37,297,986 | $ | 8,599,894 | $ | — | $ | 45,897,880 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
93
Schedule of Investments | November 30, 2020 | |
Global X Genomics & Biotechnology ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 100.1% | ||||||||
CHINA— 1.8% | ||||||||
Health Care — 1.8% | ||||||||
Genscript Biotech * | 1,021,918 | $ | 1,468,451 | |||||
JAPAN— 1.6% | ||||||||
Health Care — 1.6% | ||||||||
Takara Bio | 45,100 | 1,285,853 | ||||||
NETHERLANDS— 2.0% | ||||||||
Health Care — 2.0% | ||||||||
uniQure * | 34,704 | 1,668,568 | ||||||
SWITZERLAND— 4.8% | ||||||||
Health Care — 4.8% | ||||||||
CRISPR Therapeutics * | 30,744 | 3,902,028 | ||||||
UNITED STATES— 89.9% | ||||||||
Health Care — 89.9% | ||||||||
Adverum Biotechnologies * | 83,337 | 1,132,550 | ||||||
Agilent Technologies | 28,642 | 3,348,250 | ||||||
Allogene Therapeutics * | 66,102 | 2,052,467 | ||||||
Alnylam Pharmaceuticals * | 23,318 | 3,029,241 | ||||||
Arrowhead Pharmaceuticals * | 49,052 | 3,067,222 | ||||||
BioMarin Pharmaceutical * | 39,141 | 3,080,397 | ||||||
Bluebird Bio * | 55,462 | 2,445,320 | ||||||
Blueprint Medicines * | 27,828 | 3,007,650 | ||||||
CareDx * | 46,428 | 2,654,289 | ||||||
Cellectis ADR (A)* | 41,100 | 1,042,707 |
94
Schedule of Investments | November 30, 2020 | |
Global X Genomics & Biotechnology ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Dicerna Pharmaceuticals * | 63,376 | $ | 1,601,512 | |||||
Editas Medicine * | 60,103 | 1,838,551 | ||||||
Gilead Sciences | 24,772 | 1,502,917 | ||||||
Homology Medicines * | 28,632 | 281,739 | ||||||
Illumina * | 9,402 | 3,028,290 | ||||||
Intellia Therapeutics * | 48,041 | 1,886,570 | ||||||
Invitae * | 65,905 | 3,272,183 | ||||||
Luminex | 42,180 | 1,000,932 | ||||||
Myriad Genetics * | 70,796 | 1,241,762 | ||||||
NanoString Technologies * | 41,819 | 2,075,895 | ||||||
Natera * | 43,723 | 3,859,429 | ||||||
Pacific Biosciences of California * | 159,205 | 2,517,031 | ||||||
Precision BioSciences * | 40,567 | 505,870 | ||||||
PTC Therapeutics * | 55,496 | 3,472,385 | ||||||
QIAGEN * | 59,640 | 2,878,226 | ||||||
REGENXBIO * | 33,105 | 1,153,378 | ||||||
Rocket Pharmaceuticals * | 49,841 | 1,543,077 | ||||||
Sangamo Therapeutics * | 113,617 | 1,135,034 | ||||||
Sarepta Therapeutics * | 20,750 | 2,922,845 | ||||||
Sorrento Therapeutics (A)* | 220,775 | 1,810,355 | ||||||
Ultragenyx Pharmaceutical * | 30,654 | 3,633,725 | ||||||
Veracyte * | 54,786 | 2,986,385 | ||||||
Vertex Pharmaceuticals * | 6,983 | 1,590,378 | ||||||
Voyager Therapeutics * | 23,527 | 195,745 | ||||||
WaVe Life Sciences * | 38,610 | 340,541 | ||||||
ZIOPHARM Oncology (A)* | 195,365 | 547,022 | ||||||
TOTAL UNITED STATES | 73,681,870 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $67,917,170) | 82,006,770 | |||||||
95
Schedule of Investments | November 30, 2020 | |
Global X Genomics & Biotechnology ETF |
Shares/Face Amount | Value | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.4% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $299,914) | 299,914 | $ | 299,914 | |||||
REPURCHASE AGREEMENT(B) — 2.6% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $2,155,384 (collateralized by U.S. Treasury Obligations, ranging in par value $7,492 - $307,830, 2.000%, 07/31/2022, with a total market value of $2,198,363) | ||||||||
(Cost $2,155,380) | $ | 2,155,380 | 2,155,380 | |||||
TOTAL INVESTMENTS — 103.1% | ||||||||
(Cost $70,372,464) | $ | 84,462,064 |
Percentages are based on Net Assets of $81,950,807.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $2,422,715. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $2,455,294. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
ADR — American Depositary Receipt
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 82,006,770 | $ | — | $ | — | $ | 82,006,770 | ||||||||
Short-Term Investment | 299,914 | — | — | 299,914 | ||||||||||||
Repurchase Agreement | — | 2,155,380 | — | 2,155,380 | ||||||||||||
Total Investments in Securities | $ | 82,306,684 | $ | 2,155,380 | $ | — | $ | 84,462,064 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
96
Schedule of Investments | November 30, 2020 | |
Global X China Biotech Innovation ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
CHINA— 95.2% | ||||||||
Consumer Staples — 3.4% | ||||||||
Fu Jian Anjoy Foods, Cl A | 2,600 | $ | 64,676 | |||||
Fujian Aonong Biological Technology Group, Cl A | 5,620 | 11,300 | ||||||
75,976 | ||||||||
Health Care — 91.8% | ||||||||
3SBio * | 36,300 | 35,961 | ||||||
Anhui Anke Biotechnology Group, Cl A | 34,400 | 81,295 | ||||||
Ascentage Pharma Group International * | 2,800 | 9,607 | ||||||
BeiGene ADR * | 621 | 158,783 | ||||||
Beijing SL Pharmaceutical, Cl A | 13,800 | 24,328 | ||||||
Beijing Tiantan Biological Products, Cl A | 11,157 | 67,400 | ||||||
Berry Genomics, Cl A * | 3,955 | 24,686 | ||||||
BGI Genomics, Cl A * | 5,138 | 102,144 | ||||||
Changchun High & New Technology Industry Group, Cl A | 3,300 | 183,834 | ||||||
China Biologic Products Holdings * | 499 | 59,376 | ||||||
Da An Gene of Sun Yat-Sen University, Cl A | 12,800 | 64,117 | ||||||
Genscript Biotech * | 26,150 | 37,576 | ||||||
Getein Biotech, Cl A | 2,500 | 12,341 | ||||||
Hualan Biological Engineering, Cl A | 13,400 | 87,651 | ||||||
Jinyu Bio-Technology, Cl A | 23,900 | 88,009 | ||||||
Joinn Laboratories China, Cl A | 2,000 | 27,648 | ||||||
PharmaBlock Sciences Nanjing, Cl A | 3,655 | 62,313 | ||||||
Shanghai Haohai Biological Technology, Cl H | 1,100 | 6,527 | ||||||
Shanghai RAAS Blood Products, Cl A | 40,200 | 51,564 | ||||||
Shenzhen Kangtai Biological Products, Cl A | 7,271 | 150,571 | ||||||
Shenzhen Neptunus Bioengineering, Cl A * | 35,900 | 22,369 |
97
Schedule of Investments | November 30, 2020 | |
Global X China Biotech Innovation ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Shenzhen Weiguang Biological Products, Cl A | 1,000 | $ | 7,597 | |||||
Sichuan Kelun Pharmaceutical, Cl A | 20,500 | 64,211 | ||||||
Viva Biotech Holdings | 20,300 | 18,853 | ||||||
Walvax Biotechnology, Cl A | 25,700 | 167,560 | ||||||
Wuxi Biologics Cayman * | 19,350 | 191,940 | ||||||
Zai Lab ADR * | 1,237 | 137,035 | ||||||
Zhejiang Wolwo Bio-Pharmaceutical, Cl A | 11,700 | 103,950 | ||||||
2,049,246 | ||||||||
TOTAL CHINA | 2,125,222 | |||||||
HONG KONG— 4.6% | ||||||||
Health Care — 4.6% | ||||||||
Sino Biopharmaceutical | 101,700 | 102,323 | ||||||
TOTAL COMMON STOCK | ||||||||
(Cost $2,285,098) | 2,227,545 | |||||||
TOTAL INVESTMENTS — 99.8% | ||||||||
(Cost $2,285,098) | $ | 2,227,545 |
Percentages are based on Net Assets of $2,232,128.
* | Non-income producing security. |
ADR — American Depositary Receipt
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3
98
Schedule of Investments | November 30, 2020 | |
Global X Telemedicine & Digital Health ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 100.0% | ||||||||
AUSTRALIA— 0.8% | ||||||||
Health Care — 0.8% | ||||||||
Pro Medicus | 174,908 | $ | 3,807,139 | |||||
CHINA— 7.3% | ||||||||
Health Care — 7.3% | ||||||||
Alibaba Health Information Technology * | 6,509,900 | 19,145,530 | ||||||
Ping An Healthcare and Technology * | 1,374,700 | 16,819,129 | ||||||
TOTAL CHINA | 35,964,659 | |||||||
GERMANY— 2.2% | ||||||||
Health Care — 2.2% | ||||||||
CompuGroup Medical & KgaA | 107,775 | 10,739,082 | ||||||
JAPAN— 4.9% | ||||||||
Health Care — 4.9% | ||||||||
M3 * | 263,450 | 24,309,910 | ||||||
NETHERLANDS— 1.8% | ||||||||
Consumer Discretionary — 1.8% | ||||||||
Shop Apotheke Europe * | 55,157 | 8,722,404 | ||||||
UNITED STATES— 83.0% | ||||||||
Financials — 1.5% | ||||||||
eHealth * | 98,573 | 7,490,562 |
99
Schedule of Investments | November 30, 2020 | |
Global X Telemedicine & Digital Health ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — 76.6% | ||||||||
1Life Healthcare * | 260,551 | $ | 8,564,311 | |||||
Agilent Technologies | 176,747 | 20,661,724 | ||||||
Allscripts Healthcare Solutions * | 642,578 | 8,790,467 | ||||||
BioTelemetry * | 133,937 | 7,421,449 | ||||||
Cerner | 253,424 | 18,966,252 | ||||||
Change Healthcare * | 925,090 | 15,846,792 | ||||||
Codexis * | 224,883 | 4,164,833 | ||||||
Computer Programs and Systems * | 54,796 | 1,557,850 | ||||||
DexCom * | 51,254 | 16,384,879 | ||||||
Evolent Health, Cl A * | 340,702 | 4,950,400 | ||||||
Guardant Health * | 162,583 | 19,692,053 | ||||||
Illumina * | 57,826 | 18,625,176 | ||||||
Inovalon Holdings, Cl A * | 298,180 | 5,567,021 | ||||||
Insulet * | 78,371 | 20,196,991 | ||||||
Invitae * | 404,812 | 20,098,916 | ||||||
iRhythm Technologies * | 80,589 | 19,704,816 | ||||||
Laboratory Corp of America Holdings * | 87,759 | 17,537,759 | ||||||
NeoGenomics * | 428,849 | 20,404,636 | ||||||
NextGen Healthcare * | 222,218 | 3,942,147 | ||||||
Omnicell * | 170,323 | 17,858,367 | ||||||
Ontrak * | 29,707 | 1,474,953 | ||||||
OptimizeRx * | 75,325 | 1,990,086 | ||||||
Personalis * | 90,679 | 2,496,393 | ||||||
Phreesia * | 125,902 | 5,559,832 | ||||||
Premier, Cl A | 489,656 | 17,343,615 | ||||||
R1 RCM * | 461,377 | 9,356,726 | ||||||
SmileDirectClub, Cl A (A)* | 305,151 | 3,753,357 | ||||||
Tabula Rasa HealthCare * | 84,269 | 2,903,910 | ||||||
Tandem Diabetes Care * | 159,348 | 14,959,590 | ||||||
Teladoc Health * | 78,851 | 15,673,212 | ||||||
Veeva Systems, Cl A * | 62,308 | 17,251,216 | ||||||
Veracyte * | 221,237 | 12,059,629 | ||||||
375,759,358 |
100
Schedule of Investments | November 30, 2020 | |
Global X Telemedicine & Digital Health ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — 4.9% | ||||||||
Nuance Communications * | 555,076 | $ | 23,940,428 | |||||
TOTAL UNITED STATES | 407,190,348 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $435,781,540) | 490,733,542 | |||||||
SHORT-TERM INVESTMENT(B)(C) — 0.1% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $309,955) | 309,955 | 309,955 | ||||||
REPURCHASE AGREEMENT(B) — 0.4% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $2,227,544 (collateralized by U.S. Treasury Obligations, ranging in par value $7,743 - $318,136, 2.000%, 07/31/2022, with a total market value of $2,271,963) | ||||||||
(Cost $2,227,540) | $ | 2,227,540 | 2,227,540 | |||||
TOTAL INVESTMENTS — 100.5% | ||||||||
(Cost $438,319,035) | $ | 493,271,037 |
Percentages are based on Net Assets of $490,674,807.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $2,506,740. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $2,537,495. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
101
Schedule of Investments | November 30, 2020 | |
Global X Telemedicine & Digital Health ETF |
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 490,733,542 | $ | — | $ | — | $ | 490,733,542 | ||||||||
Short-Term Investment | 309,955 | — | — | 309,955 | ||||||||||||
Repurchase Agreement | — | 2,227,540 | — | 2,227,540 | ||||||||||||
Total Investments in Securities | $ | 491,043,497 | $ | 2,227,540 | $ | — | $ | 493,271,037 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
102
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
AUSTRALIA— 0.8% | ||||||||
Health Care — 0.8% | ||||||||
Cochlear * | 2,033 | $ | 330,192 | |||||
BELGIUM— 1.5% | ||||||||
Health Care — 1.5% | ||||||||
UCB | 6,165 | 660,467 | ||||||
CANADA— 0.3% | ||||||||
Health Care — 0.3% | ||||||||
Chartwell Retirement Residences | 15,074 | 131,326 | ||||||
CHINA— 4.1% | ||||||||
Health Care — 4.1% | ||||||||
BeiGene ADR * | 2,451 | 626,696 | ||||||
Hansoh Pharmaceutical Group * | 183,000 | 879,297 | ||||||
Luye Pharma Group | 205,947 | 120,075 | ||||||
Venus MedTech Hangzhou, Cl H * | 15,500 | 141,654 | ||||||
TOTAL CHINA | 1,767,722 | |||||||
DENMARK— 6.5% | ||||||||
Health Care — 6.5% | ||||||||
Demant * | 7,733 | 292,046 | ||||||
Genmab * | 2,068 | 795,627 | ||||||
GN Store Nord | 4,494 | 366,887 | ||||||
H Lundbeck | 6,331 | 194,178 | ||||||
Novo Nordisk, Cl B | 17,255 | 1,163,829 | ||||||
TOTAL DENMARK | 2,812,567 |
103
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
FRANCE— 2.2% | ||||||||
Health Care — 2.2% | ||||||||
BioMerieux | 3,748 | $ | 541,590 | |||||
Korian * | 3,815 | 127,139 | ||||||
Orpea * | 2,045 | 256,365 | ||||||
TOTAL FRANCE | 925,094 | |||||||
GERMANY— 1.9% | ||||||||
Health Care — 1.9% | ||||||||
Fresenius Medical Care & KGaA | 9,635 | 812,541 | ||||||
IRELAND— 0.2% | ||||||||
Health Care — 0.2% | ||||||||
Amarin ADR * | 17,509 | 86,845 | ||||||
ITALY— 0.7% | ||||||||
Health Care — 0.7% | ||||||||
Amplifon * | 7,118 | 285,834 | ||||||
JAPAN— 6.1% | ||||||||
Health Care — 6.1% | ||||||||
Chugai Pharmaceutical | 24,298 | 1,175,345 | ||||||
H.U. Group Holdings | 4,852 | 131,496 | ||||||
Kissei Pharmaceutical | 4,263 | 85,444 | ||||||
Mochida Pharmaceutical | 2,610 | 100,370 | ||||||
Nipro | 9,575 | 102,843 | ||||||
Terumo | 24,026 | 955,510 | ||||||
Toho Holdings | 4,763 | 86,924 | ||||||
TOTAL JAPAN | 2,637,932 | |||||||
NEW ZEALAND— 0.4% | ||||||||
Health Care — 0.4% | ||||||||
Ryman Healthcare | 15,851 | 164,093 | ||||||
SOUTH KOREA— 3.2% | ||||||||
Health Care — 3.2% | ||||||||
Celltrion * | 4,274 | 1,313,235 | ||||||
Helixmith * | 2,127 | 52,284 |
104
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TOTAL SOUTH KOREA | $ | 1,365,519 | ||||||
SPAIN— 0.5% | ||||||||
Health Care — 0.5% | ||||||||
Pharma Mar | 1,801 | 208,326 | ||||||
SWEDEN— 0.7% | ||||||||
Health Care — 0.7% | ||||||||
Attendo * | 26,181 | 137,186 | ||||||
Elekta, Cl B | 11,691 | 158,824 | ||||||
TOTAL SWEDEN | 296,010 | |||||||
SWITZERLAND— 5.2% | ||||||||
Health Care — 5.2% | ||||||||
Alcon * | 15,505 | 993,019 | ||||||
Medacta Group * | 1,684 | 160,532 | ||||||
Sonova Holding * | 2,051 | 509,975 | ||||||
Straumann Holding | 499 | 574,349 | ||||||
TOTAL SWITZERLAND | 2,237,875 | |||||||
UNITED KINGDOM— 1.6% | ||||||||
Consumer Discretionary — 0.4% | ||||||||
McCarthy & Stone * | 102,276 | 159,755 | ||||||
Health Care — 1.2% | ||||||||
Smith & Nephew | 27,573 | 534,129 | ||||||
TOTAL UNITED KINGDOM | 693,884 | |||||||
UNITED STATES— 63.9% | ||||||||
Health Care — 58.9% | ||||||||
AbbVie | 12,988 | 1,358,284 | ||||||
ABIOMED * | 1,430 | 391,963 | ||||||
ACADIA Pharmaceuticals * | 4,906 | 277,974 | ||||||
Aerie Pharmaceuticals * | 7,593 | 94,229 | ||||||
Agios Pharmaceuticals * | 2,498 | 115,707 | ||||||
Align Technology * | 2,495 | 1,200,818 | ||||||
Alkermes * | 6,429 | 117,394 | ||||||
Amedisys * | 1,023 | 250,420 |
105
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Amgen | 4,631 | $ | 1,028,267 | |||||
Becton Dickinson | 4,059 | 953,216 | ||||||
Biogen Idec * | 3,221 | 773,588 | ||||||
Bluebird Bio * | 2,364 | 104,229 | ||||||
Blueprint Medicines * | 1,667 | 180,169 | ||||||
Boston Scientific * | 29,045 | 962,842 | ||||||
Bristol-Myers Squibb | 17,519 | 1,093,186 | ||||||
Brookdale Senior Living * | 31,990 | 135,638 | ||||||
DaVita * | 3,974 | 436,544 | ||||||
DENTSPLY SIRONA | 7,009 | 356,688 | ||||||
DexCom * | 2,890 | 923,875 | ||||||
Edwards Lifesciences * | 14,782 | 1,240,061 | ||||||
Ensign Group | 2,741 | 196,996 | ||||||
Envista Holdings * | 6,205 | 184,475 | ||||||
Epizyme * | 6,047 | 83,086 | ||||||
Exact Sciences * | 4,637 | 561,355 | ||||||
Exelixis * | 9,667 | 185,220 | ||||||
FibroGen * | 2,827 | 116,783 | ||||||
Glaukos * | 3,122 | 210,673 | ||||||
Halozyme Therapeutics * | 5,748 | 224,747 | ||||||
Incyte * | 6,871 | 580,874 | ||||||
Inogen * | 1,987 | 69,684 | ||||||
Insulet * | 1,970 | 507,689 | ||||||
Integer Holdings * | 1,595 | 114,984 | ||||||
Integra LifeSciences Holdings * | 2,674 | 146,348 | ||||||
Ionis Pharmaceuticals * | 4,409 | 222,787 | ||||||
LHC Group * | 995 | 195,338 | ||||||
LivaNova * | 2,111 | 111,566 | ||||||
Medtronic | 10,276 | 1,168,381 | ||||||
Merit Medical Systems * | 3,039 | 167,358 | ||||||
Myriad Genetics * | 7,135 | 125,148 | ||||||
National HealthCare | 1,305 | 81,197 | ||||||
Natus Medical * | 4,151 | 86,839 |
106
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Neurocrine Biosciences * | 2,919 | $ | 277,130 | |||||
Novocure * | 3,105 | 390,143 | ||||||
NuVasive * | 1,882 | 87,174 | ||||||
Pennant Group * | 5,872 | 297,652 | ||||||
Quest Diagnostics | 4,226 | 523,939 | ||||||
Radius Health * | 8,074 | 127,408 | ||||||
Regeneron Pharmaceuticals * | 1,991 | 1,027,416 | ||||||
Sage Therapeutics * | 3,386 | 250,869 | ||||||
Seagen * | 5,426 | 924,102 | ||||||
Silk Road Medical * | 2,837 | 162,560 | ||||||
Stryker | 5,784 | 1,349,985 | ||||||
Tactile Systems Technology * | 2,232 | 96,222 | ||||||
Varian Medical Systems * | 2,874 | 500,019 | ||||||
Vertex Pharmaceuticals * | 4,088 | 931,042 | ||||||
Zimmer Biomet Holdings | 6,551 | 976,885 | ||||||
25,259,166 | ||||||||
Real Estate — 5.0% | ||||||||
Diversified Healthcare Trust ‡ | 33,771 | 148,930 | ||||||
LTC Properties ‡ | 3,027 | 112,120 | ||||||
National Health Investors ‡ | 1,907 | 123,307 | ||||||
Omega Healthcare Investors ‡ | 7,089 | 249,675 | ||||||
Sabra Health Care ‡ | 8,173 | 134,691 | ||||||
Ventas ‡ | 11,816 | 566,105 | ||||||
Welltower ‡ | 13,012 | 819,495 | ||||||
2,154,323 | ||||||||
TOTAL UNITED STATES | 27,413,489 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $36,101,678) | 42,829,716 |
107
Schedule of Investments | November 30, 2020 | |
Global X Longevity Thematic ETF |
Number Of Rights | Value | |||||||
RIGHTS — 0.0% | ||||||||
South Korea — 0.0% | ||||||||
Helixmith, Expires 12/29/20*(A)(B)(C) | 596 | $ | 7,029 | |||||
TOTAL RIGHTS | ||||||||
(Cost $–) | 7,029 | |||||||
TOTAL INVESTMENTS — 99.8% | ||||||||
(Cost $36,101,678) | $ | 42,836,745 |
Percentages are based on Net Assets of $42,906,831.
* | Non-income producing security. |
‡ | Real Estate Investment Trust |
(A) | Security considered illiquid (Unaudited). The total value of such securities as of November 30, 2020 was $7,029 and represented 0.0% of Net Assets. |
(B) | Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such securities as of November 30, 2020, was $7,029 and represents 0.0% of net assets. |
(C) | Level 3 security in accordance with fair value hierarchy. |
ADR — American Depositary Receipt
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3(1) | Total | ||||||||||||
Common Stock | $ | 42,829,716 | $ | — | $ | — | $ | 42,829,716 | ||||||||
Rights | — | — | 7,029 | 7,029 | ||||||||||||
Total Investments in Securities | $ | 42,829,716 | $ | — | $ | 7,029 | $ | 42,836,745 |
(1) A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments at the beginning and/or end of the period in relation to Net Assets. Management has concluded that Level 3 investments are not material in relation to Net Assets.
For the year ended November 30, 2020, the transfers in and out of Level 3 were due to changes in the availability of observable inputs to determine fair value.
108
Schedule of Investments | November 30, 2020 | |
Global X Health & Wellness Thematic ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
AUSTRALIA— 0.5% | ||||||||
Consumer Staples — 0.5% | ||||||||
Blackmores * | 1,744 | $ | 102,805 | |||||
CANADA— 2.6% | ||||||||
Consumer Discretionary — 2.6% | ||||||||
Gildan Activewear * | 20,076 | 526,106 | ||||||
CHINA— 10.9% | ||||||||
Consumer Discretionary — 10.9% | ||||||||
ANTA Sports Products | 59,336 | 806,709 | ||||||
Li Ning | 143,657 | 778,277 | ||||||
Topsports International Holdings | 366,500 | 545,554 | ||||||
Xtep International Holdings | 250,300 | 106,545 | ||||||
TOTAL CHINA | 2,237,085 | |||||||
FRANCE— 2.1% | ||||||||
Consumer Staples — 2.1% | ||||||||
Danone | 6,673 | 429,924 | ||||||
GERMANY— 6.2% | ||||||||
Consumer Discretionary — 6.2% | ||||||||
adidas * | 1,763 | 563,710 | ||||||
Puma * | 6,997 | 697,708 | ||||||
TOTAL GERMANY | 1,261,418 | |||||||
HONG KONG— 1.6% | ||||||||
Consumer Discretionary — 1.6% | ||||||||
Yue Yuen Industrial Holdings | 161,879 | 332,841 |
109
Schedule of Investments | November 30, 2020 | |
Global X Health & Wellness Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
IRELAND— 1.8% | ||||||||
Consumer Staples — 1.8% | ||||||||
Glanbia | 29,996 | $ | 369,577 | |||||
ITALY— 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Technogym * | 20,059 | 215,831 | ||||||
JAPAN— 13.2% | ||||||||
Consumer Discretionary — 9.4% | ||||||||
ABC-Mart | 8,337 | 434,939 | ||||||
Asics | 19,057 | 343,583 | ||||||
Descente * | 7,770 | 128,463 | ||||||
Goldwin | 4,840 | 325,838 | ||||||
Shimano | 2,905 | 689,232 | ||||||
1,922,055 | ||||||||
Consumer Staples — 2.7% | ||||||||
Ariake Japan | 3,325 | 220,338 | ||||||
Yakult Honsha | 6,866 | 327,579 | ||||||
547,917 | ||||||||
Health Care — 1.1% | ||||||||
Tsumura | 7,743 | 226,108 | ||||||
TOTAL JAPAN | 2,696,080 | |||||||
NETHERLANDS— 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Basic-Fit * | 5,568 | 203,144 | ||||||
SOUTH KOREA— 1.7% | ||||||||
Consumer Discretionary — 1.7% | ||||||||
Fila Holdings | 6,074 | 226,701 | ||||||
Youngone | 4,527 | 122,324 | ||||||
TOTAL SOUTH KOREA | 349,025 | |||||||
TAIWAN— 8.3% | ||||||||
Consumer Discretionary — 8.3% | ||||||||
Feng TAY Enterprise | 88,662 | 570,809 |
110
Schedule of Investments | November 30, 2020 | |
Global X Health & Wellness Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — continued | ||||||||
Fulgent Sun International Holding | 18,886 | $ | 80,176 | |||||
Giant Manufacturing | 37,726 | 373,918 | ||||||
Johnson Health Tech | 30,600 | 88,249 | ||||||
Merida Industry | 29,988 | 263,030 | ||||||
Pou Chen | 298,086 | 326,820 | ||||||
TOTAL TAIWAN | 1,703,002 | |||||||
UNITED KINGDOM— 4.6% | ||||||||
Consumer Discretionary — 4.6% | ||||||||
Frasers Group * | 52,547 | 295,903 | ||||||
JD Sports Fashion * | 63,243 | 655,362 | ||||||
TOTAL UNITED KINGDOM | 951,265 | |||||||
UNITED STATES— 44.4% | ||||||||
Consumer Discretionary — 26.3% | ||||||||
Columbia Sportswear * | 5,717 | 468,394 | ||||||
Dick’s Sporting Goods | 6,327 | 359,437 | ||||||
Foot Locker | 10,429 | 390,045 | ||||||
Lululemon Athletica * | 2,106 | 779,683 | ||||||
NIKE, Cl B | 4,844 | 652,487 | ||||||
Peloton Interactive, Cl A * | 4,429 | 515,314 | ||||||
Planet Fitness, Cl A * | 7,933 | 578,712 | ||||||
Skechers USA, Cl A * | 13,583 | 454,623 | ||||||
Under Armour, Cl A * | 18,850 | 312,345 | ||||||
VF | 7,125 | 594,225 | ||||||
WW International * | 6,742 | 198,956 | ||||||
Zumiez * | 2,566 | 95,173 | ||||||
5,399,394 | ||||||||
Consumer Staples — 13.0% | ||||||||
BellRing Brands, Cl A * | 3,930 | 80,172 | ||||||
Calavo Growers | 1,760 | 126,069 | ||||||
Cal-Maine Foods * | 4,390 | 171,781 | ||||||
Hain Celestial Group * | 10,453 | 402,441 | ||||||
Herbalife Nutrition * | 13,518 | 647,647 |
111
Schedule of Investments | November 30, 2020 | |
Global X Health & Wellness Thematic ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Staples — continued | ||||||||
Medifast | 1,172 | $ | 239,252 | |||||
Nu Skin Enterprises, Cl A | 5,551 | 285,932 | ||||||
Sanderson Farms | 2,225 | 304,224 | ||||||
Sprouts Farmers Market * | 11,767 | 249,107 | ||||||
USANA Health Sciences * | 2,153 | 161,863 | ||||||
2,668,488 | ||||||||
Health Care — 3.4% | ||||||||
DexCom * | 1,600 | 511,488 | ||||||
Prestige Consumer Healthcare * | 5,028 | 178,846 | ||||||
690,334 | ||||||||
Industrials — 0.9% | ||||||||
Healthcare Services Group | 7,443 | 176,176 | ||||||
Information Technology — 0.8% | ||||||||
Fitbit, Cl A * | 23,599 | 169,441 | ||||||
TOTAL UNITED STATES | 9,103,833 | |||||||
TOTAL COMMON STOCK | ||||||||
(Cost $19,062,256) | 20,481,936 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $19,062,256) | $ | 20,481,936 |
Percentages are based on Net Assets of $20,495,913.
* | Non-income producing security. |
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
112
Schedule of Investments | November 30, 2020 | |
Global X CleanTech ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Shares | Value | |||||||
COMMON STOCK — 99.9% | ||||||||
CANADA— 5.3% | ||||||||
Industrials — 3.5% | ||||||||
Ballard Power Systems * | 48,660 | $ | 998,990 | |||||
Information Technology — 1.8% | ||||||||
Canadian Solar * | 11,850 | 506,706 | ||||||
TOTAL CANADA | 1,505,696 | |||||||
CHINA— 15.5% | ||||||||
Industrials — 3.2% | ||||||||
China Everbright Environment Group | 1,224,600 | 679,236 | ||||||
Xinjiang Goldwind Science & Technology, Cl H | 152,700 | 244,635 | ||||||
923,871 | ||||||||
Information Technology — 12.3% | ||||||||
Daqo New Energy ADR * | 13,800 | 593,676 | ||||||
Flat Glass Group, Cl H | 90,000 | 251,338 | ||||||
GCL-Poly Energy Holdings * | 4,219,200 | 429,948 | ||||||
JinkoSolar Holding ADR * | 8,790 | 606,862 | ||||||
Xinyi Solar Holdings | 900,000 | 1,641,535 | ||||||
3,523,359 | ||||||||
TOTAL CHINA | 4,447,230 | |||||||
DENMARK— 5.6% | ||||||||
Industrials — 5.6% | ||||||||
Vestas Wind Systems | 7,740 | 1,586,560 | ||||||
FRANCE— 0.5% | ||||||||
Industrials — 0.5% | ||||||||
McPhy Energy * | 3,450 | 150,838 |
113
Schedule of Investments | November 30, 2020 | |
Global X CleanTech ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
GERMANY— 6.2% | ||||||||
Industrials — 4.8% | ||||||||
Nordex * | 21,270 | $ | 498,941 | |||||
Varta * | 6,360 | 861,968 | ||||||
1,360,909 | ||||||||
Information Technology — 1.4% | ||||||||
SMA Solar Technology * | 6,930 | 400,060 | ||||||
TOTAL GERMANY | 1,760,969 | |||||||
NORWAY— 2.7% | ||||||||
Industrials — 2.7% | ||||||||
NEL, Cl A * | 280,770 | 773,840 | ||||||
SOUTH KOREA— 12.7% | ||||||||
Industrials — 3.8% | ||||||||
CS Wind | 3,450 | 399,078 | ||||||
Doosan Fuel Cell * | 12,589 | 567,702 | ||||||
Unison * | 22,710 | 115,341 | ||||||
1,082,121 | ||||||||
Information Technology — 5.2% | ||||||||
Samsung SDI | 3,090 | 1,488,383 | ||||||
Materials — 3.7% | ||||||||
Hanwha Solutions | 24,660 | 1,064,132 | ||||||
TOTAL SOUTH KOREA | 3,634,636 | |||||||
SPAIN— 5.7% | ||||||||
Industrials — 5.7% | ||||||||
Siemens Gamesa Renewable Energy | 45,480 | 1,628,288 | ||||||
SWEDEN— 1.2% | ||||||||
Industrials — 1.2% | ||||||||
PowerCell Sweden * | 10,350 | 337,020 | ||||||
SWITZERLAND— 2.2% | ||||||||
Information Technology — 2.2% | ||||||||
Landis+Gyr Group | 5,850 | 422,611 | ||||||
Meyer Burger Technology * | 501,780 | 212,174 |
114
Schedule of Investments | November 30, 2020 | |
Global X CleanTech ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
TOTAL SWITZERLAND | $ | 634,785 | ||||||
TAIWAN— 2.5% | ||||||||
Information Technology — 2.5% | ||||||||
Simplo Technology | 37,500 | 436,146 | ||||||
United Renewable Energy * | 531,900 | 277,124 | ||||||
TOTAL TAIWAN | 713,270 | |||||||
UNITED KINGDOM— 6.0% | ||||||||
Industrials — 3.1% | ||||||||
Ceres Power Holdings * | 34,200 | 392,206 | ||||||
ITM Power * | 95,850 | 481,144 | ||||||
873,350 | ||||||||
Materials — 2.9% | ||||||||
Johnson Matthey | 28,020 | 831,951 | ||||||
TOTAL UNITED KINGDOM | 1,705,301 | |||||||
UNITED STATES— 33.8% | ||||||||
Industrials — 11.6% | ||||||||
Ameresco, Cl A * | 5,940 | 264,627 | ||||||
Bloom Energy, Cl A * | 20,580 | 504,622 | ||||||
FuelCell Energy * | 47,760 | 487,152 | ||||||
Plug Power * | 66,660 | 1,759,158 | ||||||
TPI Composites * | 7,050 | 283,622 | ||||||
3,299,181 | ||||||||
Information Technology — 22.2% | ||||||||
Enphase Energy * | 17,643 | 2,409,504 | ||||||
First Solar * | 14,640 | 1,367,815 | ||||||
SolarEdge Technologies * | 6,480 | 1,801,310 | ||||||
SunPower, Cl A * | 33,930 | 751,889 | ||||||
6,330,518 |
115
Schedule of Investments | November 30, 2020 | |
Global X CleanTech ETF |
Value | ||||||||
COMMON STOCK — continued | ||||||||
TOTAL UNITED STATES | $ | 9,629,699 | ||||||
TOTAL COMMON STOCK | ||||||||
(Cost $26,061,324) | 28,508,132 | |||||||
TOTAL INVESTMENTS — 99.9% | ||||||||
(Cost $26,061,324) | $ | 28,508,132 |
Percentages are based on Net Assets of $28,523,469.
* | Non-income producing security. |
ADR — American Depositary Receipt
Cl — Class
As of November 30, 2020, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3
116
Schedule of Investments | November 30, 2020 | |
Global X U.S. Infrastructure Development ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
COMMON STOCK — 99.8% | ||||||||
Energy — 0.1% | ||||||||
Matrix Service * | 81,557 | $ | 781,316 | |||||
Industrials — 70.7% | ||||||||
Acuity Brands | 58,038 | 6,890,271 | ||||||
Advanced Drainage Systems | 99,608 | 6,947,658 | ||||||
AECOM * | 229,779 | 11,923,232 | ||||||
Aegion, Cl A * | 77,263 | 1,325,061 | ||||||
Altra Industrial Motion | 93,859 | 5,327,437 | ||||||
Arcosa | 70,543 | 3,660,476 | ||||||
Argan | 41,195 | 1,894,558 | ||||||
Astec Industries | 40,242 | 2,334,036 | ||||||
Atkore International Group * | 42,493 | 1,656,377 | ||||||
Columbus McKinnon | 45,589 | 1,722,808 | ||||||
Construction Partners, Cl A * | 101,967 | 2,681,732 | ||||||
Crane | 87,770 | 6,102,648 | ||||||
CSW Industrials | 21,739 | 2,332,377 | ||||||
CSX | 228,097 | 20,540,135 | ||||||
Dycom Industries * | 38,590 | 2,425,767 | ||||||
Eaton | 178,459 | 21,613,170 |
117
Schedule of Investments | November 30, 2020 | |
Global X U.S. Infrastructure Development ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
EMCOR Group | 82,051 | $ | 7,071,155 | |||||
Emerson Electric | 225,480 | 17,321,374 | ||||||
Exponent | 75,869 | 6,297,886 | ||||||
Fastenal | 484,520 | 23,959,514 | ||||||
Fluor * | 203,672 | 3,517,415 | ||||||
Fortive | 225,445 | 15,810,458 | ||||||
Gibraltar Industries * | 30,906 | 2,023,107 | ||||||
Gorman-Rupp | 46,079 | 1,515,999 | ||||||
Granite Construction | 64,118 | 1,578,585 | ||||||
Greenbrier | 65,452 | 2,184,133 | ||||||
H&E Equipment Services | 60,099 | 1,615,461 | ||||||
HD Supply Holdings * | 237,468 | 13,245,965 | ||||||
Herc Holdings * | 38,595 | 2,210,722 | ||||||
Howmet Aerospace * | 591,706 | 13,881,423 | ||||||
Hubbell, Cl B | 79,468 | 12,841,234 | ||||||
Insteel Industries | 69,331 | 1,603,626 | ||||||
Jacobs Engineering Group | 182,130 | 19,640,899 | ||||||
Kansas City Southern | 104,766 | 19,504,286 | ||||||
Lincoln Electric Holdings | 89,240 | 10,262,600 | ||||||
Manitowoc * | 113,528 | 1,261,296 | ||||||
MasTec * | 111,671 | 6,332,862 | ||||||
MRC Global * | 139,775 | 807,900 | ||||||
Mueller Industries | 56,155 | 1,839,638 | ||||||
Mueller Water Products, Cl A | 142,344 | 1,689,623 | ||||||
MYR Group * | 53,844 | 2,753,044 | ||||||
Norfolk Southern | 83,911 | 19,888,585 | ||||||
Northwest Pipe * | 49,327 | 1,419,631 | ||||||
NOW * | 164,255 | 916,543 | ||||||
Pentair | 245,888 | 12,741,916 | ||||||
Powell Industries | 37,939 | 979,964 | ||||||
Primoris Services | 76,398 | 1,852,652 | ||||||
Quanta Services | 208,346 | 14,238,366 | ||||||
RBC Bearings * | 36,712 | 6,198,454 |
118
Schedule of Investments | November 30, 2020 | |
Global X U.S. Infrastructure Development ETF |
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Rexnord | 178,255 | $ | 6,686,345 | |||||
Rockwell Automation | 86,479 | 22,100,573 | ||||||
SPX * | 64,265 | 3,292,296 | ||||||
Sterling Construction * | 119,407 | 1,909,318 | ||||||
Team * | 112,910 | 983,446 | ||||||
Terex * | 64,798 | 2,008,738 | ||||||
Tetra Tech | 80,237 | 9,568,262 | ||||||
Titan Machinery * | 131,402 | 2,400,715 | ||||||
Trinity Industries | 178,495 | 4,078,611 | ||||||
Tutor Perini * | 155,160 | 2,097,763 | ||||||
Union Pacific | 93,508 | 19,083,113 | ||||||
United Rentals * | 109,874 | 24,939,201 | ||||||
Valmont Industries | 31,571 | 5,145,442 | ||||||
Wabash National | 139,135 | 2,459,907 | ||||||
WESCO International * | 73,542 | 4,796,409 | ||||||
Willdan Group * | 51,276 | 1,993,611 | ||||||
461,927,809 | ||||||||
Information Technology — 4.9% | ||||||||
Badger Meter | 27,729 | 2,285,979 | ||||||
Calix * | 199,077 | 4,714,143 | ||||||
Trimble * | 364,364 | 21,814,473 | ||||||
Vontier * | 89,775 | 2,977,837 | ||||||
31,792,432 | ||||||||
Materials — 23.0% | ||||||||
Alcoa * | 271,268 | 5,398,233 | ||||||
Allegheny Technologies * | 183,114 | 2,470,208 | ||||||
Arconic * | 147,874 | 4,068,014 | ||||||
Century Aluminum * | 271,256 | 2,753,248 | ||||||
Cleveland-Cliffs * | 467,804 | 5,150,522 | ||||||
Commercial Metals | 172,312 | 3,430,732 | ||||||
Eagle Materials * | 60,773 | 5,529,735 | ||||||
Forterra * | 118,132 | 2,191,349 |
119
Schedule of Investments | November 30, 2020 | |
Global X U.S. Infrastructure Development ETF |
Shares/Face Amount | Value | |||||||
COMMON STOCK — continued | ||||||||
Materials — continued | ||||||||
Haynes International | 62,826 | $ | 1,331,283 | |||||
Martin Marietta Materials | 65,289 | 17,342,717 | ||||||
Minerals Technologies | 30,208 | 1,832,719 | ||||||
Nucor | 337,921 | 18,146,358 | ||||||
Reliance Steel & Aluminum | 97,608 | 11,498,222 | ||||||
RPM International | 189,916 | 16,714,507 | ||||||
Ryerson Holding * | 157,374 | 1,690,197 | ||||||
Steel Dynamics | 315,538 | 11,425,631 | ||||||
Summit Materials, Cl A * | 163,170 | 3,100,230 | ||||||
TimkenSteel * | 258,403 | 1,217,078 | ||||||
United States Steel (A) | 179,081 | 2,541,159 | ||||||
US Concrete * | 44,441 | 1,576,767 | ||||||
Vulcan Materials | 122,712 | 17,136,731 | ||||||
Westlake Chemical | 187,672 | 14,103,551 | ||||||
150,649,191 | ||||||||
Utilities — 1.1% | ||||||||
MDU Resources Group | 292,726 | 7,300,586 | ||||||
TOTAL COMMON STOCK | ||||||||
(Cost $585,282,553) | 652,451,334 | |||||||
CORPORATE OBLIGATION — 0.0% | ||||||||
Mueller Industries | ||||||||
6.000%, 03/01/27 (Cost $1,000) | $ | 1,000 | 1,012 | |||||
SHORT-TERM INVESTMENT(B)(C) — 0.0% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $231,457) | 231,457 | 231,457 |
120
Schedule of Investments | November 30, 2020 | |
Global X U.S. Infrastructure Development ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(B) — 0.3% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $1,663,406 (collateralized by U.S. Treasury Obligations, ranging in par value $5,782 - $237,566, 2.000%, 07/31/2022, with a total market value of $1,696,574) | ||||||||
(Cost $1,663,403) | $ | 1,663,403 | $ | 1,663,403 | ||||
TOTAL INVESTMENTS — 100.1% | ||||||||
(Cost $587,178,413) | $ | 654,347,206 |
Percentages are based on Net Assets of $653,635,485.
* | Non-income producing security. |
(A) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $1,810,644. |
(B) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $1,894,860. |
(C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stock | $ | 652,451,334 | $ | — | $ | — | $ | 652,451,334 | ||||||||
Corporate Obligation | — | 1,012 | — | 1,012 | ||||||||||||
Short-Term Investment | 231,457 | — | — | 231,457 | ||||||||||||
Repurchase Agreement | — | 1,663,403 | — | 1,663,403 | ||||||||||||
Total Investments in Securities | $ | 652,682,791 | $ | 1,664,415 | $ | — | $ | 654,347,206 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3
121
Schedule of Investments | November 30, 2020 | |
Global X Thematic Growth ETF |
Sector Weightings (unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Notes 2 and 7 in Notes to Financial Statements for more detailed information.
Shares | Value | |||||||
EXCHANGE TRADED FUNDS — 99.8% | ||||||||
Affiliated ETF — 99.8% | ||||||||
Global X Cannabis ETF (A)(B) | 766,133 | $ | 9,262,548 | |||||
Global X Cloud Computing ETF (A)* | 239,441 | 6,196,733 | ||||||
Global X FinTech ETF (A)* | 81,211 | 3,470,146 | ||||||
Global X Genomics & Biotechnology ETF (A)* | 283,955 | 5,982,932 | ||||||
Global X Lithium & Battery Tech ETF (A) | 77,532 | 4,048,721 | ||||||
Global X Robotics & Artificial Intelligence ETF (A) | 110,059 | 3,483,367 | ||||||
Global X Social Media ETF * (A) | 63,036 | 3,585,488 | ||||||
TOTAL EXCHANGE TRADED FUNDS | ||||||||
(Cost $31,117,391) | 36,029,935 | |||||||
SHORT-TERM INVESTMENT(C)(D) — 0.5% | ||||||||
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 0.010% | ||||||||
(Cost $183,785) | 183,785 | 183,785 | ||||||
122
Schedule of Investments | November 30, 2020 | |
Global X Thematic Growth ETF |
Face Amount | Value | |||||||
REPURCHASE AGREEMENT(C) — 3.7% | ||||||||
BNP Paribas | ||||||||
0.070%, dated 11/30/20, to be repurchased on 12/01/20, repurchase price $1,320,803 (collateralized by U.S. Treasury Obligations, ranging in par value $4,591 - $188,636, 2.000%, 07/31/2022, with a total market value of $1,347,140) | ||||||||
(Cost $1,320,800) | $ | 1,320,800 | $ | 1,320,800 | ||||
TOTAL INVESTMENTS — 104.0% | ||||||||
(Cost $32,621,976) | $ | 37,534,520 |
Percentages are based on Net Assets of $36,080,846.
* | Non-income producing security. |
(A) | Affiliated investment. |
(B) | This security or a partial position of this security is on loan at November 30, 2020. The total value of securities on loan at November 30, 2020 was $1,477,748. |
(C) | Security was purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2020, was $1,504,585. |
(D) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2020. |
Cl — Class
ETF — Exchange Traded Fund
The following is a summary of the level of inputs used as of November 30, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Exchange Traded Funds | $ | 36,029,935 | $ | — | $ | — | $ | 36,029,935 | ||||||||
Short-Term Investment | 183,785 | — | — | 183,785 | ||||||||||||
Repurchase Agreement | — | 1,320,800 | — | 1,320,800 | ||||||||||||
Total Investments in Securities | $ | 36,213,720 | $ | 1,320,800 | $ | — | $ | 37,534,520 |
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
123
Schedule of Investments | November 30, 2020 | |
Global X Thematic Growth ETF |
The following is a summary of the transactions with affiliates for the year ended November 30, 2020:
Value At 11/30/19 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value at 11/30/20 | Shares | Dividend Income | |||||||||||||||||||||||||
Global X E–commerce ETF | $ | 439,566 | $ | 7,159,572 | $ | (8,262,588 | ) | $ | 3,198 | $ | 660,252 | $ | – | – | $ | 837 | ||||||||||||||||
Global X Fintech ETF | 459,057 | 9,449,374 | (7,328,297 | ) | 255,227 | 634,785 | 3,470,146 | 81,211 | – | |||||||||||||||||||||||
Global X Internet of Things ETF | 296,729 | 3,282,442 | (3,712,365 | ) | (22,737 | ) | 155,931 | – | – | 2,485 | ||||||||||||||||||||||
Global X Lithium & Battery Tech ETF | 263,961 | 4,781,357 | (2,178,956 | ) | 849,133 | 333,226 | 4,048,721 | 77,532 | 8,029 | |||||||||||||||||||||||
Global X Longevity Thematic ETF | 272,658 | 3,144,183 | (3,465,482 | ) | �� | (18,959 | ) | 67,600 | – | – | 3,113 | |||||||||||||||||||||
Global X Robotics & Artificial Intelligence ETF | 285,028 | 4,610,345 | (2,046,996 | ) | 405,853 | 229,137 | 3,483,367 | 110,059 | 3,260 | |||||||||||||||||||||||
Global X Social Media ETF | 631,522 | 8,207,816 | (6,236,321 | ) | 312,846 | 669,625 | 3,585,488 | 63,036 | – | |||||||||||||||||||||||
Global X Cannabis ETF | – | 7,806,516 | (481,368 | ) | 1,956,016 | (18,616 | ) | 9,262,548 | 766,133 | – | ||||||||||||||||||||||
Global X Cloud Computing ETF | – | 6,312,497 | (416,467 | ) | 277,384 | 23,319 | 6,196,733 | 239,441 | – | |||||||||||||||||||||||
Global X Genomics & Biotechnology ETF | – | 5,553,613 | (337,014 | ) | 768,118 | (1,785 | ) | 5,982,932 | 283,955 | – | ||||||||||||||||||||||
Totals: | $ | 2,648,521 | $ | 60,307,715 | $ | (34,465,854 | ) | $ | 4,786,079 | $ | 2,753,474 | $ | 36,029,935 | 1,621,367 | $ | 17,724 |
124
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Robotics & Artificial Intelligence ETF | Global X Internet of Things ETF | Global X FinTech ETF | Global X Video Games and Esports ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 1,719,115,007 | $ | 234,630,157 | $ | 595,107,674 | $ | 411,691,721 | ||||||||
Cost of Repurchase Agreement | 39,849,772 | 1,906,837 | 38,122,371 | 2,718,261 | ||||||||||||
Cost of Foreign Currency | — | 385,273 | — | 17,638 | ||||||||||||
Investments, at Value | $ | 2,158,915,578 | * | $ | 296,210,244 | * | $ | 878,987,823 | * | $ | 481,339,596 | * | ||||
Repurchase Agreement, at Value | 39,849,772 | 1,906,837 | 38,122,371 | 2,718,261 | ||||||||||||
Cash | 789,018 | 52,354 | 687,372 | 657,365 | ||||||||||||
Foreign Currency, at Value | — | 385,273 | — | 17,638 | ||||||||||||
Receivable for Capital Shares Sold | 22,249,175 | 4,510,356 | — | — | ||||||||||||
Reclaim Receivable | 2,975,606 | 55,051 | 42,461 | — | ||||||||||||
Dividend and Interest Receivable | 2,160,838 | 221,034 | 209,706 | 298,305 | ||||||||||||
Unrealized Appreciation on Spot Contracts | — | 156 | — | — | ||||||||||||
Due from Broker | 23,329,861 | — | 364,915 | 3,847,125 | ||||||||||||
Total Assets | 2,250,269,848 | 303,341,305 | 918,414,648 | 488,878,290 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | 45,394,740 | 2,172,167 | 43,426,977 | 3,096,498 | ||||||||||||
Payable for Capital Shares Redeemed | 23,329,861 | — | 364,915 | 3,847,125 | ||||||||||||
Payable for Investment Securities Purchased | 22,261,203 | 4,508,206 | — | 420,757 | ||||||||||||
Payable due to Investment Adviser | 1,108,651 | 152,980 | 448,207 | 172,151 | ||||||||||||
Unrealized Depreciation on Spot Contracts | — | — | — | 1,044 | ||||||||||||
Due to Broker | 806 | — | — | — | ||||||||||||
Total Liabilities | 92,095,261 | 6,833,353 | 44,240,099 | 7,537,575 | ||||||||||||
Net Assets | $ | 2,158,174,587 | $ | 296,507,952 | $ | 874,174,549 | $ | 481,340,715 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 1,877,599,959 | $ | 239,589,530 | $ | 629,506,566 | $ | 411,986,128 | ||||||||
Total Distributable Earnings | 280,574,628 | 56,918,422 | 244,667,983 | 69,354,587 | ||||||||||||
Net Assets | $ | 2,158,174,587 | $ | 296,507,952 | $ | 874,174,549 | $ | 481,340,715 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 67,900,000 | 9,900,000 | 20,450,000 | 16,850,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 31.78 | $ | 29.95 | $ | 42.75 | $ | 28.57 | ||||||||
*Includes Market Value of Securities on Loan | $ | 43,274,134 | $ | 2,007,461 | $ | 41,388,438 | $ | 2,917,373 |
125
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Autonomous & Electric Vehicles ETF | Global X Cloud Computing ETF | Global X Data Center REITs & Digital Infrastructure ETF | Global X Cybersecurity ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 115,584,400 | $ | 1,152,604,799 | $ | 3,743,236 | $ | 41,871,725 | ||||||||
Cost of Repurchase Agreement | 353,769 | — | — | — | ||||||||||||
Cost of Foreign Currency | 24,840 | 6 | 13,323 | — | ||||||||||||
Investments, at Value | $ | 135,899,074 | * | $ | 1,404,848,462 | $ | 3,734,397 | $ | 46,575,061 | |||||||
Repurchase Agreement, at Value | 353,769 | — | — | — | ||||||||||||
Cash | 26,111 | 1,390,304 | — | 47,097 | ||||||||||||
Foreign Currency, at Value | 24,824 | 6 | 13,323 | — | ||||||||||||
Receivable for Capital Shares Sold | 5,493,890 | 9,021,196 | 752,422 | — | ||||||||||||
Dividend and Interest Receivable | 71,094 | 101,346 | 1,201 | 13,361 | ||||||||||||
Reclaim Receivable | 5,023 | — | — | — | ||||||||||||
Receivable for Investment Securities Sold | — | — | — | 512,660 | ||||||||||||
Due from Broker | 387,157 | 13,185,531 | — | — | ||||||||||||
Total Assets | 142,260,942 | 1,428,546,845 | 4,501,343 | 47,148,179 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | 402,995 | — | — | — | ||||||||||||
Payable for Investment Securities Purchased | 5,498,011 | 9,143,605 | 752,169 | 496,550 | ||||||||||||
Payable for Capital Shares | ||||||||||||||||
Redeemed | 387,157 | 13,185,531 | — | — | ||||||||||||
Cash Overdraft | — | — | 12,691 | — | ||||||||||||
Due to Custodian | 39 | — | — | — | ||||||||||||
Due to Broker | — | 765 | — | — | ||||||||||||
Payable due to Investment Adviser | 49,663 | 727,935 | 924 | 18,077 | ||||||||||||
Unrealized Depreciation on Spot Contracts | 540 | 4 | 2 | — | ||||||||||||
Total Liabilities | 6,338,405 | 23,057,840 | 765,786 | 514,627 | ||||||||||||
Net Assets | $ | 135,922,537 | $ | 1,405,489,005 | $ | 3,735,557 | $ | 46,633,552 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 116,924,858 | $ | 1,162,869,602 | $ | 3,743,722 | $ | 42,077,365 | ||||||||
Total Distributable Earnings/(Loss) | 18,997,679 | 242,619,403 | (8,165 | ) | 4,556,187 | |||||||||||
Net Assets | $ | 135,922,537 | $ | 1,405,489,005 | $ | 3,735,557 | $ | 46,633,552 |
126
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Autonomous & Electric Vehicles ETF | Global X Cloud Computing ETF | Global X Data Center REITs & Digital Infrastructure ETF | Global X Cybersecurity ETF | |||||||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 6,250,002 | 54,400,000 | 250,000 | 2,050,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 21.75 | $ | 25.84 | $ | 14.94 | $ | 22.75 | ||||||||
*Includes Market Value of Securities on Loan | $ | 388,635 | $ | — | $ | — | $ | — |
127
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Artificial Intelligence & Technology ETF | Global X Millennials Thematic ETF | Global X Education ETF | Global X Cannabis ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 95,768,945 | $ | 86,042,069 | $ | 6,395,983 | $ | 31,785,481 | ||||||||
Cost of Repurchase Agreement | 183,580 | 462,498 | — | 8,599,894 | ||||||||||||
Cost of Foreign Currency | 22 | — | 1 | — | ||||||||||||
Investments, at Value | $ | 120,049,374 | * | $ | 114,506,556 | * | $ | 6,855,895 | $ | 37,297,986 | * | |||||
Repurchase Agreement, at Value | 183,580 | 462,498 | — | 8,599,894 | ||||||||||||
Cash | 117,089 | 100,903 | 540 | — | ||||||||||||
Foreign Currency, at Value | 10 | — | 1 | — | ||||||||||||
Dividend and Interest Receivable | 88,884 | 12,097 | 1,884 | 87,143 | ||||||||||||
Reclaim Receivable | 565 | — | — | — | ||||||||||||
Receivable for Investment Securities Sold | — | — | — | 30,939 | ||||||||||||
Due from Broker | 9,071 | — | — | 1,429,393 | ||||||||||||
Total Assets | 120,448,573 | 115,082,054 | 6,858,320 | 47,445,355 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | 209,125 | 526,853 | — | 9,796,542 | ||||||||||||
Payable due to Investment Adviser | 61,708 | 44,087 | 2,575 | 9,159 | ||||||||||||
Payable for Capital Shares Redeemed | 8,855 | — | — | 1,429,393 | ||||||||||||
Payable for Investment Securities Purchased | — | — | — | 50,245 | ||||||||||||
Cash Overdraft | — | — | — | 151 | ||||||||||||
Due to Broker | 376 | 440 | — | — | ||||||||||||
Total Liabilities | 280,064 | 571,380 | 2,575 | 11,285,490 | ||||||||||||
Net Assets | $ | 120,168,509 | $ | 114,510,674 | $ | 6,855,745 | $ | 36,159,865 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 96,958,331 | $ | 87,457,180 | $ | 6,630,040 | $ | 34,114,991 | ||||||||
Total Distributable Earnings | 23,210,178 | 27,053,494 | 225,705 | 2,044,874 | ||||||||||||
Net Assets | $ | 120,168,509 | $ | 114,510,674 | $ | 6,855,745 | $ | 36,159,865 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 4,650,002 | 3,250,000 | 400,000 | 3,000,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 25.84 | $ | 35.23 | $ | 17.14 | $ | 12.05 | ||||||||
*Includes Market Value of Securities on Loan | $ | 195,471 | $ | 498,051 | $ | — | $ | 9,539,729 |
128
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Genomics & Biotechnology ETF | Global X China Biotech Innovation ETF | Global X Telemedicine & Digital Health ETF | Global X Longevity Thematic ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 68,217,084 | $ | 2,285,098 | $ | 436,091,495 | $ | 36,101,678 | ||||||||
Cost of Repurchase Agreement | 2,155,380 | — | 2,227,540 | — | ||||||||||||
Cost of Foreign Currency | 1 | 60 | 1 | 1 | ||||||||||||
Investments, at Value | $ | 82,306,684 | * | $ | 2,227,545 | $ | 491,043,497 | * | $ | 42,836,745 | ||||||
Repurchase Agreement, at Value | 2,155,380 | — | 2,227,540 | — | ||||||||||||
Cash | — | 5,745 | 83,986 | 59,723 | ||||||||||||
Foreign Currency, at Value | 1 | 60 | 1 | 1 | ||||||||||||
Dividend and Interest Receivable | 14,809 | — | 97,100 | 15,795 | ||||||||||||
Receivable for Capital Shares Sold | — | — | 920,591 | — | ||||||||||||
Reclaim Receivable | — | — | — | 11,809 | ||||||||||||
Total Assets | 84,476,874 | 2,233,350 | 494,372,715 | 42,924,073 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | 2,455,294 | — | 2,537,495 | — | ||||||||||||
Cash Overdraft | 40,228 | — | — | — | ||||||||||||
Payable due to Investment Adviser | 30,545 | 1,222 | 237,265 | 17,242 | ||||||||||||
Payable for Investment Securities Purchased | — | — | 921,452 | — | ||||||||||||
Due to Broker | — | — | 1,696 | — | ||||||||||||
Total Liabilities | 2,526,067 | 1,222 | 3,697,908 | 17,242 | ||||||||||||
Net Assets | $ | 81,950,807 | $ | 2,232,128 | $ | 490,674,807 | $ | 42,906,831 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 68,873,151 | $ | 2,297,749 | $ | 438,476,807 | $ | 36,634,170 | ||||||||
Total Distributable Earnings/(Loss) | 13,077,656 | (65,621 | ) | 52,198,000 | 6,272,661 | |||||||||||
Net Assets | $ | 81,950,807 | $ | 2,232,128 | $ | 490,674,807 | $ | 42,906,831 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 3,900,000 | 150,000 | 26,650,000 | 1,600,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 21.01 | $ | 14.88 | $ | 18.41 | $ | 26.82 | ||||||||
*Includes Market Value of Securities on Loan | $ | 2,422,715 | $ | — | $ | 2,506,740 | $ | — |
129
Statements of Assets and Liabilities | ||
November 30, 2020 |
Global X Health & Wellness Thematic ETF | Global X CleanTech ETF | Global X U.S. Infrastructure Development ETF | Global X Thematic Growth ETF | |||||||||||||
Assets: | ||||||||||||||||
Cost of Investments | $ | 19,062,256 | $ | 26,061,324 | $ | 585,515,010 | $ | 183,785 | ||||||||
Cost of Affiliated Investments | — | — | — | 31,117,391 | ||||||||||||
Cost of Repurchase Agreement | — | — | 1,663,403 | 1,320,800 | ||||||||||||
Cost of Foreign Currency | 5 | 7,583 | — | — | ||||||||||||
Investments, at Value | $ | 20,481,936 | $ | 28,508,132 | $ | 652,683,803 | * | $ | 183,785 | * | ||||||
Repurchase Agreement, at Value | — | — | 1,663,403 | 1,320,800 | ||||||||||||
Affiliated Investments, at Value | — | — | — | 36,029,935 | ||||||||||||
Cash | 10,917 | 111,063 | 479,885 | 46,394 | ||||||||||||
Foreign Currency, at Value | 5 | 151,756 | — | — | ||||||||||||
Dividend and Interest Receivable | 10,224 | 5,486 | 909,389 | 1,720 | ||||||||||||
Reclaim Receivable | 1,013 | — | — | — | ||||||||||||
Receivable for Capital Shares Sold | — | 6,665,595 | 3,035,459 | 2,106,226 | ||||||||||||
Receivable due from Investment Adviser | — | — | — | 2,758 | ||||||||||||
Due from Broker | — | 891,263 | — | — | ||||||||||||
Total Assets | 20,504,095 | 36,333,295 | 658,771,939 | 39,691,618 | ||||||||||||
Liabilities: | ||||||||||||||||
Obligation to Return Securities Lending Collateral | — | — | 1,894,860 | 1,504,585 | ||||||||||||
Payable due to Investment Adviser | 8,182 | 4,392 | 209,755 | — | ||||||||||||
Payable for Investment Securities Purchased | — | 6,912,094 | 3,031,839 | 2,106,187 | ||||||||||||
Payable for Capital Shares Redeemed | — | 891,263 | — | — | ||||||||||||
Unrealized Depreciation on Spot Contracts | — | 2,077 | — | — | ||||||||||||
Total Liabilities | 8,182 | 7,809,826 | 5,136,454 | 3,610,772 | ||||||||||||
Net Assets | $ | 20,495,913 | $ | 28,523,469 | $ | 653,635,485 | $ | 36,080,846 | ||||||||
Net Assets Consist of: | ||||||||||||||||
Paid-in Capital | $ | 19,423,225 | $ | 26,068,557 | $ | 585,193,308 | $ | 31,273,707 | ||||||||
Total Distributable Earnings | 1,072,688 | 2,454,912 | 68,442,177 | 4,807,139 | ||||||||||||
Net Assets | $ | 20,495,913 | $ | 28,523,469 | $ | 653,635,485 | $ | 36,080,846 | ||||||||
Outstanding Shares of Beneficial Interest | ||||||||||||||||
(unlimited authorization — no par value) | 850,000 | 1,500,000 | 32,300,000 | 850,000 | ||||||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 24.11 | $ | 19.02 | $ | 20.24 | $ | 42.45 | ||||||||
*Includes Market Value of Securities on Loan | $ | — | $ | — | $ | 1,810,644 | $ | 1,477,748 |
130
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Robotics & Artificial Intelligence ETF | Global X Internet of Things ETF | Global X FinTech ETF | Global X Video Games and Esports ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 13,490,751 | $ | 2,563,727 | $ | 1,602,796 | $ | 916,190 | ||||||||
Interest Income | 1,805 | 505 | 694 | 519 | ||||||||||||
Security Lending Income | 1,685,601 | 149,767 | 432,779 | 4,357 | ||||||||||||
Less: Foreign Taxes Withheld | (1,434,641 | ) | (146,973 | ) | (28,777 | ) | (100,745 | ) | ||||||||
Total Investment Income | 13,743,516 | 2,567,026 | 2,007,492 | 820,321 | ||||||||||||
Supervision and Administration Fees(1) | 10,431,636 | 1,251,281 | 3,838,755 | 749,405 | ||||||||||||
Custodian Fees(2) | 69,408 | 476 | 9,656 | 3,603 | ||||||||||||
Total Expenses | 10,501,044 | 1,251,757 | 3,848,411 | 753,008 | ||||||||||||
Net Investment Income (Loss) | 3,242,472 | 1,315,269 | (1,840,919 | ) | 67,313 | |||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(3) | 7,751,478 | 16,109,559 | (13,223,386 | ) | 14,640,112 | |||||||||||
Foreign Currency Transactions | (138,371 | ) | 7,540 | 17,893 | (32,839 | ) | ||||||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 7,613,107 | 16,117,099 | (13,205,493 | ) | 14,607,273 | |||||||||||
Net Change in Unrealized Appreciation on: | ||||||||||||||||
Investments | 626,549,033 | 46,235,559 | 238,988,826 | 69,574,293 | ||||||||||||
Foreign Currency Translations | 311,168 | 4,706 | 3,330 | 368 | ||||||||||||
Net Change in Unrealized Appreciation on Investments and Foreign Currency Transactions | 626,860,201 | 46,240,265 | 238,992,156 | 69,574,661 | ||||||||||||
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions | 634,473,308 | 62,357,364 | 225,786,663 | 84,181,934 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 637,715,780 | $ | 63,672,633 | $ | 223,945,744 | $ | 84,249,247 |
(1) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(2) | See Note 2 in the Notes to Financial Statements. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
131
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Autonomous & Electric Vehicles ETF | Global X Cloud Computing ETF | Global X Data Center REITs & Digital Infrastructure ETF(1) | Global X Cybersecurity ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 402,735 | $ | 1,119,668 | $ | 1,492 | $ | 187,562 | ||||||||
Security Lending Income | 43,977 | 976 | — | — | ||||||||||||
Less: Foreign Taxes Withheld | (27,153 | ) | — | — | (801 | ) | ||||||||||
Total Investment Income | 419,559 | 1,120,644 | 1,492 | 186,761 | ||||||||||||
Supervision and Administration Fees(2) | 211,919 | 5,236,624 | 984 | 120,641 | ||||||||||||
Custodian Fees(3) | 136 | 2,962 | 2 | 127 | ||||||||||||
Total Expenses | 212,055 | 5,239,586 | 986 | 120,768 | ||||||||||||
Waiver of Supervision and Administration Fees | – | – | – | (20,107 | ) | |||||||||||
Net Expenses | 212,055 | 5,239,586 | 986 | 100,661 | ||||||||||||
Net Investment Income (Loss) | 207,504 | (4,118,942 | ) | 506 | 86,100 | |||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(4) | 1,784,565 | 147,407,775 | — | 1,491,522 | ||||||||||||
Foreign Currency Transactions | (4,029 | ) | (15,591 | ) | 162 | (14,746 | ) | |||||||||
Net Realized Gain on Investments and Foreign Currency Transactions | 1,780,536 | 147,392,184 | 162 | 1,476,776 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investments | 20,973,535 | 242,627,213 | (8,839 | ) | 4,518,503 | |||||||||||
Foreign Currency Translations | 428 | 10 | 6 | 22 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 20,973,963 | 242,627,223 | (8,833 | ) | 4,518,525 | |||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | 22,754,499 | 390,019,407 | (8,671 | ) | 5,995,301 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 22,962,003 | $ | 385,900,465 | $ | (8,165 | ) | $ | 6,081,401 |
(1) | The Fund commenced operations on October 27, 2020. |
(2) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(3) | See Note 2 in the Notes to Financial Statements. |
(4) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
132
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Artificial Intelligence & Technology ETF | Global X Millennials Thematic ETF | Global X Education ETF(1) | Global X Cannabis ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 941,898 | $ | 555,045 | $ | 5,840 | $ | — | ||||||||
Interest Income | — | 268 | 3 | — | ||||||||||||
Security Lending Income | 226 | 15,958 | — | 949,114 | ||||||||||||
Less: Foreign Taxes Withheld | (23,539 | ) | — | (336 | ) | — | ||||||||||
Total Investment Income | 918,585 | 571,271 | 5,507 | 949,114 | ||||||||||||
Supervision and Administration Fees(2) | 424,053 | 460,059 | 9,790 | 55,170 | ||||||||||||
Tax Expense | — | — | — | 22 | ||||||||||||
Custodian Fees(3) | — | 22 | 111 | 519 | ||||||||||||
Total Expenses | 424,053 | 460,081 | 9,901 | 55,711 | ||||||||||||
Waiver of Supervision and Administration Fees | – | (45,898 | ) | – | – | |||||||||||
Net Expenses | 424,053 | 414,183 | 9,901 | 55,711 | ||||||||||||
Net Investment Income (Loss) | 494,532 | 157,088 | (4,394 | ) | 893,403 | |||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(4) | 5,048,568 | 1,634,770 | 67,635 | (3,818,962 | ) | |||||||||||
Foreign Currency Transactions | (493 | ) | — | (219 | ) | 13,716 | ||||||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 5,048,075 | 1,634,770 | 67,416 | (3,805,246 | ) | |||||||||||
Net Change in Unrealized Appreciation on: | ||||||||||||||||
Investments | 20,629,766 | 26,411,623 | 459,912 | 6,618,255 | ||||||||||||
Foreign Currency Translations | 16 | — | 20 | — | ||||||||||||
Net Change in Unrealized Appreciation on Investments and Foreign Currency Transactions | 20,629,782 | 26,411,623 | 459,932 | 6,618,255 | ||||||||||||
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions | 25,677,857 | 28,046,393 | 527,348 | 2,813,009 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 26,172,389 | $ | 28,203,481 | $ | 522,954 | $ | 3,706,412 |
(1) | The Fund commenced operations on July 10, 2020. |
(2) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(3) | See Note 2 in the Notes to Financial Statements. |
(4) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
133
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Genomics & Biotechnology ETF | Global X China Biotech Innovation ETF(1) | Global X Telemedicine & Digital Health ETF(2) | Global X Longevity Thematic ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 43,042 | $ | 64 | $ | 947,802 | $ | 295,479 | ||||||||
Interest Income | — | — | 1 | 148 | ||||||||||||
Security Lending Income | 17,159 | — | 3,611 | — | ||||||||||||
Less: Foreign Taxes Withheld | — | (6 | ) | (13 | ) | (11,629 | ) | |||||||||
Total Investment Income | 60,201 | 58 | 951,401 | 283,998 | ||||||||||||
Supervision and Administration Fees(3) | 214,963 | 2,389 | 753,847 | 168,208 | ||||||||||||
Custodian Fees(4) | 119 | 57 | 321 | 399 | ||||||||||||
Total Expenses | 215,082 | 2,446 | 754,168 | 168,607 | ||||||||||||
Waiver of Supervision and Administration Fees | – | – | – | (14,995 | ) | |||||||||||
Net Expenses | 215,082 | 2,446 | 754,168 | 153,612 | ||||||||||||
Net Investment Income (Loss) | (154,881 | ) | (2,388 | ) | 197,233 | 130,386 | ||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(5) | 5,201,191 | (5,744 | ) | 4,216,090 | 1,122,040 | |||||||||||
Foreign Currency Transactions | 5,339 | 64 | (3,929 | ) | (969 | ) | ||||||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 5,206,530 | (5,680 | ) | 4,212,161 | 1,121,071 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
Investments | 12,154,278 | (57,553 | ) | 54,952,002 | 3,220,917 | |||||||||||
Foreign Currency Translations | — | — | — | 1,079 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 12,154,278 | (57,553 | ) | 54,952,002 | 3,221,996 | |||||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | 17,360,808 | (63,233 | ) | 59,164,163 | 4,343,067 | |||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 17,205,927 | $ | (65,621 | ) | $ | 59,361,396 | $ | 4,473,453 |
(1) | The Fund commenced operations on September 22, 2020. |
(2) | The Fund commenced operations on July 29, 2020. |
(3) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(4) | See Note 2 in the Notes to Financial Statements. |
(5) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
134
Statements of Operations | ||
For the year ended November 30, 2020 |
Global X Health & Wellness Thematic ETF | Global X CleanTech ETF(1) | Global X U.S. Infrastructure Development ETF | Global X Thematic Growth ETF | |||||||||||||
Investment Income: | ||||||||||||||||
Dividend Income | $ | 208,578 | $ | 14,936 | $ | 3,004,200 | $ | — | ||||||||
Dividend Income, from Affiliated Investments | — | — | — | 17,724 | ||||||||||||
Interest Income | 48 | — | 1,101 | — | ||||||||||||
Security Lending Income | — | — | 6,921 | 1,720 | ||||||||||||
Less: Foreign Taxes Withheld | (16,359 | ) | — | — | — | |||||||||||
Total Investment Income | 192,267 | 14,936 | 3,012,222 | 19,444 | ||||||||||||
Supervision and Administration Fees(2) | 111,327 | 4,454 | 992,568 | 57,230 | ||||||||||||
Tax Expense | — | — | — | 9 | ||||||||||||
Custodian Fees(3) | 93 | 3 | — | 150 | ||||||||||||
Total Expenses | 111,420 | 4,457 | 992,568 | 57,389 | ||||||||||||
Waiver of Supervision and Administration Fees | (13,369 | ) | – | – | – | |||||||||||
Reimbursement from Advisor(4) | – | – | – | (71,038 | ) | |||||||||||
Net Expenses | 98,051 | 4,457 | 992,568 | (13,649 | ) | |||||||||||
Net Investment Income | 94,216 | 10,479 | 2,019,654 | 33,093 | ||||||||||||
Net Realized Gain (Loss) on: | ||||||||||||||||
Investments(5) | 2,167,476 | — | (8,543,451 | ) | — | |||||||||||
Affiliated Investments | — | — | — | 2,753,474 | ||||||||||||
Foreign Currency Transactions | (2,037 | ) | (2,573 | ) | — | — | ||||||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 2,165,439 | (2,573 | ) | (8,543,451 | ) | 2,753,474 | ||||||||||
Net Change in Unrealized Appreciation on: | ||||||||||||||||
Investments | 47,088 | 2,446,808 | 62,924,477 | — | ||||||||||||
Affiliated Investments | — | — | — | 4,786,079 | ||||||||||||
Foreign Currency Translations | 213 | 198 | — | — | ||||||||||||
Net Change in Unrealized Appreciation on Investments and Foreign Currency Transactions | 47,301 | 2,447,006 | 62,924,477 | 4,786,079 | ||||||||||||
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions | 2,212,740 | 2,444,433 | 54,381,026 | 7,539,553 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 2,306,956 | $ | 2,454,912 | $ | 56,400,680 | $ | 7,572,646 |
(1) | The Fund commenced operations on October 27, 2020. |
(2) | The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(3) | See Note 2 in the Notes to Financial Statements. |
(4) | See Note 3 in the Notes to Financial Statements. |
(5) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
135
Statements of Changes in Net Assets | ||
Global X Robotics & Artificial Intelligence ETF | Global X Internet of Things ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 3,242,472 | $ | 14,691,492 | $ | 1,315,269 | $ | 907,798 | ||||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(1) | 7,613,107 | (71,791,655 | ) | 16,117,099 | 2,605,613 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 626,860,201 | 174,540,858 | 46,240,265 | 19,706,941 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 637,715,780 | 117,440,695 | 63,672,633 | 23,220,352 | ||||||||||||
Distributions | (5,209,655 | ) | (30,149,775 | ) | (1,147,071 | ) | (1,268,719 | ) | ||||||||
Return of Capital | (891,490 | ) | — | — | — | |||||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 410,953,206 | 198,574,452 | 137,037,322 | 46,707,944 | ||||||||||||
Redeemed | (364,376,798 | ) | (532,155,618 | ) | (34,682,420 | ) | (20,015,531 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 46,576,408 | (333,581,166 | ) | 102,354,902 | 26,692,413 | |||||||||||
Total Increase (Decrease) in Net Assets | 678,191,043 | (246,290,246 | ) | 164,880,464 | 48,644,046 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 1,479,983,544 | 1,726,273,790 | 131,627,488 | 82,983,442 | ||||||||||||
End of Year | $ | 2,158,174,587 | $ | 1,479,983,544 | $ | 296,507,952 | $ | 131,627,488 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 15,950,000 | 10,050,000 | 5,600,000 | 2,250,000 | ||||||||||||
Redeemed | (17,100,000 | ) | (28,650,000 | ) | (1,450,000 | ) | (1,100,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | (1,150,000 | ) | (18,600,000 | ) | 4,150,000 | 1,150,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
136
Statements of Changes in Net Assets | ||
Global X FinTech ETF | Global X Video Games and Esports ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Period Ended November 30, 2019(1) | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income (Loss) | $ | (1,840,919 | ) | $ | (1,053,315 | ) | $ | 67,313 | $ | (626 | ) | |||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(2) | (13,205,493 | ) | (4,418,286 | ) | 14,607,273 | 483 | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 238,992,156 | 72,298,458 | 69,574,661 | 73,582 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 223,945,744 | 66,826,857 | 84,249,247 | 73,439 | ||||||||||||
Distributions | — | (60,368 | ) | (67,560 | ) | — | ||||||||||
Return of Capital | — | (437,339 | ) | — | — | |||||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 278,249,866 | 112,979,438 | 452,438,823 | 1,499,313 | ||||||||||||
Redeemed | (41,173,195 | ) | (93,890,807 | ) | (56,852,547 | ) | — | |||||||||
Increase in Net Assets from Capital Share Transactions | 237,076,671 | 19,088,631 | 395,586,276 | 1,499,313 | ||||||||||||
Total Increase in Net Assets | 461,022,415 | 85,417,781 | 479,767,963 | 1,572,752 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year/Period | 413,152,134 | 327,734,353 | 1,572,752 | — | ||||||||||||
End of Year/Period | $ | 874,174,549 | $ | 413,152,134 | $ | 481,340,715 | $ | 1,572,752 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 8,300,000 | 3,950,000 | 19,250,000 | 100,000 | ||||||||||||
Redeemed | (1,400,000 | ) | (3,750,000 | ) | (2,500,000 | ) | — | |||||||||
Net Increase in Shares Outstanding from Share Transactions | 6,900,000 | 200,000 | 16,750,000 | 100,000 |
(1) | The Fund commenced operations on October 25, 2019. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
137
Statements of Changes in Net Assets | ||
Global X Autonomous & Electric Vehicles ETF | Global X Cloud Computing ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Period Ended November 30, 2019(1) | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income (Loss) | $ | 207,504 | $ | 218,070 | $ | (4,118,942 | ) | $ | (1,071,525 | ) | ||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(2) | 1,780,536 | (481,109 | ) | 147,392,184 | 6,663,002 | |||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 20,973,963 | 1,721,329 | 242,627,223 | 9,616,450 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 22,962,003 | 1,458,290 | 385,900,465 | 15,207,927 | ||||||||||||
Distributions | (148,067 | ) | (415,562 | ) | (216,000 | ) | — | |||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 102,125,471 | 6,662,488 | 909,735,434 | 530,991,397 | ||||||||||||
Redeemed | (3,871,797 | ) | (8,098,341 | ) | (362,316,444 | ) | (73,813,774 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 98,253,674 | (1,435,853 | ) | 547,418,990 | 457,177,623 | |||||||||||
Total Increase (Decrease) in Net Assets | 121,067,610 | (393,125 | ) | 933,103,455 | 472,385,550 | |||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year/Period | 14,854,927 | 15,248,052 | 472,385,550 | — | ||||||||||||
End of Year/Period | $ | 135,922,537 | $ | 14,854,927 | $ | 1,405,489,005 | $ | 472,385,550 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 5,450,000 | 500,000 | 42,050,000 | 34,400,000 | ||||||||||||
Redeemed | (250,000 | ) | (600,000 | ) | (17,200,000 | ) | (4,850,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | 5,200,000 | (100,000 | ) | 24,850,000 | 29,550,000 |
(1) | The Fund commenced operations on April 12, 2019. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
138
Statements of Changes in Net Assets | ||
Global X Data Center REITs & Digital Infrastructure ETF | Global X Cybersecurity ETF | |||||||||||
Period Ended November 30, 2020(1) | Year Ended November 30, 2020 | Period Ended November 30, 2019(2) | ||||||||||
Operations: | ||||||||||||
Net Investment Income (Loss) | $ | 506 | $ | 86,100 | $ | (229 | ) | |||||
Net Realized Gain on Investments and Foreign Currency Transactions(3) | 162 | 1,476,776 | 2,135 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | (8,833 | ) | 4,518,525 | 184,833 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (8,165 | ) | 6,081,401 | 186,739 | ||||||||
Distributions | — | (130,636 | ) | — | ||||||||
Capital Share Transactions: | ||||||||||||
Issued | 3,743,722 | 42,185,801 | 1,527,026 | |||||||||
Redeemed | — | (3,216,779 | ) | — | ||||||||
Increase in Net Assets from Capital Share Transactions | 3,743,722 | 38,969,022 | 1,527,026 | |||||||||
Total Increase in Net Assets | 3,735,557 | 44,919,787 | 1,713,765 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year/Period | — | 1,713,765 | — | |||||||||
End of Year/Period | $ | 3,735,557 | $ | 46,633,552 | $ | 1,713,765 | ||||||
Share Transactions: | ||||||||||||
Issued | 250,000 | 2,100,000 | 100,000 | |||||||||
Redeemed | — | (150,000 | ) | — | ||||||||
Net Increase in Shares Outstanding from Share Transactions | 250,000 | 1,950,000 | 100,000 |
(1) | The Fund commenced operations on October 27, 2020. |
(2) | The Fund commenced operations on October 25, 2019. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
139
Statements of Changes in Net Assets | ||
Global X Artificial Intelligence & Technology ETF | Global X Millennials Thematic ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Year Ended November 30, 2019 | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 494,532 | $ | 238,611 | $ | 157,088 | $ | 219,456 | ||||||||
Net Realized Gain on Investments and Foreign Currency Transactions(1) | 5,048,075 | 491,558 | 1,634,770 | 6,663,020 | ||||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 20,629,782 | 7,493,801 | 26,411,623 | (396,943 | ) | |||||||||||
Net Increase in Net Assets Resulting from Operations | 26,172,389 | 8,223,970 | 28,203,481 | 6,485,533 | ||||||||||||
Distributions | (293,815 | ) | (298,087 | ) | (326,460 | ) | (174,812 | ) | ||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 65,644,332 | 9,486,924 | 26,317,605 | 64,196,494 | ||||||||||||
Redeemed | (15,598,992 | ) | (15,169,333 | ) | (15,066,868 | ) | (26,402,805 | ) | ||||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | 50,045,340 | (5,682,409 | ) | 11,250,737 | 37,793,689 | |||||||||||
Total Increase in Net Assets | 75,923,914 | 2,243,474 | 39,127,758 | 44,104,410 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year | 44,244,595 | 42,001,121 | 75,382,916 | 31,278,506 | ||||||||||||
End of Year | $ | 120,168,509 | $ | 44,244,595 | $ | 114,510,674 | $ | 75,382,916 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 2,900,000 | 600,000 | 900,000 | 2,600,000 | ||||||||||||
Redeemed | (800,000 | ) | (1,000,000 | ) | (600,000 | ) | (1,100,000 | ) | ||||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | 2,100,000 | (400,000 | ) | 300,000 | 1,500,000 |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
140
Statements of Changes in Net Assets | ||
Global X Education ETF | Global X Cannabis ETF | |||||||||||
Period Ended November 30, 2020(1) | Year Ended November 30, 2020 | Period Ended November 30, 2019(2) | ||||||||||
Operations: | ||||||||||||
Net Investment Income (Loss) | $ | (4,394 | ) | $ | 893,403 | $ | 37,302 | |||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(3) | 67,416 | (3,805,246 | ) | (91,174 | ) | |||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 459,932 | 6,618,255 | (1,105,750 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 522,954 | 3,706,412 | (1,159,622 | ) | ||||||||
Distributions | — | (501,916 | ) | — | ||||||||
Capital Share Transactions: | ||||||||||||
Issued | 7,879,257 | 28,360,906 | 5,754,085 | |||||||||
Redeemed | (1,546,466 | ) | — | — | ||||||||
Increase in Net Assets from Capital Share Transactions | 6,332,791 | 28,360,906 | 5,754,085 | |||||||||
Total Increase in Net Assets | 6,855,745 | 31,565,402 | 4,594,463 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year/Period | — | 4,594,463 | — | |||||||||
End of Year/Period | $ | 6,855,745 | $ | 36,159,865 | $ | 4,594,463 | ||||||
Share Transactions: | ||||||||||||
Issued | 500,000 | 2,700,000 | 300,000 | |||||||||
Redeemed | (100,000 | ) | — | — | ||||||||
Net Increase in Shares Outstanding from Share Transactions | 400,000 | 2,700,000 | 300,000 |
(1) | The Fund commenced operations on July 10, 2020. |
(2) | The Fund commenced operations on September 17, 2019. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
141
Statements of Changes in Net Assets | ||
Global X Genomics & Biotechnology ETF | Global X China Biotech Innovation ETF | |||||||||||
Year Ended November 30, 2020 | Period Ended November 30, 2019(1) | Period Ended November 30, 2020(2) | ||||||||||
Operations: | ||||||||||||
Net Investment Loss | $ | (154,881 | ) | $ | (34,304 | ) | $ | (2,388 | ) | |||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(3) | 5,206,530 | (85,734 | ) | (5,680 | ) | |||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 12,154,278 | 1,935,322 | (57,553 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 17,205,927 | 1,815,284 | (65,621 | ) | ||||||||
Capital Share Transactions: | ||||||||||||
Issued | 57,860,443 | 16,918,798 | 2,297,749 | |||||||||
Redeemed | (11,849,645 | ) | — | — | ||||||||
Increase in Net Assets from Capital Share Transactions | 46,010,798 | 16,918,798 | 2,297,749 | |||||||||
Total Increase (Decrease) in Net Assets | 63,216,725 | 18,734,082 | 2,232,128 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year/Period | 18,734,082 | — | — | |||||||||
End of Year/Period | $ | 81,950,807 | $ | 18,734,082 | $ | 2,232,128 | ||||||
Share Transactions: | ||||||||||||
Issued | 3,350,000 | 1,200,000 | 150,000 | |||||||||
Redeemed | (650,000 | ) | — | — | ||||||||
Net Increase in Shares Outstanding from Share Transactions | 2,700,000 | 1,200,000 | 150,000 |
(1) | The Fund commenced operations on April 5, 2019. |
(2) | The Fund commenced operations on September 22, 2020. |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
142
Statements of Changes in Net Assets | ||
Global X Telemedicine & Digital Health ETF | Global X Longevity Thematic ETF | |||||||||||
Period Ended November 30, 2020(1) | Year Ended November 30, 2020 | Year Ended November 30, 2019 | ||||||||||
Operations: | ||||||||||||
Net Investment Income | $ | 197,233 | $ | 130,386 | $ | 112,028 | ||||||
Net Realized Gain on Investments and Foreign Currency Transactions(2) | 4,212,161 | 1,121,071 | 369,749 | |||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 54,952,002 | 3,221,996 | 2,517,693 | |||||||||
Net Increase in Net Assets Resulting from Operations | 59,361,396 | 4,473,453 | 2,999,470 | |||||||||
Distributions | — | (207,290 | ) | (185,161 | ) | |||||||
Capital Share Transactions: | ||||||||||||
Issued | 450,607,051 | 18,592,284 | 6,291,263 | |||||||||
Redeemed | (19,293,640 | ) | (3,499,173 | ) | (1,061,405 | ) | ||||||
Increase in Net Assets from Capital Share Transactions | 431,313,411 | 15,093,111 | 5,229,858 | |||||||||
Total Increase in Net Assets | 490,674,807 | 19,359,274 | 8,044,167 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year/Period | — | 23,547,557 | 15,503,390 | |||||||||
End of Year/Period | $ | 490,674,807 | $ | 42,906,831 | $ | 23,547,557 | ||||||
Share Transactions: | ||||||||||||
Issued | 27,750,000 | 750,000 | 300,000 | |||||||||
Redeemed | (1,100,000 | ) | (150,000 | ) | (50,000 | ) | ||||||
Net Increase in Shares Outstanding from Share Transactions | 26,650,000 | 600,000 | 250,000 |
(1) | The Fund commenced operations on July 29, 2020. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
143
Statements of Changes in Net Assets | ||
Global X Health & Wellness Thematic ETF | Global X CleanTech ETF | |||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Period Ended November 30, 2020(1) | ||||||||||
Operations: | ||||||||||||
Net Investment Income | $ | 94,216 | $ | 125,259 | $ | 10,479 | ||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(2) | 2,165,439 | 874,756 | (2,573 | ) | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 47,301 | 1,775,531 | 2,447,006 | |||||||||
Net Increase in Net Assets Resulting from Operations | 2,306,956 | 2,775,546 | 2,454,912 | |||||||||
Distributions | (95,104 | ) | (120,454 | ) | — | |||||||
Capital Share Transactions: | ||||||||||||
Issued | 14,278,870 | 13,239,961 | 26,068,557 | |||||||||
Redeemed | (16,109,523 | ) | (6,002,098 | ) | — | |||||||
Increase (Decrease) in Net Assets from Capital Share Transactions | (1,830,653 | ) | 7,237,863 | 26,068,557 | ||||||||
Total Increase in Net Assets | 381,199 | 9,892,955 | 28,523,469 | |||||||||
Net Assets: | ||||||||||||
Beginning of Year/Period | 20,114,714 | 10,221,759 | — | |||||||||
End of Year/Period | $ | 20,495,913 | $ | 20,114,714 | $ | 28,523,469 | ||||||
Share Transactions: | ||||||||||||
Issued | 700,000 | 700,000 | 1,500,000 | |||||||||
Redeemed | (800,000 | ) | (300,000 | ) | — | |||||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | (100,000 | ) | 400,000 | 1,500,000 |
(1) | The Fund commenced operations on October 27, 2020. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
144
Statements of Changes in Net Assets | ||
Global X U.S. Infrastructure Development ETF | Global X Thematic Growth ETF | |||||||||||||||
Year Ended November 30, 2020 | Year Ended November 30, 2019 | Year Ended November 30, 2020 | Period Ended November 30, 2019(1) | |||||||||||||
Operations: | ||||||||||||||||
Net Investment Income | $ | 2,019,654 | $ | 1,121,799 | $ | 33,093 | $ | 352 | ||||||||
Net Realized Gain (Loss) on Investments(2) | (8,543,451 | ) | (125,130 | ) | 2,753,474 | — | ||||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments | 62,924,477 | 13,930,447 | 4,786,079 | 126,465 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 56,400,680 | 14,927,116 | 7,572,646 | 126,817 | ||||||||||||
Distributions | (1,004,004 | ) | (1,424,719 | ) | (16,854 | ) | — | |||||||||
Capital Share Transactions: | ||||||||||||||||
Issued | 481,978,464 | 54,745,683 | 47,069,175 | 2,523,000 | ||||||||||||
Redeemed | (66,804,212 | ) | (26,097,564 | ) | (21,193,938 | ) | — | |||||||||
Increase in Net Assets from Capital Share Transactions | 415,174,252 | 28,648,119 | 25,875,237 | 2,523,000 | ||||||||||||
Total Increase in Net Assets | 470,570,928 | 42,150,516 | 33,431,029 | 2,649,817 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of Year/Period | 183,064,557 | 140,914,041 | 2,649,817 | — | ||||||||||||
End of Year/Period | $ | 653,635,485 | $ | 183,064,557 | $ | 36,080,846 | $ | 2,649,817 | ||||||||
Share Transactions: | ||||||||||||||||
Issued | 27,150,000 | 3,250,000 | 1,350,000 | 100,000 | ||||||||||||
Redeemed | (5,350,000 | ) | (1,800,000 | ) | (600,000 | ) | — | |||||||||
Net Increase in Shares Outstanding from Share Transactions | 21,800,000 | 1,450,000 | 750,000 | 100,000 |
(1) | The Fund commenced operations on October 25, 2019. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
145
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146
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | |||||||||||||||||||
Global X Robotics & Artificial Intelligence ETF | ||||||||||||||||||||||||
2020 | 21.43 | 0.05 | 10.39 | 10.44 | (0.08 | ) | — | |||||||||||||||||
2019 | 19.70 | 0.19 | 1.93 | 2.12 | (0.39 | ) | — | |||||||||||||||||
2018 | 23.96 | 0.19 | (4.45 | ) | (4.26 | ) | — | — | ||||||||||||||||
2017 | 14.87 | 0.01 | 9.09 | 9.10 | (0.01 | ) | — | |||||||||||||||||
2016(1) | 14.84 | 0.02 | 0.01 | 0.03 | — | — | ||||||||||||||||||
Global X Internet of Things ETF | ||||||||||||||||||||||||
2020 | 22.89 | 0.17 | 7.08 | 7.25 | (0.19 | ) | — | |||||||||||||||||
2019 | 18.04 | 0.20 | 4.93 | 5.13 | (0.28 | ) | — | |||||||||||||||||
2018 | 20.12 | 0.17 | (2.03 | ) | (1.86 | ) | (0.11 | ) | (0.11 | ) | ||||||||||||||
2017 | 15.52 | 0.16 | 4.49 | 4.65 | (0.05 | ) | — | |||||||||||||||||
2016(1) | 15.04 | 0.09 | 0.39 | 0.48 | — | — | ||||||||||||||||||
Global X FinTech ETF | ||||||||||||||||||||||||
2020 | 30.49 | (0.11 | ) | 12.37 | 12.26 | — | — | |||||||||||||||||
2019 | 24.55 | (0.08 | ) | 6.06 | 5.98 | — | — | |||||||||||||||||
2018 | 21.79 | (0.08 | ) | 2.86 | 2.78 | — | (0.02 | ) | ||||||||||||||||
2017 | 14.91 | (0.03 | ) | 6.91 | 6.88 | — | — | |||||||||||||||||
2016(1) | 15.08 | (0.01 | ) | (0.16 | ) | (0.17 | ) | — | — | |||||||||||||||
Global X Video Games and Esports ETF | ||||||||||||||||||||||||
2020 | 15.73 | 0.02 | 12.86 | 12.88 | (0.04 | ) | — | |||||||||||||||||
2019(2) | 14.99 | — | 0.74 | 0.74 | — | — |
147
Financial Highlights | ||
Return of Capital ($) | Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | |||||||||||||||||||||||
(0.01 | ) | (0.09 | ) | 31.78 | 48.90 | 2,158,175 | 0.68 | 0.21 | 22.27 | |||||||||||||||||||||
— | (0.39 | ) | 21.43 | 11.16 | 1,479,984 | 0.68 | 0.98 | 10.97 | ||||||||||||||||||||||
— | *** | 19.70 | (17.77 | ) | 1,726,274 | 0.70 | 0.83 | 28.50 | ||||||||||||||||||||||
— | (0.01 | ) | 23.96 | 61.22 | 1,412,589 | 0.69 | 0.05 | 15.29 | ||||||||||||||||||||||
— | — | 14.87 | 0.20 | 2,974 | 0.68 | † | 0.62 | † | — | |||||||||||||||||||||
— | (0.19 | ) | 29.95 | 31.88 | 296,508 | 0.68 | 0.71 | 14.28 | ||||||||||||||||||||||
— | (0.28 | ) | 22.89 | 29.01 | 131,627 | 0.68 | 1.04 | 11.71 | ||||||||||||||||||||||
— | (0.22 | ) | 18.04 | (9.33 | ) | 82,983 | 0.69 | 0.88 | 16.69 | |||||||||||||||||||||
— | (0.05 | ) | 20.12 | 30.04 | 85,521 | 0.70 | 0.85 | 24.90 | ||||||||||||||||||||||
— | — | 15.52 | 3.19 | 3,881 | 0.68 | † | 2.75 | † | 0.39 | |||||||||||||||||||||
— | — | 42.75 | 40.21 | 874,175 | 0.68 | (0.33 | ) | 15.75 | ||||||||||||||||||||||
(0.04 | ) | (0.04 | ) | 30.49 | 24.42 | 413,152 | 0.68 | (0.29 | ) | 16.40 | ||||||||||||||||||||
— | (0.02 | ) | 24.55 | 12.79 | 327,734 | 0.68 | (0.29 | ) | 20.58 | |||||||||||||||||||||
— | — | 21.79 | 46.14 | 50,106 | 0.68 | (0.13 | ) | 11.65 | ||||||||||||||||||||||
— | — | 14.91 | (1.13 | ) | 1,491 | 0.68 | † | (0.20 | )† | — | ||||||||||||||||||||
— | (0.04 | ) | 28.57 | 82.04 | 481,341 | 0.50 | 0.04 | 12.02 | ||||||||||||||||||||||
— | — | 15.73 | 4.94 | 1,573 | 0.50 | † | (0.45 | )† | 0.27 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
*** | Amount is less than $0.005. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
(1) | The Fund commenced operations on September 12, 2016. |
(2) | The Fund commenced operations on October 25, 2019. |
Amounts designated as “—” are either $0 or have been rounded to $0.
148
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | |||||||||||||||||||
Global X Autonomous & Electric Vehicles ETF | ||||||||||||||||||||||||
2020 | 14.15 | 0.11 | 7.61 | 7.72 | (0.12 | ) | — | |||||||||||||||||
2019 | 13.26 | 0.22 | 1.11 | 1.33 | (0.44 | ) | — | |||||||||||||||||
2018(1) | 15.00 | 0.11 | (1.85 | ) | (1.74 | ) | — | — | ||||||||||||||||
Global X Cloud Computing ETF | ||||||||||||||||||||||||
2020 | 15.99 | (0.11 | ) | 9.97 | 9.86 | — | (0.01 | ) | ||||||||||||||||
2019(2) | 15.06 | (0.04 | ) | 0.97 | 0.93 | — | — | |||||||||||||||||
Global X Data Center REITs & Digital Infrastructure ETF | ||||||||||||||||||||||||
2020(3) | 14.97 | — | (0.03 | ) | (0.03 | ) | — | — | ||||||||||||||||
Global X Cybersecurity ETF | ||||||||||||||||||||||||
2020 | 17.14 | 0.09 | 5.67 | 5.76 | (0.13 | ) | (0.02 | ) | ||||||||||||||||
2019(4) | 15.27 | — | 1.87 | 1.87 | — | — |
149
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(0.12 | ) | 21.75 | 54.98 | 135,923 | 0.68 | 0.67 | 13.76 | |||||||||||||||||||
(0.44 | ) | 14.15 | 10.61 | 14,855 | 0.68 | 1.67 | 31.26 | |||||||||||||||||||
— | 13.26 | (11.60 | ) | 15,248 | 0.68 | † | 1.21 | † | 23.57 | |||||||||||||||||
(0.01 | ) | 25.84 | 61.68 | 1,405,489 | 0.68 | (0.53 | ) | 23.03 | ||||||||||||||||||
— | 15.99 | 6.18 | 472,386 | 0.68 | † | (0.44 | )† | 12.52 | ||||||||||||||||||
— | 14.94 | (0.20 | ) | 3,736 | 0.50 | † | 0.26 | † | — | |||||||||||||||||
(0.15 | ) | 22.75 | 33.78 | 46,634 | 0.50 | ^ | 0.43 | 21.29 | ||||||||||||||||||
— | 17.14 | 12.25 | 1,714 | 0.50 | †^ | (0.16 | )† | 3.57 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
^ | The ratio of Expenses to Average Net Assets includes the effect of a waiver. If theses offsets were excluded, the ratio would have been 0.60%. |
(1) | The Fund commenced operations on April 13, 2018. |
(2) | The Fund commenced operations on April 12, 2019. |
(3) | The Fund commenced operations on October 27, 2020. |
(4) | The Fund commenced operations on October 25, 2019. |
Amounts designated as “—” are either $0 or have been rounded to $0.
150
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | |||||||||||||||||||
Global X Artificial Intelligence & Technology ETF | ||||||||||||||||||||||||
2020 | 17.35 | 0.17 | 8.44 | 8.61 | (0.12 | ) | — | |||||||||||||||||
2019 | 14.24 | 0.10 | 3.13 | 3.23 | (0.12 | ) | — | |||||||||||||||||
2018(1) | 15.00 | 0.05 | (0.81 | ) | (0.76 | ) | — | — | ||||||||||||||||
Global X Millennials Thematic ETF | ||||||||||||||||||||||||
2020 | 25.55 | 0.05 | 9.74 | 9.79 | (0.10 | ) | (0.01 | ) | ||||||||||||||||
2019 | 21.57 | 0.10 | 3.99 | 4.09 | (0.10 | ) | (0.01 | ) | ||||||||||||||||
2018 | 19.11 | 0.09 | 2.54 | 2.63 | (0.05 | ) | (0.12 | ) | ||||||||||||||||
2017 | 15.58 | 0.07 | 3.51 | 3.58 | (0.05 | ) | — | |||||||||||||||||
2016(2) | 14.95 | 0.05 | 0.58 | 0.63 | — | — | ||||||||||||||||||
Global X Education ETF | ||||||||||||||||||||||||
2020(3) | 15.20 | (0.01 | ) | 1.95 | 1.94 | — | — | |||||||||||||||||
Global X Cannabis ETF | ||||||||||||||||||||||||
2020 | 15.31 | 0.81 | (3.46 | ) | (2.65 | ) | (0.61 | ) | — | |||||||||||||||
2019(4) | 24.41 | 0.22 | (9.32 | ) | (9.10 | ) | — | — |
151
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(0.12 | ) | 25.84 | 49.84 | 120,169 | 0.68 | 0.79 | 19.45 | |||||||||||||||||||
(0.12 | ) | 17.35 | 22.87 | 44,245 | 0.68 | 0.61 | 16.34 | |||||||||||||||||||
— | 14.24 | (5.07 | ) | 42,001 | 0.68 | † | 0.54 | † | 7.93 | |||||||||||||||||
(0.11 | ) | 35.23 | 38.47 | 114,511 | 0.50 | ^ | 0.19 | 7.11 | ||||||||||||||||||
(0.11 | ) | 25.55 | 19.07 | 75,383 | 0.50 | ^ | 0.42 | 10.44 | ||||||||||||||||||
(0.17 | ) | 21.57 | 13.87 | 31,279 | 0.50 | ^ | 0.40 | 10.94 | ||||||||||||||||||
(0.05 | ) | 19.11 | 23.05 | 11,467 | 0.54 | ^ | 0.40 | 20.97 | ||||||||||||||||||
— | 15.58 | 4.21 | 3,896 | 0.68 | † | 0.59 | † | — | ||||||||||||||||||
— | 17.14 | 12.76 | 6,856 | 0.51 | † | (0.23 | )† | 10.62 | ||||||||||||||||||
(0.61 | ) | 12.05 | (17.03 | ) | 36,160 | 0.51 | 8.11 | 59.79 | ||||||||||||||||||
— | 15.31 | (37.28 | ) | 4,594 | 0.50 | † | 6.19 | † | 11.40 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
^ | Effective April 1, 2020, the Fund’s fees were permanently lowered to 0.50%. Prior to April 1, 2020, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.56%, 0.68%, 0.68% and 0.68%, for the years ended November 30, 2020, 2019, 2018, and 2017, respectively. |
(1) | The Fund commenced operations on May 11, 2018. |
(2) | The Fund commenced operations on May 4, 2016. |
(3) | The Fund commenced operations on July 10, 2020. |
(4) | The Fund commenced operations on September 17, 2019. |
152
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | |||||||||||||||||||
Global X Genomics & Biotechnology ETF | ||||||||||||||||||||||||
2020 | 15.61 | (0.07 | ) | 5.47 | 5.40 | — | — | |||||||||||||||||
2019(1) | 15.28 | (0.05 | ) | 0.38 | 0.33 | — | — | |||||||||||||||||
Global X China Biotech Innovation ETF | ||||||||||||||||||||||||
2020(2) | 15.09 | (0.02 | ) | (0.19 | ) | (0.21 | ) | — | — | |||||||||||||||
Global X Telemedicine & Digital Health ETF | ||||||||||||||||||||||||
2020(3) | 15.23 | 0.01 | 3.17 | 3.18 | — | — | ||||||||||||||||||
Global X Longevity Thematic ETF | ||||||||||||||||||||||||
2020 | 23.55 | 0.10 | 3.35 | 3.45 | (0.13 | ) | (0.05 | ) | ||||||||||||||||
2019 | 20.67 | 0.13 | 2.99 | 3.12 | (0.18 | ) | (0.06 | ) | ||||||||||||||||
2018 | 19.60 | 0.13 | 1.14 | 1.27 | (0.09 | ) | (0.11 | ) | ||||||||||||||||
2017 | 15.17 | 0.08 | 4.51 | 4.59 | (0.09 | ) | (0.07 | ) | ||||||||||||||||
2016(4) | 15.32 | 0.07 | (0.22 | ) | (0.15 | ) | — | — |
153
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
— | 21.01 | 34.59 | 81,951 | 0.56 | ‡ | (0.40 | ) | 29.76 | ||||||||||||||||||
— | 15.61 | 2.16 | 18,734 | 0.68 | † | (0.59 | )† | 23.12 | ||||||||||||||||||
— | 14.88 | (1.39 | ) | 2,232 | 0.67 | † | (0.65 | )† | 10.48 | |||||||||||||||||
— | 18.41 | 20.88 | 490,675 | 0.68 | † | 0.18 | † | 9.67 | ||||||||||||||||||
(0.18 | ) | 26.82 | 14.79 | 42,907 | 0.50 | ^ | 0.43 | 9.10 | ||||||||||||||||||
(0.24 | ) | 23.55 | 15.38 | 23,548 | 0.50 | ^ | 0.62 | 14.18 | ||||||||||||||||||
(0.20 | ) | 20.67 | 6.55 | 15,503 | 0.50 | ^ | 0.63 | 14.39 | ||||||||||||||||||
(0.16 | ) | 19.60 | 30.58 | 7,841 | 0.52 | ^ | 0.44 | 10.20 | ||||||||||||||||||
— | 15.17 | (0.98 | ) | 1,517 | 0.68 | † | 0.78 | † | 2.76 |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
‡ | Effective June 15, 2020, the Fund’s fees were permanently lowered to 0.50%. |
^ | Effective April 1, 2020, the Fund’s fees were permanently lowered to 0.50%. Prior to April 1, 2020, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.55%, 0.68%, 0.68% and 0.68%, for the years ended November 30, 2020, 2019, 2018 and 2017, respectively. |
(1) | The Fund commenced operations on April 5, 2019. |
(2) | The Fund commenced operations on September 22, 2020. |
(3) | The Fund commenced operations on July 29, 2020. |
(4) | The Fund commenced operations on May 9, 2016. |
Amounts designated as “—” are either $0 or have been rounded to $0.
154
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | |||||||||||||||||||
Global X Health & Wellness Thematic ETF | ||||||||||||||||||||||||
2020 | 21.17 | 0.10 | 2.92 | 3.02 | (0.08 | ) | — | |||||||||||||||||
2019 | 18.59 | 0.14 | 2.60 | 2.74 | (0.16 | ) | — | |||||||||||||||||
2018 | 16.75 | 0.14 | 2.18 | 2.32 | (0.15 | ) | (0.33 | ) | ||||||||||||||||
2017 | 14.72 | 0.17 | 1.94 | 2.11 | (0.08 | ) | — | |||||||||||||||||
2016(1) | 15.13 | 0.07 | (0.48 | ) | (0.41 | ) | — | — | ||||||||||||||||
Global X CleanTech ETF | ||||||||||||||||||||||||
2020(2) | 15.07 | 0.02 | 3.93 | 3.95 | — | — | ||||||||||||||||||
Global X U.S. Infrastructure Development ETF | ||||||||||||||||||||||||
2020 | 17.43 | 0.16 | 2.74 | 2.90 | (0.09 | ) | — | |||||||||||||||||
2019 | 15.57 | 0.13 | 1.90 | 2.03 | (0.17 | ) | — | |||||||||||||||||
2018 | 16.16 | 0.14 | (0.68 | ) | (0.54 | ) | (0.05 | ) | — | |||||||||||||||
2017(3) | 14.98 | 0.10 | 1.08 | 1.18 | — | — | ||||||||||||||||||
Global X Thematic Growth ETF | ||||||||||||||||||||||||
2020 | 26.50 | 0.10 | 15.96 | 16.06 | (0.11 | ) | — | |||||||||||||||||
2019(4) | 25.23 | — | 1.27 | 1.27 | — | — |
155
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(0.08 | ) | 24.11 | 14.34 | 20,496 | 0.50 | ^ | 0.48 | 20.54 | ||||||||||||||||||
(0.16 | ) | 21.17 | 14.89 | 20,115 | 0.50 | ^ | 0.74 | 18.05 | ||||||||||||||||||
(0.48 | ) | 18.59 | 14.16 | 10,222 | 0.50 | ^ | 0.77 | 20.93 | ||||||||||||||||||
(0.08 | ) | 16.75 | 14.38 | 2,512 | 0.54 | ^ | 1.08 | 16.73 | ||||||||||||||||||
— | 14.72 | (2.71 | ) | 1,472 | 0.68 | † | 0.82 | † | — | |||||||||||||||||
— | 19.02 | 26.21 | 28,523 | 0.50 | † | 1.18 | † | — | ||||||||||||||||||
(0.09 | ) | 20.24 | 16.77 | 653,635 | 0.47 | 0.96 | 9.08 | |||||||||||||||||||
(0.17 | ) | 17.43 | 13.28 | 183,065 | 0.47 | ^^ | 0.81 | 9.18 | ||||||||||||||||||
(0.05 | ) | 15.57 | (3.36 | ) | 140,914 | 0.47 | ^^ | 0.77 | 6.76 | |||||||||||||||||
— | 16.16 | 7.88 | 20,203 | 0.47 | †^^ | 0.91 | † | — | ||||||||||||||||||
(0.11 | ) | 42.45 | 60.81 | 36,081 | (0.12 | )‡ | 0.29 | 103.23 | ||||||||||||||||||
— | 26.50 | 5.03 | 2,650 | (0.15 | )†‡ | 0.15 | † | — |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
‡ | The ratio of Expenses to Average Net Assets includes the effect of a reimbursement of acquired fund fees (See Note 3 in Notes to Financial Statements.) If these offsets and acquired fund fees were excluded, the ratio would have been 0.50%. |
^ | Effective April 1, 2020, the Fund’s fees were permanently lowered to 0.50%. Prior to April 1, 2020, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.57%, 0.68%, 0.68% and 0.68%, for the years ended November 30, 2020, 2019, 2018 and 2017, respectively. |
^^ | Effective April 1, 2019, the Fund’s fees were permanently lowered to 0.47%. Prior to April 1, 2019, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.50%, 0.58% and 0.58%, for the years ended November 30, 2019, 2018 and 2017, respectively. |
(1) | The Fund commenced operations on May 9, 2016. |
(2) | The Fund commenced operations on October 27, 2020. |
(3) | The Fund commenced operations on March 6, 2017. |
(4) | The Fund commenced operations on October 25, 2019. |
Amounts designated as “—” are either $0 or have been rounded to $0.
156
Notes to Financial Statements | ||
November 30, 2020 |
1. ORGANIZATION
The Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of November 30, 2020, the Trust had eighty-seven portfolios, seventy-eight of which were operational. The financial statements herein and the related notes pertain to the Global X Robotics & Artificial Intelligence ETF, Global X Internet of Things ETF, Global X FinTech ETF, Global X Video Games & Esports ETF, Global X Autonomous & Electric Vehicles ETF, Global X Cloud Computing ETF, Global X Data Center REITs & Digital Infrastructure ETF, Global X Cybersecurity ETF, Global X Artificial Intelligence & Technology ETF, Global X Millennials Thematic ETF, Global X Education ETF, Global X Cannabis ETF, Global X Genomics & Biotechnology ETF, Global X China Biotech Innovation ETF, Global X Telemedicine & Digital Health ETF, Global X Longevity Thematic ETF, Global X Health & Wellness Thematic ETF, Global X CleanTech ETF, Global X U.S. Infrastructure Development ETF and Global X Thematic Growth ETF, (each a “Fund” and collectively, the “Funds”). Each Fund, other than the Global X Millennials Thematic ETF, Global X Longevity Thematic ETF, Global X Health & Wellness Thematic ETF and Global X U.S. Infrastructure Development ETF, has elected non-diversified status.
Effective June 15, 2020, the Global X Future Analytics Tech ETF was renamed the Global X Artificial Intelligence & Technology ETF.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds:
USE OF ESTIMATES — The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.
RETURN OF CAPITAL ESTIMATES – Distributions received by the Funds from underlying Master Limited Partnership (“MLP”) and real estate investment trust (“REIT”) investments generally are comprised of income and return of capital. The Funds record investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on historical information available from the MLPs, REITs and other industry sources. These estimates may
157
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
subsequently be revised based on information received from the MLPs and REITs after their tax reporting periods are concluded.
SECURITY VALUATION — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (“NASDAQ”), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm Eastern time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices, which approximates fair value (absent both bid and asked prices on such exchange, the bid price may be used).
For securities traded on NASDAQ, the NASDAQ official closing price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less will be valued at their market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates as of reporting date. The exchange rates used by the Trust for valuation are captured as of the New York or London close each day. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.
Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using the Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when, under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Funds calculate their net asset values. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include:
158
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC, the Funds’ investment adviser (the “Adviser”), becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate their net asset values, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of November 30, 2020, Global X Longevity Thematic ETF had one fair valued security valued at $7,029. There were no other securities priced using the Fair Value Procedures.
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;
Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost); and
Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments and fair value of investments for which the Funds do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term).
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
159
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
For the year ended November 30, 2020 there have been no significant changes to the Funds’ fair valuation methodologies.
REPURCHASE AGREEMENTS – Securities pledged as collateral for repurchase agreements by BNP Paribas are held by Brown Brothers Harriman & Co. (“BBH”), the Funds’ custodian (“custodian”), and are designated as being held on each Fund’s behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest.
It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the other party to a repurchase agreement defaults on its obligations, and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (included in repurchase agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities. Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under an MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Funds.
160
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
At November 30, 2020, the open repurchase agreements by counterparty which are subject to an MRA on a net payment basis are as follows:
Repurchase Agreements | Fair Value of Non-cash Collateral Received(1) | Cash Collateral Received | Net Amount(2) | |||||||||||||
Global X Robotics & Artificial Intelligence ETF | ||||||||||||||||
BNP Paribas | $ | 39,849,772 | $ | 39,849,772 | $ | – | $ | – | ||||||||
Global X Internet of Things ETF | ||||||||||||||||
BNP Paribas | $ | 1,906,837 | $ | 1,906,837 | $ | – | $ | – | ||||||||
Global X FinTech ETF | ||||||||||||||||
BNP Paribas | $ | 38,122,371 | $ | 38,122,371 | $ | – | $ | – | ||||||||
Global X Video Games & Esports ETF | ||||||||||||||||
BNP Paribas | $ | 2,718,261 | $ | 2,718,261 | $ | – | $ | – | ||||||||
Global X Autonomous & Electric Vehicles ETF | ||||||||||||||||
BNP Paribas | $ | 353,769 | $ | 353,769 | $ | – | $ | – | ||||||||
Global X Artificial Intelligence & Technology ETF | ||||||||||||||||
BNP Paribas | $ | 183,580 | $ | 183,580 | $ | – | $ | – | ||||||||
Global X Millennials Thematic ETF | ||||||||||||||||
BNP Paribas | $ | 462,498 | $ | 462,498 | $ | – | $ | – | ||||||||
Global X Cannabis ETF | ||||||||||||||||
BNP Paribas | $ | 8,599,894 | $ | 8,599,894 | $ | – | $ | – | ||||||||
Global X Genomics & Biotechnology ETF | ||||||||||||||||
BNP Paribas | $ | 2,155,380 | $ | 2,155,380 | $ | – | $ | – | ||||||||
Global X Telemedicine & Digital Health ETF | ||||||||||||||||
BNP Paribas | $ | 2,227,540 | $ | 2,227,540 | $ | – | $ | – | ||||||||
Global X U.S. Infrastructure Development ETF | ||||||||||||||||
BNP Paribas | $ | 1,663,403 | $ | 1,663,403 | $ | – | $ | – | ||||||||
Global X Thematic Growth ETF | ||||||||||||||||
BNP Paribas | $ | 1,320,800 | $ | 1,320,800 | $ | – | $ | – |
(1) | Excess collateral received is not presented in the table above. Please refer to the Schedules of Investments for the market value of the collateral received for each Fund. |
(2) | Net Amount represents the net amount receivable due from the counterparty in the event of default. |
FEDERAL INCOME TAXES — It is each Fund’s intention to qualify, or continue to qualify, as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for federal income taxes have been made in the financial statements except as described below.
The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax positions in the current period; however, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), and on-going analysis of and changes to tax
161
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
laws, and regulations and interpretations thereof. Any foreign tax filings that have not been made will be filed within the prescribed period.
As of and during the year ended November 30, 2020, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as in income tax expense on the Statement of Operations. During the reporting period, the Funds did not incur any interest or penalties. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.
SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Funds distribute their net investment income on a pro rata basis. Any net realized capital gains are distributed annually. All distributions are recorded on ex-dividend date.
CASH OVERDRAFT CHARGES – Per the terms of an agreement with BBH, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of LIBOR plus 2.00%. Cash overdraft charges are included in custodian fees on the Statement of Operations.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
162
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
CREATION UNITS — The Funds issue and redeem their shares (“Shares”) on a continuous basis at net asset value (“NAV”) and only in large blocks of 50,000 Shares, referred to as “Creation Units”. Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an Authorized Participant on the same day.
An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to BBH, the Funds’ custodian, on the date of such redemption, regardless of the number of Creation Units redeemed that day.
If a Creation Unit is purchased or redeemed for cash, an additional variable fee may be charged. The following table discloses Creation Unit breakdown:
Creation Unit Shares | Creation Fee | Value at November 30, 2020 | Redemption Fee | |||||||||||||
Global X Robotics & Artificial Intelligence ETF | 50,000 | $ | 600 | $ | 1,589,000 | $ | 600 | |||||||||
Global X Internet of Things ETF | 50,000 | 600 | 1,497,500 | 600 | ||||||||||||
Global X FinTech ETF | 50,000 | 400 | 2,137,500 | 400 | ||||||||||||
Global X Video Games & Esports ETF | 50,000 | 600 | 1,428,500 | 600 | ||||||||||||
Global X Autonomous & Electric Vehicles ETF | 50,000 | 750 | 1,087,500 | 750 | ||||||||||||
Global X Cloud Computing ETF | 50,000 | 250 | 1,292,000 | 250 | ||||||||||||
Global X Data Center REITs & Digital Infrastructure | 50,000 | 300 | 747,000 | 300 | ||||||||||||
Global X Cybersecurity ETF | 50,000 | 250 | 1,137,500 | 250 | ||||||||||||
Global X Artificial Intelligence & Technology ETF | 50,000 | 600 | 1,292,000 | 600 | ||||||||||||
Global X Millennials Thematic ETF | 50,000 | 300 | 1,761,500 | 300 | ||||||||||||
Global X Education ETF | 50,000 | 500 | 857,000 | 500 | ||||||||||||
Global X Cannabis ETF | 50,000 | 250 | 602,500 | 250 | ||||||||||||
Global X Genomics & Biotechnology ETF | 50,000 | 250 | 1,050,500 | 250 | ||||||||||||
Global X China Biotech Innovation ETF | 50,000 | 600 | 744,000 | 600 | ||||||||||||
Global X Telemedicine & Digital Health ETF | 50,000 | 250 | 920,500 | 250 | ||||||||||||
Global X Longevity Thematic ETF | 50,000 | 1,000 | 1,341,000 | 1,000 | ||||||||||||
Global X Health & Wellness Thematic ETF | 50,000 | 1,000 | 1,205,500 | 1,000 | ||||||||||||
Global X CleanTech ETF | 50,000 | 600 | 951,000 | 600 | ||||||||||||
Global X U.S. Infrastructure Development ETF | 50,000 | 400 | 1,012,000 | 400 | ||||||||||||
Global X Thematic Growth ETF | 50,000 | 250 | 2,122,500 | 250 |
163
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS
On July 2, 2018, the Adviser consummated a transaction pursuant to which it became an indirect, wholly-owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae”). In this manner, the Adviser is ultimately controlled by Mirae, which is a leading financial services company in Korea and is the headquarters for the Mirae Asset Global Investments Group.
The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides, or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate distribution services agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate investment advisory agreement), under what is essentially an “all-in” fee structure. For the Advisor’s services to the Funds, under the Supervision and Administration Agreement, each Fund pays a monthly fee to the Adviser at the annual rate below (stated as a percentage of the average daily net assets of the respective Fund). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions, acquired fund fees and expenses, (except for Global X Thematic Growth ETF) and other transaction expenses, interest expenses, and extraordinary expenses (such as litigation and indemnification expenses), respectively.
The Supervision and Administration Agreement for the Global X Thematic Growth ETF provides that the Advisor also bears the costs for acquired fund fees and expenses generated by investments by the Global X Thematic Growth ETF in affiliated investment companies. For the year ended November 30, 2020, the Advisor paid the costs for the acquired fund fees of $71,038.
164
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
The following table discloses the rates of supervision and administration fees paid by the Funds:
Supervision and Administration Fee | ||
Global X Robotics & Artificial Intelligence ETF | 0.68% | |
Global X Internet of Things ETF | 0.68% | |
Global X FinTech ETF | 0.68% | |
Global X Video Games & Esports ETF | 0.50% | |
Global X Autonomous & Electric Vehicles ETF | 0.68% | |
Global X Cloud Computing ETF | 0.68% | |
Global X Data Center REITs & Digital Infrastructure | 0.50% | |
Global X Cybersecurity ETF*** | 0.60% | |
Global X Artificial Intelligence & Technology ETF | 0.68% | |
Global X Millennials Thematic ETF* (1) | 0.50% | |
Global X Education ETF | 0.50% | |
Global X Cannabis ETF | 0.50% | |
Global X Genomics & Biotechnology ETF (2) | 0.50% | |
Global X China Biotech Innovation ETF | 0.65% | |
Global X Telemedicine & Digital Health ETF | 0.68% | |
Global X Longevity Thematic ETF* (1) | 0.50% | |
Global X Health & Wellness Thematic ETF* (1) | 0.50% | |
Global X CleanTech ETF | 0.50% | |
Global X U.S. Infrastructure Development ETF** | 0.47% | |
Global X Thematic Growth ETF | 0.50% |
(1) | Prior to April 1, 2020 the Supervision and Administration Fee was 0.68%. |
(2) | Prior to June 15, 2020 the Supervision and Administration Fee was 0.68%. |
* Pursuant to an expense limitation agreement, prior to April 1, 2020, the Adviser contractually agreed to waive or reimburse fees and/or limit fund expenses to the extent necessary to assure that the operating expenses of the Global X Health & Wellness Thematic ETF, Global X Longevity Thematic ETF and the Global X Millennials Thematic ETF (the “Funds”) (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest, and extraordinary expenses (such as litigation and indemnification expenses)) would not exceed 0.50% of the Funds’ average daily net assets per year until April 1, 2020. Each Fund (at a later date) may reimburse the Adviser for the fees and expenses it waived or reimbursed and/or limited pursuant to the expense limitation agreement during any of the three fiscal years prior to April 1, 2020, provided that, among other things, any reimbursement made to the Adviser does not cause Total Annual Fund Operating Expenses to exceed the maximum permitted rate during the period in which it is paid and the Board has approved such reimbursement to the Adviser. Although the Board voted to permanently reduce the Fund’s management fees to 0.50% and end the expense limitation agreement as of April 1, 2020, waived or reimbursed fees prior to April 1, 2020 are still subject to recoupment. As of November 30, 2020, the amounts of waivers/reimbursements subject to recoupment for the Global X Health &
165
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
Wellness Thematic ETF, Global X Longevity Thematic ETF and Global X Millennials Thematic ETF, were $11,634 expiring 2021, $8,496 expiring 2022; $23,346 expiring 2021, $9,461 expiring 2022; $41,063 expiring 2021 and $18,918 expiring 2022, respectively. As of November 30, 2020, there had been no recoupment of previously waived and reimbursed fees.
** Pursuant to an expense limitation agreement between the Global X U.S. Infrastructure Development ETF (the “Fund”) and the Adviser prior to April 1, 2019, the Adviser contractually agreed to reimburse or waive fees and/or limit fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest, and extraordinary expenses (such as litigation and indemnification expenses)) (“Total Annual Fund Operating Expenses”) would not exceed 0.47% of the Fund’s average daily net assets per year until April 1, 2019. Pursuant to the expense limitation agreement, the Fund (at a later date) may reimburse the Adviser for the fees it reimbursed or waived and/or limited pursuant to the expense limitation agreement during any of the prior three fiscal years, provided that, among other things, reimbursement to be made to the Adviser does not cause Total Annual Fund Operating Expenses of the Fund to exceed 0.47% during the year in which it is paid and the Board of Trustees has approved such reimbursement to the Adviser. Although the Board voted to permanently reduce the Fund’s fees to 0.47% and end the expense limitation agreement as of April 1, 2019, prior waived or reimbursed fees are still subject to recoupment. As of November 30, 2020, the amounts of waivers/reimbursements subject to recoupment for the Fund were $102,748 expiring in 2021 and $44,734 expiring in 2022. As of November 30, 2020, there had been no recoupment of previously waived and reimbursed fees.
*** Pursuant to an expense limitation agreement, the Adviser has agreed to waive or reimburse fees and/or limit fund expenses to the extent necessary to assure that the operating expenses of the Global X Cybersecurity ETF (the “Fund”) (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest, and extraordinary expenses (such as litigation and indemnification expenses)) will not exceed 0.50% of the Fund’s average daily net assets per year until April 1, 2021.
SEI Investments Global Funds Services (“SEIGFS”) serves as sub-administrator to the Funds. As sub-administrator, SEIGFS provides the Funds with required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, SEIGFS receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser. SEI Investments Distribution Co. (“SIDCO”) serves as each Fund’s underwriter and distributor of Creation Units pursuant to a distribution agreement. SIDCO has no obligation to sell any specific quantity of Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (1) the costs of processing and maintaining records of creations of Creation Units; (2) all costs of maintaining the records required of a registered broker/dealer; (3) the expenses of maintaining its registration or qualification as a dealer or broker under federal or state laws; (4) filing fees; and (5) all other expenses incurred in connection with the distribution services as
166
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
contemplated in the distribution agreement. SIDCO receives no fee from the Funds for its distribution services under the distribution agreement; rather, the Adviser compensates SIDCO for certain expenses, out-of-pocket costs, and transaction fees.
BBH serves as custodian and transfer agent of the Funds’ assets. As custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Funds, (2) collect and receive all income and other payments and distributions on account of the Funds’ portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Funds concerning the Funds’ operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As transfer agent, BBH has agreed to (1) issue and redeem Shares of each Fund, (2) make dividend and other distributions to shareholders of each Fund, (3) respond to correspondence by shareholders and others relating to its duties; (4) maintain shareholder accounts, and (5) make periodic reports to the Funds. As compensation for these services, BBH receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.
167
Notes to Financial Statements (continued) | ||
November 30, 2020 |
4. INVESTMENT TRANSACTIONS
For the year ended November 30, 2020, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government, and short-term securities, were:
2020 | Purchases | Sales and Maturities | ||||||
Global X Robotics & Artificial Intelligence ETF | $ | 391,843,774 | $ | 344,950,521 | ||||
Global X Internet of Things ETF | 39,167,963 | 26,735,815 | ||||||
Global X FinTech ETF | 90,037,796 | 92,954,671 | ||||||
Global X Video Games & Esports ETF | 60,327,760 | 18,761,271 | ||||||
Global X Autonomous & Electric Vehicles ETF | 12,572,921 | 4,877,361 | ||||||
Global X Cloud Computing ETF | 181,940,153 | 180,592,082 | ||||||
Global X Data Center REITs & Digital Infrastructure | 248,682 | – | ||||||
Global X Cybersecurity ETF | 4,445,296 | 4,293,031 | ||||||
Global X Artificial Intelligence & Technology ETF | 18,603,708 | 12,590,337 | ||||||
Global X Millennials Thematic ETF | 5,910,992 | 5,952,475 | ||||||
Global X Education ETF | 1,322,924 | 581,112 | ||||||
Global X Cannabis ETF | 7,609,856 | 7,167,158 | ||||||
Global X Genomics & Biotechnology ETF | 12,696,365 | 11,680,621 | ||||||
Global X China Biotech Innovation ETF | 2,121,887 | 212,675 | ||||||
Global X Telemedicine & Digital Health ETF | 57,054,584 | 29,744,450 | ||||||
Global X Longevity Thematic ETF | 3,490,754 | 2,788,630 | ||||||
Global X Health & Wellness Thematic ETF | 4,195,138 | 4,001,233 | ||||||
Global X CleanTech ETF | 7,024,666 | – | ||||||
Global X U.S. Infrastructure Development ETF | 20,808,078 | 20,316,449 | ||||||
Global X Thematic Growth ETF | 15,443,551 | 12,482,410 |
168
Notes to Financial Statements (continued) | ||
November 30, 2020 |
4. INVESTMENT TRANSACTIONS (continued)
For each of the years ended November 30, 2020, and November 30, 2019, in-kind transactions associated with creations and redemptions were:
2020 | Purchases | Sales | Realized Gain/(Loss) | |||||||||
Global X Robotics & Artificial Intelligence ETF | $ | 361,874,568 | $ | 365,215,738 | $ | 43,090,534 | ||||||
Global X Internet of Things ETF | 124,223,802 | 34,531,153 | 18,792,933 | |||||||||
Global X FinTech ETF | 278,707,608 | 41,228,494 | 8,267,048 | |||||||||
Global X Video Games & Esports ETF | 404,900,530 | 51,302,801 | 14,900,863 | |||||||||
Global X Autonomous & Electric Vehicles ETF | 94,454,889 | 3,876,841 | 2,108,375 | |||||||||
Global X Cloud Computing ETF | 898,712,110 | 357,026,062 | 151,841,623 | |||||||||
Global X Data Center REITs & Digital Infrastructure | 3,494,554 | – | – | |||||||||
Global X Cybersecurity ETF | 41,832,394 | 3,133,182 | 1,581,964 | |||||||||
Global X Artificial Intelligence & Technology ETF | 59,534,429 | 15,359,452 | 5,699,200 | |||||||||
Global X Millennials Thematic ETF | 26,325,170 | 15,069,551 | 2,463,389 | |||||||||
Global X Education ETF | 7,065,338 | 1,479,215 | 297,249 | |||||||||
Global X Cannabis ETF | 28,284,111 | – | – | |||||||||
Global X Genomics & Biotechnology ETF | 56,763,285 | 11,838,830 | 6,006,376 | |||||||||
Global X China Biotech Innovation ETF | 381,631 | – | – | |||||||||
Global X Telemedicine & Digital Health ETF | 423,596,806 | 19,341,416 | 7,163,396 | |||||||||
Global X Longevity Thematic ETF | 17,727,057 | 3,427,727 | 1,538,247 | |||||||||
Global X Health & Wellness Thematic ETF | 12,677,296 | 14,689,729 | 2,443,155 | |||||||||
Global X CleanTech ETF | 19,036,658 | – | – | |||||||||
Global X U.S. Infrastructure Development ETF | 481,671,681 | 66,650,851 | (9,164,993 | ) | ||||||||
Global X Thematic Growth ETF | 44,864,162 | 21,983,043 | 2,875,470 |
2019 | Purchases | Sales | Realized Gain/(Loss) | |||||||||
Global X Robotics & Artificial Intelligence ETF | $ | 196,452,084 | $ | 527,329,566 | $ | (33,905,075 | ) | |||||
Global X Internet of Things ETF | 43,369,377 | 19,178,310 | 4,282,434 | |||||||||
Global X FinTech ETF | 112,937,062 | 93,896,478 | 8,446,928 | |||||||||
Global X Video Games & Esports ETF | 1,343,301 | – | – | |||||||||
Global X Autonomous & Electric Vehicles ETF | 6,226,367 | 7,556,398 | 102,697 | |||||||||
Global X Cloud Computing ETF | 524,429,030 | 73,776,961 | 7,782,237 | |||||||||
Global X Cybersecurity ETF | 1,513,438 | – | – | |||||||||
Global X Artificial Intelligence & Technology ETF | 9,253,548 | 14,737,108 | 977,438 | |||||||||
Global X Millennials Thematic ETF | 64,052,088 | 26,378,103 | 7,255,226 | |||||||||
Global X Cannabis ETF | 5,754,039 | – | – | |||||||||
Global X Genomics & Biotechnology ETF | 16,470,842 | – | – | |||||||||
Global X Longevity Thematic ETF | 6,136,552 | 1,033,564 | 281,906 | |||||||||
Global X Health & Wellness Thematic ETF | 12,053,707 | 5,418,018 | 922,860 | |||||||||
Global X U.S. Infrastructure Development ETF | 54,690,700 | 26,071,935 | 538,144 | |||||||||
Global X Thematic Growth ETF | 2,522,056 | – | – |
For the year ended November 30, 2020, there were no purchases or sales of long-term U.S. Government securities by the Funds.
169
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.
The permanent differences primarily consist of foreign currency, REIT adjustments, reclassification of distributions, investments in publically traded partnerships, and sales of passive foreign investment companies. The permanent differences that are credited or charged to Paid In Capital and distributable earnings are primarily related to redemptions in kind and net operating losses and have been reclassified to/from the following accounts during the fiscal year ended November 30, 2020:
Global X Funds | Paid-in Capital | Distributable Earnings (Loss) | ||||||
Global X Robotics & Artificial Intelligence ETF | $ | 42,148,862 | $ | (42,148,862 | ) | |||
Global X Internet of Things ETF | 18,758,043 | (18,758,043 | ) | |||||
Global X FinTech ETF | 6,988,350 | (6,988,350 | ) | |||||
Global X Video Games and Esports ETF | 14,900,539 | (14,900,539 | ) | |||||
Global X Autonomous & Electric Vehicles ETF | 2,108,464 | (2,108,464 | ) | |||||
Global X Cloud Computing ETF | 150,502,708 | (150,502,708 | ) | |||||
Global X Cybersecurity ETF | 1,581,317 | (1,581,317 | ) | |||||
Global X Artificial Intelligence & Technology ETF | 5,639,677 | (5,639,677 | ) | |||||
Global X Millennials Thematic ETF | 2,323,881 | (2,323,881 | ) | |||||
Global X Education ETF | 297,249 | (297,249 | ) | |||||
Global X Genomics & Biotechnology ETF | 5,943,555 | (5,943,555 | ) | |||||
Global X Telemedicine & Digital Health ETF | 7,163,396 | (7,163,396 | ) | |||||
Global X Longevity Thematic ETF | 1,532,465 | (1,532,465 | ) | |||||
Global X Health & Wellness Thematic ETF | 2,437,006 | (2,437,006 | ) | |||||
Global X U.S. Infrastructure Development ETF | (9,200,913 | ) | 9,200,913 | |||||
Global X Thematic Growth ETF | 2,875,470 | (2,875,470 | ) |
The tax character of dividends and distributions declared during the years or periods ended November 30, 2020 and November 30, 2019 were as follows:
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
Global X Robotics & Artificial Intelligence ETF | ||||||||||||||||
2020 | $ | 5,209,655 | $ | – | $ | 891,490 | $ | 6,101,145 | ||||||||
2019 | 30,149,775 | – | – | 30,149,775 | ||||||||||||
Global X Internet of Things ETF | ||||||||||||||||
2020 | $ | 1,147,071 | $ | – | $ | – | $ | 1,147,071 | ||||||||
2019 | 1,268,719 | – | – | 1,268,719 |
170
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
Global X FinTech ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
2019 | – | 60,368 | 437,339 | 497,707 | ||||||||||||
Global X Video Games and Esports ETF | ||||||||||||||||
2020 | $ | 67,560 | $ | – | $ | – | $ | 67,560 | ||||||||
2019 | – | – | – | – | ||||||||||||
Global X Autonomous & Electric Vehicles ETF | ||||||||||||||||
2020 | $ | 148,067 | $ | – | $ | – | $ | 148,067 | ||||||||
2019 | 415,562 | – | – | 415,562 | ||||||||||||
Global X Cloud Computing ETF | ||||||||||||||||
2020 | $ | 158,369 | $ | 57,631 | $ | – | $ | 216,000 | ||||||||
2019 | – | – | – | – | ||||||||||||
Global X Data Center REITs & Digital Infrastructure ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
Global X Cybersecurity ETF | ||||||||||||||||
2020 | $ | 130,636 | $ | – | $ | – | $ | 130,636 | ||||||||
2019 | – | – | – | – | ||||||||||||
Global X Artificial Intelligence & Technology ETF | ||||||||||||||||
2020 | $ | 293,815 | $ | – | $ | – | $ | 293,815 | ||||||||
2019 | 298,087 | – | – | 298,087 | ||||||||||||
Global X Millennials Thematic ETF | ||||||||||||||||
2020 | $ | 295,120 | $ | 31,340 | $ | – | $ | 326,460 | ||||||||
2019 | 147,679 | 27,133 | – | 174,812 | ||||||||||||
Global X Education ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
Global X Cannabis ETF | ||||||||||||||||
2020 | $ | 501,916 | $ | – | $ | – | $ | 501,916 | ||||||||
2019 | – | – | – | – | ||||||||||||
Global X Genomics & Biotechnology ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
2019 | – | – | – | – | ||||||||||||
Global X China Biotech Innovation ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
Global X Telemedicine & Digital Health ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
Global X Longevity Thematic ETF | ||||||||||||||||
2020 | $ | 161,566 | $ | 45,724 | $ | – | $ | 207,290 | ||||||||
2019 | 146,505 | 38,656 | – | 185,161 | ||||||||||||
Global X Health & Wellness Thematic ETF | ||||||||||||||||
2020 | $ | 95,104 | $ | – | $ | – | $ | 95,104 | ||||||||
2019 | 120,454 | – | – | 120,454 | ||||||||||||
Global X CleanTech ETF | ||||||||||||||||
2020 | $ | – | $ | – | $ | – | $ | – | ||||||||
Global X U.S. Infrastructure Development ETF | ||||||||||||||||
2020 | $ | 1,004,004 | $ | – | $ | – | $ | 1,004,004 | ||||||||
2019 | 1,424,719 | – | – | 1,424,719 |
171
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
Global X Thematic Growth ETF | ||||||||||||||||
2020 | $ | 16,854 | $ | – | $ | – | $ | 16,854 | ||||||||
2019 | – | – | – | – |
As of November 30, 2020, the components of tax basis distributable earnings (accumulated losses) were as follows:
Global X Funds | ||||||||||||
Global X Robotics & Artificial Intelligence ETF | Global X Internet of Things ETF | Global X FinTech ETF | ||||||||||
Undistributed Ordinary Income | $ | – | $ | 573,082 | $ | – | ||||||
Capital Loss Carryforwards | (153,940,794 | ) | (3,531,785 | ) | (32,354,648 | ) | ||||||
Unrealized Appreciation on Investments and Foreign Currency | 434,515,422 | 59,877,129 | 278,703,976 | |||||||||
Late Year Loss Deferral | – | – | (1,681,347 | ) | ||||||||
Other Temporary Differences | – | (4 | ) | 2 | ||||||||
Total Distributable Earnings | $ | 280,574,628 | $ | 56,918,422 | $ | 244,667,983 |
Global X Funds | ||||||||||||
Global X Video Games and Esports ETF | Global X Autonomous & Electric Vehicles ETF | Global X Cloud Computing ETF | ||||||||||
Undistributed Ordinary Income | $ | 3,746,903 | $ | 111,443 | $ | – | ||||||
Post October Losses | (307,637 | ) | – | – | ||||||||
Capital Loss Carryforwards | – | (1,044,455 | ) | (1,533,536 | ) | |||||||
Unrealized Appreciation on Investments and Foreign Currency | 65,915,322 | 19,930,690 | 248,081,412 | |||||||||
Late Year Loss Deferral | – | – | (3,928,473 | ) | ||||||||
Other Temporary Differences | (1 | ) | 1 | – | ||||||||
Total Distributable Earnings | $ | 69,354,587 | $ | 18,997,679 | $ | 242,619,403 |
Global X Funds | ||||||||||||
Global X Data Center REITs & Digital Infrastructure | Global X Cybersecurity ETF | Global X Artificial Intelligence & Technology ETF | ||||||||||
Undistributed Ordinary Income | $ | 668 | $ | 87,400 | $ | 284,523 | ||||||
Undistributed Long-Term Capital Gain | – | 2,479 | – | |||||||||
Capital Loss Carryforwards | – | – | (618,443 | ) | ||||||||
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | (8,833 | ) | 4,466,305 | 23,544,099 | ||||||||
Other Temporary Differences | – | 3 | (1 | ) | ||||||||
Total Distributable Earnings (Accumulated Losses) | $ | (8,165 | ) | $ | 4,556,187 | $ | 23,210,178 |
172
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Global X Funds | ||||||||||||
Global X Millennials Thematic ETF | Global X Education ETF | Global X Cannabis ETF | ||||||||||
Undistributed Ordinary Income | $ | 96,149 | $ | – | $ | 444,914 | ||||||
Post October Losses | – | (215,826 | ) | – | ||||||||
Capital Loss Carryforwards | (910,515 | ) | – | (1,760,034 | ) | |||||||
Late Year Loss Deferral | – | (4,505 | ) | – | ||||||||
Unrealized Appreciation on Investments and Foreign Currency | 27,867,859 | 446,036 | 3,359,995 | |||||||||
Other Temporary Differences | 1 | – | (1 | ) | ||||||||
Total Distributable Earnings | $ | 27,053,494 | $ | 225,705 | $ | 2,044,874 |
Global X Funds | ||||||||||||
Global X Genomics & Biotechnology ETF | Global X China Biotech Innovation ETF | Global X Telemedicine & Digital Health ETF | ||||||||||
Undistributed Ordinary Income | $ | 157,142 | $ | – | $ | 193,304 | ||||||
Post October Losses | (32,560 | ) | (554 | ) | (1,378,964 | ) | ||||||
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | 12,953,072 | (62,743 | ) | 53,383,660 | ||||||||
Late Year Loss Deferral | – | (2,324 | ) | – | ||||||||
Other Temporary Differences | 2 | – | – | |||||||||
Total Distributable Earnings (Accumulated Losses) | $ | 13,077,656 | $ | (65,621 | ) | $ | 52,198,000 |
Global X Funds | ||||||||||||
Global X Longevity Thematic ETF | Global X Health & Wellness Thematic ETF | Global X CleanTech ETF | ||||||||||
Undistributed Ordinary Income | $ | 78,341 | $ | 51,423 | $ | 7,906 | ||||||
Capital Loss Carryforwards | (279,357 | ) | (273,446 | ) | – | |||||||
Unrealized Appreciation on Investments and Foreign Currency | 6,473,677 | 1,294,711 | 2,447,006 | |||||||||
Total Distributable Earnings | $ | 6,272,661 | $ | 1,072,688 | $ | 2,454,912 |
Global X Funds | ||||||||
Global X U.S. Infrastructure Development ETF | Global X Thematic Growth ETF | |||||||
Undistributed Ordinary Income | $ | 1,554,592 | $ | 16,592 | ||||
Capital Loss Carryforwards | – | (117,716 | ) | |||||
Unrealized Appreciation on Investments and Foreign Currency | 66,887,584 | 4,908,265 | ||||||
Other Temporary Differences | 1 | (2 | ) | |||||
Total Distributable Earnings | $ | 68,442,177 | $ | 4,807,139 |
173
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
Qualified late year ordinary and Post-October capital losses (including currency and specified gain/loss items) represent losses realized from January 1, 2020 through November 30, 2020 and November 1, 2020 through November 30, 2020, respectively, that in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
For taxable years beginning after December 22, 2010, a registered investment company (“RIC”) is permitted to carry forward net capital losses to offset capital gains realized in later years, and the losses carried forward retain their original character as either long-term or short-term losses. Losses carried forward under these provisions are as follows:
Global X Funds | Short-Term Loss | Long-Term Loss | Total | |||||||||
Global X Robotics & Artificial Intelligence ETF | $ | 88,408,676 | $ | 65,532,118 | $ | 153,940,794 | ||||||
Global X Internet of Things ETF | 2,416,287 | 1,115,498 | 3,531,785 | |||||||||
Global X FinTech ETF | 10,983,240 | 21,371,408 | 32,354,648 | |||||||||
Global X Autonomous & Electric Vehicles ETF | 625,088 | 419,367 | 1,044,455 | |||||||||
Global X Cloud Computing ETF | 1,533,536 | – | 1,533,536 | |||||||||
Global X Artificial Intelligence & Technology ETF | 461,246 | 157,197 | 618,443 | |||||||||
Global X Millennials Thematic ETF | 883,232 | 27,283 | 910,515 | |||||||||
Global X Cannabis ETF | 1,613,335 | 146,699 | 1,760,034 | |||||||||
Global X Longevity Thematic ETF | 77,714 | 201,643 | 279,357 | |||||||||
Global X Health & Wellness Thematic ETF | 174,997 | 98,449 | 273,446 | |||||||||
Global X Thematic Growth ETF | 117,716 | – | 117,716 |
During the year ended November 30, 2020 the following funds utilized capital loss carryforwards to offset capital gains amounting to:
Global X Funds | Short-Term Loss | Long-Term Loss | Total | |||||||||
Global X Robotics & Artificial Intelligence ETF | $ | 15,634,206 | $ | – | $ | 15,634,206 | ||||||
Global X Autonomous & Electric Vehicles ETF | 99,333 | – | 99,333 | |||||||||
Global X Artificial Intelligence & Technology ETF | 35,523.00 | – | 35,523 | |||||||||
Global X U.S. Infrastructure Development ETF | 515,103 | – | 515,103 |
174
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at November 30, 2020, were as follows:
Global X Funds | Federal Tax Cost | Aggregated Gross Unrealized Appreciation | Aggregated Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Global X Robotics & Artificial Intelligence ETF | $ | 1,764,509,927 | $ | 536,564,253 | $ | (102,048,831 | ) | $ | 434,515,422 | |||||||
Global X Internet of Things ETF | 238,244,361 | 65,644,857 | (5,767,728 | ) | 59,877,129 | |||||||||||
Global X FinTech ETF | 638,408,669 | 300,349,742 | (21,645,766 | ) | 278,703,976 | |||||||||||
Global X Video Games and Esports ETF | 418,142,903 | 71,051,295 | (5,135,973 | ) | 65,915,322 | |||||||||||
Global X Autonomous & Electric Vehicles ETF | 116,322,349 | 20,718,639 | (787,949 | ) | 19,930,690 | |||||||||||
Global X Cloud Computing ETF | 1,156,767,060 | 266,045,030 | (17,963,618 | ) | 248,081,412 | |||||||||||
Global X Data Center REITs & Digital Infrastructure ETF | 3,743,236 | 81,316 | (90,149 | ) | (8,833 | ) | ||||||||||
Global X Cybersecurity ETF | 42,108,778 | 5,669,529 | (1,203,224 | ) | 4,466,305 | |||||||||||
Global X Artificial Intelligence & Technology ETF | 96,688,857 | 25,788,597 | (2,244,498 | ) | 23,544,099 | |||||||||||
Global X Millennials Thematic ETF | 87,101,195 | 30,745,513 | (2,877,654 | ) | 27,867,859 | |||||||||||
Global X Education ETF | 6,409,879 | 721,220 | (275,184 | ) | 446,036 | |||||||||||
Global X Cannabis ETF | 42,537,885 | 7,234,858 | (3,874,863 | ) | 3,359,995 | |||||||||||
Global X Genomics & Biotechnology ETF | 71,508,992 | 16,788,506 | (3,835,434 | ) | 12,953,072 | |||||||||||
Global X China Biotech Innovation ETF | 2,290,288 | 87,026 | (149,769 | ) | (62,743 | ) | ||||||||||
Global X Telemedicine & Digital Health ETF | 439,887,377 | 67,952,540 | (14,568,880 | ) | 53,383,660 | |||||||||||
Global X Longevity Thematic ETF | 36,363,805 | 8,062,599 | (1,588,922 | ) | 6,473,677 | |||||||||||
Global X Health & Wellness Thematic ETF | 19,187,266 | 3,358,803 | (2,064,092 | ) | 1,294,711 | |||||||||||
Global X CleanTech ETF | 26,061,324 | 2,518,757 | (71,751 | ) | 2,447,006 | |||||||||||
Global X U.S. Infrastructure Development ETF | 587,459,622 | 71,423,633 | (4,536,049 | ) | 66,887,584 | |||||||||||
Global X Thematic Growth ETF | 32,626,255 | 4,912,544 | (4,279 | ) | 4,908,265 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Funds’ net unrealized appreciation difference is attributable primarily to wash sales, mark-to-market treatment of passive foreign investment companies and partnership adjustments.
The Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.
175
Notes to Financial Statements (continued) | ||
November 30, 2020 |
6. CONCENTRATION OF RISKS
The Funds may invest in companies focused on business activities in emerging economic themes. Such thematic companies typically face intense competition and potentially rapid product obsolescence. Thematic companies may have limited product lines, markets, financial resources or personnel. These companies typically engage in significant amounts of spending on research and development, capital expenditures and mergers and acquisitions, and there is no guarantee that the products or services produced by these companies will be successful. These companies are also frequently dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. Such companies may be potential targets for cyberattacks, which can have a materially adverse impact on the performance of these companies. The emergent nature of many economic themes could result in increasing regulatory scrutiny in the future, which may impede the growth of companies that develop and/or focus on such economic themes. Similarly, the collection of data from consumers and other sources is frequently a critical component in emerging economic themes and could face increased scrutiny as regulators consider how the data is collected, stored, safeguarded and used. Finally, these companies may be involved in young, fast evolving industries with increased exposure to the risks associated with changes in applicable laws (including regulation, other rule changes, and related federal and state enforcement activities), as well as market developments, which may cause businesses to contract or close suddenly and negatively impact the value of these companies.
The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned. The Funds use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the underlying index in approximately the same proportions as in the underlying index.
The Funds may utilize a representative sampling strategy with respect to their underlying indices when a replication strategy might be detrimental to their shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow its underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to the Funds but not to the underlying indexes). Commodity related securities are susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have a substantial impact on these Funds.
A more complete description of risks is included in each Fund’s Prospectus and Statement of Additional Information.
176
Notes to Financial Statements (continued) | ||
November 30, 2020 |
7. LOANS OF PORTFOLIO SECURITIES
The Funds may lend portfolio securities having a market value up to one-third of the Funds’ total assets. Security loans made pursuant to a securities lending agreement with BBH are initially required to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign-based securities. Such collateral will be cash or securities issued or guaranteed by the U.S. Government or any agencies. Cash collateral received in connection with these loans can be invested in repurchase agreements, short-term investments, or U.S. Treasury obligations and is accounted for in the Schedules of Investments and Statements of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statements of Assets and Liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.
Lending securities entails a risk of loss to the Funds if and to the extent that the market values of the securities loaned were to increase and the borrower did not increase the collateral accordingly and the borrower failed to return the securities. The Funds could also experience delays and costs gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested.
As of November 30, 2020, the value of securities on loan was $43,274,134, $2,007,461, $41,388,438, $2,917,373, $388,635, $195,471, $498,051, $9,539,729, $2,422,715, $2,506,740, $1,810,644 and $1,477,748 for the Global X Robotics and Artificial Intelligence ETF, Global X Internet of Things ETF, Global X FinTech ETF, Global X Video Games and Esports ETF, Global X Autonomous & Electric Vehicles ETF, Global X Artificial Intelligence & Technology ETF, Global X Millennials Thematic ETF, Global X Cannabis ETF, Global X Genomics & Biotechnology ETF, Global X Telemedicine & Digital Health ETF, Global X U.S. Infrastructure Development ETF and Global X Thematic Growth ETF respectively, and the cash collateral received from securities on loan was $45,394,740, $2,172,167, $43,426,977, $3,096,498, $402,995, $209,125, $526,853, $9,796,542, $2,455,294, $2,537,495, $1,894,860 and $1,504,585, respectively.
177
Notes to Financial Statements (continued) | ||
November 30, 2020 |
7. LOANS OF PORTFOLIO SECURITIES (continued)
Market Value | Cash Collateral | |||||||
Global X Robotics & Artificial Intelligence ETF | ||||||||
Barclays Bank | $ | 739,233 | $ | 778,540 | ||||
BofA Securities | 27,172,366 | 28,446,693 | ||||||
Credit Suisse | 468,779 | 513,176 | ||||||
Goldman Sachs & Co. | 2,717,691 | 2,862,280 | ||||||
JPMorgan | 3,741,414 | 3,940,240 | ||||||
Morgan Stanley | 7,234,716 | 7,591,891 | ||||||
Natl Financial Services Corp | 102,468 | 106,080 | ||||||
Scotia Capital | 157,428 | 165,816 | ||||||
UBS AG London Branch | 940,039 | 990,024 | ||||||
Global X Internet of Things ETF | ||||||||
Credit Suisse | 1,520,327 | 1,622,167 | ||||||
Goldman Sachs & Co. | 487,134 | 550,000 | ||||||
Global X FinTech ETF | ||||||||
Barclays Bank | 12,558,600 | 13,146,905 | ||||||
BofA Securities | 577,764 | 608,253 | ||||||
Citigroup | 5,821,673 | 6,024,855 | ||||||
Credit Suisse | 16,960,792 | 17,881,800 | ||||||
Morgan Stanley | 3,667,550 | 3,864,354 | ||||||
UBS AG London Branch | 1,802,059 | 1,900,810 | ||||||
Global X Video Games & Esports ETF | ||||||||
Citigroup | 2,313,225 | 2,454,098 | ||||||
Credit Suisse | 604,148 | 642,400 | ||||||
Global X Autonomous & Electric Vehicles ETF | ||||||||
JPMorgan | 63,776 | 66,400 | ||||||
Scotia Capital | 324,859 | 336,595 | ||||||
Global X Artificial Intelligence & Technology ETF | ||||||||
UBS AG London Branch | 195,471 | 209,125 | ||||||
Global X Millennials Thematic ETF | ||||||||
BMO Capital Markets | 222,979 | 227,653 | ||||||
Natl Financial Services Corp | 275,072 | 299,200 |
178
Notes to Financial Statements (continued) | ||
November 30, 2020 |
7. LOANS OF PORTFOLIO SECURITIES (continued)
Market Value | Cash Collateral | |||||||
Global X Cannabis ETF | ||||||||
Barclays Bank | 808,449 | 786,794 | (1) | |||||
Citigroup | 1,118,602 | 1,045,226 | (1) | |||||
Credit Suisse | 807,145 | 1,148,748 | ||||||
Goldman Sachs & Co. | 1,197,821 | 1,155,311 | (1) | |||||
JPMorgan | 3,012,690 | 2,918,007 | (1) | |||||
Morgan Stanley | 1,326,831 | 1,452,623 | ||||||
Scotia Capital | 825,587 | 850,381 | ||||||
UBS AG London Branch | 442,604 | 439,452 | (1) | |||||
Global X Genomics & Biotechnology ETF | ||||||||
BofA Securities | 875,835 | 860,194 | (1) | |||||
Citigroup | 1,164,400 | 1,185,700 | ||||||
Credit Suisse | 11,480 | 11,900 | ||||||
Natl Financial Services Corp | 371,000 | 397,500 | ||||||
Global X Telemedicine & Digital Health ETF | ||||||||
BNP Paribas Securities Corp. | 135,300 | 136,950 | (1) | |||||
Citigroup | 2,325,930 | 2,354,295 | (1) | |||||
Credit Suisse | 45,510 | 46,250 | ||||||
Global X U.S. Infrastructure Development ETF | ||||||||
Goldman Sachs & Co. | 1,810,644 | 1,894,860 | ||||||
Global X Thematic Growth ETF | ||||||||
Citigroup | 1,477,748 | 1,504,585 |
(1) | It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. |
8. CONTRACTUAL OBLIGATIONS
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.
179
Notes to Financial Statements (concluded) | ||
November 30, 2020 |
9. SUBSEQUENT EVENTS
The Funds have been evaluated regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional adjustments were required to the financial statements.
10. OTHER MATTER
The rapid and global spread of a highly contagious novel coronavirus respiratory disease, designated COVID-19, has resulted in extreme volatility in the financial markets and severe losses; reduced liquidity of many instruments; restrictions on international and, in some cases, local travel; significant disruptions to business operations (including business closures); strained healthcare systems; disruptions to supply chains, consumer demand and employee availability; and widespread uncertainty regarding the duration and long-term effects of this pandemic. Some sectors of the economy and individual issuers have experienced particularly large losses. In addition, the COVID-19 pandemic may result in a sustained economic downturn or a global recession, domestic and foreign political and social instability, damage to diplomatic and international trade relations and increased volatility and/or decreased liquidity in the securities markets. The COVID-19 pandemic could adversely affect the value and liquidity of the Funds’ investments and negatively impact Fund performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Funds by their service providers.
180
Report of Independent Registered Public Accounting Firm | ||
To the Board of Trustees and Shareholders of each of the twenty funds indicated in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (twenty of the funds constituting the Global X Funds, hereafter collectively referred to as the “Funds”) as of November 30, 2020, the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of November 30, 2020, the results of each of their operations and changes in each of their net assets for each of the periods indicated in the table below and each of their financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Global X Robotics & Artificial Intelligence ETF (1) | Global X Cloud Computing ETF (3) |
Global X FinTech ETF (1) | Global X Cannabis ETF (4) |
Global X Internet of Things ETF (1) | Global X Video Games & Esports ETF (5) |
Global X Health & Wellness Thematic ETF (1) | Global X Thematic Growth ETF (5) |
Global X Artificial Intelligence & Technology ETF (1) | Global X Cybersecurity ETF (5) |
Global X Autonomous & Electric Vehicles ETF (1) | Global X Education ETF (6) |
Global X U.S. Infrastructure Development ETF (1) | Global X Telemedicine & Digital Health ETF (7) |
Global X Millennials Thematic ETF (1) | Global X China Biotech Innovation ETF (8) |
Global X Longevity Thematic ETF (1) | Global X CleanTech ETF (9) |
Global X Genomics & Biotechnology ETF (2) | Global X Data Center REITs & Digital Infrastructure ETF (9) |
181
Report of Independent Registered Public Accounting Firm | ||
1. | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for each of the two years in the period ended November 30, 2020 |
2. | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for the year ended November 30, 2020 and the period April 5, 2019 (date of commencement) through November 30, 2019 |
3. | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for the year ended November 30, 2020 and the period April 12, 2019 (date of commencement) through November 30, 2019 |
4. | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for the year ended November 30, 2020 and the period September 17, 2019 (date of commencement) through November 30, 2019 |
5. | The related statements of operations for the year ended November 30, 2020, and statements of changes in net assets for the year ended November 30, 2020 and the period October 25, 2019 (date of commencement) through November 30, 2019 |
6. | The related statements of operations, and changes in net assets, for the period July 10, 2020 (commencement of operations) through November 30, 2020 |
7. | The related statements of operations, and changes in net assets, for the period July 29, 2020 (commencement of operations) through November 30, 2020 |
8. | The related statements of operations, and changes in net assets, for the period September 22, 2020 (commencement of operations) through November 30, 2020 |
9. | The related statements of operations, and changes in net assets, for the period October 27, 2020 (commencement of operations) through November 30, 2020 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2020, by
182
Report of Independent Registered Public Accounting Firm | ||
correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
January 27, 2021
We have served as the auditor of one or more investment companies in the Global X Funds since 2016.
183
Disclosure of Fund Expenses (unaudited) | ||
All exchange traded funds (“ETFs”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund.
Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (June 1, 2020 to November 30, 2020).
The table on the next page illustrates your Fund’s costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Funds, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Funds under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Funds had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
184
Disclosure of Fund Expenses (unaudited) (continued) | ||
Beginning Account Value 6/1/2020 | Ending Account Value 11/30/2020 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
Global X Robotics & Artificial Intelligence ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,375.90 | 0.68 | % | $ | 4.04 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Internet of Things ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,321.30 | 0.68 | % | $ | 3.95 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X FinTech ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,327.20 | 0.68 | % | $ | 3.96 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Video Games and Esports ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,406.80 | 0.50 | % | $ | 3.01 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X Autonomous & Electric Vehicles ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,614.30 | 0.68 | % | $ | 4.44 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Cloud Computing ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,295.90 | 0.68 | % | $ | 3.90 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Data Center REITs & Digital Infrastructure ETF* | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 998.00 | 0.50 | % | $ | 0.46 | (2) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X Cybersecurity ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,176.10 | 0.50 | % | $ | 2.72 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X Artificial Intelligence & Technology ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,328.50 | 0.68 | % | $ | 3.96 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Millennials Thematic ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,347.70 | 0.50 | % | $ | 2.93 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X Education ETF** | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,127.60 | 0.51 | % | $ | 2.12 | (3) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,022.45 | 0.51 | 2.58 |
185
Disclosure of Fund Expenses (unaudited) (continued) | ||
Beginning Account Value 6/1/2020 | Ending Account Value 11/30/2020 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
Global X Cannabis ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,066.40 | 0.51 | % | $ | 2.63 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.45 | 0.51 | 2.58 | ||||||||||||
Global X Genomics & Biotechnology ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,272.60 | 0.51 | % | $ | 2.90 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.45 | 0.51 | 2.58 | ||||||||||||
Global X China Biotech Innovation ETF*** | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 986.10 | 0.67 | % | $ | 1.25 | (4) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,021.65 | 0.67 | 3.39 | ||||||||||||
Global X Telemedicine & Digital Health ETF**** | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,208.80 | 0.68 | % | $ | 2.54 | (5) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,021.60 | 0.68 | 3.44 | ||||||||||||
Global X Longevity Thematic ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,110.30 | 0.50 | % | $ | 2.64 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X Health & Wellness Thematic ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,232.90 | 0.50 | % | $ | 2.79 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X CleanTech ETF* | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,262.10 | 0.50 | % | $ | 0.53 | (2) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,022.50 | 0.50 | 2.53 | ||||||||||||
Global X U.S. Infrastructure Development ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,380.40 | 0.47 | % | $ | 2.80 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,022.65 | 0.47 | 2.38 | ||||||||||||
Global X Thematic Growth ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,459.90 | 0.00 | % | $ | 0.00 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,025.50 | 0.00 | 0.00 |
(1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 183/366 (to reflect the one-half year period.) |
(2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 34/366 (to reflect the period from inception to date). |
(3) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 143/366 (to reflect the period from inception to date). |
(4) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 69/366 (to reflect the period from inception to date). |
(5) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 124/366 (to reflect the period from inception to date). |
* | The Fund commenced operations on October 27, 2020. |
186
Disclosure of Fund Expenses (unaudited) (concluded) | ||
** | The Fund commenced operations on July 10, 2020. |
*** | The Fund commenced operations on September 22, 2020. |
**** | The Fund commenced operations on July 29, 2020. |
187
Approval of Investment Advisory Agreement (unaudited) | ||
Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), requires that the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not “interested persons” of the ETF, as defined in the 1940 Act (“Independent Trustees”), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each ETF’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.
At Board meetings of the Global X Funds (the “Trust”) held in person on February 26, 2016 and by videoconference on May 29, 2020 and July 30, 2020(1) (the “New Fund Board Meetings”), the Board of Trustees (the “Board”) (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved (i) the initial Investment Advisory Agreement (each a “New Investment Advisory Agreement”) for each of the Global X Education ETF,(2) Global X Telemedicine & Digital Health ETF, Global X CleanTech ETF, Global X Data Center REITS & Digital Infrastructure ETF, and Global X China Biotech Innovation ETF (each a “New Fund” and, together, the “New Funds”) and (ii) the initial Supervision and Administration Agreement between the Trust (each a “New Supervision and Administration Agreement”), on behalf of each New Fund, and Global X Management Company LLC (“Global X Management”). Each New Advisory Agreement and New Supervision and Administration Agreement are referred to collectively as the “New Fund Agreements.”
At a Board meeting of the Trust held via videoconference November 11, 2020,(1) called for such purpose, the Board (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved the continuation of (i) the Investment Advisory Agreement (“Renewal Investment Advisory Agreement”) for each Fund included in this Annual Report (each, a “Renewal Fund”); and (ii) the Supervision and Administration Agreement between the Trust (“Renewal Supervision and Administration Agreement”), on behalf of each Renewal Fund, and Global X Management. The Renewal Investment Advisory Agreement and the Renewal Supervision and Administration Agreement are referred to herein as the “Renewal Agreements.”
In advance of the Board meetings, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management in connection with the Board’s consideration of the Renewal Agreements and New Fund Agreements and received and reviewed written responses from Global X Management and supporting materials relating to those requests for information. In the course of their consideration of the Renewal Agreements and New
(1) This meeting was held via videoconference in reliance on an exemptive order issued by the Securities and Exchange Commission on March 25, 2020 and extended on June 19, 2020. Reliance on the exemptive order is necessary and appropriate due to circumstances related to current or potential effects of the COVID-19 pandemic. All Trustees participating in the telephonic meeting were able to hear each other simultaneously during the meeting. Reliance on the exemptive order requires Trustees, including a majority of the Independent Trustees, to ratify actions taken pursuant to the exemptive order by vote cast at the next in-person meeting.
(2) The discussion regarding the Renewal Agreements also applies to the Global X Education ETF
188
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Fund Agreements, the Trust’s Independent Trustees were advised by their independent legal counsel and, in addition to meetings with management of Global X Management, the Independent Trustees met separately in executive sessions with their counsel.
NEW FUND AGREEMENTS
In determining to approve the New Fund Agreements for the New Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
• the terms of the New Fund Agreements and the range of services proposed to be provided to the New Funds in accordance with the New Fund Agreements;
• Global X Management’s key personnel and the portfolio managers who would provide investment advisory, supervision and administrative services to the New Funds;
• Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of the New Funds and the composition of the New Funds’ assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New Funds, (iv) select broker-dealers to execute portfolio transactions for the New Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the New Funds, and the periodic updating of the registration statements, prospectuses, statements of additional information, and other reports and documents for the New Funds that are required to be filed by the Trust with the U.S. Securities and Exchange Commission (“SEC”) and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the New Funds by shareholders and new investors;
• the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that are proposed to be provided by Global X Management or made available to the New Funds; and
• the quality of Global X Management’s resources and personnel that would be made available to the New Funds, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
189
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that it was satisfied with the nature, extent and quality of the services proposed to be provided to the New Funds by Global X Management.
Performance
The Board determined that, because the New Funds had not yet begun investment operations as of the dates of the New Fund Board Meetings, meaningful data relating to the investment performance of the New Funds was not available and, therefore, could not be a factor in approving the New Fund Agreements.
Cost of Services and Profitability
With respect to this factor, the Board considered:
• Global X Management’s expected costs to provide investment management, supervision and administrative and related services to each New Fund;
• The management fee (including the proposed investment advisory fee) (“Management Fee”) that was proposed to be borne by each New Fund under the respective New Fund Agreement for the various investment advisory, supervisory and administrative services that the New Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the New Funds); and
• the expected profitability to Global X Management, if any, from all of the services proposed to be provided to the New Funds by Global X Management and all aspects of the relationships between Global X Management and the New Funds.
Based on these considerations, the Board concluded that the proposed Management Fee to be paid by each New Fund to Global X Management, in light of the nature, extent and quality of the services to be provided, was reasonable and in the best interests of the New Fund’s shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the proposed Management Fee to be paid to Global X Management by each New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for each New
190
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Fund, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs, and/or other similar registered funds. The Board considered Global X Management’s detailed explanation of the proposed fee structures of any New Fund that was above the average or median for the New Fund’s peer group;
• the structure of the proposed unitary Management Fee (which includes as one component the proposed investment advisory fees for the New Funds) and the expected total expense ratios for the New Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the New Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratios (i.e., the total fees) of the New Funds and that the proposed Management Fee for each New Fund was set at a competitive level to make the New Fund viable in the marketplace; and
• that, under the proposed unified Management Fee structure, Global X Management would be responsible for most ordinary expenses of the New Funds, including the costs of various third-party services required by the New Funds, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that each New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that the services to be received and the fees to be charged under the applicable New Fund Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the New Funds grow and whether the proposed unitary Management Fees for the New Funds reflected these economies of scale;
• the significant investment of time, personnel and other resources that Global X Management intends to make in the New Funds in order to seek to assure that the New Funds are attractive to investors; and
• that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for each New Fund and its shareholders.
191
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that the proposed unitary Management Fees for the New Funds appropriately addressed economies of scale.
Other Benefits
In considering each New Fund Agreement, in addition to the factors discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Funds. As a result, the Board concluded that, in the case of each New Fund, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the applicable New Fund Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in their consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the New Fund Agreements were fair and reasonable and in the best interest of the New Funds.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
RENEWAL AGREEMENTS
In determining to approve the continuation of the Renewal Agreements for the Renewal Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
• the terms of the Renewal Agreements and the range of services that would continue to be provided to each Renewal Fund in accordance with the Renewal Agreements;
• Global X Management’s key personnel and the portfolio managers who would continue to provide investment advisory, supervision and administrative services to each Renewal Fund;
192
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
• Global X Management’s responsibilities under the Renewal Agreements, among other things, to: (i) manage the investment operations of the Renewal Funds and the composition of the Renewal Funds’ assets, including the purchase, retention and disposition of their holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights relating to securities and assets held by the Renewal Funds, (iv) select broker-dealers to execute portfolio transactions for the Renewal Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the Renewal Funds, and the periodic updating of the registration statement, prospectuses, statements of additional information, and other reports and documents for the Renewal Funds that are required to be filed by the Trust with the SEC and other regulatory and governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the Renewal Funds by shareholders and new investors;
• the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that have been provided by Global X Management or made available to the Renewal Funds; and
• the quality of Global X Management’s resources and personnel that would continue to be made available to the Renewal Funds, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Renewal Funds by Global X Management.
Performance
The Board considered the performance of each Renewal Fund. They examined the performance of the Renewal Funds for the one-year, three-year, five-year and since-inception periods, as applicable. Also, the Board considered the total returns and investment performance of the Renewal Funds relative to (i) the performance of unaffiliated comparable ETFs and/or other registered funds, which performance information is publicly available from such registered funds, as well as other third party sources; and (ii) the performance of pertinent indexes. The Board considered instances of under-performance and over-performance with respect to the competitor funds. The Board also considered the Renewal Funds’ tracking against their underlying indexes in absolute terms.
193
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
Based on these considerations and comparisons, the Board concluded that the investment performance of the Renewal Funds did not adversely affect the Board’s approval of the continuance of the Renewal Agreements.
Cost of Services and Profitability
The Board considered Global X Management’s cost to provide investment management, supervision and administrative and related services to the Renewal Funds. In this regard, the Board considered the management fee (“Management Fee”) that has been borne or is expected to be borne by the Renewal Funds under the Renewal Agreements for the various investment advisory, supervisory and administrative services that the Renewal Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the Renewal Funds).
In addition, the Board considered expected profitability to Global X Management from all services provided or expected to be provided to the Renewal Funds and all aspects of Global X Management’s relationship with the Renewal Funds. In connection with these considerations, Global X Management provided the Board with financial information regarding its operations and the services provided to the Renewal Funds and discussed with the Board its current and expected profitability with respect to the Renewal Funds.
Based on these considerations, the Board concluded that the Management Fee rate paid by the Renewal Funds to Global X Management, in light of the nature, extent and quality of the services provided, was reasonable and in the best interests of the Renewal Funds’ shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the Management Fee paid to Global X Management by the Renewal Funds. In connection with this consideration, Global X Management provided the Board with comparative expense data for the Renewal Funds, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs and/or other comparable registered funds. The Board considered Global X Management’s detailed explanation of the fee structures of any Renewal Fund that was above the average or median for its peer group;
• the structure of the unitary Management Fee (which includes as one component the investment advisory fee for the Renewal Funds) and the current total expense ratios for the Renewal Funds. In this regard, the Board took into consideration that the purpose
194
Approval of Investment Advisory Agreement (unaudited) (continued) | ||
of adopting a unitary Management Fee structure for the Renewal Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratios (i.e., the total fees) of the Renewal Funds and that the proposed Management Fees for the Renewal Funds were set at competitive levels to make the Renewal Funds viable in the marketplace; and
• that, under the unified Management Fee structure, Global X Management is responsible for most ordinary expenses of the Renewal Funds, including the costs of various third-party services required by the Renewal Funds, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that the Renewal Funds would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded that the services received and the fees charged under the Renewal Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the Renewal Funds grow and whether the unitary Management Fees for the Renewal Funds reflected these economies of scale;
• the significant investment of time, personnel and other resources that Global X Management has made and intends to continue to make in the Renewal Funds in order to seek to assure that the Renewal Funds are attractive to investors; and
• that the unitary Management Fees would provide a high level of certainty as to the total level of expenses for the Renewal Funds and their shareholders.
Based on these considerations, the Board concluded that the unitary Management Fees for the Renewal Funds appropriately addressed economies of scale.
Other Benefits
In considering the Renewal Agreements, in addition to the factors above, the Board considered any other benefits realized by Global X Management as a result of its relationships with the Renewal Funds and concluded that, in the exercise of the Board’s
195
Approval of Investment Advisory Agreement (unaudited) (concluded) | ||
business judgement, all information the Board considered supported approval of the continuation of the Renewal Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in its consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the Renewal Agreements were fair and reasonable and in the best interest of each Renewal Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
196
Supplemental Information (unaudited) | ||
Net asset value, or “NAV”, is the price per Share at which a Fund issues and redeems Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of the Fund’s holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Funds’ website at www.globalxetfs.com.
197
Trustees and Officers of the Trust (unaudited) | ||
Set forth below are the names, addresses, year of birth, position with the Trust, term of office and length of time served, the principal occupations for the last five years, number of funds in fund complex overseen by the Trustees, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.
Name, Address (Year of Birth) | Position(s) Held with Trust | Principal Occupation(s) During the Past 5 Years | Number of Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Independent Trustees | ||||
Charles A. Baker 605 Third Avenue, 43rd Floor New York, NY 10158 (1953) | Trustee (since 07/2018) | Chief Executive Officer of Investment Innovations LLC (investment consulting) (since 2013); Managing Director of NYSE Euronext (2003 to 2012). | 782 | Trustee of OSI ETF Trust (since 2016). |
Susan M. Ciccarone 605 Third Avenue, 43rd Floor New York, NY 10158 (1973) | Trustee (since 9/30/2019) | Partner, Further Global Capital Management (private equity) (since 2017); formerly Chief Operating Officer (2014-2016) and Chief Financial Officer (2012-2016), Emerging Global Advisors, LLC (ETF issuer). | 782 | Chairman, Payment Alliance International, Inc. (since 2019); Director, Casa Holdco LP, parent of Celink (since 2018). |
Clifford J. Weber 605 Third Avenue, 43rd Floor New York, NY 10158 (1963) | Trustee (since 07/2018) | Owner, Financial Products Consulting Group LLC (consulting services to financial institutions) (since 2015); Formerly, Executive Vice President of Global Index and Exchange-Traded Products, NYSE Market, Inc., a subsidiary of Intercontinental Exchange (ETF/ETP listing exchange) (2013-2015). | 782 | Chairman (since 2017) and Trustee (since 2015) of Clough Funds Trust; Chairman and Trustee of Clayton Street Trust (since 2016); Chairman and Trustee of Janus Detroit Street Trust (since 2016); Chairman and Trustee of Elevation ETF Trust (2016-2018); Trustee of Clough Global Equity Fund (since 2017); Trustee of Clough Global Dividend and Income Fund (since 2017); and Trustee of Clough Global Opportunities Fund (since 2017). |
198
Trustees and Officers of the Trust (unaudited) | ||
The Trust’s SAI includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The preceding and following charts list Trustees and Officers as of November 30, 2020:
Name, Address (Year of Birth) | Position(s) Held with Funds | Principal Occupation(s) During the Past 5 Years | Number of Operational Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Interested Trustee / Officers1 | ||||
Luis Berruga 605 Third Avenue, 43rd Floor New York, NY 10158 (1977) | Trustee (since 07/2018); President (since 2018) | Chief Executive Officer, GXMC (since 07/2018), Chief Financial Officer (since 2/2014) and Chief Operating Officer (9/2015 - 7/2018); Investment Banker, Jefferies (2012-2014). | 782 | None. |
Chang Kim 605 Third Avenue, 43rd Floor New York, NY 10158 (1984) | Chief Operating Officer; Treasurer, Principal Accounting Officer; and Chief Financial Officer (since 7/2018) | Chief Operating Officer, GXMC (since 7/2018), Head of Portfolio Management & Portfolio Administration (1/2017-7/2018); and Portfolio Manager (since 9/2009). | N/A | None. |
Matt Snyder3 One Freedom Valley Drive Oaks, PA 19456 (1984) | AssistantTreasurer (since11/2020) | Director of Fund Accounting,SEI Investments (since9/2019); Assistant VicePresident, State Street Bankand Trust (10/2006-7/2016and 5/2017-8/2019); andJPMorgan (Corporate &Investment Bank) (8/2016-4/2017) | N/A | None. |
Susan Lively 605 Third Avenue, 43rd Floor New York, NY 10158 (1981) | Secretary (since 9/2020) | General Counsel, GXMC (since 9/2020); Senior Corporate Counsel at Franklin Templeton (previously, Managing Director and Associate General Counsel at Legg Mason & Co., LLC) (2014-2020). | N/A | None. |
Eric Griffith3 One Freedom Valley Drive Oaks, PA 19456 (1969) | Assistant Secretary (since 2/2020) | Counsel, SEI Investments (since 10/2019); Vice President and Assistant General Counsel, JPMorgan Chase & Co. (2012-2018). | N/A | None. |
Joe Costello 605 Third Avenue, 43rd Floor New York, NY 10158 (1974) | Chief Compliance Officer (since 9/2016) | Chief Compliance Officer, FlexShares Funds (2011-2015); Vice President, Northern Trust Investments (2003 - 2015). | N/A | None. |
1 | Each Trustee serves until his successor is duly elected or appointed and qualified. |
2 | As of November 30, 2020, the Trust had eighty-seven investment portfolios, seventy-eight of which were operational. |
3 | These officers of the Trust also serve as officers of one or more funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor. |
199
Notice to Shareholders (unaudited) | ||
For shareholders that do not have a November 30, 2020 tax year end, this notice is for informational purposes only. For shareholders with a November 30, 2020 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended November 30, 2020, the Funds are designating the following items with regard to distributions paid during the year.
Return of Capital | Long-Term Capital Gain Distributions | Ordinary Income Distributions | Total Distributions | Qualifying for Corporate Dividends Received Deduction(1) | ||||||||||||||||
Global X Robotics & Artificial Intelligence ETF | 17.11 | % | 0.00 | % | 82.89 | % | 100.00 | % | 15.81 | % | ||||||||||
Global X Internet of Things ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 32.47 | % | ||||||||||
Global X FinTech ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Video Games & Esports ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 0.91 | % | ||||||||||
Global X Autonomous & Electric Vehicles ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 54.19 | % | ||||||||||
Global X Cloud Computing ETF | 0.00 | % | 26.68 | % | 73.32 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Data Center REITS & Digital Infrastructure ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Cybersecurity ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 72.53 | % | ||||||||||
Global X Artificial Intelligence & Technology ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 71.31 | % | ||||||||||
Global X Millennials Thematic ETF | 0.00 | % | 9.60 | % | 90.40 | % | 100.00 | % | 100.00 | % | ||||||||||
Global X Education ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Cannabis ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Genomics & Biotechnology ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X China Biotech Innovation ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Telemedicine & Digital Health ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Longevity Thematic ETF | 0.00 | % | 22.06 | % | 77.94 | % | 100.00 | % | 68.64 | % | ||||||||||
Global X Health & Wellness Thematic ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 29.54 | % | ||||||||||
Global X CleanTech ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X U.S. Infrastructure Development ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 64.65 | % | ||||||||||
Global X Thematic Growth ETF | 0.00 | % | 0.00 | % | 100.00 | % | 100.00 | % | 37.06 | % |
(1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). |
200
Notice to Shareholders (unaudited) | ||
Qualifying Dividend Income(2) | U.S. Government Interest(3) | Interest Related Dividends(4) | Short Term Capital Gain Dividends(5) | Foreign Tax Credit | ||||||||||||||||
Global X Robotics & Artificial Intelligence ETF | 59.58 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Internet of Things ETF | 71.08 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X FinTech ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Video Games & Esports ETF | 18.93 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Autonomous & Electric Vehicles ETF | 62.15 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Cloud Computing ETF | 0.00 | % | 0.00 | % | 0.00 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Data Center REITS & Digital Infrastructure ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Cybersecurity ETF | 84.53 | % | 0.00 | % | 0.00 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Artificial Intelligence & Technology ETF | 71.31 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Millennials Thematic ETF | 100.00 | % | 0.00 | % | 0.17 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Education ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Cannabis ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Genomics & Biotechnology ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X China Biotech Innovation ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Telemedicine & Digital HealthCompanies ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Longevity Thematic ETF | 100.00 | % | 0.00 | % | 0.21 | % | 100.00 | % | 0.00 | % | ||||||||||
Global X Health & Wellness Thematic ETF | 42.86 | % | 0.00 | % | 0.01 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X CleanTech ETF | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X U.S. Infrastructure Development ETF | 64.65 | % | 0.00 | % | 0.02 | % | 0.00 | % | 0.00 | % | ||||||||||
Global X Thematic Growth ETF | 46.83 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % |
(2) | The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and it is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned Funds to designate the maximum amount permitted by law. |
(3) | “U.S. Government Interest” represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income. |
(4) | The percentage in this column represents the amount of “Qualifying Interest Income” as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors. |
(5) | The percentage of this column represents the amount of “Short Term Capital Gain Dividend’’ and is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors. |
201
Notice to Shareholders (unaudited) | ||
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2020. Complete information will be computed and reported in conjunction with your 2020 Form 1099- DIV.
202
Notes | ||
203
Notes | ||
204
605 3rd Avenue, 43rd Floor
New York, NY 10158
1-888-493-8631
www.globalxetfs.com
Investment Adviser and Administrator:
Global X Management Company LLC
605 3rd Avenue, 43rd Floor
New York, NY 10158
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Sub-Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Counsel for Global X Funds and the Independent Trustees:
Stradley Ronon Stevens & Young, LLP
2000 K Street, N.W.
Suite 700
Washington, DC 20006
Custodian and Transfer Agent:
Brown Brothers Harriman & Co.
50 Post Office Square
Boston, MA 02110
Independent Registered Public Accounting Firm:
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Funds described.
GLX-AR-007-0500
Global X Emerging Markets Bond ETF (ticker: EMBD) |
Annual Report
November 30, 2020
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s (defined below) shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, shareholder reports will be available on the Fund’s website (www.globalxetfs.com/explore), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of Fund shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.
Table of Contents |
Management Discussion of Fund Performance | 1 |
Schedule of Investments | |
Global X Emerging Markets Bond ETF | 4 |
Statement of Assets and Liabilities | 18 |
Statement of Operations | 19 |
Statement of Changes in Net Assets | 20 |
Financial Highlights | 21 |
Notes to Financial Statements | 23 |
Report of Independent Registered Public Accounting Firm | 34 |
Disclosure of Fund Expenses | 35 |
Approval of Investment Advisory Agreement and Sub-Advisory Agreement | 37 |
Supplemental Information | 44 |
Trustees and Officers of the Trust | 45 |
Notice to Shareholders | 48 |
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Shares may only be redeemed directly from the Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
The Fund files its complete schedule of Fund holdings with the Securities and Exchange Commission (the “SEC” or “Commission”) for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. The Fund’s Form N-PORT is available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Fund voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-493-8631; and (ii) on the Commission’s website at http://www.sec.gov.
Management Discussion of Fund Performance (Unaudited) |
Global X Emerging Markets Bond ETF |
Global X Emerging Markets Bond ETF
The Global X Emerging Markets Bond ETF (“Fund”) is an actively managed fund sub-advised by Mirae Asset Global Investments (USA) LLC (the “Sub-adviser”) that seeks a high level of total return, consisting of both income and capital appreciation, by investing in emerging market debt. The Fund primarily invests in emerging market (“EM”) debt securities denominated in U.S. dollars, however, the Fund may also invest in those denominated in applicable local foreign currencies. Securities may include fixed-rate and floating-rate debt instruments issued by sovereign, quasi-sovereign, and corporate entities from EM countries.
The Fund uses JPMorgan EMBI Global Core Index (“Index”) as its performance benchmark. The Index is a broad, diverse U.S. dollar denominated EM debt benchmark that tracks the total return of actively traded debt instruments in EM countries.
For the period from the Fund’s commencement date on June 1, 2020 through November 30, 2020 (the “reporting period”), the Fund increased 11.91% while the Index increased 9.79%. The Fund had a net asset value of $25.00 per share on June 1, 2020 and ended the reporting period with a net asset value of $27.50 per share on November 30, 2020.
During the reporting period, global growth continued to recover from the second quarter lows on the back of large monetary and fiscal stimulus. Risk sentiments got a boost during the fourth quarter from the promising news of vaccine developments. The prospects for less disruptive trade policy by the incoming Biden administration should help support global trade flows, which would likely boost higher beta asset prices, including emerging markets. Even as the concerns over a second wave of coronavirus infections rose, investors appeared focused on the economic normalization prospects in the coming year with the vaccine rollout. The second wave of infections’ adverse developments seemed to give rise to positive market responses for risk assets, as investors priced the prospects of additional fiscal stimulus measures and the extended supports from the Federal Reserve (“Fed”).
Emerging asset prices performed well during the reporting period as the commodity prices continued to rise on the back of increased demand from China. China was the only major economy that managed to grow GDP in 2020 with a 2.3% increase as policymakers successfully flatten the infection curve, which helped support the service sector during the second half of the year. Weaker dollar trends helped ease financial conditions for emerging markets, reversing investors’ earlier flight-to-quality flows. As a result, investors ended 2020 with very bullish sentiments.
During the period, the emerging sovereign debt market posted a gain of +9.79% as the credit spread narrowed by -128 basis points to 380 basis points; the emerging corporate bond market posted an increase of +8.31%. The investment-grade sector, up 6.63%, underperformed the high yield sector, up 13.30%, as lower quality African issuers led a strong recovery in the fourth quarter driven by positive risk sentiments and investors’ search for assets with higher yields on the back of strong inflows into emerging debt markets. However, the restructured Argentina bonds continued to perform poorly in the period with losses of -3.40%. Investors remained cautious due to the lack of economic reform measures and political uncertainty. The best performing sector was CCC rated Angola with a gain of 41.35% as investors digested the positive news that Angola secured debt reliefs from Chinese lenders and the International Monetary Fund providing debt relief for the next three years. The emerging debt markets ended 2020 strong as the global recovery theme gained traction with promising vaccine developments and strong inflows into the asset class as investors searched for yielding assets.
1
Management Discussion of Fund Performance (Unaudited) |
Global X Emerging Markets Bond ETF |
During the period, the Fund outperformed the Index by +212 basis points with positive contributions from both country allocations, which contributed +12 basis points, and security selections, contributing +216 basis points. The Fund’s security selections in corporate issuers contributed positively to performance, as Brazil’s pulp and paper producer Suzano and UAE’s DP World returned 19.42% and 19.31%, respectively. The worst performers were the Government of Ecuador 0.50% and the Government of Argentina 0.125%, whose bonds returned -6.76% and -5.84%, respectively. The Fund had a cautious stance due to the growing risks of a second wave of coronavirus infections. However, when the prospects for vaccine developments gained traction, we were able to quickly pivot to a more bullish stance by increasing the Fund’s credit risk profile. The Fund capitalized on the vaccine rollout theme by taking a new position in the Bahamas during the period. Given that the Bahamas’ economic recovery is highly sensitive to the tourism industry, the news of vaccine developments led to strong performance for Bahama bonds. From a country allocation perspective, the Fund’s underweights to China and Philippines positively contributed +31 and +19 basis points, respectively. The main detractor from performance was the Fund’s underweight to Angola and some high yielding issuers such as Ghana and Kenya. The Fund’s underweight to the Dominican Republic also had a negative contribution to the performance. As the valuation for higher quality issuers such as Malaysia and the Philippines became more expensive, the Fund reduced exposure to those sectors while increasing the allocation to corporate issuers in the commodity sector in the Latin America region.
As we move into 2021, we expect risk sentiment to maintain a constructive tone driven by continued global growth recovery with the vaccine rollout and supportive fiscal and monetary policy measures. We expect investors who held capital on the sideline over concerns about a US double-dip recession will look for income-generating assets as the Fed’s zero interest rate policy for the next couple of years will erode the purchasing power of money. We believe that the emerging market assets will be a main beneficiary of this macro trend. That being said, the valuation for the emerging debt markets is leaning expensive, especially for the high quality investment grade sector. The investment grade sector’s credit spread has reverted to pre-Covid-19 levels leaving little room for spread compression if the core rates rise in 2021.
Given the positive macro backdrop, we expect the core rates to gradually move higher from 2020 levels as economies normalize and a higher supply of government bonds to finance fiscal stimulus policy negatively impacts the technical. Therefore, we favor high yielding assets over the investment grade sector. We look to reduce the Fund’s overall interest rate risk exposure, especially in the long maturity sector. We favor high yielding quasi-governmental issuers such as Mexico’s oil and gas producer, and a government-owned airport operator in Panama. We continue to like Mexican industrials that will benefit from a strong US economic recovery for our emerging corporate strategy. We still do not find Turkish corporate and banks attractive for investment, as they trade inside the sovereign issuer’s credit spread. Even as the global growth outlook improves, we expect an uneven recovery across regions, making an active strategy particularly relevant in navigating these volatile markets.
2
Management Discussion of Fund Performance (Unaudited) |
Global X Emerging Markets Bond ETF |
AVERAGE TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2020 | ||
Cumulative Inception to Date* | ||
Net Asset Value | Market Price | |
Global X Emerging Markets Bond ETF | 11.91% | 12.26% |
JPMorgan EMBI Global Core Index | 9.79% | 9.79% |
Growth of a $10,000 Investment
(at Net Asset Value)
*The Fund commenced investment operations on June 1, 2020.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index. Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices above.
3
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.
Face Amount | Value | |||||||
SOVEREIGN DEBT — 51.6% | ||||||||
Argentina — 1.6% | ||||||||
Argentine Republic Government International Bond | ||||||||
0.125%, 2.500%, 07/09/21, 07/09/41 (B) | $ | 500,000 | $ | 181,500 | ||||
0.125%, 2.000%, 07/09/21, 01/09/38 (B) | 1,000,000 | 395,000 | ||||||
0.125%, 1.125%, 07/09/21, 07/09/35 (B) | 1,500,000 | 526,500 | ||||||
1,103,000 | ||||||||
Azerbaijan — 1.3% | ||||||||
Republic of Azerbaijan International Bond | ||||||||
4.750%, 03/18/24 | 800,000 | 870,608 | ||||||
Bahamas — 2.8% | ||||||||
Bahamas Government International Bond | ||||||||
8.950%, 10/15/32 | 1,800,000 | 1,950,300 | ||||||
Bahrain — 0.3% | ||||||||
Bahrain Government International Bond | ||||||||
7.000%, 10/12/28 | 200,000 | 228,982 |
The accompanying notes are an integral part of the financial statements.
4
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
Brazil — 1.0% | ||||||||
Brazilian Government International Bond | ||||||||
5.625%, 02/21/47 | $ | 400,000 | $ | 472,000 | ||||
4.750%, 01/14/50 | 200,000 | 212,000 | ||||||
684,000 | ||||||||
Chile — 0.6% | ||||||||
Chile Government International Bond | ||||||||
3.500%, 01/25/50 | 200,000 | 227,752 | ||||||
2.450%, 01/31/31 | 200,000 | 212,000 | ||||||
439,752 | ||||||||
Colombia — 1.6% | ||||||||
Colombia Government International Bond | ||||||||
4.500%, 01/28/26 | 400,000 | 447,004 | ||||||
4.500%, 03/15/29 | 400,000 | 455,700 | ||||||
4.125%, 05/15/51 | 200,000 | 218,000 | ||||||
1,120,704 | ||||||||
Dominican Republic — 1.3% | ||||||||
Dominican Republic International Bond | ||||||||
6.500%, 02/15/48 | 400,000 | 448,400 | ||||||
5.950%, 01/25/27 | 200,000 | 224,580 | ||||||
5.500%, 01/27/25 | 200,000 | 217,400 | ||||||
890,380 | ||||||||
Ecuador — 0.7% | ||||||||
Ecuador Government International Bond | ||||||||
0.500%, 0.500%, 07/31/21, 07/31/40 (B) | 1,000,000 | 489,500 | ||||||
Egypt — 2.2% | ||||||||
Egypt Government International Bond | ||||||||
8.700%, 03/01/49 | 400,000 | 437,958 | ||||||
7.903%, 02/21/48 | 200,000 | 206,650 | ||||||
7.625%, 05/29/32 (A) | 600,000 | 655,500 | ||||||
Egypt Government International Bond MTN | ||||||||
7.600%, 03/01/29 | 200,000 | 222,708 | ||||||
1,522,816 | ||||||||
El Salvador — 0.2% | ||||||||
El Salvador Government International Bond | ||||||||
7.125%, 01/20/50 (A) | 200,000 | 166,500 |
The accompanying notes are an integral part of the financial statements.
5
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
Ghana — 0.6% | ||||||||
Ghana Government International Bond | ||||||||
8.950%, 03/26/51 | $ | 200,000 | $ | 198,748 | ||||
8.627%, 06/16/49 | 200,000 | 194,950 | ||||||
393,698 | ||||||||
Hungary — 1.7% | ||||||||
Hungary Government International Bond | ||||||||
5.750%, 11/22/23 | 400,000 | 457,000 | ||||||
5.375%, 03/25/24 | 600,000 | 684,780 | ||||||
1,141,780 | ||||||||
India — 2.2% | ||||||||
Export-Import Bank of India | ||||||||
3.875%, 02/01/28 | 800,000 | 876,416 | ||||||
3.375%, 08/05/26 | 600,000 | 644,526 | ||||||
1,520,942 | ||||||||
Indonesia — 0.3% | ||||||||
Indonesia Government International Bond | ||||||||
2.850%, 02/14/30 | 200,000 | 216,863 | ||||||
Ivory Coast — 0.6% | ||||||||
Ivory Coast Government International Bond | ||||||||
6.125%, 06/15/33 | 400,000 | 440,000 | ||||||
Jordan — 1.6% | ||||||||
Jordan Government International Bond | ||||||||
7.375%, 10/10/47 | 600,000 | 666,510 | ||||||
5.750%, 01/31/27 | 400,000 | 430,545 | ||||||
1,097,055 | ||||||||
Kuwait — 0.7% | ||||||||
Kuwait International Government Bond | ||||||||
3.500%, 03/20/27 | 400,000 | 454,974 | ||||||
Mexico — 1.3% | ||||||||
Mexico Government International Bond | ||||||||
5.000%, 04/27/51 | 200,000 | 241,020 | ||||||
3.750%, 01/11/28 | 200,000 | 221,148 |
The accompanying notes are an integral part of the financial statements.
6
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
Mexico — continued | ||||||||
Mexico Government International Bond MTN | ||||||||
4.125%, 01/21/26 | $ | 400,000 | $ | 452,504 | ||||
914,672 | ||||||||
Nigeria — 1.3% | ||||||||
Nigeria Government International Bond | ||||||||
9.248%, 01/21/49 | 200,000 | 227,047 | ||||||
7.625%, 11/21/25 | 200,000 | 225,119 | ||||||
Nigeria Government International Bond MTN | ||||||||
7.625%, 11/28/47 | 200,000 | 204,000 | ||||||
6.500%, 11/28/27 | 200,000 | 209,750 | ||||||
865,916 | ||||||||
Oman — 2.3% | ||||||||
Oman Government International Bond | ||||||||
6.750%, 01/17/48 | 600,000 | 553,820 | ||||||
4.125%, 01/17/23 | 600,000 | 598,860 | ||||||
3.875%, 03/08/22 (A) | 200,000 | 199,250 | ||||||
Oman Government International Bond MTN | ||||||||
6.000%, 08/01/29 | 200,000 | 198,500 | ||||||
1,550,430 | ||||||||
Pakistan — 0.6% | ||||||||
Pakistan Government International Bond | ||||||||
8.250%, 04/15/24 | 400,000 | 432,000 | ||||||
Panama — 2.0% | ||||||||
Panama Government International Bond | ||||||||
4.500%, 05/15/47 | 200,000 | 253,002 | ||||||
4.000%, 09/22/24 | 400,000 | 437,504 | ||||||
3.750%, 03/16/25 | 600,000 | 657,306 | ||||||
1,347,812 | ||||||||
Paraguay — 1.0% | ||||||||
Paraguay Government International Bond | ||||||||
5.400%, 03/30/50 | 200,000 | 249,500 | ||||||
5.000%, 04/15/26 | 200,000 | 230,502 | ||||||
4.950%, 04/28/31 | 200,000 | 237,002 | ||||||
717,004 |
The accompanying notes are an integral part of the financial statements.
7
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
Peru — 0.8% | ||||||||
Peruvian Government International Bond | ||||||||
5.625%, 11/18/50 | $ | 200,000 | $ | 305,500 | ||||
2.783%, 01/23/31 | 200,000 | 215,802 | ||||||
521,302 | ||||||||
Philippines — 1.0% | ||||||||
Philippine Government International Bond | ||||||||
3.700%, 02/02/42 | 200,000 | 233,347 | ||||||
3.700%, 03/01/41 | 400,000 | 465,817 | ||||||
699,164 | ||||||||
Qatar — 4.6% | ||||||||
Qatar Government International Bond | ||||||||
4.817%, 03/14/49 | 800,000 | 1,107,000 | ||||||
4.500%, 04/23/28 | 400,000 | 483,512 | ||||||
4.000%, 03/14/29 | 200,000 | 236,104 | ||||||
3.875%, 04/23/23 | 200,000 | 214,693 | ||||||
3.750%, 04/16/30 | 200,000 | 234,370 | ||||||
3.400%, 04/16/25 | 600,000 | 660,000 | ||||||
3.250%, 06/02/26 | 200,000 | 222,016 | ||||||
3,157,695 | ||||||||
Romania — 1.0% | ||||||||
Romanian Government International Bond | ||||||||
4.000%, 02/14/51 | 200,000 | 218,500 | ||||||
Romanian Government International Bond MTN | ||||||||
4.875%, 01/22/24 | 200,000 | 222,740 | ||||||
4.375%, 08/22/23 | 200,000 | 217,800 | ||||||
659,040 | ||||||||
Russia — 2.2% | ||||||||
Russian Foreign Bond - Eurobond | ||||||||
5.250%, 06/23/47 | 400,000 | 543,248 | ||||||
5.100%, 03/28/35 | 400,000 | 504,252 | ||||||
4.375%, 03/21/29 | 400,000 | 462,998 | ||||||
1,510,498 |
The accompanying notes are an integral part of the financial statements.
8
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
Saudi Arabia — 1.7% | ||||||||
Saudi Government International Bond MTN | ||||||||
4.625%, 10/04/47 (A) | $ | 200,000 | $ | 250,476 | ||||
4.500%, 04/17/30 | 400,000 | 480,440 | ||||||
2.900%, 10/22/25 (A) | 200,000 | 214,988 | ||||||
2.500%, 02/03/27 | 200,000 | 210,744 | ||||||
1,156,648 | ||||||||
Senegal — 1.0% | ||||||||
Senegal Government International Bond | ||||||||
6.250%, 07/30/24 | 200,000 | 218,076 | ||||||
6.250%, 05/23/33 | 400,000 | 440,840 | ||||||
658,916 | ||||||||
South Africa — 1.7% | ||||||||
Republic of South Africa Government International Bond | ||||||||
5.750%, 09/30/49 | 400,000 | 385,050 | ||||||
5.650%, 09/27/47 | 200,000 | 191,500 | ||||||
4.850%, 09/27/27 | 200,000 | 210,120 | ||||||
4.850%, 09/30/29 | 200,000 | 205,639 | ||||||
4.300%, 10/12/28 | 200,000 | 201,344 | ||||||
1,193,653 | ||||||||
Turkey — 2.9% | ||||||||
Turkey Government International Bond | ||||||||
6.625%, 02/17/45 | 400,000 | 397,556 | ||||||
6.125%, 10/24/28 | 400,000 | 410,256 | ||||||
6.000%, 01/14/41 | 200,000 | 187,500 | ||||||
5.250%, 03/13/30 | 600,000 | 579,336 | ||||||
5.125%, 02/17/28 | 200,000 | 195,020 | ||||||
3.250%, 03/23/23 | 200,000 | 195,420 | ||||||
1,965,088 | ||||||||
Ukraine — 1.6% | ||||||||
Ukraine Government International Bond | ||||||||
7.750%, 09/01/26 | 200,000 | 221,176 | ||||||
7.750%, 09/01/24 | 200,000 | 218,370 | ||||||
7.375%, 09/25/32 | 600,000 | 642,390 | ||||||
1,081,936 |
The accompanying notes are an integral part of the financial statements.
9
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
SOVEREIGN DEBT — continued | ||||||||
United Arab Emirates — 1.6% | ||||||||
Abu Dhabi Government International Bond | ||||||||
3.125%, 10/11/27 | $ | 200,000 | $ | 224,000 | ||||
3.125%, 05/03/26 | 200,000 | 221,524 | ||||||
Abu Dhabi Government International Bond MTN | ||||||||
3.875%, 04/16/50 | 200,000 | 248,096 | ||||||
2.500%, 04/16/25 | 400,000 | 426,944 | ||||||
1,120,564 | ||||||||
Uruguay — 1.4% | ||||||||
Uruguay Government International Bond | ||||||||
4.975%, 04/20/55 | 200,000 | 271,500 | ||||||
4.375%, 10/27/27 | 400,000 | 469,504 | ||||||
4.375%, 01/23/31 | 200,000 | 241,502 | ||||||
982,506 | ||||||||
Vietnam — 0.3% | ||||||||
Vietnam Government International Bond | ||||||||
4.800%, 11/19/24 | 200,000 | 223,489 | ||||||
TOTAL SOVEREIGN DEBT | ||||||||
(Cost $33,628,857) | 35,490,187 | |||||||
CORPORATE OBLIGATIONS — 43.4% | ||||||||
Azerbaijan — 1.1% | ||||||||
Energy — 1.1% | ||||||||
Southern Gas Corridor CJSC | ||||||||
6.875%, 03/24/26 | 600,000 | 718,524 | ||||||
Bahrain — 1.6% | ||||||||
Government — 1.6% | ||||||||
CBB International Sukuk Programme SPC | ||||||||
6.250%, 11/14/24 (A) | 1,000,000 | 1,094,668 |
The accompanying notes are an integral part of the financial statements.
10
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Brazil — 3.9% | ||||||||
Energy — 1.5% | ||||||||
Petrobras Global Finance BV | ||||||||
8.750%, 05/23/26 | $ | 600,000 | $ | 781,200 | ||||
5.093%, 01/15/30 | 200,000 | 219,680 | ||||||
1,000,880 | ||||||||
Industrial — 0.6% | ||||||||
Klabin Finance | ||||||||
4.875%, 09/19/27 | 400,000 | 440,500 | ||||||
Materials — 1.8% | ||||||||
Braskem America Finance | ||||||||
7.125%, 07/22/41 | 400,000 | 457,480 | ||||||
Suzano Austria GmbH | ||||||||
7.000%, 03/16/47 | 600,000 | 780,300 | ||||||
1,237,780 | ||||||||
Total Brazil | 2,679,160 | |||||||
Chile — 1.3% | ||||||||
Materials — 1.3% | ||||||||
Nacional del Cobre de Chile | ||||||||
3.625%, 08/01/27 | 800,000 | 887,568 | ||||||
Colombia — 3.5% | ||||||||
Energy — 1.0% | ||||||||
Ecopetrol | ||||||||
5.875%, 05/28/45 | 400,000 | 475,500 | ||||||
5.375%, 06/26/26 | 200,000 | 229,900 | ||||||
705,400 | ||||||||
Financials — 2.2% | ||||||||
Banco de Bogota | ||||||||
4.375%, 08/03/27 | 1,000,000 | 1,073,700 | ||||||
Grupo Aval | ||||||||
4.375%, 02/04/30 | 400,000 | 412,200 | ||||||
1,485,900 |
The accompanying notes are an integral part of the financial statements.
11
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Colombia — continued | ||||||||
Utilities — 0.3% | ||||||||
Grupo Energia Bogota ESP | ||||||||
4.875%, 05/15/30 | $ | 200,000 | $ | 234,400 | ||||
Total Colombia | 2,425700 | |||||||
India — 4.4% | ||||||||
Energy — 1.6% | ||||||||
BPRL International Singapore Pte MTN | ||||||||
4.375%, 01/18/27 | 600,000 | 642,875 | ||||||
Oil India | ||||||||
5.375%, 04/17/24 | 200,000 | 220,250 | ||||||
ONGC Videsh | ||||||||
4.625%, 07/15/24 | 200,000 | 216,862 | ||||||
1,079,987 | ||||||||
Financials — 2.0% | ||||||||
ICICI Bank MTN | ||||||||
3.800%, 12/14/27 | 400,000 | 429,251 | ||||||
Power Finance | ||||||||
4.500%, 06/18/29 | 200,000 | 218,443 | ||||||
Power Finance MTN | ||||||||
6.150%, 12/06/28 | 400,000 | 478,603 | ||||||
State Bank of India | ||||||||
4.375%, 01/24/24 | 200,000 | 216,204 | ||||||
1,342,501 | ||||||||
Utilities — 0.8% | ||||||||
Adani Renewable Energy RJ MTN | ||||||||
4.625%, 10/15/39 | 575,250 | 579,565 | ||||||
Total India | 3,002,053 | |||||||
Indonesia — 3.4% | ||||||||
Energy — 0.4% | ||||||||
Pertamina Persero MTN | ||||||||
6.450%, 05/30/44 | 200,000 | 273,588 |
The accompanying notes are an integral part of the financial statements.
12
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Indonesia — continued | ||||||||
Materials — 1.3% | ||||||||
Indonesia Asahan Aluminium Persero | ||||||||
6.530%, 11/15/28 | $ | 200,000 | $ | 249,206 | ||||
4.750%, 05/15/25 (A) | 600,000 | 661,500 | ||||||
910,706 | ||||||||
Utilities — 1.7% | ||||||||
Perusahaan Perseroan Persero Perusahaan Listrik Negara MTN | ||||||||
5.450%, 05/21/28 | 600,000 | 720,000 | ||||||
5.250%, 10/24/42 | 200,000 | 237,574 | ||||||
4.125%, 05/15/27 | 200,000 | 221,200 | ||||||
1,178,774 | ||||||||
Total Indonesia | 2,363,068 | |||||||
Jordan — 0.3% | ||||||||
Consumer Staples — 0.3% | ||||||||
Hikma Finance USA | ||||||||
3.250%, 07/09/25 | 200,000 | 206,540 | ||||||
Kazakhstan — 1.0% | ||||||||
Energy — 1.0% | ||||||||
KazMunayGas National JSC | ||||||||
5.375%, 04/24/30 | 200,000 | 245,214 | ||||||
Tengizchevroil Finance International | ||||||||
3.250%, 08/15/30 | 400,000 | 417,006 | ||||||
Total Kazakhstan | 662,220 | |||||||
Kuwait — 3.8% | ||||||||
Financials — 1.2% | ||||||||
Kuwait Projects SPC | ||||||||
4.229%, 10/29/26 | 800,000 | 804,536 | ||||||
Materials — 2.6% | ||||||||
Equate Petrochemical BV MTN | ||||||||
4.250%, 11/03/26 | 400,000 | 436,232 |
The accompanying notes are an integral part of the financial statements.
13
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Materials — continued | ||||||||
MEGlobal Canada ULC MTN | ||||||||
5.875%, 05/18/30 | $ | 400,000 | $ | 486,992 | ||||
5.000%, 05/18/25 (A) | 600,000 | 665,532 | ||||||
5.000%, 05/18/25 | 200,000 | 221,844 | ||||||
1,810,600 | ||||||||
Total Kuwait | 2,615,138 | |||||||
Malaysia — 1.1% | ||||||||
Energy — 1.1% | ||||||||
Petronas Capital MTN | ||||||||
4.550%, 04/21/50 | 200,000 | 268,988 | ||||||
4.500%, 03/18/45 | 200,000 | 268,574 | ||||||
3.500%, 04/21/30 | 200,000 | 228,612 | ||||||
Total Malaysia | 766,174 | |||||||
Mexico — 6.5% | ||||||||
Communication Services — 0.4% | ||||||||
Grupo Televisa | ||||||||
5.250%, 05/24/49 | 200,000 | 247,912 | ||||||
Consumer Staples — 1.0% | ||||||||
Grupo Bimbo | ||||||||
4.700%, 11/10/47 | 400,000 | 482,004 | ||||||
Sigma Alimentos | ||||||||
4.125%, 05/02/26 | 200,000 | 220,900 | ||||||
702,904 | ||||||||
Diversified — 1.0% | ||||||||
Alfa | ||||||||
5.250%, 03/25/24 | 600,000 | 657,006 | ||||||
Energy — 3.2% | ||||||||
Petroleos Mexicanos | ||||||||
7.690%, 01/23/50 | 400,000 | 369,040 | ||||||
6.500%, 01/23/29 | 400,000 | 389,200 | ||||||
6.490%, 01/23/27 | 400,000 | 403,000 | ||||||
6.350%, 02/12/48 | 800,000 | 670,000 | ||||||
5.950%, 01/28/31 | 400,000 | 372,600 | ||||||
2,203,840 |
The accompanying notes are an integral part of the financial statements.
14
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Mexico — continued | ||||||||
Financials — 0.9% | ||||||||
Banco Inbursa Institucion De Banca Multiple Grupo Financiero Inbursa | ||||||||
4.375%, 04/11/27 | $ | 600,000 | $ | 643,500 | ||||
Total Mexico | 4,455,162 | |||||||
Morocco — 1.8% | ||||||||
Materials — 1.8% | ||||||||
OCP | ||||||||
6.875%, 04/25/44 | 800,000 | 1,022,000 | ||||||
5.625%, 04/25/24 | 200,000 | 219,038 | ||||||
Total Morocco | 1,241,038 | |||||||
Panama — 1.6% | ||||||||
Financials — 0.6% | ||||||||
Banistmo | ||||||||
4.250%, 07/31/27 | 400,000 | 418,456 | ||||||
Industrials — 1.0% | ||||||||
Aeropuerto Internacional de Tocumen | ||||||||
6.000%, 11/18/48 | 594,615 | 679,888 | ||||||
Total Panama | 1,098,344 | |||||||
Peru — 1.0% | ||||||||
Energy — 0.7% | ||||||||
Petroleos del Peru | ||||||||
5.625%, 06/19/47 | 400,000 | 481,004 | ||||||
Industrials — 0.3% | ||||||||
Lima Metro Line 2 Finance | ||||||||
4.350%, 04/05/36 | 200,000 | 220,500 | ||||||
Total Peru | 701,504 | |||||||
Saudi Arabia — 3.4% | ||||||||
Energy — 1.0% | ||||||||
Saudi Arabian Oil MTN | ||||||||
4.250%, 04/16/39 | 400,000 | 465,491 | ||||||
3.500%, 04/16/29 | 200,000 | 221,579 | ||||||
687,070 |
The accompanying notes are an integral part of the financial statements.
15
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
CORPORATE OBLIGATIONS — continued | ||||||||
Saudi Arabia — continued | ||||||||
Materials — 0.3% | ||||||||
SABIC Capital II BV | ||||||||
4.500%, 10/10/28 | $ | 200,000 | $ | 236,941 | ||||
Utilities— 2.1% | ||||||||
Acwa Power Management And Investments One | ||||||||
5.950%, 12/15/39 | 800,000 | 944,800 | ||||||
Saudi Electricity Global Sukuk 2 | ||||||||
5.060%, 04/08/43 | 400,000 | 499,904 | ||||||
1,444,704 | ||||||||
Total Saudi Arabia | 2,368,715 | |||||||
South Africa — 1.7% | ||||||||
Materials — 1.4% | ||||||||
Fields Orogen Holdings BVI | ||||||||
6.125%, 05/15/29 | 200,000 | 239,500 | ||||||
Sasol Financing USA | ||||||||
6.500%, 09/27/28 | 700,000 | 724,850 | ||||||
964,350 | ||||||||
Utilities— 0.3% | ||||||||
Eskom Holdings SOC MTN | ||||||||
6.350%, 08/10/28 | 200,000 | 217,840 | ||||||
Total South Africa | 1,182,190 | |||||||
United Arab Emirates — 2.0% | ||||||||
Consumer Staples — 2.0% | ||||||||
DP World Crescent | ||||||||
3.908%, 05/31/23 | 200,000 | 211,492 | ||||||
DP World MTN | ||||||||
6.850%, 07/02/37 | 500,000 | 660,625 | ||||||
5.625%, 09/25/48 | 400,000 | 487,220 | ||||||
Total United Arab Emirates | 1,359,337 | |||||||
TOTAL CORPORATE OBLIGATIONS | ||||||||
(Cost $28,023,098) | 29,827,101 |
The accompanying notes are an integral part of the financial statements.
16
Schedule of Investments | November 30, 2020 | |
Global X Emerging Markets Bond ETF |
Face Amount | Value | |||||||
U.S. TREASURY OBLIGATIONS — 2.6% | ||||||||
U.S. Treasury Note | ||||||||
0.625%, 08/15/30 | $ | 1,000,000 | $ | 980,625 | ||||
0.125%, 05/31/22 | 800,000 | 799,906 | ||||||
TOTAL U.S. TREASURY OBLIGATIONS | ||||||||
(Cost $1,771,201) | 1,780,531 | |||||||
TOTAL INVESTMENTS — 97.6% | ||||||||
(Cost $63,423,156) | $ | 67,097,819 |
Percentages are based on Net Assets of $68,738,503.
(A) Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration normally to qualified institutions. On November 30, 2020, the value of these securities amounted to $3,908,414, representing 5.7% of the net assets of the Fund.
(B) Step Bonds – Represents the current rate, the step rate, the step date and the final maturity date.
MTN – Medium Term Note
As of November 30, 2020, all of the Fund’s investments were considered Level 2, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended November 30, 2020, there were no transfers in or out of Level 3.
The accompanying notes are an integral part of the financial statements.
17
Statement of Assets and Liabilities | ||
November 30, 2020 |
Global X Emerging Markets Bond ETF | ||||
Assets: | ||||
Cost of Investments | $ | 63,423,156 | ||
Investments, at Value | $ | 67,097,819 | ||
Cash | 1,141,769 | |||
Interest Receivable | 632,159 | |||
Receivable for Investment Securities Sold | 520,440 | |||
Due from Broker | 1,311,405 | |||
Total Assets | 70,703,592 | |||
Liabilities: | ||||
Payable for Capital Shares Redeemed | 1,301,530 | |||
Payable for Investment Securities Purchased | 642,648 | |||
Payable due to Investment Adviser | 20,911 | |||
Total Liabilities | 1,965,089 | |||
Net Assets | $ | 68,738,503 | ||
Net Assets Consist of: | ||||
Paid-in Capital | $ | 64,235,133 | ||
Total Distributable Earnings | 4,503,370 | |||
Net Assets | $ | 68,738,503 | ||
Outstanding Shares of Beneficial Interest | ||||
(unlimited authorization — no par value) | 2,500,000 | |||
Net Asset Value, Offering and Redemption Price Per Share | $ | 27.50 |
The accompanying notes are an integral part of the financial statements.
18
Statement of Operations | ||
For the year ended November 30, 2020 |
Global X Emerging Markets Bond ETF(1) | ||||
Investment Income: | ||||
Interest Income | $ | 1,224,721 | ||
Less: Foreign Taxes Withheld | (6,230 | ) | ||
Total Investment Income | 1,218,491 | |||
Supervision and Administration Fees(2) | 115,521 | |||
Total Expenses | 115,521 | |||
Net Investment Income | 1,102,970 | |||
Net Realized Gain on: | ||||
Investments(3) | 822,777 | |||
Net Realized Gain on Investments | 822,777 | |||
Net Change in Unrealized Appreciation on: | ||||
Investments | 3,674,663 | |||
Net Change in Unrealized Appreciation on Investments | 3,674,663 | |||
Net Realized and Unrealized Gain on Investments | 4,497,440 | |||
Net Increase in Net Assets Resulting from Operations | $ | 5,600,410 |
(1) | The Fund commenced operations on June 1, 2020. |
(2) | The Supervision and Administration fees include fees paid by the Fund for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
(3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
The accompanying notes are an integral part of the financial statements.
19
Statement of Changes in Net Assets | ||
Global X Emerging Markets Bond ETF | ||||
Period Ended November 30, 2020(1) | ||||
Operations: | ||||
Net Investment Income | $ | 1,102,970 | ||
Net Realized Gain on Investments (2) | 822,777 | |||
Net Change in Unrealized Appreciation on Investments | 3,674,663 | |||
Net Increase in Net Assets Resulting from Operations | 5,600,410 | |||
Distributions | (1,097,040 | ) | ||
Capital Share Transactions: | ||||
Issued | 64,235,133 | |||
Increase in Net Assets from Capital Share Transactions | 64,235,133 | |||
Total Increase in Net Assets | 68,738,503 | |||
Net Assets: | ||||
Beginning of Period | — | |||
End of Period | $ | 68,738,503 | ||
Share Transactions: | ||||
Issued | 2,500,000 | |||
Net Increase in Shares Outstanding from Share Transactions | 2,500,000 |
(1) | The Fund commenced operations on June 1, 2020. |
(2) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
The accompanying notes are an integral part of the financial statements.
20
Financial Highlights | ||
Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period
Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | ||||||||||||||||
Global X Emerging Markets Bond ETF | ||||||||||||||||||||
2020(1) | 25.00 | 0.49 | 2.47 | 2.96 | (0.46 | ) |
The accompanying notes are an integral part of the financial statements.
21
Financial Highlights | ||
Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
(0.46 | ) | 27.50 | 11.91 | 68,739 | 0.39 | † | 3.72 | † | 38.12 |
(1) | The Fund commenced operations on June 1, 2020. |
* | Per share data calculated using average shares method. |
** | Total Return is for the period indicated and has not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
The accompanying notes are an integral part of the financial statements.
22
Notes to Financial Statements | ||
November 30, 2020 |
1. ORGANIZATION
The Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of November 30, 2020, the Trust had eighty-seven portfolios, seventy-eight of which were operational. The financial statements herein and the related notes pertain to the Global X Emerging Markets Bond ETF (the “Fund”). The Fund has elected non-diversified status.
The Fund commenced operations on June 1, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Fund.
USE OF ESTIMATES – The Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.
SECURITY VALUATION – Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (“NASDAQ”), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm Eastern Time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less will be valued at amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Fund are
23
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Fund seeks to obtain a bid price from at least one independent broker.
Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board of Trustees (the “Board”). The Fund’s Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using the Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when, under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Fund may fair value its securities if an event that may materially affect the value of the Fund’s securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Fund calculates its net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC, the Fund’s investment adviser (the “Adviser”) becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of November 30, 2020, there were no securities priced using the Fair Value Procedures.
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;
24
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Fund has the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost); and
Level 3 – Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments and fair value of investments for which the Fund does not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term).
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
For the period ended November 30, 2020, there have been no significant changes to the Fund’s fair valuation methodology.
FEDERAL INCOME TAXES – It is the Fund’s intention to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements except as described below.
The Fund evaluates tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Fund did not record any tax positions in the current period. However, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), and on-going analysis of and changes to tax laws and regulations, and interpretations thereof. Any foreign tax filings that have not been made, will be filed within the prescribed period.
As of and during the period ended November 30, 2020, the Fund did not have a liability for any unrecognized tax benefits as income tax expense on the Statement of Operations. During the period, the Fund did not incur any interest or penalties. The Fund is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.
25
Notes to Financial Statements (continued) | ||
November 30, 2020 |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY TRANSACTIONS AND INVESTMENT INCOME – Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date. Amortization of premiums and accretion of discounts is included in interest income.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS – The Fund distributes its net investment income on a pro rata basis. Any net investment income and net realized capital gains are distributed at least annually. All distributions are recorded on the ex-dividend date.
CREATION UNITS –The Fund issues and redeems its shares (“Shares”) on a continuous basis at net asset value (“NAV”) and only in large blocks of 100,000 Shares, referred to as “Creation Units”. Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an Authorized Participant on the same day.
An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to Brown Brothers Harriman & Co. (“BBH”), the Fund’s custodian (“custodian”), on the date of such redemption, regardless of the number of Creation Units redeemed that day. If a Creation Unit is purchased or redeemed for cash, an additional variable fee may be charged. The following table discloses the Creation Unit breakdown:
Creation Unit Shares | Creation Fee | Value at November 30, 2020 | Redemption Fee | ||||||||||
Global X Emerging Markets Bond ETF | 100,000 | $ | 500 | $ | 2,750,000 | $ | 500 |
CASH OVERDRAFT CHARGES – Per the terms of the agreement with BBH, if the Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of LIBOR plus 2.00%. Cash overdraft charges are included in custodian fees on the Statements of Operations.
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS
On July 2, 2018, the Adviser consummated a transaction pursuant to which it became an indirect, wholly-owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae”). In this manner, the Adviser is ultimately controlled by Mirae, which is a leading financial services company in Korea and is the headquarters for the Mirae Asset Global Investments Group.
26
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
The Adviser serves as the investment adviser and the administrator for the Fund. Subject to the supervision of the Board, the Adviser is responsible for managing the investment activities of the Fund and the Fund’s business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Fund, including certain distribution services (provided pursuant to a separate distribution agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate investment advisory agreement), under what is essentially an “all-in” fee structure. For the Adviser’s services to the Fund, under the supervision and administration agreement, the Fund pays a monthly fee to the Adviser at the annual rate (stated as a percentage of the average daily net assets of the Fund) (“Supervision and Administration Fee”). In addition, the Fund bears other expenses that are not covered by the supervision and administration agreement, which may vary and affect the total expense ratios of the Fund, such as taxes, brokerage fees, commissions, acquired fund fees, other transaction expenses, interest expenses and extraordinary expenses (such as litigation and indemnification expenses).
The following table discloses the rate of supervision and administration fees paid by the Fund pursuant to the supervision and administration agreement:
Supervision and Administration Fee | ||||
Global X Emerging Markets Bond ETF | 0.39 | % |
The Adviser has entered into a sub-advisory agreement with Mirae Asset Global Investments (USA) LLC (the “Sub-Adviser”), an affiliate of the Adviser, under which the Adviser pays the Sub-Adviser for management and operational services it provides to the Fund. The Sub-Adviser, subject to the supervision and oversight of the Trust’s Board of Trustees and the Adviser, is responsible for the management of the Fund, and has discretion to buy or sell securities in accordance with the Fund’s investment objective. The Adviser may from time to time share certain of its profits with, or allocate other resources to, the Sub-Adviser. Any such payments by the Adviser to the Sub-Adviser will be from the Adviser’s own resources.
The Adviser pays the Sub-Adviser a fee (“Sub-Adviser Management Fee”) in return for providing management and operational services to the Fund. The Adviser will pay a monthly Sub-Adviser Management Fee to the Sub-Adviser at the annual rate set forth below:
• | 0.14% on assets for any day that total assets are greater than or equal to $50 million. |
• | 0.00% on assets for any day that total assets are less than $50 million. |
27
Notes to Financial Statements (continued) | ||
November 30, 2020 |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
SEI Investments Global Funds Services (“SEIGFS”) serves as sub-administrator to the Fund. As sub-administrator, SEIGFS provides the Fund with required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Fund under federal and state securities laws. As for these services, SEIGFS receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser. SEI Investments Distribution Co. (“SIDCO”) serves as the Fund’s underwriter and distributor of Creation Units pursuant to a distribution agreement. SIDCO has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (1) the costs of processing and maintaining records of creations of Creation Units; (2) all costs of maintaining the records required of a registered broker/dealer; (3) the expenses of maintaining its registration or qualification as a dealer or broker under federal or state laws; (4) filing fees; and (5) all other expenses incurred in connection with the distribution services as contemplated in the Distribution Agreement. SIDCO receives no fee from the Fund for its distribution services under the distribution agreement; rather, the Adviser compensates SIDCO for certain expenses, out-of-pocket costs, and transaction fees.
BBH serves as custodian and transfer agent of the Fund’s assets. As custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Fund, (2) collect and receive all income and other payments and distributions on account of the Fund’s portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties, and (4) make periodic reports to the Fund concerning the Fund’s operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As transfer agent, BBH has agreed to (1) issue and redeem Shares of the Fund, (2) make dividend and other distributions to shareholders of the Fund, (3) respond to correspondence by shareholders and others relating to its duties, (4) maintain shareholder accounts, and (5) make periodic reports to the Fund. As compensation for these services, BBH receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.
4. INVESTMENT TRANSACTIONS
For the period ended November 30, 2020, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government, and short-term securities, were:
2020 | Purchases | Sales and Maturities | |||||
Global X Emerging Markets Bond ETF | $ | 25,493,353 | $ | 23,181,951 |
28
Notes to Financial Statements (continued) | ||
November 30, 2020 |
4. INVESTMENT TRANSACTIONS (continued)
For the period ended November 30, 2020, in-kind transactions associated with creations and redemptions were, respectively:
2020 | Purchases | Sales and Maturities | Realized Gain | |||||||
Global X Emerging Markets Bond ETF | $ | 58,670,918 | $ | – | $ | – |
For the period ended November 30, 2020, the Global X Emerging Markets Bond ETF had purchases and sales of long-term U.S. Government securities of $2,344,574 and $583,164 respectively.
5. TAX INFORMATION
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid in capital, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the period ended November 30, 2020 was as follows:
Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | |||||||||
Global X Emerging Markets Bond ETF | |||||||||||||
2020 | $ | 1,097,040 | $ | – | $ | – | $ | 1,097,040 |
29
Notes to Financial Statements (continued) | ||
November 30, 2020 |
5. TAX INFORMATION (continued)
As of November 30, 2020, the components of tax basis distributable earnings (accumulated losses) were as follows:
Global X Funds | ||||
Global X Emerging Markets Bond ETF | ||||
Undistributed Ordinary Income | $ | 830,660 | ||
Unrealized Appreciation on Investments and Foreign Currency | 3,672,710 | |||
Total Distributable Earnings | $ | 4,503,370 |
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Fund at November 30, 2020 was as follows:
Global X Funds | Federal Tax Cost | Aggregated Gross Unrealized Appreciation | Aggregated Gross Unrealized Depreciation | Net Unrealized Appreciation | ||||||||||
Global X Emerging Markets Bond ETF | $ | 63,425,109 | $ | 3,775,233 | $ | (102,523 | ) | $ | 3,672,710 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Funds’ net unrealized appreciation difference is attributable primarily to wash sales.
6. CONCENTRATION OF RISKS
The Fund invests in securities of foreign issuers in several countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.
The securities markets of emerging market countries are less liquid and subject to greater price volatility, and have a smaller market capitalization than the U.S. securities markets.
In certain countries, there may be fewer publicly traded securities and the market may be dominated by a few issuers or sectors. Issuers and securities markets in such
30
Notes to Financial Statements (continued) | ||
November 30, 2020 |
6. CONCENTRATION OF RISKS (continued)
countries are not subject to as extensive and frequent accounting, financial and other reporting requirements or as comprehensive government regulations or issuers and securities markets in the U.S. In particular, the assets and profits appearing on the financial statements of emerging market country issuers may not reflect their financial position or results of operations in the same manner as financial statements for U.S. issuers.
Substantially less information may be publicly available about emerging market country issuers than is available about issuers in the United States. There may be significant obstacles to obtaining information necessary for investigations into or litigation against emerging market companies and shareholders may have limited legal remedies.
The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income, gains earned or gains repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.
The London Interbank Offered Rate, or “LIBOR,” the offered rate for short-term Eurodollar deposits between major international banks, is used extensively in the United States and globally as a reference rate in various financing and commercial transactions. Plans are underway to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the financial markets generally, transactions that use LIBOR as a reference rate and financial institutions that engage in such transactions, including issuers of securities in which a Fund may invest. As such, the potential effect of a transition away from LIBOR on a Fund’s investments cannot yet be determined.
Economic conditions, such as volatile currency exchange rates and interest rates, political events, military action and other conditions may, without prior warning, lead to foreign government intervention (including intervention by the U.S. government with respect to foreign governments, economic sectors, foreign companies and related securities and interests) and the imposition of capital controls (i.e., government measures designed to limit the flow of foreign capital in and out of the domestic economy) and/or sanctions, which may also include retaliatory actions of one government against another government, such as seizure of assets. Capital controls and/or sanctions include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. Capital controls and/or sanctions may also impact the ability of a Fund to buy, sell or otherwise transfer securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and price for shares of a Fund, and cause a Fund to decline in value.
7. LOANS OF PORTFOLIO SECURITIES
A more complete description of risks is included in the Fund’s Prospectus and Statement of Additional Information.
31
Notes to Financial Statements (continued) | ||
November 30, 2020 |
7. LOANS OF PORTFOLIO SECURITIES (continued)
The Fund may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Security loans made pursuant to a securities lending agreement are initially required to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign based securities. Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements or U.S. Treasury obligations and is recognized in the Schedule of Investments and Statement of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statement of Assets and Liabilities. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.
Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. As of November 30, 2020, the Fund had no securities on loan.
8. CONTRACTUAL OBLIGATIONS
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior gains or losses pursuant to these contracts.
Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.
9. SUBSEQUENT EVENTS
The Fund has been evaluated regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional adjustments were required to the financial statements.
32
Notes to Financial Statements (concluded) | ||
November 30, 2020 |
10. OTHER MATTER
The rapid and global spread of a highly contagious novel coronavirus respiratory disease, designated COVID-19, has resulted in extreme volatility in the financial markets and severe losses; reduced liquidity of many instruments; restrictions on international and, in some cases, local travel; significant disruptions to business operations (including business closures); strained healthcare systems; disruptions to supply chains, consumer demand and employee availability; and widespread uncertainty regarding the duration and long-term effects of this pandemic. Some sectors of the economy and individual issuers have experienced particularly large losses. In addition, the COVID-19 pandemic may result in a sustained economic downturn or a global recession, domestic and foreign political and social instability, damage to diplomatic and international trade relations and increased volatility and/or decreased liquidity in the securities markets. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund’s investments and negatively impact Fund performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.
33
Report of Independent Registered Public Accounting Firm | ||
To the Board of Trustees and Shareholders of Global X Emerging Markets Bond ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Global X Emerging Markets Bond ETF (one of the funds constituting the Global X Funds, referred to hereafter as the “Fund”) as of November 30, 2020, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period June 1, 2020 (commencement of operations) through November 30, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2020, the results of its operations, changes in its net assets, and the financial highlights for the period June 1, 2020 (commencement of operations) through November 30, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2020 by correspondence with the custodian and brokers. We believe that our audit provides a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
January 27, 2021
We have served as the auditor of one or more investment companies in the Global X Funds since 2016.
34
Disclosure of Fund Expenses (Unaudited) | ||
All exchange traded funds (“ETFs”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for any brokerage fees as a result of his or her investment in the Fund, which is not reflected in the table below.
Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the six-month period shown and held for the entire period (June 1, 2020 to November 30, 2020).
The table below illustrates your Fund’s costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
35
Disclosure of Fund Expenses (Unaudited) | ||
Beginning Account Value 6/1/2020 | Ending Account Value 11/30/2020 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
Global X Emerging Markets Bond ETF* | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,118.70 | 0.39 | % | $ | 2.05 | (2) | |||||||
Hypothetical 5% Return | 1,000.00 | 1,023.05 | 0.39 | 1.97 |
(1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period.) |
(2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/366 (to reflect the period from inception to date). |
* | The Fund commenced operations on June 1, 2020. |
36
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), requires that the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not “interested persons” of the ETF, as defined in the 1940 Act (“Independent Trustees”), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each ETF’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.
At a Board meeting of the Global X Funds (the “Trust”) held in person on February 18, 2020 (the “New Fund Board Meeting”), the Board of Trustees (the “Board”) (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved (i) the initial Investment Advisory Agreement (the “New Investment Advisory Agreement”) for the Global X Emerging Markets Bond ETF (the “New Fund”) (ii) the initial Supervision and Administration Agreement between the Trust (the “New Supervision and Administration Agreement”), on behalf of the New Fund, and Global X Management Company LLC (“Global X Management”); and (iii) the Sub-Advisory Agreement between Global X Management on behalf of the New Fund and Mirae Asset Global Investments (USA) LLC (the “Sub-Adviser”) (the “New Sub-Advisory Agreement”). The New Advisory Agreement and the New Supervision and Administration Agreement are referred to collectively as the “New Fund Agreements.”
In advance of the Board meeting, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management and the Sub-Adviser in connection with the Board’s consideration of the New Fund Agreements and received and reviewed written responses from Global X Management and the Sub-Adviser as well as supporting materials relating to those requests for information. In the course of their consideration of the New Fund Agreements, the Trust’s Independent Trustees were advised by their independent legal counsel and, in addition to meetings with management of Global X Management, the Independent Trustees met separately in executive sessions with their counsel.
NEW FUND AGREEMENTS
In determining to approve the New Fund Agreements for the New Fund, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
• the terms of the New Fund Agreements and the range of services proposed to be provided to the New Fund in accordance with the New Fund Agreements;
37
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
• the key personnel and the portfolio managers of each of Global X Management and the Sub-Adviser who would provide investment advisory, supervision and administrative services to the New Fund;
• Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of the New Fund and the composition of the New Fund’s assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New Fund, (iv) select broker-dealers to execute portfolio transactions for the New Fund when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the New Fund, and the periodic updating of the registration statements, prospectuses, statements of additional information, and other reports and documents for the New Fund that are required to be filed by the Trust with the U.S. Securities and Exchange Commission (“SEC”) and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the New Fund by shareholders and new investors;
• the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that are proposed to be provided by Global X Management or made available to the New Fund; and
• the quality of Global X Management’s resources and personnel that would be made available to the New Fund, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that it was satisfied with the nature, extent and quality of the services proposed to be provided to the New Fund by Global X Management.
Performance
The Board determined that, because the New Fund had not yet begun investment operations as of the dates of the New Fund Board Meeting, meaningful data relating to the investment performance of the New Fund was not available and, therefore, could not be a factor in approving the New Fund Agreements.
Cost of Services and Profitability
With respect to this factor, the Board considered:
• Global X Management’s expected costs to provide investment management, supervision and administrative and related services to the New Fund;
38
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
• The management fee (including the proposed investment advisory fee) (“Management Fee”) that was proposed to be borne by the New Fund under the respective New Fund Agreement for the various investment advisory, supervisory and administrative services that the New Fund requires under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the New Fund); and
• the expected profitability to Global X Management, if any, from all of the services proposed to be provided to the New Fund by Global X Management and all aspects of the relationship between Global X Management and the New Fund.
Based on these considerations, the Board concluded that the proposed Management Fee to be paid by the New Fund to Global X Management, in light of the nature, extent and quality of the services to be provided, was reasonable and in the best interests of the New Fund’s shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the proposed Management Fee to be paid to Global X Management by the New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for the New Fund, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs, and/or other similar registered funds. The Board considered Global X Management’s detailed explanation of the proposed fee structure of the New Fund that was above the average or median for the New Fund’s peer group;
• the structure of the proposed unitary Management Fee (which includes as one component the proposed investment advisory fee for the New Fund) and the expected total expense ratio for the New Fund. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the New Fund was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of the New Fund and that the proposed Management Fee for the New Fund was set at a competitive level to make the New Fund viable in the marketplace; and
• that, under the proposed unified Management Fee structure, Global X Management would be responsible for most ordinary expenses of the New Fund, including the costs of various third-party services required by the New Fund, including investment advisory, sub-advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that the New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
39
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that the services to be received and the fees to be charged under the applicable New Fund Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the New Fund grows and whether the proposed unitary Management Fee for the New Fund reflected these economies of scale, including that the sub-advisory fee to be paid to the Sub-Adviser by Global X Management became payable once New Fund assets reached $50 million;
• the significant investment of time, personnel and other resources that Global X Management intends to make in the New Fund in order to seek to assure that the New Fund is attractive to investors; and
• that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for the New Fund and its shareholders.
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that the proposed unitary Management Fee for the New Fund appropriately addressed economies of scale.
Other Benefits
In considering each New Fund Agreement, in addition to the factors discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Fund. As a result, the Board concluded that, in the case of the New Fund, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the New Fund Agreement.
NEW SUB-ADVISORY AGREEMENT
In determining to approve the New Sub-Advisory Agreement for the New Fund, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent, and Quality of Services
With respect to this factor, the Board considered:
• the terms of the New Sub-Advisory Agreement and the range of services that are to be provided to the New Fund by the Sub-Adviser in accordance with the New Sub-Advisory Agreement;
40
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
• the Sub-Adviser’s key personnel and the co-portfolio managers who would provide investment advisory services to the New Fund;
• the Sub-Adviser’s responsibilities under the New Sub-Advisory Agreement, among other things, to: (i) invest and reinvest the assets of the New Fund, (ii) provide the Trust, Global X Management, and their respective officers and Trustees with such periodic reports concerning the obligations the Sub-Adviser has assumed under the New Sub-Advisory Agreement as the Trust, the Board, and Global X Management may from time to time reasonably request, (iii) review all proxy solicitation materials and vote (or abstain from voting) and handle all proxies solicited by or with respect to the issuers of securities in which the assets of the New Fund may be invested in compliance with the proxy voting procedures of the Trust then in effect, (iv) select broker and dealers to execute portfolio transactions for the New Fund and select the markets on or in which the transactions will be executed, and (v) assist Global X Management and the New Fund by providing certain operational services to the New Fund including, without limitation, the following: (A) the preparation of tax returns; (B) the preparation and submission of reports to existing shareholders; (C) the periodic updating of the prospectus and statement of additional information for the New Fund; and (D) the preparation of reports to be filed with the SEC and other regulatory authorities;
• the nature, extent and quality of the services (including advisory and compliance services) to be provided by the Sub-Adviser or made available to the New Fund, and the adequacy of the Sub-Adviser’s personnel and resources that would be made available to the New Fund; and
• the Sub-Adviser’s experience and the professional qualifications of the Sub-Adviser’s key personnel.
Performance
The Board noted that the New Fund was non-operational and, consequently, no performance data was available for the New Fund. However, the Board took account of the fact that the Sub-Adviser has managed other funds with investment strategies similar to the investment strategies that would be utilized for the New Fund.
Cost of Services and Profitability
The Board considered the Sub-Adviser’s anticipated cost to provide investment management services to the New Fund. In this regard, the Board considered the sub-advisory fee to be paid to the Sub-Adviser (from the Management Fee to be borne by the New Fund under the New Fund Agreement) for the various investment advisory services that the New Fund requires.
41
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
In addition, the Board considered the expected profitability to the Sub-Adviser from the services to be provided to the New Fund by the Sub-Adviser and all aspects of the Sub-Adviser’s relationship with the New Fund. The Board considered that the Sub-Adviser represented that its sub-advisory fee will appropriately compensate the Sub-Adviser for the services (the implementation of the investment strategy and managing the New Fund’s investment portfolio) that it will provide to the New Fund. The Trustees noted that the Sub-Adviser indicated that it expected earnings from its relationship with the New Fund to be accretive to its profitability.
To assist the Trustees in these considerations, the Sub-Adviser provided the Board with financial information regarding the services to be provided to the New Fund and discussed with the Board its expected profitability with respect to the New Fund.
Comparison of Fees and Services
With respect to this factor, the Board considered:
• comparative information with respect to the sub-advisory fee to be paid to the Sub-Adviser by Global X Management (from the Management Fee paid to the Adviser by the New Fund) on New Fund assets above $50 million. To assist the Trustees in these considerations, the Sub-Adviser provided the Board with comparative expense data for the New Fund, including management fees paid by unaffiliated comparable specialized and/or focused ETFs and/or other comparable investment funds; and
• the proposed structure of the sub-advisory fee and the proposed total expense ratio for the New Fund.
Economies of Scale
With respect to this factor, the Board considered:
• the extent to which economies of scale would be realized as the New Fund grows and whether the sub-advisory fee for the New Fund reflected these economies of scale, and noted that the Sub-Adviser represented that it does not expect to experience any economies of scale by providing sub-advisory services to the New Fund, based on the anticipated size of the New Fund during at least the New Fund’s first few years; and
• the significant investment of time, personnel and other resources that the Sub-Adviser has made and intends to continue to make in the New Fund to seek to assure that the New Fund is attractive to investors.
42
Approval of Investment Advisory Agreement and sub-advisory Agreement (Unaudited) | ||
Other Benefits
In considering the New Sub-Advisory Agreement, in addition to the categories above, the Board considered other benefits realized by the Sub-Adviser because of its relationship with the New Fund.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in its consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the New Fund Agreements and the New Sub-Advisory Agreement were fair and reasonable and in the best interest of the New Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
43
Supplemental Information (Unaudited) | ||
NAV is the price per Share at which a Fund issues and redeems Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of the Fund will fluctuate with changes in the market value of the Fund’s holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Fund’s website at www.globalxetfs.com.
44
Trustees and Officers of the Trust (unaudited) | ||
Set forth below are the names, addresses, year of birth, position with the Trust, term of office and length of time served, the principal occupations for the last five years, number of funds in fund complex overseen by the Trustees, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.
Name, Address (Year of Birth) | Position(s) Held with Trust | Principal Occupation(s) During the Past 5 Years | Number of Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Independent Trustees1 | ||||
Charles A. Baker 605 Third Avenue, 43rd Floor New York, NY 10158 (1953) | Trustee (since 07/2018) | Chief Executive Officer of Investment Innovations LLC (investment consulting) (since 2013); Managing Director of NYSE Euronext (2003 to 2012). | 782 | Trustee of OSI ETF Trust (since 2016). |
Susan M. Ciccarone 605 Third Avenue, 43rd Floor New York, NY 10158 (1973) | Trustee (since 9/30/2019) | Partner, Further Global Capital Management (private equity) (since 2017); formerly Chief Operating Officer (2014-2016) and Chief Financial Officer (2012-2016), Emerging Global Advisors, LLC (ETF issuer). | 782 | Chairman, Payment Alliance International, Inc. (since 2019); Director, Casa Holdco LP, parent of Celink (since 2018). |
Clifford J. Weber 605 Third Avenue, 43rd Floor New York, NY 10158 (1963) | Trustee (since 07/2018) | Owner, Financial Products Consulting Group LLC (consulting services to financial institutions) (since 2015); Formerly, Executive Vice President of Global Index and Exchange-Traded Products, NYSE Market, Inc., a subsidiary of Intercontinental Exchange (ETF/ETP listing exchange) (2013-2015). | 782 | Chairman (since 2017) and Trustee (since 2015) of Clough Funds Trust; Chairman and Trustee of Clayton Street Trust (since 2016); Chairman and Trustee of Janus Detroit Street Trust (since 2016); Chairman and Trustee of Elevation ETF Trust (2016-2018); Trustee of Clough Global Equity Fund (since 2017); Trustee of Clough Global Dividend and Income Fund (since 2017); and Trustee of Clough Global Opportunities Fund (since 2017). |
45
Trustees and Officers of the Trust (unaudited) | ||
The Trust’s SAI includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of November 30, 2020:
Name, Address (Year of Birth) | Position(s) Held with Funds | Principal Occupation(s) During the Past 5 Years | Number of Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Interested Trustee / Officers1 | ||||
Luis Berruga 605 Third Avenue, 43rd Floor New York, NY 10158 (1977) | Trustee (since 07/2018); President (since 2018) | Chief Executive Officer, GXMC (since 07/2018), Chief Financial Officer (since 2/2014) and Chief Operating Officer (9/2015 - 7/2018); Investment Banker, Jefferies (2012-2014). | 782 | None. |
Chang Kim 605 Third Avenue, 43rd Floor New York, NY 10158 (1984) | Chief Operating Officer; Treasurer, Principal Accounting Officer; and Chief Financial Officer (since 7/2018) | Chief Operating Officer, GXMC (since 7/2018), Head of Portfolio Management & Portfolio Administration (1/2017-7/2018); and Portfolio Manager (since 9/2009). | N/A | None. |
Matt Snyder3 One Freedom Valley Drive Oaks, PA 19456 (1984) | Assistant Treasurer (since 11/2020) | Director of Fund Accounting, SEI Investments (since 9/2019); Assistant Vice President, State Street Bank and Trust (10/2006-7/2016 and 5/2017-8/2019); and JPMorgan (Corporate & Investment Bank) (8/2016-4/2017) | N/A | None. |
Susan Lively 605 Third Avenue, 43rd Floor New York, NY 10158 (1981) | Secretary (since 9/2020) | General Counsel, GXMC (since 9/2020); Senior Corporate Counsel at Franklin Templeton (previously, Managing Director and Associate General Counsel at Legg Mason & Co., LLC) (2014-2020). | N/A | None. |
Eric Griffith3 One Freedom Valley Drive Oaks, PA 19456 (1969) | Assistant Secretary (since 2/2020) | Counsel, SEI Investments (since 10/2019); Vice President and Assistant General Counsel, JPMorgan Chase & Co. (2012-2018). | N/A | None. |
46
Trustees and Officers of the Trust (unaudited) | ||
Name, Address (Year of Birth) | Position(s) Held with Funds | Principal Occupation(s) During the Past 5 Years | Number of Funds in Trust Overseen by Trustee | Other Directorships Held by Trustees |
Interested Trustee / Officers1 | ||||
Joe Costello 605 Third Avenue, 43rd Floor New York, NY 10158 (1974) | Chief Compliance Officer (since 9/2016) | Chief Compliance Officer, FlexShares Funds (2011-2015); Vice President, Northern Trust Investments (2003 - 2015). | N/A | None. |
1 | Each Trustee serves until his or her successor is duly elected or appointed and qualified. |
2 | As of November 30, 2020, the Trust had eighty-seven investment portfolios, seventy-eight of which were operational. |
3 | These officers of the Trust also serve as officers of one or more funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor. |
47
Notice to Shareholders (unaudited) | ||
For shareholders that do not have a November 30, 2020 tax year end, this notice is for informational purposes only. For shareholders with a November 30, 2020 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended November 30, 2020, the Fund has designated the following items with regard to distributions paid during the year.
Long-Term Capital Gain Distributions | Return of Capital | Ordinary Income Distributions | Total Distributions | Qualifying for Corporate Dividends Received Deduction(1) | ||||
0.00% | 0.00% | 100.00% | 100.00% | 0.0% |
Qualifying Dividend Income(2) | U.S. Government Interest(3) | Interest Related Dividends(4) | Short-Term Capital Gain Dividends(5) | Foreign Tax Credit | ||||
0.0% | 0.11% | 59.74% | 0.00% | 0.00% |
(1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary Income distributions (the total of short term capital gain and net investment income distributions). |
(2) | The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law. |
(3) | ‘‘U.S. Government Interest’’ represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income. |
(4) | The percentage in this column represents the amount of “Interest Related Dividends” is reflected as a percentage of ordinary income distribution. Interest related dividends is exempt from U.S. withholding tax when paid to foreign investors. |
(5) | The percentage of this column represents the amount of “Short Term Capital Gain Dividend” is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors. |
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2020. Complete information will be computed and reported in conjunction with your 2020 Form 1099-DIV.
48
605 Third Avenue, 43rd Floor
New York, NY 10158
1-888-493-8631
www.globalxetfs.com
Investment Adviser and Administrator:
Global X Management Company LLC
605 Third Avenue, 43rd Floor
New York, NY 10158
Sub-Adviser:
Mirae Asset Global Investments (USA) LLC
625 Madison Avenue, 3rd Floor
New York, NY 10022
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Sub-Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Counsel for Global X Funds and the Independent Trustees:
Stradley Ronon Stevens & Young, LLP
2000 K Street, N.W.
Suite 700
Washington, DC 20006
Custodian and Transfer Agent:
Brown Brothers Harriman & Co.
50 Post Office Square
Boston, MA 02110
Independent Registered Public Accounting Firm:
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Fund described.
GLX-AR-009-0100
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function.
Item 3. Audit Committee Financial Expert.
(a)(1) The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee.
(a)(2) The audit committee financial experts are Charles A. Baker and Susan M. Ciccarone and each is independent as defined in Form N-CSR Item 3(a)(2).
Item 4.Principal Accountant Fees and Services.
Fees billed by Pricewaterhouse Coopers LLP (“PwC”) relate to the registrant.
PWC billed the registrant aggregate fees for services rendered to the registrant for the last two fiscal years as follows:
2020 | 2019 | ||||||
All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | ||
(a) | Audit Fees | $1,056,304 | $0 | $0 | $912,763 | $0 | $0 |
(b) | Audit-Related Fees | $0 | $0 | $0 | $0 | $0 | $0 |
(c) | Tax Fees | $342,942 | $0 | $0 | $285,396 | $0 | $0 |
(d) | All Other Fees | $0 | $0 | $0 | $0 | $0 | $0 |
(e)(1) Not applicable.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows (PwC):
2020 | 2019 | |
Audit-Related Fees | 0% | 0% |
Tax Fees | 0% | 0% |
All Other Fees | 0% | 0% |
(f) Not applicable.
(g) The aggregate non-audit fees and services billed by PwC for the last two fiscal years were $342,942 and $285,396, respectively.
(h) During the past fiscal year, all non-audit services provided by registrant’s principal accountant to either registrant’s investment adviser or to any entity controlling, controlled by, or under common control with registrant’s investment adviser that provides ongoing services to registrant were pre-approved by the audit committee of registrant’s Board of Trustees. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
The Registrant has a separately-designated standing Audit Committee, which is composed of the Registrant's Independent Trustees, Charles A. Baker, Susan M. Ciccarone and Clifford J. Weber.
Item 6. Investments.
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes.
Item 11. Controls and Procedures.
(a) The certifying officers, whose certifications are included herewith, have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant’s disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 13. Exhibits.
(a)(1) Code of Ethics attached hereto.
(a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)
Global X Funds
By (Signature and Title)
/s/ Luis Berruga
Luis Berruga
President
Date: February 5, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)
/s/ Luis Berruga
Luis Berruga
President
Date: February 5, 2021
By (Signature and Title)
/s/ John Belanger
John Belanger
Chief Financial Officer