Global X Millennial Consumer ETF (ticker: MILN)
Global X Aging Population ETF (ticker: AGNG)
Global X Health & Wellness ETF (ticker: BFIT)
Global X Robotics & Artificial Intelligence ETF (ticker: BOTZ)
Global X FinTech ETF (ticker: FINX)
Global X Internet of Things ETF (ticker: SNSR)
Global X U.S. Infrastructure Development ETF (ticker: PAVE)
Global X Autonomous & Electric Vehicles ETF (ticker: DRIV)
Global X Artificial Intelligence & Technology ETF (ticker: AIQ)
Global X Genomics & Biotechnology ETF (ticker: GNOM)
Global X Cloud Computing ETF (ticker: CLOU)
Global X Cannabis ETF (ticker: POTX)
Global X Thematic Growth ETF (ticker: GXTG)
Global X Video Games & Esports ETF (ticker: HERO)
Global X Cybersecurity ETF (ticker: BUG)
Global X Telemedicine & Digital Health ETF (ticker: EDOC)
Global X China Biotech Innovation ETF (ticker: CHB)
Global X CleanTech ETF (ticker: CTEC)
Global X Data Center REITs & Digital Infrastructure ETF (ticker: VPN)
Global X Clean Water ETF (ticker: AQWA)
Global X AgTech & Food Innovation ETF (ticker: KROP)
Global X Blockchain ETF (ticker: BKCH)
Global X Hydrogen ETF (ticker: HYDR)
Global X Solar ETF (ticker: RAYS)
Global X Wind Energy ETF (ticker: WNDY)
Global X Green Building ETF (ticker: GRNR)
Global X Metaverse ETF (ticker: VR)
Global X PropTech ETF (ticker: PTEC)
Global X Carbon Credits Strategy ETF (ticker: NTRL)
Global X Defense Tech ETF (ticker: SHLD)

 

Annual Report

November 30, 2023

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/Consolidated Schedule of Investments  
Global X Millennial Consumer ETF 64
Global X Aging Population ETF 69
Global X Health & Wellness ETF 75
Global X Robotics & Artificial Intelligence ETF 79
Global X FinTech ETF 84
Global X Internet of Things ETF 90
Global X U.S. Infrastructure Development ETF 96
Global X Autonomous & Electric Vehicles ETF 100
Global X Artificial Intelligence & Technology ETF 107
Global X Genomics & Biotechnology ETF 114
Global X Cloud Computing ETF 119
Global X Cannabis ETF 123
Global X Thematic Growth ETF 127
Global X Video Games & Esports ETF 130
Global X Cybersecurity ETF 135
Global X Telemedicine & Digital Health ETF 139
Global X China Biotech Innovation ETF 142
Global X CleanTech ETF 145
Global X Data Center REITs & Digital Infrastructure ETF 151
Global X Clean Water ETF 154
Global X AgTech & Food Innovation ETF 157
Global X Blockchain ETF 160
Global X Hydrogen ETF 164
Global X Solar ETF 167
Global X Wind Energy ETF 172
Global X Green Building ETF 176
Global X Metaverse ETF 181
Global X Proptech ETF 184
Global X Carbon Credits Strategy ETF 188
Global X Defense Tech ETF 191
Glossary 194
Statements of Assets and Liabilities/Consolidated Statement of Assets and Liabilities 195
Statements of Operations/Consolidated Statement of Operations 203
Statements of Changes in Net Assets/Consolidated Statement of Changes in Net Assets 211
Financial Highlights/Consolidated Financial Highlights 226
Notes to Financial Statements/Notes to Consolidated Financial Statements 246
Report of Independent Registered Public Accounting Firm 280
Disclosure of Fund Expenses 283
Approval of Investment Advisory Agreement 288
Supplemental Information 296
Trustees and Officers of the Trust 297
Notice to Shareholders 299
 

 

Table of Contents

 

 

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’ Form N-PORT is 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 Millennial Consumer ETF

 

 

Global X Millennial Consumer ETF

 

Global X Millennial Consumer ETF (the “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, and 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 measures the performance of U.S. listed companies that provide exposure to the Millennial generation, (“Millennial Companies”). The Millennial generation refers to the demographic cohort in the US with birth years ranging from 1980 to 2000.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 15.87%, while the Underlying Index increased 16.42%. The Fund had a net asset value of $28.43 per share on November 30, 2022 and ended the reporting period with a net asset value of $32.86 on November 30, 2023.

 

During the reporting period, the highest returns came from Carvana Co. Class A and Meta Platforms Inc. Class A, which returned 306.23% and 177.01%, respectively. The worst performers were Bed Bath & Beyond Inc and 2U Inc., which returned -91.37% and -87.77%, respectively.

 

The Fund recorded positive returns during the reporting period, capitalizing on the evolving preferences of Millennial and Gen Z consumers, a significant global demographic. These cohorts increasingly favored cutting-edge technology and convenience, driven by heightened social media consumption that propelled mobile shopping and alternative payment methods during the reporting period. Noteworthy trends included a preference for experiential pursuits (such as travel) over material possessions and a discernible shift toward access over ownership, observed in the popularity of ridesharing and collaborative consumption. These trends not only presented lucrative opportunities for modern companies but also contributed to the enduring success of established legacy businesses, fueled by the growing spending capacity of these consumer groups. During the reporting period, the Fund had the highest sector exposure to Consumer Discretionary at 42.78% and Communication Services at 23.77%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Millennial Consumer ETF 15.87% 15.97% -2.11% -2.10% 9.11% 9.10% 11.35% 11.29%
Indxx Millennials Thematic Index 16.42% 16.42% -1.66% -1.66% 9.65% 9.65% 11.87% 11.87%
S&P 500® Index 13.84% 13.84% 9.76% 9.76% 12.51% 12.51% 13.19% 13.19%

 

1

 

 

Management Discussion of Fund Performance (unaudited)

Global X Millennial Consumer 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.

 

2

 

 

Management Discussion of Fund Performance (unaudited)

Global X Aging Population ETF

 

 

Global X Aging Population ETF

 

Global X Aging Population ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Aging Population Thematic Index (“Underlying Index”). The Fund is passively managed, and 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 markets that are expected to directly or indirectly contribute to increasing the life-spans of the senior population of the world. The Underlying Index provides access to companies involved in biotechnology, medical devices, pharmaceuticals, senior living facilities and specialized health care services, which respond to the needs of this demographic.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 2.42%, while the Underlying Index increased 2.80%. The Fund had a net asset value of $26.46 per share on November 30, 2022 and ended the reporting period with a net asset value of $26.93 on November 30, 2023.

 

During the reporting period, the highest returns came from Seagen, Inc. and Novo Nordisk A/S Class B, which returned 75.64% and 68.44%, respectively. The worst performers were FibroGen, Inc. and Cano Health, Inc. Class A, which returned -96.16% and -96.12%, respectively.

 

The Fund recorded modestly positive returns during the reporting period as advances in medical science and technology supported growth of the healthcare industry. Continued growth of the aging population theme resulted in increased demand for medical care and healthcare services, leading to positive investor sentiment. Growing focus on research and development (R&D) in the medical industry towards addressing age-related disorders like cardiovascular illnesses and type 2 diabetes also played a role in growing returns. Furthermore, senior living facilities benefited from increased demand for round-the-clock care and operational improvements to better scale care. Ongoing supply chain and macroeconomic headwinds limited upside in the Fund during the reporting period, with inflationary pressures impacting margins in the medical devices sector. The Fund also benefitted from a slower-than-expected rebound for aging-related surgical procedures following the COVID-19 pandemic.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Aging Population ETF 2.42% 1.54% 0.79% 0.63% 6.28% 6.10% 8.62% 8.86%
Indxx Aging Population Thematic Index 2.80% 2.80% 1.03% 1.03% 6.51% 6.51% 8.90% 8.90%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 9.71% 9.71%

 

3

 

 

Management Discussion of Fund Performance (unaudited)

Global X Aging Population 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.

 

4

 

 

Management Discussion of Fund Performance (unaudited)

Global X Health & Wellness ETF

 

 

Global X Health & Wellness ETF

 

Global X Health & Wellness ETF (the “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, and 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 markets that provide products and services aimed at promoting physical wellness through active and healthy lifestyles, including but not limited to fitness equipment and technology, athletic apparel, nutritional supplements, and organic/ natural food offerings.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 5.64%, while the Underlying Index increased 6.04%. The Fund had a net asset value of $21.37 per share on November 30, 2022 and ended the reporting period with a net asset value of $22.35 on November 30, 2023.

 

During the reporting period, the highest returns came from BellRing Brands, Inc. and WW International, Inc., which returned 112.36% and 105.08%, respectively. The worst performers were F45 Training Holdings, Inc. and Li Ning Company Limited, which returned -66.17% and -63.76%, respectively.

 

The Fund recorded positive returns during the reporting period as increased focus on health, prevention, and self-care among consumers supported the global health and wellness market. Higher consumer spending on products and services geared towards maintaining a healthy and active lifestyle further supported investor sentiment. Technological advancements and integration of digital devices in the health and wellness industry increased demand for fitness wearable devices. Furthermore, the wellness economy continued to grow amid increased government expenditure on the development of sophisticated healthcare infrastructure and new medical technologies. Ongoing supply chain and recessionary concerns limited upside in the Fund during the reporting period, with slower-than-expected demand for high end home workout equipment and athletic apparel. During the reporting period, the Fund had an average approximate stock exposure of 39.93% in the United States and 14.72% in Japan. By sector, the Fund had its highest exposures, on average, to Consumer Discretionary at 70.84%, followed by Consumer Staples at 23.61%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Health & Wellness ETF 5.64% 5.36% -1.71% -1.93% 4.52% 4.35% 6.27% 6.34%
Indxx Global Health & Wellness Thematic Index 6.04% 6.04% -1.38% -1.38% 4.90% 4.90% 6.70% 6.70%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 9.71% 9.71%

 

5

 

 

Management Discussion of Fund Performance (unaudited)

Global X Health & Wellness 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.

 

6

 

 

Management Discussion of Fund Performance (unaudited)

Global X Robotics & Artificial Intelligence ETF

 

 

Global X Robotics & Artificial Intelligence ETF

 

Global X Robotics & Artificial Intelligence ETF (the “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 and 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 invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence (AI), including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 25.75%, while the Underlying Index increased 26.09%. The Fund had a net asset value of $21.09 per share on November 30, 2022 and ended the reporting period with a net asset value of $26.47 on November 30, 2023.

 

During the reporting period, the highest returns came from Rainbow Robotics and Symbotic Inc., which returned 448.70% and 199.60%, respectively. The worst performers were Tusimple Holdings Inc. Class A and Faro Technologies Inc., which returned -62.18% and -38.60%, respectively.

 

The Fund recorded positive returns during the reporting period amid heightened adoption rates of automation to combat labor shortages and supply chain inefficiencies in artificial intelligence, alongside other advancements. Industrial robotics installations experienced momentum worldwide over the course of the reporting period. This trend was fueled by the increasing affordability and sophistication of robots, which led to higher precision and productivity across various industries. Concurrently, the shift towards reshoring and supply chain diversification spurred demand for automated manufacturing. This demand proved crucial in enhancing quality, reducing costs, and maintaining global competitiveness. In the U.S. specifically, substantial investment in chip manufacturing also propelled automation. Similarly, service robots, especially those used in delivery and healthcare, also expanded their presence due to advancements in generative AI technology and the growing use of internet of things devices. During the reporting period, the Fund had an average approximate stock exposure of 46.74% in United States and 32.29% in Japan. By sector, the Fund had its highest average sector exposure to Information Technology at 42.77%, followed by Industrials at 39.46%).

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Robotics & Artificial Intelligence ETF 25.75% 23.56% -5.73% -5.65% 6.76% 6.69% 8.83% 8.81%
Indxx Global Robotics & Artificial Intelligence Thematic Index 26.09% 26.09% -5.24% -5.24% 7.22% 7.22% 9.22% 9.22%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 9.32% 9.32%

 

7

 

 

Management Discussion of Fund Performance (unaudited)

Global X Robotics & Artificial Intelligence 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 FinTech ETF

 

 

Global X FinTech ETF

 

The Global X FinTech ETF (the “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, and 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 (“P2P”) and marketplace lending, financial analytics software and alternative currencies (collectively, “FinTech Companies”), as defined by Indxx, LLC, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 9.70%, while the Underlying Index increased 10.00%. The Fund had a net asset value of $20.44 per share on November 30, 2022 and ended the reporting period with a net asset value of $22.37 on November 30, 2023.

 

During the reporting period, the highest returns came from Coinbase Global Inc. Class-A and Riot Platforms Inc., which returned 172.73% and 169.89%, respectively. The worst performers were Sunlight Financial Holdings Inc. Class A and Linklogis Inc. Class-B, which returned -61.33% and -55.42%, respectively.

 

The Fund recorded positive performance during the reporting period as digital wallet adoption and point-of-sale (POS) systems generated additional revenues for FinTech Companie. In response to the U.S. Federal Reserve’s increase in interest rates and borrowing costs, market players adapted to the economic environment by embracing new features and functionalities to stabilize revenues, with a focus on improving margins. Furthermore, the rise of artificial intelligence and machine learning reduced costs for financial institutions in assessing the credibility of borrowers and their spending behaviors. Lastly, the broader improvement in the crypto industry further helped boost revenues and profits in crypto exposed franchises of FinTech Companies. Companies that supply financial software and technology to traditional banks and legacy financial institutions also saw strong performance, and banks continued to spend incremental dollars on digitizing their information technology. During the reporting period, the Fund had an average approximate stock exposure of 62.90% in United States. By sector, it had the highest exposure to Financials at 66.39% and Information Technology at 27.47%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 FinTech ETF 9.70% 8.82% -17.87% -17.92% -0.68% -0.73% 6.49% 6.46%
Indxx Global Fintech Thematic Index 10.00% 10.00% -17.58% -17.58% -0.22% -0.22% 7.04% 7.04%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 9.32% 9.32%

 

9

 

 

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.

 

10

 

 

Management Discussion of Fund Performance (unaudited)

Global X Internet of Things ETF

 

 

Global X Internet of Things ETF

 

Global X Internet of Things ETF (the “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, and 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 invest in companies that stand to potentially benefit from the broader adoption of the Internet of Things (“IoT”). This includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 7.26%, while the Underlying Index increased 7.78%. The Fund had a net asset value of $30.54 per share on November 30, 2022 and ended the reporting period with a net asset value of $32.45 on November 30, 2023.

 

During the reporting period, the highest returns came from Samsara Inc. CL-A and Arlo Technologies Inc., which returned 188.98% and 137.96%, respectively. The worst performers were Butterfly Network Inc. and Spirent Communications Plc, which returned -70.52% and -55.14%, respectively.

 

The Fund recorded positive returns during the reporting period amid heightened industrial and automotive demand due to increased spending on industrial automation and growing use of semiconductors in autonomous vehicles. Furthermore, businesses benefitted through the synergy between IoT, data analytics, and generative artificial intelligence (AI) to optimize operations and improve customer experiences. Enhanced connectivity through high-speed internet, including 5G networks, provided greater network reliability and opened new possibilities for IoT applications in areas such as smart cities and healthcare. Lastly, increased deployments of IoT solutions amid development of more robust encryption protocols and security measures further supported IoT growth. During the reporting period, by sector, the Fund had the highest average exposure to Information Technology at 65.51% and Industrials at 17.10%.

 

11

 

 

Management Discussion of Fund Performance (unaudited)

Global X Internet of Things ETF

 

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Internet of Things ETF 7.26% 6.64% 3.33% 3.34% 13.42% 13.45% 12.12% 12.12%
Indxx Global Internet of Things Thematic Index 7.78% 7.78% 3.72% 3.72% 13.80% 13.80% 12.50% 12.50%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 9.32% 9.32%

 

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.

 

12

 

 

Management Discussion of Fund Performance (unaudited)

Global X Internet of Things 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 pages.

 

13

 

 

Management Discussion of Fund Performance (unaudited)

Global X U.S. Infrastructure Development ETF

 

 

Global X U.S. Infrastructure Development ETF

 

Global X U.S. Infrastructure Development ETF (the “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, and 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 (collectively, “U.S. Infrastructure Development Companies”), as defined by Indxx, LLC, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 13.63%, while the Underlying Index increased 14.31%. The Fund had a net asset value of $27.94 per share on November 30, 2022 and ended the reporting period with a net asset value of $31.50 on November 30, 2023.

 

During the reporting period, the highest returns came from Powell Industries Inc. and Atlas Technical Consultants, which returned 221.37% and 124.21%, respectively. The worst performers were Titan Machinery Inc. and Calix Inc., which returned -48.08% and -45.88%, respectively.

 

The Fund recorded a positive performance during the reporting period as U.S. Infrastructure Development Companies continued to benefit from high demand for construction work and positive sentiments toward the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and CHIPS Act. The United States also experienced a surge in manufacturing construction spending as companies reoriented their supply chains in the fallout from disruptive events such as the COVID-19 pandemic and conflict in Ukraine. Infrastructure companies with the expertise to build out industrial capacity also benefitted from this onshoring trend. Lastly, after softening around the beginning of the reporting period, construction input prices stabilized, providing support for materials suppliers within the Fund. During the reporting period, by sector, the Fund had the highest exposure to Industrials at 71.80% and Materials at 22.00%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 U.S. Infrastructure Development ETF 13.63% 13.59% 16.62% 16.53% 15.98% 15.95% 12.31% 12.31%
Indxx U.S. Infrastructure Development Index 14.31% 14.31% 17.32% 17.32% 16.60% 16.60% 12.90% 12.90%
S&P 500® Index 13.84% 13.84% 9.76% 9.76% 12.51% 12.51% 12.17% 12.17%

 

14

 

 

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.

 

15

 

 

Management Discussion of Fund Performance (unaudited)

Global X Autonomous & Electric Vehicles ETF

 

 

Global X Autonomous & Electric Vehicles ETF

 

Global X Autonomous & Electric Vehicles ETF (the “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, and 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, 2023 (the “reporting period”), the Fund increased 2.71%, while the Underlying Index increased 2.64%. The Fund had a net asset value of $22.89 per share on November 30, 2022 and ended the reporting period with a net asset value of $23.19 on November 30, 2023.

 

During the reporting period, the highest returns came from NVIDIA Corporation and Hyster-Yale Materials Handling, Inc. Class A, which returned 176.47% and 67.61%, respectively. The worst performers were Plug Power Inc. and Innoviz Technologies Ltd., which returned -74.69% and -68.16%, respectively.

 

The Fund recorded modestly positive returns during the reporting period due to strong performances from big tech companies that are aligned with autonomous vehicle development as well as continued growth for the electric vehicle (“EV”) industry. A combination of accommodative government policy, technological innovation, deployment of charging infrastructure, and expanded commitments from traditional automakers continued to support progress in EV adoption. Declining battery-related commodity costs and price wars between automakers improved EV affordability, although they continue to sell at an upfront premium to internal combustion engine vehicles. EV sales did not grow as quickly as expected during the reporting period due to economic headwinds in China and elevated borrowing costs for consumers around the world. During the reporting period, the Fund had an average approximate stock exposure of 55.50% in the United States and 10.81% in Japan. By sector, it had the highest average exposure to Consumer Discretionary at 35.39%, followed by Information Technology at 29.80%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Autonomous & Electric Vehicles ETF 2.71% 1.65% 2.94% 2.75% 13.34% 13.32% 9.33% 9.27%
Solactive Autonomous & Electric Vehicles Index 2.64% 2.64% 3.17% 3.17% 13.53% 13.53% 9.49% 9.49%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 7.51% 7.51%

 

16

 

 

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.

 

17

 

 

Management Discussion of Fund Performance (unaudited)

Global X Artificial Intelligence & Technology ETF

 

 

Global X Artificial Intelligence & Technology ETF

 

Global X Artificial Intelligence & Technology ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Artificial Intelligence & Big Data Index (“Underlying Index”). The Fund is passively managed and 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 positioned to benefit from the further development and implementation of artificial intelligence technology, as well as to companies that provide critical technology and services for the analysis of large and complex data sets (collectively, “Artificial Intelligence & Big Data Companies”).

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 38.56%, while the Underlying Index increased 39.45%. The Fund had a net asset value of $21.54 per share on November 30, 2022 and ended the reporting period with a net asset value of $29.73 on November 30, 2023.

 

During the reporting period, the highest returns came from Alchip Technologies Ltd. and Super Micro Computer Inc., which returned 233.68% and 203.08%, respectively. The worst performers were Meituan-Class B and Envestnet Inc., which returned -44.66% and -41.49%, respectively.

 

The Fund recorded positive performance during the reporting period as strong growth in the artificial intelligence (“AI”) market and its positive impact on productivity supported economic gains. The growing use of AI-as-a-service gave an opportunity for cloud computing companies to monetize their services by partnering with emerging AI startups and upselling additional cloud infrastructure to their expansive user bases. Additionally, the introduction of new generative AI tools to enhance user experiences contributed to the Fund’s performance. Multi-sectoral applications of AI for automation, productivity enhancement, and quality control gave investors confidence in companies looking to utilize AI for improving profit margins. Investor confidence was also boosted as the technology companies operating in this realm prioritized cost-cutting measures and workforce reductions to enhance margins and improve bottom-line performance. During the reporting period, the Fund had the highest average sector exposure to Information Technology at 61.36%, followed by Communication Services at 14.79%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  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 Artificial Intelligence & Technology ETF 38.56% 37.28% 5.14% 4.98% 16.43% 16.45% 13.60% 13.60%
Indxx Artificial Intelligence & Big Data Index 39.45% 39.45% 5.67% 5.67% 16.94% 16.94% 14.09% 14.09%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 9.07% 9.07% 7.23% 7.23%

 

18

 

 

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.

 

19

 

Management Discussion of Fund Performance (unaudited)
Global X Genomics & Biotechnology ETF

 

 

Global X Genomics & Biotechnology ETF

 

Global X Genomics & Biotechnology ETF (the “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 and 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 genomic science and biotechnology, as well as applications thereof (collectively, “Genomics & Biotechnology Companies”), as defined by Solactive AG, the provider of the Underlying Index (“Index Provider”). In order to be eligible for inclusion in the Underlying Index, a company is considered by the Index Provider to be a Genomics & Biotechnology Company if it derives at least 50% of its revenue, operating income, or assets from genomics and/or biotechnology.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 22.60%, while the Underlying Index decreased 22.22%. The Fund had a net asset value of $13.45 per share on November 30, 2022 and ended the reporting period with a net asset value of $10.41 on November 30, 2023.

 

During the reporting period, the highest returns came from Avidity Biosciences Inc. and Natera Inc., which returned 42.52% and 36.07%, respectively. The worst performers were Bionano Genomics Inc. and Sangamo Therapeutics Inc., which returned -93.53% and -91.88%, respectively.

 

The Fund recorded negative returns during the reporting period on account of challenges faced by biotechnology companies due to growing inflationary pressures and regulatory scrutiny. Rising interest rates affected biotech companies that rely on debt financing to fund their research and development expenses. This forced the industry to prioritize operational efficiencies to expand cash runway and accelerate the path towards profitability, in turn, deprioritizing product innovation. Genomics & Biotechnology Companies were also impacted by a slowdown in mergers and acquisitions (M&A) amid growing scrutiny from regulatory bodies that has put a hold on potential exit opportunities for smaller genomics companies. Continued supply chain constraints also hampered the industry during the reporting period, resulting in shortages of key medications and more costly manufacturing of complex treatment categories.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Genomics & Biotechnology ETF -22.60% -22.81% -20.83% -20.83% -7.88% -7.49%
Solactive Genomics Index -22.22% -22.22% -20.49% -20.49% -7.42% -7.42%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.30% 8.30%

 

20

 

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.

 

21

 

Management Discussion of Fund Performance (unaudited)
Global X Cloud Computing ETF

 

 

Global X Cloud Computing ETF

 

Global X Cloud Computing ETF (the “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, and 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 Indxx Global Cloud Computing Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 23.97%, while the Underlying Index increased 24.77%. The Fund had a net asset value of $16.77 per share on November 30, 2022 and ended the reporting period with a net asset value of $20.79 on November 30, 2023.

 

During the reporting period, the highest returns came from Shopify Inc. Class-A and Fastly Inc. Class-A, which returned 78.13% and 71.95%, respectively. The worst performers were 2U Inc. and Paycom Software Inc., which returned -87.77% and -46.17%, respectively.

 

The Fund recorded positive returns during the reporting period resulting from a broad uplift in profitability for companies as well as an increased adoption of cloud technology and generative artificial intelligence (“AI”)-based products and services. Hyperscale cloud platforms capitalized on the generative AI platform shift by quickly enabling access to emerging large-language models through their platforms, and cross selling cloud services to new customers. Similarly, software companies were able to incrementally monetize their offerings by building automated and AI-driven end solutions to clients looking to improve efficiency. Lastly, technology companies operating in the cloud computing market also focused on cost-cutting measures and workforce reductions to enhance margins and improve bottom-line performance, which helped boost broad investor confidence. The continued rise and use of data-heavy assets further helped drive spending on cloud computing services during the period.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Cloud Computing ETF 23.97% 23.78% -6.45% -6.53% 7.61% 7.68%
Indxx Global Cloud Computing Index 24.77% 24.77% -5.85% -5.85% 8.28% 8.28%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.23% 8.23%

 

22

 

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.

 

23

 

Management Discussion of Fund Performance (unaudited)
Global X Cannabis ETF

 

 

Global X Cannabis ETF

 

Global X Cannabis ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Cannabis Index (“Underlying Index”). The Fund is passively managed and 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, designed to provide exposure to exchange-listed companies that are active in the cannabis industry (collectively, “Cannabis Companies”). In order to be eligible for inclusion in the Cannabis Index, a company is considered by the Index Provider 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; and (vii) the provision of software and/or online marketplaces or platforms primarily for the cannabis sector.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 61.63%, while the Underlying Index decreased 63.58%. The Fund had a net asset value of $14.95 per share on November 30, 2022 and ended the reporting period with a net asset value of $5.52 on November 30, 2023.

 

During the reporting period, the highest returns came from Hexo Corp. and Organigram holdings Inc., which returned 325.84% and 26.60%, respectively. The worst performers were Flora Growth Corp. and MYMD Pharmaceuticals Inc., which returned -87.50% and -86.92%, respectively.

 

The Fund recorded negative performance during the reporting period amid challenges of a large illicit cannabis market and varied regulatory landscape across key markets. Increased supply in the cannabis market and stringent tax requirements in legal jurisdictions hampered investor sentiment towards Cannabis Companies. Additionally, limited accessibility of capital amid a high interest rate environment and complicated regulatory landscape reduced growth prospects of Cannabis Companies. Slower-than-expected regulatory actions in key markets like the United States and Germany have delayed consolidation efforts from key market players to improve margins and achieve profitability. Lastly, chances of a recession decreased consumer spending on perceived non-essential items, including cannabis products. During the reporting period, the Fund had an average approximate stock exposure of 54.94% in Canada and 34.06% in United States. By sector, it had the highest exposure to Health Care at 65.51% and Real Estate at 18.48%.

 

24

 

Management Discussion of Fund Performance (unaudited)
Global X Cannabis ETF

 

             
  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Cannabis ETF -61.63% -62.50% -56.06% -56.37% -52.38% -52.86%
Solactive Cannabis Index -63.58% -63.58% -57.51% -57.51% -54.61% -54.61%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.61% 8.61%

 

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 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.

 

25

 

Management Discussion of Fund Performance (unaudited)
Global X Cannabis 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 and above.

 

26

 

Management Discussion of Fund Performance (unaudited)
Global X Thematic Growth ETF

 

 

Global X Thematic Growth ETF

 

The Global X Thematic Growth ETF (the “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 and 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, an “Underlying ETF”). The Underlying Index allocates index weights among the Underlying ETFs based on a quantitative methodology developed by Solactive AG, the provider of the Underlying Index, which is designed to determine the selection and weighting of the eligible Underlying ETFs.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 10.30%, while the Underlying Index decreased 10.39%. The Fund had a net asset value of $26.14 per share on November 30, 2022 and ended the reporting period with a net asset value of $23.05 on November 30, 2023.

 

During the reporting period, the highest returns came from Global X Blockchain ETF and Global X Social Media ETF, which returned 68.55% and 25.11%, respectively. The worst performers were Global X Cannabis ETF and Global X Lithium & Battery ETF, which returned -62.50% and -30.53%, respectively.

 

The Fund performed negatively during the reporting period on account of the performance of its underlying themes. A portion of the Fund’s negative returns were due to higher interest rates, elevated material costs and permit delays associated with renewable energy companies. Additionally, inflationary pressures, regulatory scrutiny and competition from generic manufacturers adversely impacted the performance of the biotechnology stocks. Within the disruptive materials space, dampened demand leading to higher supply levels amid an uncertain macroeconomic environment negatively contributed to the Fund’s performance. Meanwhile, lithium prices were weighed down by performance in the Chinese spot market, amid weakened demand and bearish sentiment.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Thematic Growth ETF -10.30% -10.78% -17.39% -17.45% -1.18% -0.99%
Solactive Thematic Growth Index -10.39% -10.39% -17.63% -17.63% -1.41% -1.41%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.52% 8.52%

 

27

 

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 pages.

 

28

 

Management Discussion of Fund Performance (unaudited)
Global X Video Games & Esports ETF

 

 

Global X Video Games & Esports ETF

 

Global X Video Games & Esports ETF (the “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, and 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 consumption related to video games and esports, including companies 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, as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 5.29%, while the Underlying Index increased 5.71%. The Fund had a net asset value of $18.96 per share on November 30, 2022 and ended the reporting period with a net asset value of $19.93 on November 30, 2023.

 

During the reporting period, the highest returns came from Applovin Corp. Class-A and International Games System Co Ltd., which returned 160.10% and 79.18%, respectively. The worst performers were Skillz Inc. Class A and Gumi Inc., which returned -69.56% and -55.60%, respectively.

 

The Fund recorded positive returns during the reporting period due to the launch of new generations of hardware, improvements in supply chains and back-log orders, continued adoption and innovation in mobile gaming, and the increased use of virtual and augmented reality technologies. Casual mobile gaming continues to remain popular, attracting a significant number of players worldwide. Key mobile platforms brought increasingly media-rich and high-fidelity gaming experiences on smaller devices, driving a resurgence of in-app purchases and rise in the popularity of online multiplayer games. Higher investments and increased merger and acquisition (M&A) activity helped drive growth both for the acquiring companies and broader industry. Lastly, consumer access to games on the go without having to carry around a console or gaming personal computer (PC) weighed positively for mobile cloud gaming industry. During the reporting period, the Fund had an average approximate stock exposure of 33.21% in United States and 27.40% in Japan. By sector, it had the highest exposure to Communication Services at 88.90%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Video Games & Esports ETF 5.29% 3.13% -10.78% -11.04% 7.72% 7.53%
Solactive Video Games & Esports Index 5.71% 5.71% -10.38% -10.38% 8.21% 8.21%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.52% 8.52%

 

29

 

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.

 

30

 

Management Discussion of Fund Performance (unaudited)
Global X Cybersecurity ETF

 

 

Global X Cybersecurity ETF

 

Global X Cybersecurity ETF (the “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, and 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, as determined by Indxx LLC, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 19.29%, while the Underlying Index increased 19.89%. The Fund had a net asset value of $22.85 per share on November 30, 2022 and ended the reporting period with a net asset value of $26.84 on November 30, 2023.

 

During the reporting period, the highest returns came from Crowdstrike Holdings Inc. A and Varonis Systems Inc., which returned 101.44% and 97.22%, respectively. The worst performers were Arqit Quantum Inc. and A10 Networks Inc., which returned -93.55% and -32.08%, respectively.

 

The Fund recorded positive returns during the reporting period as increased digitalization and interconnectedness in the economy drove growth of the cybersecurity market. Spending on cybersecurity solutions was boosted by increasing attacks on corporations and governments, digital warfare emanating from major global conflicts, and emerging new possibilities with the rise of technologies like generative artificial intelligence (AI). Corporations responded to the escalating trend of targeted cyber-attacks by increasing investments in security technologies that suit a cloud-native deployment model of information technology (IT), cutting costs. Rising cases of complex cyber threats led to implementation of new technologies for enhancing threat detection and automating security processes. Government programs enacted in the wake of the COVID-19 pandemic to broadly safeguard citizens from a complex and worsening IT landscape also helped drive the market forward, contributing to the Fund’s positive returns. During the reporting period, the Fund had an average approximate stock exposure of 68.02% in United States and 14.06% in Israel.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Cybersecurity ETF 19.29% 18.46% 6.47% 6.25% 15.60% 16.03%
Indxx Cybersecurity Index 19.89% 19.89% 6.89% 6.89% 16.12% 16.12%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.52% 8.52%

 

31

 

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.

 

32

 

Management Discussion of Fund Performance (unaudited)
Global X Telemedicine & Digital Health ETF

 

 

Global X Telemedicine & Digital Health ETF

 

Global X Telemedicine & Digital Health ETF (the “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 and 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 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 26.82%, while the Underlying Index decreased 26.69%. The Fund had a net asset value of $12.23 per share on November 30, 2022 and ended the reporting period with a net asset value of $8.95 on November 30, 2023.

 

During the reporting period, the highest returns came from Hims & Hers Health, Inc. Class A. and GoodRx Holdings, Inc. Class A, which returned 43.62% and 37.39%, respectively. The worst performers were Bionano Genomics Inc. and Invitae Corp., which returned -92.74% and -84.18%, respectively.

 

The Fund recorded negative returns during the reporting period as contracting operating margins, slower-than-expected regulatory activity, and ongoing inflationary concerns slowed industry growth which impacted the performance of Telemedicine & Digital Health Companies. A high interest rate environment and limited debt availability slowed innovation in the sector and delayed interoperability timelines for digital health firms. This, in turn, slowed adoption by healthcare professionals and delayed mergers and acquisitions (M&A) activity that would help consolidate and streamline a fragmented industry. Continued inflationary pressures increased the cost of medical equipment and pharmaceutical drugs, limiting physician and hospital budgets for increased digitization and automation.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Telemedicine & Digital Health ETF -26.82% -26.89% -21.36% -21.48% -14.71% -14.79%
Solactive Telemedicine & Digital Health Index -26.69% -26.69% -21.01% -21.01% -14.32% -14.32%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.68% 8.68%

 

33

 

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.

 

34

 

Management Discussion of Fund Performance (unaudited)
Global X China Biotech Innovation ETF

 

 

Global X China Biotech Innovation ETF

 

Global X China Biotech Innovation ETF (the “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, and 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, the 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 index. The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and re-weighted semi-annually.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 11.66%, while the Underlying Index decreased 11.00%. The Fund had a net asset value of $9.68 per share on November 30, 2022 and ended the reporting period with a net asset value of $8.51 on November 30, 2023.

 

During the reporting period, the highest returns came from Hebei Changshan Biochemical Pharmaceutical Co., Ltd. Class A and Pacific Shuanglin Bio-pharmacy Co., Ltd. Class A, which returned 161.33% and 48.71%, respectively. The worst performers were Kintor Pharmaceutical Ltd. and CanSino Biologics, Inc. Class A, which returned -75.35% and -62.06%, respectively.

 

The Fund recorded negative returns during the reporting period amid growing inflationary pressures and regulatory scrutiny. Demand for contract research services and lab equipment declined amid tightening budgets and limited availability of funding. Enforcement of global regulatory reforms for drug manufacturing companies adversely impacted market sentiment. In a parallel development, China’s biotech IPO volumes declined against the backdrop of reduced investor confidence and earnings volatility. Investments in Chinese drugmaker companies declined, as investors from the US and other countries remained cautious of the stringent financing environment within the biotech industry. This also slowed down mergers and acquisitions (M&A) activity in the industry, putting a hold to potential exit opportunities for smaller healthcare firms.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 China Biotech Innovation ETF -11.66% -12.91% -16.81% -17.06% -16.27% -16.45%
Solactive China Biotech Innovation Index -11.00% -11.00% -16.24% -16.24% -15.69% -15.69%
MSCI Emerging Markets Index (Net) 4.21% 4.21% -4.04% -4.04% -0.48% -0.48%

 

35

 

Management Discussion of Fund Performance (unaudited)
Global X China Biotech Innovation ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on September 22, 2020.

 

The MSCI Emerging Markets Index (Net) 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.

 

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.

 

36

 

Management Discussion of Fund Performance (unaudited)
Global X CleanTech ETF

 

 

Global X CleanTech ETF

 

The Global X CleanTech ETF (the “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 and 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 the increased adoption of technologies focused on improving the efficiency of renewable energy production and/or mitigating the adverse environmental effects of resource consumption (“CleanTech”), including, but not limited to, companies whose principal business is in developing technology relating to renewable energy, energy efficiency and storage, smart grid, lithium-ion batteries and/or fuel cells, and/or pollution prevention/amelioration (collectively, “CleanTech Companies”), as defined by Indxx LLC, the provider of the Underlying Index (“Index Provider”).

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 38.90%, while the Underlying Index decreased 38.76%. The Fund had a net asset value of $16.20 per share on November 30, 2022 and ended the reporting period with a net asset value of $9.88 on November 30, 2023.

 

During the reporting period, the highest returns came from Fluence Energy, Inc. Class A and Simplo Technology Co. Ltd., which returned 45.98% and 36.03%, respectively. The worst performers were Sunpower Corporation and Maxeon Solar Technologies, Ltd., which returned -82.89% and -81.74%, respectively.

 

The Fund performed negatively during the reporting period as CleanTech equipment manufacturers continued to have their performance impacted by rising inflation, supply bottlenecks, and elevated materials costs. Slow permitting timelines in the United States and European Union remained a significant detractor to realizing full growth potential within the wind and solar power industries. Elevated project costs and high interest rates also dampened renewable energy growth prospects across major markets and reduced equipment demand, particularly for the offshore wind and residential solar power segments. Furthermore, companies throughout the hydrogen value chain had their performances weighed down by elevated hydrogen prices, supply constraints, higher interest rates, and continued investments towards scaling production for future expected demand. During the reporting period, the Fund had an average approximate stock exposure of 33.97% in United States, 13.73% in South Korea and 12.17% in China. By sector, it had the highest average exposure to Information Technology at 47.66% and Industrials at 42.20%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 CleanTech ETF -38.90% -39.44% -19.44% -19.46% -12.57% -12.63%
Indxx Global CleanTech Index -38.76% -38.76% -19.87% -19.87% -13.02% -13.02%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.28% 8.28%

 

37

 

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.

 

38

 

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 (the “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 and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

 

The Solactive Data Center REITs & Digital Infrastructure 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 Solactive Data Center REITs & Digital Infrastructure Index will include securities issued by “Data Center REITs & Digital Infrastructure Companies” as defined by Solactive AG, the provider of the Solactive Data Center REITs & Digital Infrastructure Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 8.46%, while the Underlying Index increased 8.33%. The Fund had a net asset value of $13.52 per share on November 30, 2022 and ended the reporting period with a net asset value of $14.30 on November 30, 2023.

 

During the reporting period, the highest returns came from Nvidia Corp. and Advanced Micro Devices, which returned 176.47% and 56.07%, respectively. The worst performers were Cyxtera Technologies Inc. and VNET Group Inc-ADR, which returned -97.95% and -44.11%, respectively.

 

The Fund recorded positive performance during the reporting period as growth in data usage and increased adoption of artificial intelligence (AI) positively impacted data center REITs. This led to improved earnings and dividend distributions by many Data Center REITs & Digital Infrastructure Companies. Simultaneously, the global adoption of 5G technology increased, generating positive revenue growth for communications service providers. Furthermore, demand for data storage and cloud computing services increased investor optimism toward the industry. Lastly, with an uncertain macroeconomic environment, the stock prices of companies maintaining data infrastructure reflected resilience in revenues due to the essential services they provide. During the reporting period, the Fund had an average approximate stock exposure of 72.14% in United States. By sector, it had the highest exposure to Real Estate at 58.37% and Information Technology at 29.80%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
NOVEMBER 30, 2023
  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 Data Center REITs & Digital Infrastructure ETF 8.46% 9.37% 0.07% -0.07% 0.01% 0.08%
Solactive Data Center REITs & Digital Infrastructure Index 8.33% 8.33% 0.04% 0.04% -0.02% -0.02%
MSCI ACWI Index (Net) 12.01% 12.01% 5.69% 5.69% 8.28% 8.28%

 

39

 

Management Discussion of Fund Performance (unaudited)
Global X Data Center REITs & Digital Infrastructure 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.

 

40

 

Management Discussion of Fund Performance (unaudited)
Global X Clean Water ETF

 

 

Global X Clean Water ETF

 

The Global X Clean Water ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Clean Water Industry Index (“Underlying Index”). The Fund is passively managed and 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 expected to benefit from further advances in the provision of clean water, including, but not limited to, companies whose principal business is in water treatment, recycling (including water reclamation), purification, desalination, storage, distribution, and/or sustainability (collectively, “Clean Water Companies”), as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 9.50%, while the Underlying Index increased 9.83%. The Fund had a net asset value of $14.30 per share on November 30, 2022 and ended the reporting period with a net asset value of $15.40 on November 30, 2023.

 

During the reporting period, the highest returns came from Nomura Micro Science Co. Ltd. and Organo Corp., which returned 137.73% and 106.89%, respectively. The worst performers were Calix Ltd. and Middlesex Water Company, which returned -31.85% and -30.47%, respectively.

 

The Fund performed positively during the reporting period as continued investments in water technology insulated Clean Water Companies against the broader uncertain macroeconomic environment. Broadening commitment to sustainable development goals (SDGs) from the private sector as well as continued federal investments in U.S. water infrastructure from the Infrastructure Investment and Jobs Act (IIJA) lifted investor sentiment toward the clean water space. Water utility companies were able to drive consistent earnings growth and healthy dividend payouts despite an increase in costs and inflationary pressures. Lastly, high profile instances of drought and water insecurity continued to draw attention to the Clean Water Companies. During the reporting period, the Fund had an average approximate stock exposure of 62.62% in United States and 22.58% in Britain. By sector, it had the highest exposure to Industrials at 49.17% and Utilities at 37.99%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Clean Water ETF 9.50% 9.55% 2.24% 2.36%
Solactive Global Clean Water Industry Index 9.83% 9.83% 2.55% 2.55%
MSCI ACWI (Net) 12.01% 12.01% 1.81% 1.81%

 

41

 

Management Discussion of Fund Performance (unaudited)
Global X Clean Water ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on April 8, 2021.

 

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.

 

42

 

Management Discussion of Fund Performance (unaudited)
Global X AgTech & Food Innovation ETF

 

 

Global X AgTech & Food Innovation ETF

 

The Global X AgTech & Food Innovation ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive AgTech & Food Innovation Index (“Underlying Index”). The Fund is passively managed and 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 are positioned to benefit from further advances in the fields of agricultural technology (“AgTech”) and food innovation. Specifically, the Underlying Index will include securities issued by “AgTech & Food Innovation Companies” as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 34.41%, while the Underlying Index decreased 34.22%. The Fund had a net asset value of $15.63 per share on November 30, 2022 and ended the reporting period with a net asset value of $10.17 on November 30, 2023.

 

During the reporting period, the highest returns came from Sprouts Farmers Market Inc. and Ingredion Inc., which returned 25.49% and 7.66%, respectively. The worst performers were Appharvest Inc. and Benson Hill Inc., which returned -95.68% and -93.52%, respectively.

 

The Fund generated negative returns during the reporting period. The agriculture technology industry experienced a decline in capital investment as investors moved to more mature investment avenues. Consumer purchasing power was compressed during the reporting period due to inflation and rising borrowing costs, leading many to purchase less expensive, more traditional foods. As a result, demand for food innovation technologies and products declined. Despite higher revenue growth, companies in the plant-based food sector reported lower-than-expected earnings as they faced challenges in reducing costs and scaling operations. During the reporting period, the Fund had an average approximate stock exposure of 43.90% in United States and 27.55% in China. By sector, it had the highest exposure to Consumer Staples at 50.59% and Materials at 32.48%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X AgTech & Food Innovation ETF -34.41% -34.56% -31.26% -31.23%
Solactive AgTech & Food Innovation Index -34.22% -34.22% -31.01% -31.01%
MSCI ACWI Index (Net) 12.01% 12.01% -0.25% -0.25%

 

43

 

Management Discussion of Fund Performance (unaudited)
Global X AgTech & Food Innovation ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on July 12, 2021.

 

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.

 

44

 

Management Discussion of Fund Performance (unaudited)
Global X Blockchain ETF

 

 

Global X Blockchain ETF

 

Global X Blockchain ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Blockchain Index (“Underlying Index”). The Fund is passively managed, and 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 are positioned to benefit from further advances in the field of blockchain technology. Specifically, the Underlying Index will include securities issued by “Blockchain Companies” as defined by Solactive AG, the provider of the Underlying Index. “Blockchain Companies” are those companies that derive at least 50% of their revenues, operating income, or assets from the following business activities: (i) digital asset mining; (ii) blockchain & digital asset transactions; (iii) blockchain applications; (iv) blockchain & digital asset hardware; and (v) blockchain & digital asset integration.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 88.92%, while the Underlying Index increased 85.88%. The Fund had a net asset value of $16.39 per share on November 30, 2022 and ended the reporting period with a net asset value of $30.72 on November 30, 2023, following a 1:4 reverse share split on December 19, 2022.

 

During the reporting period, the highest returns came from Cipher Mining Inc. and Northern Data AG, which returned 254.40% and 248.95%, respectively. The worst performers were SAI. TECH Global Corp. and Core Scientific Inc., which returned -63.51% and -51.99%, respectively.

 

The Fund recorded positive returns during the reporting period, primarily driven by positive sentiment amongst leading crypto assets. Additionally, the U.S. Federal Reserve’s decision to slow down its rate hiking activities alleviated pressure on digital asset miners while various spot bitcoin ETF applications by a handful of asset managers boosted the optimism toward and the legitimacy of cryptocurrencies. The embrace of blockchain applications expanded as banks and asset managers delved into tokenization projects, while technology companies explored innovative payment solutions using stablecoins (cryptocurrencies geared towards maintaining a stable price). Furthermore, incrementally positive regulatory developments in the EU, including the passage of the Markets in Crypto-Assets Regulation (MiCA) framework, also provided tailwinds to some of the Fund’s constituent holdings. During the reporting period, the Fund had an average approximate stock exposure of 74.26% in United States and 15.77% in Canada. By sector, it had the highest exposure to Information Technology at 67.24% and Financials at 31.64%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
  NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Blockchain ETF 88.92%(1) 88.82% -37.58% -37.41%
Solactive Blockchain Index 85.88% 85.88% -38.50% -38.50%
MSCI ACWI Index (Net) 12.01% 12.01% -0.25% -0.25%

 

45

 

Management Discussion of Fund Performance (unaudited)
Global X Blockchain ETF

 

 

Growth of a 10,000 Investment

 

(at Net Asset Value)

 

 

* The Fund commenced operations on July 12, 2021.

 

(1) The total return disclosed in the Financial Highlights of the Annual Report may reflect adjustments due to the rounding of the NAV after the 1:4 reverse share split on December 19, 2022.

 

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.

 

46

 

Management Discussion of Fund Performance (unaudited)
Global X Blockchain ETF

 

 

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.

 

47

 

Management Discussion of Fund Performance (unaudited)
Global X Hydrogen ETF

 

 

Global X Hydrogen ETF

 

The Global X Hydrogen ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Hydrogen Index (“Underlying Index”).The Fund is passively managed and 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 are positioned to benefit from further advances in the field of hydrogen technology. Hydrogen technology includes products and services focused on the development and implementation of hydrogen gas as a renewable fuel source. Specifically, the Underlying Index will include securities issued by “Hydrogen Companies” as defined by Solactive AG, the provider of the Underlying Index. Hydrogen Companies are those companies that derive at least 50% of their revenues, operating income, or assets from the following business activities: (i) hydrogen production; (ii) hydrogen fuel cells; (iii) hydrogen technology; and (iv) hydrogen integration

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 46.86%, while the Underlying Index decreased 46.36%. The Fund had a net asset value of $12.27 per share on November 30, 2022 and ended the reporting period with a net asset value of $6.52 on November 30, 2023.

 

During the reporting period, the highest returns came from Hyster-Yale Materials Handling, Inc. Class A and Toyota Motor Corp., which returned 67.61% and 35.17%, respectively. The worst performers were Advent Technologies Holdings, Inc. Class A and Nikola Corp., which returned -83.24% and -76.18%, respectively.

 

The Fund performed negatively during the reporting period as Hydrogen Companies were impacted by a range of factors including inflation, supply chain challenges, and increased prices on raw materials. In particular, elevated natural gas prices and hydrogen supply constraints negatively impacted performances of hydrogen producers and service providers. In addition, high costs for the manufacturing of nascent electrolyzer technologies weighed on electrolyzer producers. Hydrogen Companies’ investments into expanding manufacturing capabilities to meet expected future hydrogen demand also contributed to net losses. During the reporting period, the Fund had an average approximate stock exposure of 38.86% in United States and 15.11% in Britain. By sector, it had the highest exposure to Industrials at 91.86%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
  NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Hydrogen ETF -46.86% -46.08% -43.09% -43.05%
Solactive Global Hydrogen Index -46.36% -46.36% -42.80% -42.80%
MSCI ACWI Index (Net) 12.01% 12.01% -0.25% -0.25%

 

48

 

Management Discussion of Fund Performance (unaudited)
Global X Hydrogen ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on July 12, 2021.

 

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.

 

49

 

Management Discussion of Fund Performance (unaudited)
Global X Solar ETF

 

 

Global X Solar ETF

 

Global X Solar ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Solar Index (“Underlying Index”). The Fund is passively managed, and 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 are positioned to benefit from further advances in the field of solar technology. Specifically, the Underlying Index consists of securities issued by “Solar Companies” as defined by Solactive AG, the provider of the Underlying Index. Solar Companies are those companies that derive at least 50% of their revenues from the following business activities: (i) solar energy materials; (ii) solar energy systems & components; (iii) solar power production; (iv) solar technology; (v) solar installation, integration & maintenance.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 46.92%, while the Underlying Index decreased 46.62%. The Fund had a net asset value of $22.06 per share on November 30, 2022 and ended the reporting period with a net asset value of $11.71 on November 30, 2023.

 

During the reporting period, the highest returns came from Abalance Corp. and Motech Industries Inc., which returned 19.57% and 9.25%, respectively. The worst performers were Sunpower Corp. and Maxeon Solar Technologies, which returned -82.89% and -82.06%, respectively.

 

The Fund recorded negative returns during the reporting period as the performances of Solar Companies were hindered by increased costs and lower than expected demand. Both solar equipment manufacturers and project developers faced dampened residential and commercial solar demand in key markets such as the U.S. and China. High polysilicon costs translated to higher costs across the entire solar power value chain, which impacted many projects already under development. Combined with high interest rates and the current macroeconomic environment, this caused some customers and developers to delay projects until prices improve. In the U.S., policy uncertainty over tariffs at the Federal level and shifting policies for residential solar in California also created headwinds. During the reporting period, the Fund had an average approximate stock exposure of 53.78% in China and 26.33% in United States. By sector, it had the highest exposure to Information Technology at 64.89% and Industrials at 23.91%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
  NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Solar ETF -46.92% -47.16% -27.79% -27.71%
Solactive Solar Index -46.62% -46.62% -27.39% -27.39%
MSCI ACWI Index (Net) 12.01% 12.01% -1.31% -1.31%

 

50

 

Management Discussion of Fund Performance (unaudited)
Global X Solar ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on September 8, 2021.

 

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.

 

51

 

Management Discussion of Fund Performance (unaudited)
Global X Wind Energy ETF

 

 

Global X Wind Energy ETF

 

The Global X Wind Energy ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Wind Energy Index (“Underlying Index”). The Fund is passively managed and 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 are positioned to benefit from further advances in the field of wind energy technology. Specifically, the Underlying Index will include securities issued by “Wind Energy Companies” as defined by Solactive AG, the provider of the Underlying Index (the “Index Provider”). Wind Energy Companies are those companies that derive at least 50% of their revenues from the following business activities: (i) wind energy systems; (ii) wind power production; (iii) wind energy technology; and (iv) wind power integration & maintenance.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 25.94%, while the Underlying Index decreased 25.69%. The Fund had a net asset value of $17.58 per share on November 30, 2022 and ended the reporting period with a net asset value of $12.88 on November 30, 2023.

 

During the reporting period, the highest returns came from Century Iron & Steel Industries and Cadeler A/S, which returned 93.80% and 20.52%, respectively. The worst performers were TPI Composites Inc. and Ming Yang Smart Energy Gro-A, which returned -82.53% and -48.66%, respectively.

 

The Fund performed negatively during the reporting period as Wind Energy Companies were impacted by higher interest rates, project delays and cancellations, and elevated material costs. For developers, complex permitting procedures, particularly in the European Union and United States slowed project timelines in both the onshore and offshore wind power industries. Furthermore, in the offshore segment, elevated costs coupled with low contracted prices put pressure on developers and led to some notable and costly project cancellations. For wind power equipment providers (such as wind turbine manufacturers), lower short-term demand due to project delays and cancellations, elevated materials costs, and supply chain challenges weighed on the Fund’s performance. During the reporting period, the Fund had an average approximate stock exposure of 33.07% in China, 25.02% in Denmark and 18.34% in Canada. By sector, it had the highest exposure to Utilities at 51.56% and Industrials at 46.60%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
  NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Wind Energy ETF -25.94% -27.45% -25.05% -25.15%
Solactive Wind Energy Index -25.69% -25.69% -24.72% -24.72%
MSCI ACWI Index (Net) 12.01% 12.01% -1.31% -1.31%

 

52

 

Management Discussion of Fund Performance (unaudited)
Global X Wind Energy ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on September 8, 2021.

 

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.

 

53

 

Management Discussion of Fund Performance (unaudited)
Global X Green Building ETF

 

 

Global X Green Building ETF

 

Global X Green Building ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Green Building Index (“Underlying Index”). The Fund is passively managed, and 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 are positioned to benefit from increased demand for buildings that reduce or eliminate negative impacts, and/or create positive impacts, on the natural environment (“Green Building”). Specifically, the Underlying Index will include securities issued by “Green Building Companies” as defined by Solactive AG, the provider of the Underlying Index. Green Building Companies are those companies that derive at least 50% of their revenues from one or more of the following business activities, as determined by the Index Provider: (i) green building development; (ii) green building management; and (iii) green building technologies & materials.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 6.95%, while the Underlying Index increased 7.49%. The Fund had a net asset value of $20.95 per share on November 30, 2022 and ended the reporting period with a net asset value of $21.66 on November 30, 2023.

 

During the reporting period, the highest returns came from M/I Homes, Inc. and TopBuild Corp., which returned 107.59% and 91.97%, respectively. The worst performers were Hudson Pacific Properties, Inc. and CIFI Holdings (Group) Co. Ltd., which returned -44.44% and -34.27%, respectively.

 

The Fund recorded positive returns during the reporting period. Notably, demand for sustainable buildings outweighed supply in some major markets, such as the U.S. and Canada, amid more stringent regulations and concerns over risks from climate change. Additionally, buildings with green certifications were often able to command premiums over traditional buildings across major global cities. Green building service providers and technology producers, such as heating, ventilation, and air conditioning (HVAC) system manufacturers, also saw robust demand amid growing momentum for more sustainable buildings. Furthermore, a stabilization in the cost of key building materials and labor contributed to positive performances for some building developers and owners. During the reporting period, the Fund had an average approximate stock exposure of 33.19% in the United States and 14.43% in Japan. By sector, it had the highest exposure to Real Estate at 58.92%, followed by Industrials at 33.47%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Green Building ETF 6.95% 6.55% -6.89% -6.94%
Solactive Green Building Index 7.49% 7.49% -6.69% -6.69%
MSCI ACWI Index (Net) 12.01% 12.01% 1.98% 1.98%

 

54

 

Management Discussion of Fund Performance (unaudited)
Global X Green Building ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on April 11, 2022.

 

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.

 

55

 

Management Discussion of Fund Performance (unaudited)
Global X Metaverse ETF

 

 

Global X Metaverse ETF

 

Global X Metaverse ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X Metaverse Index (“Underlying Index”). The Fund is passively managed, and 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 are positioned to benefit from the development and commercialization of the metaverse. The metaverse is a set of virtual, three dimensional (“3D”), real-time rendered spaces, simulations, and platforms that can be experienced simultaneously by users regardless of the users’ physical location.

 

For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 38.78%, while the Underlying Index increased 39.29%. The Fund had a net asset value of $19.20 per share on November 30, 2022 and ended the reporting period with a net asset value of $24.90 on November 30, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc. Class-A and Nvidia Corp., which returned 177.01% and 176.47%, respectively. The worst performers were Keywords Studios Plc and NCsoft Corp., which returned -50.63% and -42.20%, respectively.

 

The Fund recorded positive returns during the reporting period amid substantial growth and progress in the underlying sub-segments and sub-industries of the metaverse, driven by the success of emerging hardware and the continued popularity of platforms. Increased demand for online gaming, blockchain technology and advancements in digital personalization led to growth and innovation opportunities in the metaverse industry. The industrial metaverse market advanced as organizations focused on the adaptation of virtual environments for a diverse set of use cases, including research and development, product development, monitoring and optimizing supply chains, and visualizing manufacturing operations, which helped boost productivity and operational effectiveness. Lastly, positive trends in the broader cryptocurrency market supported the growth prospects of companies involved in the creation and distribution of non-fungible tokens, further aiding the Fund’s performance. During the reporting period, the Fund had an average approximate stock exposure of 51.85% in United States, 20.57% in Japan, and 14.04% in China. By sector, it had the highest exposure to Communication Services at 67.69% and Information Technology at 24.28%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
  NOVEMBER 30, 2023
  One Year
Return
Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Metaverse ETF 38.78% 36.84% 7.71% 7.32%
Global X Metaverse Index 39.29% 39.29% 8.10% 8.10%
MSCI ACWI Index (Net) 12.01% 12.01% 5.63% 5.63%

 

56

 

Management Discussion of Fund Performance (unaudited)
Global X Metaverse ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on April 26, 2022.

 

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.

 

57

 

Management Discussion of Fund Performance (unaudited)
Global X PropTech ETF

 

 

Global X PropTech ETF

 

Global X PropTech ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X PropTech Index (“Underlying Index”). The Fund is passively managed, and 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 owned and was developed by Global X Management Company LLC (the “Index Provider”), an affiliate of the Fund and the Fund’s investment adviser. The Underlying Index is administered and calculated by Mirae Asset Global Indices Pvt. Ltd. (the “Index Administrator”), an affiliate of the Index Provider. The Underlying Index is designed to provide exposure to property technology (“PropTech”) companies that are positioned to benefit from technology that optimizes the way people buy, sell, rent, design, construct, manage, and research/market residential and commercial properties. Specifically, the Underlying Index consists of securities issued by “PropTech Companies”, as determined by the Index Administrator. “PropTech Companies” are those companies that derive at least 50% of their revenues from one or more of the following business activities in aggregate, as determined by the Index Administrator: (i) property management; (ii) real estate marketplace and platforms; and (iii) real estate research and analytics.

 

From the inception of the Fund through the period ending November 30, 2023 (the “reporting period”), the Fund increased 8.71%, while the Underlying Index increased 8.94%. The Fund had a net asset value of $25.08 per share on April 11, 2023 and ended the reporting period with a net asset value of $27.26 on November 30, 2023.

 

During the reporting period, the highest returns came from Opendoor Technologies Inc. and AppFolio Inc. Class A, which returned 65.38% and 48.15%, respectively. The worst performers were WeWork Inc. Class A and Hippo Holdings Inc, which returned -92.84% and -52.89%, respectively.

 

The Fund recorded positive returns during the reporting period amid increased technological adoption coupled with emerging demographic trends that helped improve how the real estate sector is developed, marketed, managed, and occupied. Online real estate applications offered a comprehensive platform to search properties based on specific criteria, allowing investors to make informed decisions with less or no need for physical visits. Furthermore, digital payment systems and secure transaction portals streamlined the process of property transactions and created a transparent and immutable record of ownership, reducing fraud. Lastly, the Fund benefitted from increased adoption of property management software and mobile applications enhanced operational efficiency via a simplification of tasks such as rent collection and tenant communication.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD
ENDED NOVEMBER 30, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Prop Tech ETF 8.71% 8.47%
Global X PropTech Index 8.94% 8.94%
MSCI ACWI Index (Net) 8.35% 8.35%

 

58

 

Management Discussion of Fund Performance (unaudited)
Global X PropTech ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on April 11, 2023.

 

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.

 

59

 

Management Discussion of Fund Performance (unaudited)
Global X Carbon Credits Strategy ETF

 

 

Global X Carbon Credits Strategy ETF

 

Global X Carbon Credits Strategy ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE Global Carbon Futures Index (“Underlying Index”). The Fund is passively managed, and 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 exposure to the most actively traded carbon credit futures that require “physical delivery” of emission allowances and that are issued under “cap and trade” regimes, as determined by ICE Data Indices, LLC, the provider of the Underlying Index. A cap and trade regime is a market-based mechanism that governments or regulatory bodies use to reduce carbon dioxide and other greenhouse gases from entering the atmosphere.

 

From the inception of the fund through the period ending November 30, 2023 (the “reporting period”), the Fund decreased 8.99%, while the Underlying Index decreased 6.09%. The Fund had a net asset value of $34.88 per share on May 24, 2023 and ended the reporting period with a net asset value of $31.67 on November 30, 2023.

 

The Fund recorded negative returns during the reporting period due to lower demand for carbon allowances and policy developments that led to a temporary increase in supply. In Europe, the European Commission confirmed plans to sell an increased amount of allowances over the next few years to support the transition away from reliance on fossil fuels. Though the UK proposed to tighten the overall limit of carbon emissions, it also proposed to distribute additional allowances until 2027, which resulted in a significant decrease in the price of carbon credits futures. Separately, California carbon allowances saw a rise in price due to legislation related to tightening supply and emissions caps. There has been uncertainty in the global macroeconomic environment amidst concerns of a reduction in industrial output and recession fears. This resulted in weak demand during the reporting period which led to decreases in purchases in the voluntary carbon markets.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD
  ENDED NOVEMBER 30, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Carbon Credits Strategy ETF -8.99% -8.50%
ICE Global Carbon Futures Index -6.09% -6.09%
Bloomberg Commodity Index 4.10% 4.10%

 

60

 

Management Discussion of Fund Performance (unaudited)
Global X Carbon Credits Strategy ETF

 

 

Growth of a 10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on May 24, 2023.

 

Bloomberg Commodity Index (BCOM) is made up of 23 exchange-traded futures on physical commodities, representing 21 commodities which are weighted to account for economic significance and market liquidity. Weighting restrictions on individual commodities and commodity groups promote diversification.

 

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.

 

61

 

Management Discussion of Fund Performance (unaudited)
Global X Defense Tech ETF

 

 

Global X Defense Tech ETF

 

The Global X Defense Tech ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X Defense Tech Index (“Underlying Index”). The Fund is passively managed and 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 owned and was developed by Global X Management Company LLC (the “Index Provider”), an affiliate of the Fund and the Fund’s investment adviser. The Underlying Index is administered and calculated by Mirae Asset Global Indices Pvt. Ltd. (the “Index Administrator”), an affiliate of the Index Provider. The Underlying Index is designed to provide exposure to defense technology (“Defense Tech”) companies that are positioned to benefit from technology, services, systems and hardware that cater to the defense and military sector. Specifically, the Underlying Index consists of securities issued by “Defense Tech Companies”, as determined by the Index Administrator. “Defense Tech Companies” are those companies that derive at least 50% of their revenues from one or more of the following business activities in aggregate, as determined by the Index Administrator: (i) cybersecurity; (ii) defense technology; and (iii) Advanced Military Systems and Hardware.

 

From the inception of the Fund to the period ended November 30, 2023 (the “reporting period”), the Fund increased 8.90%, while the Underlying Index increased 9.04%. The Fund had a net asset value of $24.82 per share on September 11, 2023 and ended the reporting period with a net asset value of $27.03 on November 30, 2023.

 

During the reporting period, the highest returns came from Kratos Defense & Security Solutions Inc. and Palantir Technologies Inc. Class A, which returned 29.15% and 26.98%, respectively. The worst performers were Terran Orbital Corp. and Hensoldt AG, which returned -42.14% and -18.37%, respectively.

 

The Fund performed positively during the reporting period, fueled by government initiatives that benefitted Defense Tech Companies such as the CHIPS and Science Act, which actively promoted investments in semiconductors and industrial development for enhancing national security. Additionally, recent international restrictions spurred growth in the domestic aerospace and defense space. Additionally, many companies began to prioritize investing in cybersecurity amid escalating cyber threats and rising geopolitical tensions, especially due to the surge in artificial intelligence implementation.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD
  ENDED
  NOVEMBER 30, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Defense Tech ETF 8.90% 9.02%
Global X Defense Tech Index 9.04% 9.04%
MSCI ACWI Index (Net) 2.07% 2.07%

 

62

 

Management Discussion of Fund Performance (unaudited)
Global X Defense Tech ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on September 11, 2023.

 

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 redeemed, 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 waiver sand/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.

 

63

 

 

 

Schedule of Investments November 30, 2023

 

Global X Millennial Consumer ETF

 

 

Sector Weightings (Unaudited)†:

 

†  Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.

 

    Shares     Value  
COMMON STOCK — 99.9%                
SINGAPORE — 1.2%                
Communication Services — 1.2%                
Sea ADR *     35,357   $ 1,280,631  
                 
UNITED STATES — 98.7%                
Communication Services — 21.5%                
Alphabet, Cl A *     27,699       3,670,949  
Angi, Cl A *     138,088       310,698  
Cargurus, Cl A *     16,412       354,827  
Cars.com *     14,920       277,810  
iHeartMedia, Cl A *     75,645       198,190  
Match Group *     23,751       769,057  
Meta Platforms, Cl A *     13,505       4,418,161  
Netflix *     8,596       4,074,246  
Snap, Cl A *     112,849       1,560,702  
Spotify Technology *     16,472       3,049,132  
TripAdvisor *     16,118       287,384  
Vimeo *     82,469       290,291  
Walt Disney *     29,505       2,734,818  
Yelp, Cl A *     9,658       422,151  

 

The accompanying notes are an integral part of the financial statements.

64

 

 

 

Schedule of Investments November 30, 2023

 

Global X Millennial Consumer ETF

 

 

    Shares     Value  
COMMON STOCK — continued            
Communication Services — continued            
ZipRecruiter, Cl A *     17,085   $ 229,110  
              22,647,526  
Consumer Discretionary — 42.8%                
2U *     52,196       51,277  
Airbnb, Cl A *     26,113       3,299,116  
Amazon.com *     29,061       4,245,521  
AutoNation *     3,988       539,457  
Booking Holdings *     1,131       3,535,167  
Capri Holdings *     10,690       517,824  
CarMax *     13,436       859,098  
Carter’s     4,211       287,148  
Carvana, Cl A *     31,684       992,343  
Chegg *     16,419       163,041  
Children’s Place *     9,487       215,829  
Chipotle Mexican Grill, Cl A *     1,733       3,816,499  
Columbia Sportswear     5,288       414,209  
Coursera *     26,391       521,222  
Designer Brands, Cl A (A)     33,854       394,061  
Dick’s Sporting Goods     5,277       686,538  
eBay     45,651       1,872,148  
Etsy *     10,599       803,510  
Expedia Group *     12,570       1,711,783  
GoPro, Cl A *     62,037       223,954  
Graham Holdings, Cl B     496       311,066  
Home Depot     10,184       3,192,582  
Laureate Education, Cl A     24,948       327,567  
Life Time Group Holdings *     17,132       259,721  
Lowe’s     14,768       2,936,321  
Lululemon Athletica *     8,167       3,649,016  
NIKE, Cl B     23,532       2,594,874  
Peloton Interactive, Cl A *     29,166       165,080  
Perdoceo Education     21,798       379,721  
Planet Fitness, Cl A *     7,216       490,255  
Skechers USA, Cl A *     11,433       673,518  
Starbucks     27,810       2,761,533  
Strategic Education     3,141       279,455  
Stride *     7,693       466,042  
Under Armour, Cl A *     32,433       264,005  

 

The accompanying notes are an integral part of the financial statements.

65

 

 

 

Schedule of Investments November 30, 2023

 

Global X Millennial Consumer ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Consumer Discretionary — continued                
VF     33,047     $ 552,876  
Victoria’s Secret *     9,050       243,897  
Wayfair, Cl A *     8,454       471,733  
              45,169,007  
Consumer Staples — 3.9%                
Costco Wholesale     5,976       3,542,214  
Medifast     3,008       199,671  
Sprouts Farmers Market *     8,764       377,553  
              4,119,438  
Financials — 8.9%                
Block, Cl A *     46,086       2,923,235  
Fiserv *     25,713       3,358,375  
LendingClub *     40,995       258,268  
Nelnet, Cl A     3,274       274,689  
PayPal Holdings *     39,393       2,269,431  
SLM     21,592       324,528  
              9,408,526  
Health Care — 0.6%                
Accolade *     19,881       173,561  
American Well, Cl A *     134,828       171,231  
Hims & Hers Health *     29,458       261,882  
              606,674  
Industrials — 6.0%                
Avis Budget Group *     3,357       613,827  
Lyft, Cl A *     31,416       368,510  
Uber Technologies *     94,656       5,336,705  
              6,319,042  
Information Technology — 7.2%                
Apple     17,973       3,413,971  
Intuit     6,735       3,848,783  
PowerSchool Holdings, Cl A *     14,823       345,673  
              7,608,427  
Real Estate — 7.8%                
AvalonBay Communities     11,921       2,061,618  

 

The accompanying notes are an integral part of the financial statements.

66

 

 

 

Schedule of Investments November 30, 2023

 

Global X Millennial Consumer ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Real Estate — continued                
Camden Property Trust     9,073     $ 818,929  
Centerspace     5,382       287,076  
Equity Residential     32,193       1,829,850  
Independence Realty Trust     19,075       259,801  
Invitation Homes     51,988       1,734,320  
UDR     27,989       934,832  
Zillow Group, Cl A *     6,607       260,250  
              8,186,676  
TOTAL UNITED STATES             104,065,316  
TOTAL COMMON STOCK
(Cost $140,756,267)
            105,345,947  
                 
SHORT-TERM INVESTMENT(B) — 0.0%                
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 5.280%
(Cost $7,792)
    7,792       7,792  
                 
  Face Amount        
REPURCHASE AGREEMENT(C) — 0.0%                
BNP Paribas
5.220%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $25,532 (collateralized by U.S. Treasury Obligations, ranging in par value $127 - $3,003, 2.000%, 08/15/2025, with a total market value of $26,018)
(Cost $25,528)
  $ 25,528       25,528  
TOTAL INVESTMENTS — 99.9%
(Cost $140,789,587)
          $ 105,379,267  

 

Percentages are based on Net Assets of $105,493,357.

 

* Non-income producing security.
Real Estate Investment Trust
(A) This security or a partial position of this security is on loan at November 30, 2023. The total market value of securities on loan at November 30, 2023 was $32,592.

 

The accompanying notes are an integral part of the financial statements.

67

 

 

 

Schedule of Investments November 30, 2023

 

Global X Millennial Consumer ETF

 

 

(B) The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2023.
(C) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2023 was $25,528. The total value of non-cash collateral held from securities on loan as of November 30, 2023 was $–.

 

The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3     Total  
Common Stock   $ 105,345,947     $     $     $ 105,345,947  
Short-Term Investment     7,792                   7,792  
Repurchase Agreement           25,528             25,528  
Total Investments in Securities   $ 105,353,739     $ 25,528     $ —    $ 105,379,267  

 

Amounts designated as “—“are $0 or have been rounded to $0.

 

See “Glossary” for abbreviations.

 

The accompanying notes are an integral part of the financial statements.

68

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

Sector Weightings (Unaudited)†:

 

†  Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.

 

    Shares     Value  
COMMON STOCK — 99.8%                
AUSTRALIA — 0.9%                
Health Care — 0.9%                
Cochlear     2,566   $ 464,547  
                 
BELGIUM — 1.3%                
Health Care — 1.0%                
UCB     7,567       560,109  
                 
Real Estate — 0.3%                
Aedifica     2,424       152,209  
                 
TOTAL BELGIUM             712,318  
CANADA — 0.7%                
Health Care — 0.7%                
Chartwell Retirement Residences     26,035       208,533  
Sienna Senior Living     20,443       161,029  
                 
TOTAL CANADA             369,562  
CHINA — 4.0%                
Health Care — 4.0%                
AK Medical Holdings     124,189       111,941  
BeiGene ADR *     4,092       764,958  
Beijing Chunlizhengda Medical Instruments, Cl H     61,866       106,935  
Hansoh Pharmaceutical Group     232,643       471,225  
Lifetech Scientific *     410,292       126,077  
Luye Pharma Group *     331,324       165,444  
Microport Scientific *     72,802       116,702  

 

The accompanying notes are an integral part of the financial statements.

69

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Health Care — continued                
SciClone Pharmaceuticals Holdings     114,300   $ 199,029  
Venus MedTech Hangzhou, Cl H *(A)(B)     105,440       75,871  
                 
TOTAL CHINA             2,138,182  
DENMARK — 6.4%                
Consumer Discretionary — 0.3%                
GN Store Nord *     7,167       168,971  
                 
Health Care — 6.1%                
Demant *     8,995       382,276  
Genmab *     2,575       814,350  
Novo Nordisk, Cl B     20,308       2,067,013  
              3,263,639  
TOTAL DENMARK             3,432,610  
FRANCE — 0.1%                
Health Care — 0.1%                
Clariane     21,365       50,399  
                 
GERMANY — 0.9%                
Health Care — 0.9%                
Fresenius Medical Care     11,387       467,527  
                 
IRELAND — 0.2%                
Health Care — 0.2%                
Amarin ADR *     118,249       92,471  
                 
ITALY — 0.5%                
Health Care — 0.5%                
Amplifon     8,842       275,242  
                 
JAPAN — 8.2%                
Health Care — 8.2%                
Astellas Pharma     70,183       853,343  
Chugai Pharmaceutical     67,164       2,370,628  
Nipro     21,749       164,476  
SUNWELS     6,644       102,423  

 

The accompanying notes are an integral part of the financial statements.

70

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Health Care — continued                
Terumo     29,000   $ 925,505  
                 
TOTAL JAPAN             4,416,375  
NEW ZEALAND — 0.3%                
Health Care — 0.3%                
Ryman Healthcare     49,151       163,934  
                 
SOUTH KOREA — 1.6%                
Health Care — 1.6%                
Celltrion     5,742       724,995  
Dentium     1,448       141,079  
                 
TOTAL SOUTH KOREA             866,074  
SPAIN — 0.3%                
Health Care — 0.3%                
Pharma Mar     3,586       153,377  
                 
SWEDEN — 0.3%                
Health Care — 0.3%                
Elekta, Cl B     20,217       157,818  
                 
SWITZERLAND — 6.2%                
Health Care — 6.2%                
Alcon     23,395       1,773,559  
Sonova Holding     2,382       691,138  
Straumann Holding     6,210       858,780  
                 
TOTAL SWITZERLAND             3,323,477  
UNITED KINGDOM — 3.5%                
Health Care — 3.5%                
AstraZeneca ADR     22,488       1,452,500  
Smith & Nephew     34,059       441,303  
                 
TOTAL UNITED KINGDOM             1,893,803  

 

The accompanying notes are an integral part of the financial statements.

71

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
UNITED STATES — 64.4%                
Health Care — 57.7%                
AbbVie     10,335     $ 1,471,601  
ACADIA Pharmaceuticals *     9,100       202,748  
agilon health *     16,100       170,982  
Agios Pharmaceuticals *     7,429       165,147  
Alector *     25,316       137,213  
Alphatec Holdings *     10,553       125,264  
Amedisys *     2,114       197,828  
Amgen     6,690       1,803,892  
AngioDynamics *     17,702       115,594  
Biogen *     5,827       1,363,984  
Blueprint Medicines *     3,553       247,431  
Boston Scientific *     32,755       1,830,677  
Bristol-Myers Squibb     23,885       1,179,441  
Brookdale Senior Living *     40,071       212,376  
Cano Health *     1,183       8,734  
DaVita *     3,543       359,473  
Deciphera Pharmaceuticals *     11,140       140,475  
Denali Therapeutics *     6,747       124,954  
Dexcom *     14,463       1,670,766  
Edwards Lifesciences *     19,862       1,344,856  
Eli Lilly     4,485       2,650,814  
Embecta     5,804       106,445  
Ensign Group     2,160       231,271  
Exact Sciences *     6,946       444,544  
Exelixis *     12,701       277,009  
FibroGen *     8,476       4,682  
Glaukos *     3,392       216,715  
Halozyme Therapeutics *     5,310       205,019  
Incyte *     8,688       472,106  
Insulet *     2,724       515,081  
Integer Holdings *     2,126       185,430  
Johnson & Johnson     10,123       1,565,623  
LivaNova *     3,872       173,659  
MannKind *     40,009       144,833  
Medtronic     20,611       1,633,834  
Merit Medical Systems *     2,234       159,865  
National HealthCare     2,857       218,761  
Neurocrine Biosciences *     3,762       438,612  

 

The accompanying notes are an integral part of the financial statements.

72

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Health Care — continued                
Novocure *     4,093   $ 50,221  
Regeneron Pharmaceuticals *     2,032       1,673,982  
Roche Holding     4,168       1,197,362  
Seagen *     8,179       1,743,845  
Sight Sciences *     18,001       61,383  
Silk Road Medical *     4,061       37,889  
Stryker     5,785       1,714,269  
Teleflex     1,853       418,204  
Theravance Biopharma *     14,001       146,730  
United Therapeutics *     1,827       438,480  
Zimmer Biomet Holdings     8,217       955,719  
              30,955,823  
Real Estate — 6.7%                
LTC Properties     4,854       158,337  
National Health Investors     3,303       179,221  
Omega Healthcare Investors     9,178       291,402  
Sabra Health Care REIT     14,139       206,429  
Ventas     15,658       717,763  
Welltower     22,639       2,017,135  
              3,570,287  
TOTAL UNITED STATES             34,526,110  
TOTAL COMMON STOCK
(Cost $60,371,029)
            53,503,826  
               
    Number of
Rights
         
RIGHTS — 0.0%                
United States — 0.0%                
Radius Health#(A)(B)     19,104        
TOTAL RIGHTS
(Cost $–)
             
TOTAL INVESTMENTS — 99.8%
(Cost $60,371,029)
          $ 53,503,826  

 

Percentages are based on Net Assets of $53,595,633.

 

* Non-income producing security.

 

The accompanying notes are an integral part of the financial statements.

73

 

 

 

Schedule of Investments November 30, 2023

 

Global X Aging Population ETF

 

 

Real Estate Investment Trust
# Expiration date not available.
(A) Level 3 security in accordance with fair value hierarchy.
(B) Security considered illiquid. The total value of such securities as of November 30, 2023 was $75,871 and represented 0.1% of Net Assets.

 

The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3(1)     Total  
Common Stock   $ 53,427,955     $     $ 75,871     $ 53,503,826  
Rights                 ^      
Total Investments in Securities   $ 53,427,955     $     $ 75,871     $ 53,503,826  

 

(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 end of the period in relation to Net Assets. Management has concluded that Level 3 investments are not material in relation to Net Assets.

 

^ Security is fair valued at zero.

 

Amounts designated as “—” are $0 or have been rounded to $0.

 

See “Glossary” for abbreviations.

 

The accompanying notes are an integral part of the financial statements.

74

 

 

Schedule of Investments November 30, 2023

 

Global X Health & Wellness ETF

 

 

Sector Weightings (Unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.

 

    Shares     Value  
COMMON STOCK — 99.7%            
CANADA — 3.0%            
Consumer Discretionary — 3.0%            
Gildan Activewear     7,679     $ 278,196  
                 
CHINA — 6.5%                
Consumer Discretionary — 6.5%                
ANTA Sports Products     20,444       213,201  
Li Ning     38,014       105,861  
Topsports International Holdings     265,570       215,916  
Xtep International Holdings     111,901       64,616  
                 
TOTAL CHINA             599,594  
FRANCE — 3.1%                
Consumer Staples — 3.1%                
Danone     4,442       285,807  
                 
GERMANY — 7.1%                
Consumer Discretionary — 7.1%                
adidas     1,612       337,945  
Puma     4,791       309,360  
                 
TOTAL GERMANY             647,305  
IRELAND — 2.1%                
Consumer Staples — 2.1%                
Glanbia     11,579       195,571  

 

The accompanying notes are an integral part of the financial statements.

75

 

 

Schedule of Investments November 30, 2023

 

Global X Health & Wellness ETF

 

 

    Shares     Value  
COMMON STOCK — continued            
ITALY — 0.8%            
Consumer Discretionary — 0.8%            
Technogym     8,521     $ 74,285  
                 
JAPAN — 14.0%                
Consumer Discretionary — 11.0%                
ABC-Mart     10,532       173,865  
Asics     8,113       290,309  
Descente     3,265       93,974  
Goldwin     2,036       158,861  
Shimano     1,636       251,816  
Yonex     4,004       37,322  
              1,006,147  
Consumer Staples — 2.4%                
Ariake Japan     1,387       43,298  
Yakult Honsha     7,792       174,093  
              217,391  
Health Care — 0.6%                
Tsumura     3,260       61,634  
                 
TOTAL JAPAN             1,285,172  
NETHERLANDS — 0.9%                
Consumer Discretionary — 0.9%                
Basic-Fit *     2,830       80,839  
                 
SOUTH KOREA — 1.5%                
Consumer Discretionary — 1.5%                
Fila Holdings     2,579       76,461  
Youngone     1,900       64,357  
                 
TOTAL SOUTH KOREA             140,818  
SWITZERLAND — 3.1%                
Consumer Discretionary — 3.1%                
On Holding, Cl A *     9,663       280,324  

 

The accompanying notes are an integral part of the financial statements.

76

 

 

Schedule of Investments November 30, 2023

 

Global X Health & Wellness ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
TAIWAN — 7.2%                
Consumer Discretionary — 6.8%                
Feng TAY Enterprise     42,875     $ 251,841  
Fulgent Sun International Holding     8,365       39,495  
Giant Manufacturing     16,546       100,632  
Johnson Health Tech     13,400       30,240  
Merida Industry     12,960       77,785  
Pou Chen     126,286       124,912  
              624,905  
Consumer Staples — 0.4%                
Grape King Bio     6,300       30,955  
                 
TOTAL TAIWAN             655,860  
UNITED KINGDOM — 5.5%                
Consumer Discretionary — 5.5%                
Frasers Group *     20,115       225,107  
JD Sports Fashion     138,804       275,967  
                 
TOTAL UNITED KINGDOM             501,074  
UNITED STATES — 44.9%                
Consumer Discretionary — 24.1%                
Columbia Sportswear     2,667       208,906  
Dick’s Sporting Goods     2,096       272,689  
Foot Locker     3,962       106,697  
Hibbett     550       34,402  
Lululemon Athletica *     796       355,653  
NIKE, Cl B     2,288       252,298  
Peloton Interactive, Cl A *     14,092       79,761  
Planet Fitness, Cl A *     3,631       246,690  
Shoe Carnival     1,134       27,545  
Skechers USA, Cl A *     5,784       340,735  
Under Armour, Cl A *     8,002       65,136  
VF     13,227       221,288  
              2,211,800  
Consumer Staples — 16.0%                
BellRing Brands *     5,718       302,482  
Calavo Growers     958       20,779  

 

The accompanying notes are an integral part of the financial statements.

77

 

 

Schedule of Investments November 30, 2023

 

Global X Health & Wellness ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Consumer Staples — continued                
Cal-Maine Foods     1,904     $ 91,240  
Celsius Holdings *     9,903       490,298  
Hain Celestial Group *     3,840       40,589  
Herbalife *     4,158       53,555  
Medifast     475       31,530  
Nu Skin Enterprises, Cl A     2,078       35,368  
Simply Good Foods *     4,269       165,381  
Sprouts Farmers Market *     4,434       191,017  
USANA Health Sciences *     825       38,989  
              1,461,228  
Health Care — 4.5%                
Dexcom *     2,485       287,067  
Prestige Consumer Healthcare *     2,139       122,672  
              409,739  
Industrials — 0.3%                
Healthcare Services Group *     3,133       30,421  
                 
TOTAL UNITED STATES             4,113,188  
TOTAL COMMON STOCK
(Cost $13,176,443)
            9,138,033  
TOTAL INVESTMENTS — 99.7%
(Cost $13,176,443)
          $ 9,138,033  

 

Percentages are based on Net Assets of $9,162,013.

 

* Non-income producing security.

 

As of November 30, 2023, 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.

 

See “Glossary” for abbreviations.

 

The accompanying notes are an integral part of the financial statements.

78

 

 

Schedule of Investments November 30, 2023

 

Global X Robotics & Artificial Intelligence ETF

 

 

Sector Weightings (Unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.

 

    Shares     Value  
COMMON STOCK — 99.6%            
CANADA — 1.6%            
Industrials — 1.6%            
ATS *     951,961     $ 37,499,898  
                 
CHINA — 1.6%                
Consumer Discretionary — 0.5%                
Hesai Group ADR * (A)     1,028,900       10,906,340  
                 
Health Care — 1.1%                
Shanghai MicroPort MedBot Group * (A)     9,807,900       25,178,085  
                 
TOTAL CHINA             36,084,425  
FINLAND — 1.3%                
Industrials — 1.3%                
Cargotec, Cl B     571,314       28,836,549  
                 
ISRAEL — 0.5%                
Consumer Discretionary — 0.5%                
Maytronics     1,132,910       10,951,575  

 

The accompanying notes are an integral part of the financial statements.

79

 

 

Schedule of Investments November 30, 2023

 

Global X Robotics & Artificial Intelligence ETF

 

 

    Shares     Value  
COMMON STOCK — continued            
JAPAN — 28.3%            
Health Care — 0.1%            
CYBERDYNE * (A)     1,387,970   $ 2,206,331  
                 
Industrials — 17.5%                
Daifuku     3,946,608       74,295,059  
FANUC     4,754,721       132,315,908  
Hirata     108,371       4,676,883  
Shibaura Machine     274,634       7,087,149  
SMC     180,360       90,829,655  
Yaskawa Electric     2,290,617       87,899,822  
              397,104,476  
Information Technology — 10.7%                
ExaWizards * (A)     830,630       2,230,596  
Keyence     380,349       162,986,499  
Omron     1,710,795       71,736,857  
PKSHA Technology * (A)     315,731       6,695,415  
              243,649,367  
TOTAL JAPAN             642,960,174  
NORWAY — 2.6%                
Industrials — 2.6%                
AutoStore Holdings *     35,307,033       58,780,635  
                 
SOUTH KOREA — 1.3%                
Industrials — 1.3%                
Hyulim ROBOT *     1,578,311       1,739,611  
Rainbow Robotics *     197,207       27,116,631  
                 
TOTAL SOUTH KOREA             28,856,242  
SWITZERLAND — 10.8%                
Health Care — 2.2%                
Tecan Group     132,262       48,521,164  
                 
Industrials — 8.6%                
ABB     4,910,309       196,005,779  
                 
TOTAL SWITZERLAND             244,526,943  

 

The accompanying notes are an integral part of the financial statements.

80

 

 

Schedule of Investments November 30, 2023

 

Global X Robotics & Artificial Intelligence ETF

 

 

    Shares     Value  
COMMON STOCK — continued            
UNITED KINGDOM — 1.3%            
Information Technology — 1.3%            
Renishaw     754,367     $ 29,948,538  
                 
UNITED STATES — 50.3%                
Consumer Discretionary — 0.4%                
iRobot *     281,879       10,178,651  
                 
Energy — 0.6%                
Helix Energy Solutions Group *     1,568,340       14,616,929  
                 
Financials — 1.0%                
Upstart Holdings * (A)     843,025       22,559,349  
                 
Health Care — 11.3%                
Intuitive Surgical *     718,769       223,422,156  
Omnicell *     461,947       15,410,552  
PROCEPT BioRobotics *     461,163       17,095,312  
              255,928,020  
Industrials — 4.6%                
AeroVironment *     261,121       35,932,861  
John Bean Technologies     330,876       34,179,491  
Symbotic, Cl A * (A)     623,659       32,979,088  
TuSimple Holdings, Cl A * (A)     2,039,029       1,735,213  
              104,826,653  
Information Technology — 32.4%                
Appian, Cl A *     424,305       15,376,813  
C3.ai, Cl A * (A)     1,107,572       32,252,497  
Cerence *     410,952       7,105,360  
Cognex     1,794,085       67,637,005  
Dynatrace *     2,194,293       117,504,390  
FARO Technologies *     185,039       3,399,166  
NVIDIA     705,008       329,732,242  
Pegasystems     847,801       44,068,696  
PROS Holdings *     473,789       17,316,988  
SoundHound AI, Cl A * (A)     1,593,839       3,410,815  

 

The accompanying notes are an integral part of the financial statements.

81

 

 

Schedule of Investments November 30, 2023

 

Global X Robotics & Artificial Intelligence ETF

 

 

    Shares     Value  
COMMON STOCK — continued            
Information Technology — continued            
UiPath, Cl A *     4,891,791     $ 96,661,790  
              734,465,762  
TOTAL UNITED STATES             1,142,575,364  
TOTAL COMMON STOCK
(Cost $2,305,066,743)
            2,261,020,343  
                 
SHORT-TERM INVESTMENT(B) — 0.9%                
Fidelity Investments Money Market Government Portfolio, Cl Institutional, 5.280%
(Cost $20,180,420)
    20,180,420       20,180,420  
                 
    Face Amount          
REPURCHASE AGREEMENT(C) — 2.9%                
BNP Paribas
5.220%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $66,126,589 (collateralized by U.S. Treasury Obligations, ranging in par value $330,118 - $7,778,471, 2.000%, 08/15/2025, with a total market value of $67,377,523)
(Cost $66,117,002)
  $ 66,117,002       66,117,002  
TOTAL INVESTMENTS — 103.4%
(Cost $2,391,364,165)
          $ 2,347,317,765  

 

Percentages are based on Net Assets of $2,269,823,632.

 

* Non-income producing security.
(A) This security or a partial position of this security is on loan at November 30, 2023.The total market value of securities on loan at November 30, 2023 was $81,818,095.
(B) The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2023.
(C) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2023 was $66,117,002. The total value of non-cash collateral held from securities on loan as of November 30, 2023 was $–.

 

The accompanying notes are an integral part of the financial statements.

82

 

 

Schedule of Investments November 30, 2023

 

Global X Robotics & Artificial Intelligence ETF

 

 

The open futures contracts held by the Fund at November 30, 2023, are as follows:

 

Type of Contract   Number of
 Contracts
  Expiration
Date
  Notional Amount   Value   Unrealized
Appreciation
 
Long Contracts                                
                                 
NASDAQ 100 Index E-MINI   26   Dec-2023   $ 7,998,220     $ 8,312,460     $ 314,240  

 

The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments and other financial instruments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3     Total  
Common Stock   $ 2,261,020,343     $     $     $ 2,261,020,343  
Short-Term Investment     20,180,420                   20,180,420  
Repurchase Agreement           66,117,002             66,117,002  
Total Investments in Securities   $ 2,281,200,763     $ 66,117,002     $     $ 2,347,317,765  
                                 
Other Financial Instruments   Level 1     Level 2     Level 3     Total  
Futures Contracts*                                
Unrealized Appreciation   $ 314,240     $     $     $ 314,240  
Total Other Financial Instruments   $ 314,240     $     $     $ 314,240  

 

* Futures contracts are valued at the unrealized appreciation on the instrument.

 

Amounts designated as “—” are $0 or have been rounded to $0.

 

See “Glossary” for abbreviations.

 

The accompanying notes are an integral part of the financial statements.

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Schedule of Investments November 30, 2023
   
Global X FinTech ETF

Sector Weightings (Unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.

 

    Shares     Value  
COMMON STOCK — 99.8%                
AUSTRALIA — 0.9%                
Financials — 0.6%                
HUB24     92,406     $ 2,064,182  
Zip * (A)     867,164       232,864  
              2,297,046  
Information Technology — 0.3%                
IRESS     212,335       989,746  
                 
TOTAL AUSTRALIA             3,286,792  
BRAZIL — 2.1%                
Financials — 2.1%                
Pagseguro Digital, Cl A *     230,624       2,324,690  
StoneCo, Cl A *     324,160       5,056,896  
                 
TOTAL BRAZIL             7,381,586  
CANADA — 0.5%                
Financials — 0.4%                
Nuvei (A)     75,232       1,544,757  
                 
Information Technology — 0.1%                
Hut 8 * (A)     218,679       419,342  
                 
TOTAL CANADA             1,964,099  
CHINA — 1.0%                
Financials — 0.9%                
Lufax Holding ADR     2,639,933       2,241,039  

 

The accompanying notes are an integral part of the financial statements.

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Schedule of Investments November 30, 2023
   
Global X FinTech ETF

 

    Shares     Value  
COMMON STOCK — continued                
Financials — continued                
Yeahka *     513,914     $ 919,877  
              3,160,916  
Information Technology — 0.1%                
Linklogis, Cl B (A)     2,313,000       479,759  
                 
TOTAL CHINA             3,640,675  
GERMANY — 0.3%                
Financials — 0.3%                
Hypoport * (A)     7,922       1,175,538  
                 
ISRAEL — 0.5%                
Information Technology — 0.5%                
Sapiens International     63,655       1,637,843  
                 
ITALY — 3.4%                
Financials — 3.4%                
Nexi *     1,518,655       11,847,534  
                 
JAPAN — 0.2%                
Financials — 0.2%                
WealthNavi * (A)     55,878       651,630  
                 
NETHERLANDS — 4.9%                
Financials — 4.9%                
Adyen *     14,617       17,080,891  
                 
NEW ZEALAND — 3.4%                
Information Technology — 3.4%                
Xero *     173,900       11,882,133  
                 
SOUTH KOREA — 1.6%                
Financials — 1.6%                
Kakaopay *     155,106       5,542,291  

 

The accompanying notes are an integral part of the financial statements.

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Schedule of Investments November 30, 2023
   
Global X FinTech ETF

 

    Shares     Value  
COMMON STOCK — continued                
SWITZERLAND — 2.4%                
Financials — 0.3%                
Leonteq     21,809     $ 979,405  
                 
Information Technology — 2.1%                
Temenos     86,750       7,384,549  
                 
TOTAL SWITZERLAND             8,363,954  
UNITED KINGDOM — 3.3%                
Financials — 3.3%                
Wise, Cl A *     1,186,024       11,723,308  
                 
UNITED STATES — 74.4%                
Financials — 49.6%                
Affirm Holdings, Cl A *     270,877       9,320,878  
Bakkt Holdings * (A)     78,908       118,362  
Block, Cl A *     268,122       17,006,978  
Coinbase Global, Cl A *     207,235       25,846,349  
Fidelity National Information Services     327,518       19,205,655  
Fiserv *     178,766       23,348,627  
Flywire *     120,539       2,808,559  
Galaxy Digital Holdings * (A)     119,010       726,779  
Global Payments     141,738       16,503,973  
I3 Verticals, Cl A *     26,525       533,948  
Jack Henry & Associates     84,559       13,418,668  
Lemonade * (A)     79,835       1,410,684  
LendingClub *     122,514       771,838  
LendingTree *     14,468       256,084  
Open Lending, Cl A *     145,492       929,694  
Paymentus Holdings, Cl A *     21,799       376,469  
Payoneer Global *     404,480       2,095,206  
PayPal Holdings *     282,377       16,267,739  
Paysafe *     69,756       705,233  
Shift4 Payments, Cl A *     61,215       4,029,171  
SoFi Technologies * (A)     1,074,658       7,834,257  
Toast, Cl A *     408,572       6,075,466  
Upstart Holdings * (A)     93,979       2,514,878  

 

The accompanying notes are an integral part of the financial statements.

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Schedule of Investments November 30, 2023
   
Global X FinTech ETF

 

    Shares     Value  
COMMON STOCK — continued                
Financials — continued                
Virtu Financial, Cl A     115,294     $ 2,072,986  
              174,178,481  
Health Care — 1.9%                
HealthEquity *     98,014       6,568,898  
                 
Industrials — 4.2%                
SS&C Technologies Holdings     265,215       14,920,996  
                 
Information Technology — 18.7%                
ACI Worldwide *     129,747       3,469,435  
BILL Holdings *     123,212       8,066,690  
Blend Labs, Cl A *     242,139       307,516  
Envestnet *     63,868       2,428,900  
Guidewire Software *     94,836       9,477,910  
Intuit     52,271       29,870,786  
Marathon Digital Holdings * (A)     134,926       1,615,064  
MeridianLink *     93,495       1,778,275  
Mitek Systems *     51,280       578,951  
nCino *     128,202       3,542,221  
Pagaya Technologies, Cl A *     582,574       739,869  
Riot Platforms * (A)     193,211       2,424,798  
Vertex, Cl A *     56,279       1,579,189  
              65,879,604  
TOTAL UNITED STATES             261,547,979  
URUGUAY — 0.9%                
Financials — 0.9%                
Dlocal, Cl A *     187,019       3,226,078  
                 
TOTAL COMMON STOCK
(Cost $556,912,402)
            350,952,331  

 

The accompanying notes are an integral part of the financial statements.

87

 

   
Schedule of Investments November 30, 2023
   
Global X FinTech ETF

 

    Face Amount     Value  
REPURCHASE AGREEMENTS(B) — 2.1%                
Bank of America
5.320%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $434,901 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $46 - $153,383, 1.500% - 7.000%, 08/01/2027 - 09/20/2063, with a total market value of $443,534)
  $ 434,837     $ 434,837  
Citigroup Global Markets Securities
5.320%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $1,703,362 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $14,631 - $515,279, 2.000% - 7.028%, 11/20/2043 - 01/20/2072, with a total market value of $1,737,172)