Global X S&P 500^® Quality Dividend ETF

The Global X S&P 500^® Quality Dividend ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500^® Quality High Dividend Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

The Underlying Index measures the performance of S&P 500^® stocks that exhibit both high quality and high dividend yield characteristics. Index constituents are equally-weighted, subject to a 25% Global Industry Classification Standard (GICS) Sector weight cap.

For the 12-month period ended November 30, 2022 (the “reporting period”), the Fund increased 10.25%, while the Underlying Index increased 10.53%. The Fund had a net asset value of $31.02 per share on November 30, 2021 and ended the reporting period with a net asset value of $33.24 per share on November 30, 2022.

During the reporting period, the highest returns came from Marathon Petroleum Corporation and Exxon Mobil Corporation, which returned 100.09% and 92.78%, respectively. The worst performers were T. Rowe Price Group and Synchrony Financial, which returned -45.28% and -32.54%, respectively.

During the reporting period, with ongoing global economic uncertainty, geopolitical disputes, high inflation, and rising rates, a strategy focusing on dividend sustainability and financial quality resulted in exposures that contributed to positive Fund returns. A result of its quality dividend screening process, the Fund maintained meaningful exposure to companies within the energy sector, a primary beneficiary of rising energy prices over the course of the reporting period which contributed positively to the Fund. The Fund also maintained significant exposure to dividend paying stocks within the consumer staples sector, a defensive sector, whose low volatile nature and preferential business models during periods of weakening equity markets, resulted in positive investor sentiment towards the Fund. During the reporting period, the Fund maintained an approximate average sector exposure of 24% to Financials, 15% to Industrials, 13% to Consumer Staples, and 11% to Energy.

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Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Quality Dividend ETF

 

*The Fund commenced investment operations on July 13, 2018.

The S&P 500^® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

The S&P 500^® Quality High Dividend Index measures the performance of S&P 500® stocks that exhibit both high quality and high dividend yield characteristics.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund's performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on the previous page and above.

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Management Discussion of Fund Performance (unaudited)

Global X U.S. Preferred ETF

 

Global X U.S. Preferred ETF

The Global X U.S. Preferred ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE BofA Diversified Core U.S. Preferred Securities Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

The Underlying Index is designed to track the broad-based performance of the U.S. preferred securities market. The Underlying Index includes different categories of preferred stock, such as floating, variable and fixed-rate preferreds, cumulative and non-cumulative preferreds, and trust preferreds. Qualifying preferred securities must be listed on a U.S. exchange, denominated in U.S. dollars, and have a minimum amount outstanding of $50 million. Qualifying securities must meet minimum price, liquidity, maturity and other requirements as determined by ICE Data Indices, LLC, the provider of the Underlying Index.

For the 12-month period ended November 30, 2022 (the “reporting period”), the Fund decreased 13.82%, while the Underlying Index decreased 13.78%. The Fund had a net asset value of $25.21 per share on November 30, 2021 and ended the reporting period with a net asset value of $20.51 per share on November 30, 2022.

During the reporting period, the highest returns came from South Jersey Industries, Inc. and AES Corporation Equity Unit, which returned 42.79% and 17.92%, respectively. The worst performers were Qurate Retail Inc. and Diversified Healthcare Trust, which returned -53.19% and -48.08%, respectively.

The Fund generated negative returns during the reporting period as the preferred-stock market experienced selloffs amidst a rising interest rate environment. Concerns among investors of a potential recession and tighter financing conditions also negatively affected the Fund's performance.Expectations of further interest rate hikes and an extended higher interest rate environment led to a decline in preferred stock performance during the reporting period. During the reporting period, the Fund maintained an average approximate sector allocation of 63% to Financials, 11% to Utilities, and 6% to Communication Services.

	AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2022
	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. Preferred ETF	-13.82%	-14.08%	-0.85%	-1.00%	1.62%	1.48%	1.69%	1.72%
ICE BofA Diversified Core U.S. Preferred Securities Index	-13.78%	-13.78%	-0.71%	-0.71%	1.80%	1.80%	1.88%	1.88%
S&P 500® Index	-9.21%	-9.21%	10.91%	10.91%	10.98%	10.98%	11.91%	11.91%

 

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Management Discussion of Fund Performance (unaudited)

Global X U.S. Preferred ETF

 

*The Fund commenced investment operations on September 11, 2017.

The S&P 500^® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

The ICE BofA Diversified Core U.S. Preferred Securities Index was formerly known as BofA Merrill Lynch Diversified Core U.S. Preferred Securities Index.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund's performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on the previous page and above.

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Global X MLP & Energy Infrastructure ETF

The Global X MLP and Energy Infrastructure ETF ("Fund") seeks to provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Solactive MLP & Energy Infrastructure Index ("Underlying Index"). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

The Underlying Index tracks the performance of midstream energy infrastructure MLPs ("Midstream MLPs") and corporations ("Energy Infrastructure Corporations"). Midstream MLPs and Energy Infrastructure Corporations principally own and operate assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products. The Underlying Index limits its exposure to partnerships in order to comply with applicable tax diversification rules. Securities must be publicly traded in the United States. The Index is maintained by Solactive AG.

For the 12-month period that ended November 30, 2022 (the "reporting period"), the Fund increased 31.26%, while the Underlying Index increased 32.30%. The Fund had a net asset value of $34.89 per share on November 30, 2021 and ended the reporting period with a net asset value of $43.47 on November 30, 2022.

During the reporting period, the highest returns came from EnLink Midstream LLC and Cheniere Energy, Inc, which returned 106.90% and 68.98%, respectively. The worst performers were Delek Logistics Partners LP and Kinetik Holdings Inc, which returned -15.95% and -15.71%, respectively.

The Fund seeks to provide tax efficient exposure to Midstream MLPs, the general partners of midstream MLPs, and energy infrastructure corporations. Midstream MLPs and energy Energy Infrastructure Companies operate toll-road-like business models where they are generally compensated based on the volumes of natural gas or crude oil that they transport, store, or process. The Fund experienced positive performance amid persistently tight oil supply and an energy shortage crisis in Europe during the reporting period. The nature of Midstream MLPs' role in oil and gas production and the defensive nature of its contracts and fee structures placed it in a stronger position than other market categories of the energy sector in the reporting period. Rising rig counts and enhanced confidence in the sector also led to gains across Midstream MLPs and Energy Infrastructure Companies.

Global X Adaptive U.S. Risk Management ETF

The Global X Adaptive U.S. Risk Management ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Adaptive Wealth Strategies U.S. Risk Management Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

The Underlying Index is designed to dynamically allocate between either 100% exposure to the Solactive GBS United States 500 Index TR (“U.S. Equity Position”) or 100% exposure to the Solactive U.S. 1-3 Year Treasury Bond Index (“U.S. Treasury Position”). The Solactive U.S. 1-3 Year Treasury Bond Index is a rules-based, market value weighted index designed to track the performance of USD-denominated bonds issued by the U.S. Treasury with at least 1 year until maturity but less than 3 years until maturity, as of the selection date of the index. The Solactive GBS United States 500 Index TR is a float-adjusted market capitalization weighted index which measures the performance of the equity securities of the 500 largest companies from the United States stock market across all sectors. A float-adjusted market capitalization weighted index weights each index component according to its market capitalization, using the number of shares that are readily available for purchase on the open market, rather than the total number of shares outstanding of an issuer. The Underlying Index seeks to provide exposure to the U.S. Equity Position during periods of normal equity market returns, and seeks to provide exposure to the U.S. Treasury Position prior to and during periods of adverse market conditions, as determined by the quantitative model developed by the Index Provider. The Underlying Index seeks to anticipate periods of adverse market conditions using quantitative signals that have been developed based on historical data.

For the 12-month period ended November 30, 2022 (the “reporting period”), the Fund decreased 4.28%, while the Underlying Index decreased 3.90%. The Fund had a net asset value of $29.88 per share on November 30, 2021 and ended the reporting period with a net asset value of $28.26 on November 30, 2022.

During the reporting period, the highest returns came from Constellation Energy Corp. and Devon Energy Corporation, which returned 73.64% and 65.06%, respectively. The worst performers were Affirm Holdings, Inc and AppLovin Corp., which returned -76.22% and -68.64%, respectively.

The U.S. equity market was volatile during the reporting period as inflation hit high levels resulting in the U.S. Federal Reserve raising interest rates. U.S. stocks were volatile during the early stages of the reporting period, in which the Fund’s strategy allocated between U.S. equities and U.S. treasuries many times, resulting in negative performance during the reporting period. Towards the end of the reporting period, amidst recessionary fears, the Fund’s strategy allocated into U.S. treasuries during a period of poor performance for U.S. equities, resulting in reporting period outperformance relative to broad U.S. equity indices, such as the S&P 500 Index. During the reporting period, the Fund maintained an average approximate sector exposure of 15% to Information Technology, 8% to Health Care, and 6% to Consumer Discretionary.

*The Fund commenced investment operations on January 12, 2021.

The S&P 500^® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

The Adaptive Wealth Strategies U.S. Risk Management Index is designed to dynamically allocate between either 100% exposure to the Solactive GBS United States 500 Index TR ("U.S. Equity Position") or 100% exposure to the Solactive U.S. 1-3 Year Treasury Bond Index ("U.S. Treasury Position"). The Solactive U.S. 1-3 Year Treasury Bond Index is a rules-based, market value weighted index designed to track the performance of USD-denominated bonds issued by the U.S. Treasury with at least 1 year until maturity but less than 3 years until maturity, as of the selection date of the index. The Solactive GBS United States 500 Index TR is a float-adjusted market capitalization weighted index which measures the performance of the equity securities of the 500 largest companies from the United States stock market across all sectors. A float-adjusted market capitalization weighted index weights each index component according to its market capitalization, using the number of shares that are readily available for purchase on the open market, rather than the total number of shares outstanding of an issuer. The Underlying Index seeks to provide exposure to the U.S. Equity Position during periods of normal equity market returns, and seeks to provide exposure

to the U.S. Treasury Position prior to and during periods of adverse market conditions, as determined by the quantitative model developed by the Index Provider. The Underlying Index seeks to anticipate periods of adverse market conditions using quantitative signals that have been developed based on historical data.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund's performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

See definition of comparative indices on the previous page and above.