Global X Lithium & Battery Tech ETF (ticker: LIT)
Global X SuperDividend® ETF (ticker: SDIV)
Global X Social Media ETF (ticker: SOCL)
Global X Guru® Index ETF (ticker: GURU)
Global X SuperIncome™ Preferred ETF (ticker: SPFF)
Global X SuperDividend® U.S. ETF (ticker: DIV)
Global X S&P 500® Covered Call ETF (ticker: XYLD)
Global X NASDAQ 100® Covered Call ETF (ticker: QYLD)
Global X MSCI SuperDividend® Emerging Markets ETF (ticker: SDEM)
Global X SuperDividend® REIT ETF (ticker: SRET)
Global X Renewable Energy Producers ETF (ticker: RNRG)
Global X S&P 500® Catholic Values ETF (ticker: CATH)
Global X MSCI SuperDividend® EAFE ETF (ticker: EFAS)
Global X E-commerce ETF (ticker: EBIZ)
Global X Russell 2000 Covered Call ETF (ticker: RYLD)
Global X S&P Catholic Values Developed ex-U.S. ETF (ticker: CEFA)
Global X Nasdaq 100® Covered Call & Growth ETF (ticker: QYLG)
Global X S&P 500® Covered Call & Growth ETF (ticker: XYLG)
Global X Emerging Markets Internet & E-commerce ETF (ticker: EWEB)
Global X NASDAQ 100® Tail Risk ETF (ticker: QTR)
Global X NASDAQ 100® Risk Managed Income ETF (ticker: QRMI)
Global X NASDAQ 100® Collar 95-110 ETF (ticker: QCLR)
Global X S&P 500® Tail Risk ETF (ticker: XTR)
Global X S&P 500® Risk Managed Income ETF (ticker: XRMI)
Global X S&P 500® Collar 95-110 ETF (ticker: XCLR)
Global X Disruptive Materials ETF (ticker: DMAT)
Global X Dow 30® Covered Call ETF (ticker: DJIA)
Global X Russell 2000 Covered Call & Growth ETF (ticker: RYLG)
Global X Financials Covered Call & Growth ETF (ticker: FYLG)
Global X Health Care Covered Call & Growth ETF (ticker: HYLG)
Global X Information Technology Covered Call & Growth ETF (ticker: TYLG)
Global X Nasdaq 100® ESG Covered Call ETF (ticker: QYLE)
Global X S&P 500® ESG Covered Call ETF (ticker: XYLE)
Global X Dow 30® Covered Call & Growth ETF (ticker: DYLG)

 

Annual Report

October 31, 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  
Global X Lithium & Battery Tech ETF 74
Global X SuperDividend® ETF 78
Global X Social Media ETF 88
Global X Guru® Index ETF 93
Global X SuperIncome™ Preferred ETF 98
Global X SuperDividend® U.S. ETF 101
Global X S&P 500® Covered Call ETF 106
Global X NASDAQ 100® Covered Call ETF 121
Global X MSCI SuperDividend® Emerging Markets ETF 126
Global X SuperDividend® REIT ETF 133
Global X Renewable Energy Producers ETF 136
Global X S&P 500® Catholic Values ETF 143
Global X MSCI SuperDividend® EAFE ETF 156
Global X E-commerce ETF 162
Global X Russell 2000 Covered Call ETF 167
Global X S&P Catholic Values Developed ex-US ETF 225
Global X Nasdaq 100® Covered Call & Growth ETF 248
Global X S&P 500® Covered Call & Growth ETF 254
Global X Emerging Markets Internet & E-commerce ETF 270
Global X NASDAQ 100® Tail Risk ETF 273
Global X NASDAQ 100® Risk Managed Income ETF 278
Global X NASDAQ 100® Collar 95-110 ETF 284
Global X S&P 500® Tail Risk ETF 290
Global X S&P 500® Risk Managed Income ETF 305
Global X S&P 500® Collar 95-110 ETF 321
Global X Disruptive Materials ETF 337
Global X Dow 30® Covered Call ETF 341
Global X Russell 2000 Covered Call & Growth ETF 344
Global X Financials Covered Call & Growth ETF 346
Global X Health Care Covered Call & Growth ETF 350
Global X Information Technology Covered Call & Growth ETF 354
Global X Nasdaq 100® ESG Covered Call ETF 358
Global X S&P 500® ESG Covered Call ETF 364
Global X Dow 30® Covered Call & Growth ETF 375
Glossary 378
Statements of Assets and Liabilities 379
Statements of Operations 389
Statements of Changes in Net Assets 398
Financial Highlights 416
Notes to Financial Statements 440
Report of Independent Registered Public Accounting Firm 483
Disclosure of Fund Expenses 486
Liquidity Risk Management Program 491
Approval of Investment Advisory Agreement 492
Supplemental Information 496
Trustees and Officers of the Trust 497
Notice to Shareholders 499
 

 

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 Lithium & Battery Tech ETF

Global X Lithium & Battery Tech ETF

 

The Global X Lithium & Battery Tech 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 Lithium Index (the “Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

 

The Underlying Index is designed to measure broad-based equity market performance of global companies involved in the lithium industry, as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 28.63%, while the Underlying Index decreased 28.42%. The Fund had a net asset value of $67.13 per share on October 31, 2022 and ended the reporting period with a net asset value of $47.33 on October 31, 2023.

 

During the reporting period, the highest returns came from Simplo Technology Co Ltd and BYD Co Ltd-H, which returned 41.43% and 36.22%, respectively. The worst performers were Freyr Battery SA and Core Lithium Ltd, which returned -75.88% and -74.26, respectively.

 

The Fund recorded negative performance over the reporting period, as lithium producers were impacted by declining prices, and both lithium producers and battery manufacturers were impacted by weakened demand. In particular, lithium prices were weighed down by performance in the Chinese spot market, the largest spot market in the world by a wide margin, amid weakened demand and bearish sentiment. Notably, electric vehicle (EV) sales in China were weaker at the start of 2023 and remained volatile for several months due to policy changes, including the end of subsidies on EV purchases, as well as a decline in consumer sentiment amid the broader economic slowdown. To counter slower demand and continued uncertainty over the short-term, battery makers largely worked through built up inventories instead of taking on new lithium contracts. During the reporting period, the Fund had an average approximate stock exposure of 35.44% in China and 24.62% in the United States. By sector, the Fund had its highest average exposure to Materials at 38.16%, Consumer Discretionary at 23.17% and Industrials at 23.03%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X Lithium & Battery Tech -28.63% -27.69% 3.93% 4.01% 10.75% 11.00% 7.66% 7.71%
Solactive Global Lithium Index (USD) -28.42% -28.42% 4.45% 4.45% 11.02% 11.02% 8.18% 8.18%
MSCI ACWI (Net) (USD) 10.50% -10.50% 6.68% 6.68% 7.47% 7.47% 6.81% 6.81%

 

1

 

Management Discussion of Fund Performance (unaudited)

Global X Lithium & Battery Tech ETF

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on July 22, 2010.

 

The MSCI ACWI (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.

 

2

 

Management Discussion of Fund Performance (unaudited)
Global X SuperDividend® ETF

Global X SuperDividend® ETF

 

The Global X SuperDividend® ETF (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividend® Index (the “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 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world, including emerging market countries, as defined by Solactive AG, the provider of the Underlying Index (“Index Provider”). The Index Provider applies certain dividend stability filters.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 0.31%, while the Underlying Index increased 0.49%. The Fund had a net asset value of $23.05 per share on October 31, 2022 and ended the reporting period with a net asset value of $20.36 on October 31, 2023, following a 1:3 reverse share split on December 19, 2022.

 

During the reporting period, the highest returns came from China SCE Group Holdings Ltd and Powerlong Real Estate Holdings, which returned 199.23% and 196.66%, respectively. The worst performers were Manulife US REIT and Grange Resources Limited, which returned -85.27% and -60.84%, respectively.

 

The Fund generated negative returns during the reporting period, as uncertainty on the direction of interest rates continued to impact global equity markets. Real estate experienced a continued decline, as high interest rates increased financing costs, which negatively impacted Mortgage REITs, the largest industry holding in the Fund. The Materials sector also detracted from performance in 2023, as recession worries around the world depressed returns. However, elevated energy prices and structural supply issues lent strength to energy and energy-linked industrial holdings within the Fund’s portfolio. During the reporting period, the Fund had an average approximate exposure of 30.33% to stocks in United States and 13.45% in Brazil. By sector, it had the highest exposure to Financials at 31.29%, Materials at 15.72% and Energy at 13.99%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X SuperDividend® ETF -0.31% -0.86% -4.45% -4.45% -10.31% -10.32% -4.17% -4.17%
Solactive Global SuperDividend Index (USD) 0.49% 0.49% -5.07% -5.07% -10.66% -10.66% -4.41% -4.41%
MSCI ACWI (Net) (USD) 10.50% 10.50% 6.68% 6.68% 7.47% 7.47% 6.81% 6.81%

 

3

 

Management Discussion of Fund Performance (unaudited)
Global X SuperDividend® ETF

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on June 8, 2011.

 

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.

 

4

 

Management Discussion of Fund Performance (unaudited)
Global X Social Media ETF

Global X Social Media ETF

 

The Global X Social Media ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Social Media Total Return Index (the “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 reflect the performance of companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications, as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 40.40%, while the Underlying Index increased 41.27%. The Fund had a net asset value of $24.88 per share on October 31, 2022, and ended the reporting period with a net asset value of $34.75 on October 31, 2023.

 

During the reporting period, the highest returns came from Meitu Inc and Meta Platforms Inc-Class A which returned 366.35% and 223.39%, respectively. The worst performers were Bumble Inc A and Giftee Inc, which returned -47.09% and -45.04%, respectively.

 

During the reporting period, the Fund achieved positive performance, driven by escalating user engagement and increased time spent on global social media platforms. Bundled product offerings encompassing entertainment, news, and diverse content verticals generated additional revenue streams, reflecting the social media industry’s adaptability and resilience. Industry-wide price adjustments reinforced social media platforms’ potential, signifying confidence in their future growth. The incorporation of generative artificial intelligence (AI) technology proved pivotal, personalizing user experiences. Furthermore, strategic workforce reductions within social media firms resonated positively with investors and improved profit margins. Lower valuations of these companies also attracted the attention of prospective investors during the reporting period. During the reporting period, the Fund had an average approximate stock exposure of 38.19% in the United States, 34.80% in China and 13.40% in South Korea.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X Social Media ETF 40.40% 40.27% -12.29% -12.43 3.79% 3.77% 6.29% 6.24%
Solactive Social Media Total Return Index (USD) 41.27% 41.27% -11.88% -11.88% 4.34% 4.34% 6.80% 6.80%
MSCI ACWI (Net) (USD) 10.50% 10.50% 6.68% 6.68% 7.47% 7.47% 6.81% 6.81%

 

5

 

Management Discussion of Fund Performance (unaudited)
Global X Social Media ETF

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 14, 2011.

 

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 market

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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.

 

6

 

Management Discussion of Fund Performance (unaudited)
Global X Guru® Index ETF

Global X Guru® Index ETF

 

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

 

The Underlying Index is comprised of the top U.S. listed equity positions reported on Form 13F by a select group of entities that Solactive AG characterizes as hedge funds. Hedge funds are selected from a pool of thousands of privately offered pooled investment vehicles based on the size of their reported equity holdings and the efficacy of replicating their publicly disclosed positions. Additional filters are applied to eliminate hedge funds that have high turnover rates for equity holdings. Only hedge funds with concentrated top holdings are included in the selection process. Once the hedge fund pool has been determined, the Index Provider utilizes 13F filings to compile the top stock holding from each of these hedge funds. The stocks are screened for liquidity and equal weighted.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 2.58%, while the Underlying Index increased 1.96%. The Fund had a net asset value of $33.48 per share on October 31, 2022 and ended the reporting period with a net asset value of $34.23 on October 31, 2023.

 

During the reporting period, the highest returns came from BiliBili Inc-Sponsored ADR and GDS Holdings Ltd-ADR, which returned 129.48% and 119.24%, respectively. The worst performers were Fate Therapeutics Inc and Icahn Enterprises LP, which returned -72.32% and -63.75%, respectively.

 

During the reporting period, an increased focus on technological advancements within artificial intelligence technology, led to positive investor sentiment towards technology sector holdings within the Fund. Pharmaceutical holdings that made weight loss drug advancements positively impacted the Fund during the reporting period. Furthermore, as inflation within the U.S. declined, the Federal Reserve’s slower pace of interest rate hikes during the reporting period positively impacted holdings within the Fund. Amid geopolitical concerns, oil refiners and explorers within the Fund provided a level of negative performance as volatility in the oil markets remained apparent during the reporting period. During the reporting period, the Fund had the highest sector exposure to Health Care at 18.38%, Consumer Discretionary at 14.59%, Information Technology at 12.46% and Financials at 12.37%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X Guru® Index ETF 2.58% 2.49% -2.02% -1.95% 3.49% 3.47% 4.31% 4.29%
Solactive Guru Index 1.96% 1.96% -2.12% -2.12% 3.48% 3.48% 4.48% 4.48%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 11.18% 11.18%

 

7

 

Management Discussion of Fund Performance (unaudited)
Global X Guru® Index ETF

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on June 4, 2012.

 

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 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.

 

8

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperIncome™ Preferred ETF

 

 

Global X SuperIncomePreferred ETF

 

The Global X SuperIncome™ Preferred ETF (“Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X U.S. High Yield Preferred Index (the “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 the highest-yielding preferred securities listed in the United States, as determined by Solactive AG, the administrator of the Underlying Index (“Index Administrator”). The Underlying Index is comprised of preferred stocks that meet certain criteria relating to size, liquidity, issuer concentration and rating, maturity and other requirements, as determined by the Index Administrator. The Underlying Index does not seek to directly reflect the performance of the companies issuing the preferred stock. The Underlying Index is owned and was developed by Global X Management Company LLC, an affiliate of the Fund and the Fund’s investment adviser.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 9.26% and the Underlying Index decreased 9.01%. The Fund had a net asset value of $9.67 per share on October 31, 2022 and ended the reporting period with a net asset value of $8.21 on October 31, 2023.

 

During the reporting period, the highest returns came from Rithm Capital Corp and Annaly Capital Management Inc., which returned 24.42% and 22.29%, respectively. The worst performers were First Republic Bank and Signature Bank, which returned -99.75% and -99.62%, respectively.

 

The Fund generated negative returns over the reporting period as challenging geopolitical concerns and monetary policy tightening by central banks weighed negatively on preferred stock and fixed income markets. The U.S. Federal Reserve slowed down its pace of interest rate hikes during the reporting period, however, borrowers continued to feel the negative impact of rising interest costs. Furthermore, the banking sector, one of the primary issuers of preferred securities, continued to face pressure due to regulatory concerns about potential contagion following the collapse of certain regional banks during the middle of the reporting period. This led to fears of widening credit spreads for preferred securities, which dampened valuations during the reporting period. During the reporting period, the Fund had an approximate average sector exposure of 72.04% to Financials, 7.11% to Communication Services, and 5.25% to Utilities.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X SuperIncome™ Preferred ETF -9.26% -9.08% -3.84% -3.69% -0.49% -0.47% 0.71% 0.62%
S&P Enhanced Yield North American Preferred Stock Index -9.01% -9.01% -3.37% -3.37% 0.00% 0.00% 1.28% 1.28%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 11.18% 11.18%

 

9

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperIncome™ Preferred ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* Fund commenced operations on July 16, 2012.

 

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 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.

 

10

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperDividend® U.S. ETF

 

 

Global X SuperDividend® U.S. ETF

 

The Global X SuperDividend® U.S. ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend® U.S. Low Volatility Index (the “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 maintained by Indxx, LCC (the “Index Provider”). The Underlying Index tracks the performance of 50 equally weighted common stocks, MLPs and REITs that rank among the highest dividend yielding equity securities in the United States, as defined by the Index Provider. The components of the Underlying Index will have also paid dividends consistently over the last two years. The Underlying Index is comprised of securities that the Index Provider determines to have lower relative volatility than the market.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 12.60% and the Underlying Index decreased 12.09%. The Fund had a net asset value of $19.18 per share on October 31, 2022 and ended the reporting period with a net asset value of $15.62 on October 31, 2023.

 

During the reporting period, the highest returns came from US Compression Partners LP and Magellan Midsteam Partners, which returned 52.91% and 38.82%, respectively. The worst performers were PetMed Express, Inc. and Lumen Technologies, Inc., which returned -65.20% and -56.11%, respectively.

 

The Fund generated negative returns during the reporting period as elevated interest rates resulted in higher borrowing costs, reduced profit margins, and increased pressures on underlying constituents. This negatively impacted interest rate sensitive sectors within the Fund such as real estate investment trusts (REITs) and utilities. A strong U.S. dollar, coupled with slower-than-expected economic activity globally weighed negatively on energy prices, creating mixed impacts on the Fund’s energy holdings. Lastly, the rise in financing costs translated into reduced cash flows for REITs, due to increased carrying costs for acquisitions and development projects. During the reporting period, the Fund had an average sector exposure of 23.89% to Energy, 15.24% to Consumer Staples and 14.41% to Financials.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year
Return
Three Year
Return
Five Year
Return
Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X SuperDividend® U.S. ETF -12.60% 12.59% 8.01% 8.03% -2.01% -2.00% 1.65% 1.65%
Indxx SuperDividend U.S. Low Volatility Index -12.09% -12.09% 8.52% 8.52% -1.66% -1.66% 2.21% 2.21%
S&P 500 Index (Gross) 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 11.18% 11.18%

 

11

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperDividend® U.S. ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on March 11, 2013.

 

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 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.

 

12

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Covered Call ETF

 

 

Global X S&P 500® Covered Call ETF

 

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

 

The Underlying Index is comprised of two parts: (1) all the equity securities in the S&P 500® Index (the “Reference Index”) in substantially similar weight as the Reference Index; and (2) short (written) call options on up to 100% of the S&P 500® Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 6.45%, while the Underlying Index increased 7.27%. The Fund had a net asset value of $40.00 per share on October 31, 2022 and ended the reporting period with a net asset value of $38.18 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc. Class-A and Nvidia Corp., which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

The Fund recorded positive returns during the reporting period as a slower pace of interest rate hikes by the Federal Reserve positively impacted the valuations of the growth-style names held within the Underlying Index. Concurrently, corporate earnings largely met market expectations and quelled concerns over an impending recession and drove investor confidence in U.S. markets, including holdings within the Fund. Market volatility was subdued, on a relative basis, and the Fund’s buy-write strategy contributed to a level of underperformance relative to the Reference Index. Despite the Fund’s inability to participate in the Reference Index’s upward price appreciation, the Fund still managed to generate positive returns during the reporting period due to the premiums produced by its buy-write option strategy.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Three Year Return Five Year Return Ten Year
Return
  Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Net
Asset
Value
Market
Price
Global X S&P 500® Covered Call ETF 6.45% 6.50% 7.49% 7.13% 4.50% 4.47% 6.01% 6.52%
Hybrid S&P 500® Stock Covered Call Index/CBOE S&P 500 2% OTM BuyWrite Index/CBOE S&P 500 BuyWrite Index** 7.27% 7.27% 8.30% 8.30% 5.45% 5.45% 6.40% 6.40%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 11.18% 11.18%

 

13

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Covered Call ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on June 21, 2013.

** Hybrid Index performance reflects the performance of the S&P 500® Stock Covered Call Index through September 14, 2017, the CBOE S&P 500 2% OTM BuyWrite Index through August 20, 2020 and the CBOE S&P 500 BuyWrite Index thereafter.

 

The Fund operated as the Horizons S&P 500® Covered Call ETF (the “Predecessor Fund”), a series of Horizons ETF Trust I, prior to the Fund’s acquisition of the assets and assumption of the liabilities of the Predecessor Fund on December 24, 2018 (See Note 1 in Notes to Financial Statements).

 

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 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.

 

14

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Covered Call 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.

 

15

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Covered Call ETF

 

 

Global X NASDAQ 100® Covered Call ETF

 

The Global X Nasdaq 100® Covered Call ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE Nasdaq-100® BuyWrite V2 Index (the “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 CBOE Nasdaq-100® BuyWrite Index (“BXN Index”) is a benchmark index that measures the performance of a theoretical portfolio that holds a portfolio of the stocks included in the Nasdaq-100® Index (“Reference Index”), and “writes” (or sells) a succession of one-month at-the-money (“ATM”) covered call options on the Reference Index. The Underlying Index replicates the methodology used to calculate the BXN Index, with one exception: the written Reference Index covered call options are held until one day prior to the expiration date (i.e., generally the Thursday preceding the Third Friday of the month) and are liquidated at a volume weighted average price determined at the close.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 15.91%, while the Underlying Index increased 16.68%. The Fund had a net asset value of $16.15 per share on October 31, 2022 and ended the reporting period with a net asset value of $16.60 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc- Class A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Enphase Energy Inc and Lucid Group Inc, which returned -74.49% and -71.17%, respectively.

 

During the reporting period, the Fund experienced positive performance as the adoption of new machine learning platforms and advancements in artificial intelligence technology resulted in valuation expansions for technology sector constituents within the Fund. The Fund underperformed its Reference Index during the reporting period since its covered call strategy mitigates the upside potential for options premiums. During the reporting period, the Fund had average stock exposure of 48.60% to the Information Technology sector, 16.14% to the Communication Services sector and 14.43% to the Consumer Discretionary sector.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 NASDAQ 100® Covered Call ETF 15.91% 16.05% 5.09% 5.04% 4.93% 4.88% 6.67% 6.66%
Hybrid CBOE NASDAQ-100® BuyWrite Index/CBOE NASDAQ-100® BuyWrite V2 Index** 16.68% 16.68% 5.61% 5.61% 5.94% 5.94% 7.53% 7.53%
NASDAQ 100® Total Return Index 27.45% 27.45 10.12% 10.12% 16.68% 16.68% 16.68% 16.68%

 

16

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Covered Call ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on December 11, 2013.

** Hybrid Index performance reflects the performance of the CBOE NASDAQ-100® BuyWrite Index through October 14, 2015 and CBOE NASDAQ-100® BuyWrite V2 Index thereafter.

 

The Fund operated as the Horizons NASDAQ 100® Covered Call ETF (the “Predecessor Fund”), a series of Horizons ETF Trust I, prior to the Fund’s acquisition of the assets and assumption of the liabilities of the Predecessor Fund on December 24, 2018 (See Note 1 in Notes to Financial Statements).

 

On October 14, 2015, Global X Management Company LLC (The “Advisor”) changed the Fund’s primary benchmark from the BXN Index to BXNT Index in connection with a change in the Fund’s principal strategies. The Advisor believes the BXNT Index is a better measure of the Fund’s performance. Returns reflect a blended benchmark.

 

The Nasdaq-100® Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

 

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.

 

17

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Covered Call ETF

 

 

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.

 

18

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI SuperDividend® Emerging Markets ETF

 

 

Global X MSCI SuperDividend® Emerging Markets ETF

 

The Global X MSCI SuperDividend® Emerging Markets ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Top 50 Dividend Index (the “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 based on the MSCI Emerging Markets Index, its parent index (the “Parent Index”), which includes large and mid-cap stocks across 23 emerging markets countries. The Underlying Index aims to reflect the performance of 50 securities from the Parent Index, selected by dividend yield that have increased or maintained their dividend per share compared to the previous year or have increased or maintained their payout ratio (defined as dividend per share/earnings per share) if the dividend per share has dropped by up to 10%.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 13.77%, while the Underlying Index increased 14.97%. The Fund had a net asset value of $21.36 per share on October 31, 2022 and ended the reporting period with a net asset value of $22.48 on October 31, 2023, following a 1:3 reverse share split on December 19, 2022.

 

During the reporting period, the highest returns came from Lite-On Technology Corp. and Eastern Co, which returned 128.95% and 122.87%, respectively. The worst performers were Shanghai Lujiazui Fin & Trad-B and Braskem SA-Pref A, which returned -45.22% and -40.01%, respectively.

 

The Fund experienced a positive return during the reporting period as the reorganization of strategic supply chains supported opportunities for companies in emerging markets. China’s reopening, following the relaxation of COVID-19 restrictions, led to a resurgence in private consumption. Technology holdings in Taiwan experienced positive sentiment, as manufacturers of chips and electronics benefited from a tech-driven rally in the first half of 2023. During the reporting period, exporters from emerging market nations generally benefited from a strengthening dollar and higher oil prices. This positively impacted holdings within the energy sector, particularly global petroleum and oil refiners, which saw increased demand for refining capacity. During the reporting period, the Fund had an average stock exposure of 26.27% in China, 15.10% in Taiwan and 12.55% in Brazil. By sector, it had the highest average exposure to Materials at 30.28%, Financials at 20.86% and Energy at 17.88%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 MSCI SuperDividend® Emerging Markets ETF 13.77% 13.34% -0.31% -0.55% -3.46% -3.43% -1.39% -1.42%
Hybrid INDXX SuperDividend Emerging Markets Index/MSCI Emerging Markets Top 50 Dividend Index 14.97% 14.97% 0.39% 0.39% -2.64% -2.64% -0.34% -0.34%
MSCI Emerging Markets Index (Net) 10.80% 10.80% -3.67% -3.67% 1.59% 1.59% 2.15% 2.15%

 

19

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI SuperDividend® Emerging Markets ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on March 16, 2015.

** Hybrid Index performance reflects the performance of the INDXX SuperDividend® Emerging Markets Index through November 15, 2016 and the MSCI Emerging Markets Top 50 Dividend Index thereafter.

 

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 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.

 

20

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperDividend® REIT ETF

 

 

Global X SuperDividend® REIT ETF

 

The Global X SuperDividend® REIT 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 SuperDividend® REIT Index (the “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 Real Estate Investment Trusts (“REITs”) that rank among the highest yielding REITs globally, as determined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 6.97% and the Underlying Index decreased 6.32%. The Fund had a net asset value of $21.65 per share on October 31, 2022 and ended the reporting period with a net asset value of $18.67 on October 31, 2023, following a 1:3 reverse share split on December 19, 2022.

 

During the reporting period, the highest returns came from AGNC Investment Corp. and Annaly Capital Management, Inc., which returned 47.80% and 30.94%, respectively. The worst performers were Northwest Healthcare Properties and Global Net Lease Inc, which returned -63.31% and -40.61%, respectively.

 

The Fund generated negative returns over the reporting period as tightening credit conditions, declining demand for commercial office space, and rising interest rates weighed down REIT performance. Increasing financing costs made it difficult for REITs to fund acquisitions and development projects. This led to reduced prospects for growth and negatively impacted the Fund’s constituents. REITs concentrated in long-term care and data center facilities performed well during the reporting period, while holdings concentrated in office space and mortgage investments exhibited negative performance. Furthermore, upward wage pressure and reduced leasing activities adversely impacted the profitability of underlying portfolio companies. During the reporting period, the Fund had an average approximate exposure of 58.68% to the United States and 18.28% to Singapore.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 SuperDividend® REIT ETF -6.97% -6.46% 0.59% 0.54% -8.96% -8.98% -2.37% -2.37%
Solactive Global SuperDividend® REIT Index -6.32% -6.32% 1.08% 1.08% -8.59% -8.59% -1.85% -1.85%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 10.48% 10.48%

 

21

 

 

Management Discussion of Fund Performance (unaudited)

Global X SuperDividend® REIT ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on March 16, 2015.

 

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 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.

 

22

 

 

Management Discussion of Fund Performance (unaudited)

Global X Renewable Energy Producers ETF

 

 

Global X Renewable Energy Producers ETF

 

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

 

The Underlying Index is designed to provide exposure to publicly traded companies that produce energy from renewable sources including wind, solar, hydroelectric, geothermal, and biofuels (including publicly traded companies that are formed to own operating assets that produce defined cash flows, as defined by Indxx LLC, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 27.93%, while the Underlying Index decreased 27.72%. The Fund had a net asset value of $13.05 per share on October 31, 2022 and ended the reporting period with a net asset value of $9.30 on October 31, 2023.

 

During the reporting period, the highest returns came from Concord New Energy Goup Ltd and Verbund AG which returned 26.85% and 15.91%, respectively. The worst performers were Enviva Inc and Renova Inc, which returned -93.73% and -67.62%, respectively.

 

The Fund recorded negative performance over the reporting period, as renewable energy producers saw their performances impacted by higher interest rates, long permitting timelines, and project delays, as well as elevated materials costs throughout the wind and solar power value chains. Within the solar industry developers faced dampened residential and commercial demand in key markets, such as the U.S. and China. Notably, high polysilicon costs translated into higher costs across the entire solar power value chain, impacting demand and leading to project delays. In the U.S., policy uncertainty over tariffs at the federal level and shifting policies for residential solar in California also created headwinds. Wind power project developers faced continued challenges within the supply chain, along with pressures due to elevated project costs and higher interest rates. During the reporting period, the Fund had an average approximate stock exposure of 12.54% in Canada, 11.88% in the United States, 11.60% in Brazil and 10.72% in New Zealand.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 Renewable Energy Producers ETF -27.93% -28.37% -13.28% -13.44% -2.02% -1.98% -2.51% -2.58%
Hybrid Indxx Renewable Energy Producers Index** -27.72% -27.72% -12.95% -12.95% 1.59% 1.59% -2.15% -2.15%
MSCI ACWI (Net) 10.50% 10.50% 6.68% 6.68% 7.47% 7.47% 6.46% 6.46%

 

23

 

 

Management Discussion of Fund Performance (unaudited)

Global X Renewable Energy Producers ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* Fund commenced operations on May 27, 2015.

**Hybrid index performance reflects the performance of the Indxx Global YieldCo Index through November 18, 2018 and the Indxx YieldCo & Renewable Energy Income Index thereafter. Effective February 1, 2021, the name of the Underlying Index changed from Indxx YieldCo & Renewable Energy Income Index to the Indxx Renewable Energy Producers Index.

 

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.

 

24

 

 

Management Discussion of Fund Performance (unaudited)

Global X Renewable Energy Producers ETF

 

 

High short term performance of the fund is unusual and investors should not expect such performance to be repeated.

 

See definition of comparative indices on the previous page

 

25

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Catholic Values ETF

 

 

Global X S&P 500® Catholic Values ETF

 

The Global X S&P 500® Catholic Values ETF (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500® Catholic Values Index (the “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 S&P 500® Catholic Values Index is designed to provide exposure to U.S. equity securities included in the S&P 500® Index while maintaining alignment with the moral and social teachings of the Catholic Church. The Underlying Index is based on the S&P 500® Index, and generally comprises approximately 500 or less U.S. listed common stocks. All index constituents are members of the S&P 500® Index and follow the eligibility criteria for that index. From this starting universe, constituents are screened to exclude companies involved in activities which are perceived to be inconsistent with Catholic values as outlined in the Socially Responsible Investment Guidelines of the United States Conference of Catholic Bishops. The Underlying Index then reweights the remaining constituents so that the Underlying Index’s sector exposures matches the sector exposures of the S&P 500® Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 9.22%, while the Underlying Index increased 9.56%. The Fund had a net asset value of $47.19 per share on October 31, 2022 and ended the reporting period with a net asset value of $50.89 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

The Fund recorded positive performance over the reporting period as the Federal Reserve’s pace of interest rate hikes slowed due to positive inflation data. Improved market estimates of economic growth resulted in increased stock valuations for companies held by the Fund. Artificial Intelligence and robotics technology enabled additional growth avenues for information technology companies, the largest sector exposure of the Fund. Furthermore, positive inflation adjusted wage growth in the labor market helped the U.S. economy remain resilient. During the reporting period, the Fund had an average approximate sector exposure to Information Technology at 25.76%, Health Care at 14.15% and Financials at 13.38%.

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 S&P 500® Catholic Values ETF 9.22% 9.20% 9.38% 9.63% 10.36% 10.36% 11.20% 11.20%
S&P 500® Catholic Values Index 9.56% 9.56% 9.68% 9.68% 10.70% 10.70% 11.16% 11.16%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 11.01% 11.01% 11.66% 11.66%

 

26

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Catholic Values ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* Fund commenced operations on April 18, 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 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.

 

27

 

 

Management Discussion of Fund Performance (unaudited)
Global X MSCI SuperDividend® EAFE ETF

 

 

Global X MSCI SuperDividend® EAFE ETF

 

The Global X MSCI SuperDividend® EAFE ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Top 50 Dividend Index (the “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 50 equally-weighted companies that rank among the highest dividend yielding equity securities in Europe, Australasia and the Far East, as defined by MSCI, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 14.08%, while the Underlying Index increased 14.21%. The Fund had a net asset value of $11.98 per share on October 31, 2022 and ended the reporting period with a net asset value of $12.76 on October 31, 2023.

 

During the reporting period, the highest returns came from Swiss RE AG and Kawasaki Kisen Kaisha Ltd, which returned 55.89% and 54.17%, respectively. The worst performers were Aroundtown SA and Xinyi Glass Holdings Ltd, which returned -55.79% and -22.82%, respectively.

 

The Fund performed positively during the reporting period as developed market central banks signaled potential pauses to interest rate hikes, particularly in the European Union, as weaker growth and cooling labor markets eased inflation tensions. Purchases of long-term Gilts by the Bank of England helped stabilize the United Kingdom’s local currency in response to market dislocations from its budget proposal during the reporting period. Multinational insurance companies domiciled in Europe were positively impacted, spurred by higher investment earnings from elevated interest rates. Japanese holdings within the Fund outperformed regional peers, driven by strong economic data which increased foreign investment inflows. Japanese transport companies within the Fund such as oil tankers, container ships and liquefied natural gas (LNG) carriers, benefited from increased exports related to automobiles and a continued pickup in LNG spot charter rates. During the reporting period, the Fund had the highest average exposure to United Kingdom at 16.18% and Japan at 12.72%. By sector, the Fund had the highest average exposure to Financials at 30.90% and Communication Services at 14.92%.

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 MSCI SuperDividend® EAFE ETF 14.08% 14.94% 10.14% 10.29% 1.49% 1.52% 3.64% 3.51%
MSCI EAFE Top 50 Dividend Index 14.21% 14.21% 10.64% 10.64% 1.98% 1.98% 4.11% 4.11%
MSCI EAFE Index (Net) 14.40% 14.40% 5.73% 5.73% 4.10% 4.10% 5.34% 5.34%

 

28

 

 

Management Discussion of Fund Performance (unaudited)
Global X MSCI SuperDividend® EAFE ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 14, 2016.

 

The MSCI EAFE Index (Net) (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

 

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.

 

29

 

 

Management Discussion of Fund Performance (unaudited)
Global X E-commerce ETF

 

 

Global X E-commerce ETF

 

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

 

The Underlying Index is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of e-commerce as a distribution model, including but not limited to companies whose principal business is in operating e-commerce platforms, providing e-commerce software and services, and/or selling goods and services online (collectively, “E-commerce Companies”), as defined by Solactive AG, the provider of the Underlying Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 12.13%, while the Underlying Index increased 12.60%. The Fund had a net asset value of $15.14 per share on October 31, 2022 and ended the reporting period with a net asset value of $16.96 on October 31, 2023.

 

During the reporting period, the highest returns came from Ehealth Inc and Ocado Group Plc, which returned 220.15% and 121.99%, respectively. The worst performers were Qurate Retail Inc Series-A and Liveperson Inc, which returned -81.17% and -75.02%, respectively.

 

The Fund achieved positive returns during the reporting period, benefitting from the e-commerce landscape’s shift towards an omnichannel business model. This evolution to an omnichannel business model emphasized the necessity of an online presence, even for traditional brick-and-mortar stores. Industry leaders prioritized technological advancements during the reporting period, notably generative artificial intelligence. Given these changes during the reporting period, E-Commerce Companies delivered personalized product recommendations to consumers, simplified listing options for merchants, enhanced cybersecurity on e-commerce platforms, and introduced efficient chatbots for customer interactions. Additionally, advertising became a prominent revenue source for digital marketplace players within the e-commerce domain. Furthermore, e-commerce’s share of total retail sales continued its upward trajectory during the reporting period. During the reporting period, the Fund had an average approximate stock exposure of 49.95% in the United States and 20.01% in China. By sector, it had the highest average sector exposure to Consumer Discretionary at 65.97% and Communication Services at 14.22%.

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 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 E-Commerce ETF 12.13% 12.27% -13.71% -13.75% 2.87% 2.88%
Solactive E-Commerce Index 12.60% 12.60% -13.37% -13.37% 3.32% 3.32%
MSCI ACWI (Net) 10.50% 10.50% 6.68% 6.68% 7.71% 7.71%

 

30

 

 

Management Discussion of Fund Performance (unaudited)
Global X E-commerce ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 27, 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 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 above.

 

31

 

 

Management Discussion of Fund Performance (unaudited)
Global X Russell 2000 Covered Call ETF

 

 

Global X Russell 2000 Covered Call ETF

 

The Global X Russell 2000 Covered Call ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE Russell 2000 BuyWrite 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 a theoretical portfolio that holds a portfolio of stocks included in the Russell 2000 Index (the “Reference Index”), and “writes” (or sells) a succession of one-month at-the-money covered call options on the Reference Index. The written covered call options on the Reference Index are held until expiration. The Reference Index is an equity benchmark which measures the performance of the small-capitalization sector of the U.S. equity market, as defined by FTSE Russell, the provider of the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund decreased 7.18%, while the Underlying Index decreased 6.92%. The Fund had a net asset value of $19.55 per share on October 31, 2022 and ended the reporting period with a net asset value of $16.10 on October 31, 2023.

 

During the reporting period, the highest returns came from Reata Pharmaceuticals, Inc. Class A and Prometheus Biosciences Inc, which returned 435.28% and 280.65%, respectively. The worst performers were Babylon Holdings Ltd Class A and Avaya Holdings Corp., which returned -100.00% and -99.97%, respectively.

 

During the reporting period, the Fund underperformed due to the U.S. regional banking crisis, which hampered the credit and financial position of small businesses. Additionally, high interest rate levels increased borrowing costs and weakened the balance sheets of smaller companies. Investor sentiment decreased as a lack of liquidity raised the chances of borrower default. During the reporting period, the Fund’s options-writing strategy led it to outperform its Reference Index as a result of the premiums received. By sector, the Fund had the highest average exposure to Financials at 11.63% and Industrials at 11.48%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
OCTOBER 31, 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 Russell 2000 Covered Call ETF -7.18% -7.39% 4.21% 4.14% 1.90% 1.86%
CBOE Russell 2000 BuyWrite Index -6.92% -6.92% 4.72% 4.72% 2.65% 2.65%
Russell 2000 Index -8.56% -8.56% 3.95% 3.95% 2.65% 2.65%

 

32

 

 

Management Discussion of Fund Performance (unaudited)
Global X Russell 2000 Covered Call ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on April 17, 2019.

 

The Russell 2000 Index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. It is a market-cap weighted 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 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 above.

 

33

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P Catholic Values Developed ex-US ETF

 

 

Global X S&P Catholic Values Developed ex-US ETF

 

The Global X S&P Catholic Values Developed ex-U.S. ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Developed Ex-U.S. Catholic Values Index (the “Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

 

The Underlying Index is designed to provide exposure to developed market equity securities outside of the U.S. while maintaining alignment with the moral and social teachings of the Catholic Church. The Underlying Index is based on the S&P EPAC ex-Korea Large Cap Index, a benchmark index that provides exposure to the large capitalization segment of developed markets within the Europe and Asia Pacific regions, excluding Korea. The S&P EPAC ex-Korea Large Cap Index does not target any specific sector exposure. All index constituents are members of the S&P EPAC ex-Korea Large Cap Index and follow the eligibility criteria for that index. From this starting universe, constituents are screened to exclude companies involved in activities which are perceived to be inconsistent with Catholic values as outlined in the Socially Responsible Investment Guidelines of the United States Conference of Catholic Bishops. The Underlying Index then reweights the remaining constituents so that the Underlying Index’s sector exposures match the current sector exposures of the S&P EPAC ex-Korea Large Cap Index.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 13.45%, while the Underlying Index increased 13.69%. The Fund had a net asset value of $23.30 per share on October 31, 2022 and ended the reporting period with a net asset value of $25.87 on October 31, 2023.

 

During the reporting period, the highest returns came from Disco Corp and UniCredit SPA, which returned 119.41% and 111.89%, respectively. The worst performers were Embracer Group AB Class-B and China Evergrande New Energy Vehicle Group Ltd., which returned -66.79% and -66.48%, respectively.

 

The Fund performed positively during the reporting period as higher exports and lower energy prices drove the performance of developed market equities. Japanese equities within the Fund experienced positive investor sentiment driven by share buybacks and improved economic data within the country. Furthermore, Japanese exports increased from a weakened yen. Fund holdings in the Consumer Discretionary sector were positively impacted by rising consumer confidence as a result of easing inflation, strong wage growth, and low unemployment. Securities of European banks held by the Fund benefited from elevated interest rates in the European Union and United Kingdom resulting in higher net interest income during the reporting period. During the reporting period, the Fund had an average approximate stock exposure of 26.65% in Japan, 12.03% in France and 10.85% in Australia. By sector, it had the highest exposure to Financials at 18.57%, Industrials at 14.35% and Health Care at 14.22%.

 

34

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P Catholic Values Developed ex-US ETF

 

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
OCTOBER 31, 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 S&P Catholic Values Developed ex-U.S. ETF 13.45% 14.46% 3.90% 4.34% 3.39% 3.74%
S&P Developed ex-U.S. Catholic Values Index 13.69% 13.69% 4.20% 4.20% 3.68% 3.68%
MSCI EAFE Index (Net) 14.40% 14.40% 5.73% 5.73% 4.95% 4.95%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* Fund commenced operations on June 22, 2020.

 

The MSCI EAFE Index (Net) (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

 

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.

 

35

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P Catholic Values Developed ex-US ETF

 

 

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.

 

36

 

 

Management Discussion of Fund Performance (unaudited)
Global X Nasdaq 100® Covered Call & Growth ETF

 

 

Global X Nasdaq 100® Covered Call & Growth ETF

 

The Global X NASDAQ 100® Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe NASDAQ-100® Half BuyWrite V2 Index (the “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 a benchmark index that measures the performance of a theoretical portfolio that owns the portfolio of stocks included in the NASDAQ-100® Index (the “Reference Index”), and “writes” (or sells) corresponding call options on approximately 50% of the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 21.43% and the Underlying Index increased 22.23%. The Fund had a net asset value of $22.80 per share on October 31, 2022 and ended the reporting period with a net asset value of $26.07 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Enphase Energy Inc and Lucid Group Inc, which returned -74.49% and -71.17%, respectively.

 

The Fund produced a positive total return over the course of the reporting period. Inflationary data that underscored softer pricing represented a market catalyst and positive earnings performances, increasing investor sentiment for holdings within the Fund. Advancements made within generative artificial intelligence (AI), positively impacted valuations of Fund holdings. Furthermore, semiconductor-related companies whose businesses provided the necessary hardware for the continued increase in spending for AI computing power were positively impacted from an increase in demand. During the reporting period, the Fund had an average approximate stock exposure of 48.69% in the Information Technology sector, 16.18% in Communication Services sector and 14.45% in Consumer Discretionary sector.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
OCTOBER 31, 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 Nasdaq 100® Covered Call & Growth ETF 21.43% 21.07% 7.38% 7.46% 7.23% 7.19%
CBOE NASDAQ-100 Half BuyWrite V2 Index 22.23% 22.23% 8.06% 8.06% 7.87% 7.87%
NASDAQ-100® Index 27.45% 27.45% 10.12% 10.12% 10.11% 10.11%

 

37

 

 

Management Discussion of Fund Performance (unaudited)
Global X Nasdaq 100® Covered Call & Growth ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on September 18, 2020.

 

The Nasdaq-100® Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

 

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.

 

38

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Covered Call & Growth ETF

 

 

Global X S&P 500® Covered Call & Growth ETF

 

The Global X S&P 500® Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE S&P 500® Half BuyWrite Index (the “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 a benchmark index that measures the performance of a theoretical portfolio that owns the portfolio of stocks included in the S&P 500® Index (the “Reference Index”), and “writes” (or sells) corresponding call options on approximately 50% of the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 8.01%, while the Underlying Index increased 8.80%. The Fund had a net asset value of $25.47 per share on October 31, 2022 and ended the reporting period with a net asset value of $26.07 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc-Class A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

During the reporting period, the Fund generated positive returns as corporate earnings met market expectations and softening levels of inflation contributed to improving investor sentiment towards holdings within the Fund. A slowing of interest rate hikes by the U.S. Federal Reserve further ushered in a positive outlook for many of the Fund’s top constituents. The Fund’s 50% covered call writing strategy allowed the Fund to participate in some of the Reference Index’s upside, while also generating supplemental option premiums. In environments such as this, the Fund’s options-writing strategy has the potential to cede a measure of upside participation relative to its Reference Index. However, it does so in exchange for these premiums, which may help support the Fund’s performance during stagnant or declining markets. During the reporting period, the Fund had an approximate average sector exposure of 25.74% to Information Technology, 14.19% to Health Care, and 13.29% to Financials.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR
ENDED
OCTOBER 31, 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 S&P 500® Covered Call & Growth ETF 8.01% 7.84% 8.44% 8.52% 7.55% 7.50%
CBOE S&P 500 Half BuyWrite Index 8.80% 8.80% 9.45% 9.45% 8.39% 8.39%
S&P 500® Index 10.14% 10.14% 10.36% 10.36% 9.47% 9.47%

 

39

 

 

Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Covered Call & Growth ETF

 

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on September 18, 2020.

 

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 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 above.

 

40

 

 

Management Discussion of Fund Performance (unaudited)
Global X Emerging Markets Internet & E-commerce ETF

 

 

Global X Emerging Markets Internet & E-commerce ETF

 

The Global X Emerging Markets Internet & E-commerce ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq CTA Emerging Markets Internet & E-commerce Net Total Return Index (the “Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

 

The Underlying Index is designed to provide exposure to exchange-listed companies that are expected to benefit from further adoption of internet and e-commerce technologies in emerging markets countries (collectively, “Emerging Markets Internet & E-commerce Companies”), as defined by Nasdaq, Inc., the provider of the Underlying Index (the “Index Provider”) and the Consumer Technology Association (“CTA”). The Index Provider and the CTA have jointly developed the eligibility and selection criteria for the Underlying Index. In order to be eligible for inclusion in the Underlying Index, a company is considered by the CTA to be an Emerging Markets Internet & E-commerce Company if it derives at least 50% of its revenue, operating income, or assets from: (i) internet-related services (including social media and online entertainment), (ii) internet retail commerce, (iii) internet search engine services, and/or (iv) software delivered via the internet.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund increased 22.28%, while the Underlying Index increased 23.19%. The Fund had a net asset value of $16.38 per share on October 31, 2022 and ended the reporting period with a net asset value of $19.97 on October 31, 2023, following a 1:3 reverse share split on December 19, 2022.

 

During the reporting period, the highest returns came from iQIYI Inc-ADR and Vipshop Holdings Ltd-ADR, which returned 130.69% and 104.59%, respectively. The worst performers were Magazine Luiza SA and PT GoTo Gojek Tokopedia Tbk, which returned -69.04% and -50.03%, respectively.

 

The Fund recorded positive returns during the reporting period as better-than-expected economic performance, a gradual decline in headline inflation in emerging markets, and China’s reopening post-COVID-19 lockdowns supported market sentiment. Supportive government policies towards innovation and the expansion of digital services in local markets weighed positively, as well. Furthermore, the Chinese e-Commerce market continued to grow, supported by the rise in consumer preference for online shopping, improved payment infrastructure, and proliferation of payment tools. Lastly, the increased popularity of social commerce and livestream shopping attracted investor attention. During the reporting period, the Fund had an average approximate stock exposure of 62.9% in China. By sector, it had the highest average exposure to Consumer Discretionary at 54.04% and Communication Services at 34.46%.

 

41

 

 

Management Discussion of Fund Performance (unaudited)
Global X Emerging Markets Internet & E-commerce ETF

 

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Emerging Markets Internet & E-commerce ETF 22.28% 22.65% -23.36% -23.15%
NASDAQ CTA Emerging Markets Internet & E-commerce Net Total Return Index 23.19% 23.19% -22.90% -22.90%
MSCI Emerging Markets Index (Net) 10.80% 10.80% -6.18% -6.18%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 9, 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 MSCI Emerging Markets Index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

 

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

 

42

 

 

Management Discussion of Fund Performance (unaudited)
Global X Emerging Markets Internet & E-commerce ETF

 

 

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 above.

 

43

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Tail Risk ETF

 

Global X NASDAQ 100® Tail Risk ETF

 

The Global X Nasdaq 100® Tail Risk ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 Quarterly Protective Put 90 Index (the “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 a risk management strategy that holds the underlying stocks of the NASDAQ 100® Index (the “Reference Index”) and applies a protective put strategy with long (purchased) put options on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in 10% out-of-the-money (“OTM”) put options that correspond to the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 19.42%, while the Underlying Index increased 19.41%. The Fund had a net asset value of $19.08 per share on October 31, 2022 and ended the reporting period with a net asset value of $22.71 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Enphase Energy Inc and Lucid Group Inc, which returned -74.49% and -71.17%, respectively.

 

The Fund performed positively during the reporting period on account of higher valuations, increased consumer spending, and positive real wage growth. Furthermore, investors’ focus on companies showcasing real-world applications of artificial intelligence drove growth prospects for software equities in the Fund. During the reporting period, the Fund had an average approximate stock exposure of 48.46% in the Information Technology sector, 16.10% in the Communication Services sector and 14.35% in Consumer Discretionary sector.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X NASDAQ 100® Tail Risk ETF 19.42% 19.11% -3.49% -3.49%
NASDAQ 100 Quarterly Protective Put 90 Index 19.41% 19.41% -3.02% -3.02%
NASDAQ-100® Index 27.45% 27.45% -2.12% -2.12%

 

44

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Tail Risk ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

The Nasdaq-100® Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

 

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 above.

 

45

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Risk Managed Income ETF

 

Global X NASDAQ 100® Risk Managed Income ETF

 

The Global X Nasdaq 100® Risk Managed Income ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100® Monthly Net Credit Collar 95-100 Index (the “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 a risk managed income strategy that holds the underlying stocks of the NASDAQ 100® Index (the “Reference Index”) and applies an options collar strategy consisting of a mix of short (sold) call options and long (purchased) put options on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in the 5% out-of-the-money (“OTM”) put options and a short position in at-the-money (“ATM”) call options, each corresponding to the value of the portfolio of stocks in the Reference Index. The options collar seeks to generate a net-credit, meaning that the premium received from the sale of the call options will be greater than the premium paid when buying the put options.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 3.42%, while the Underlying Index increased 3.60%. The Fund had a net asset value of $18.17 per share on October 31, 2022 and ended the reporting period with a net asset value of $16.64 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp., which returned 223.39% and 202.32%, respectively. The worst performers were Enphase Energy Inc. and Lucid Group Inc., which returned -74.49% and -71.17%, respectively.

 

During the reporting period, new investment opportunities within the artificial intelligence space positively supported the Fund’s performance. Workforce reductions, paired with increasing cash flows amongst the Fund’s largest technology sector holdings, led to a decrease in costs and an improvement in margins during the reporting period. By sector, the Fund had the highest average exposure to Information Technology at 48.59%, Communication Services at 16.14% and Consumer Discretionary at 14.43%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X NASDAQ 100® Risk Managed Income ETF 3.42% 3.11% -7.17% -7.25%
NASDAQ 100 Monthly Net Credit Collar 95-100 Index 3.60% 3.60% -7.22% -7.22%
NASDAQ-100® Index 27.45% 27.45% -2.12% -2.12%

 

46

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Risk Managed Income ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

The Nasdaq-100® Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

 

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.

 

47

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Collar 95-110 ETF

 

Global X NASDAQ 100® Collar 95-110 ETF

 

The Global X Nasdaq 100® Collar 95-110 ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100® Quarterly Collar 95-110 Index (the “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 a risk management strategy that holds the underlying stocks of the NASDAQ 100® Index (the “Underlying Index”) and applies an options collar strategy with a mix of short (sold) call options and long (purchased) put options on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in 5% out-of-the-money (“OTM”) put options and a short position in 10% OTM call options, each corresponding to the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 7.01% and the Underlying Index increased 6.86%. The Fund had a net asset value of $22.00 per share on October 31, 2022 and ended the reporting period with a net asset value of $23.47 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Enphase Energy Inc. and Lucid Group Inc., which returned -74.49% and -71.17%, respectively.

 

During the reporting period, evolving artificial intelligence capabilities bolstered investor sentiment in the technology sector and resulted in positive performance for the Fund and its holdings. Furthermore, the Federal Reserve’s pace of interest rate hikes slowed during the reporting period relative to that of the previous reporting period, which increased investor sentiment towards information technology and communication services sector holdings within the Fund. During the reporting period, by sector, the Fund retained its highest average exposures to Information Technology at 48.3%, Communication Services at 16.04% and Consumer Discretionary at 14.33%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X NASDAQ 100® Collar 95-110 ETF 7.01% 7.11% -2.43% -2.47%
NASDAQ -100 Quarterly Collar 95-110 Index 6.86% 6.86% -1.97% -1.97%
NASDAQ-100® Index 27.45% 27.45% -2.12% -2.12%

 

48

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ 100® Collar 95-110 ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

The Nasdaq-100® Index includes 100 of the largest domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

 

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 above.

 

49

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Tail Risk ETF

 

Global X S&P 500® Tail Risk ETF

 

The Global X S&P 500® Tail Risk ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P 500® Tail Risk Index (the “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 a risk management strategy that holds the underlying stocks of the S&P 500® Index (the “Reference Index”) and applies a protective put strategy (i.e. long (purchased) put options) on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in 10% out-of-the-money (“OTM”) put options that correspond to the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 5.51%, while the Underlying Index increased 6.06%. The Fund had a net asset value of $23.21 per share on October 31, 2022 and ended the reporting period with a net asset value of $24.23 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc. Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

During the reporting period, the Fund recorded a positive return as revised market estimates of economic growth boosted investor confidence. Softening inflation data and the Federal Reserve’s slower pace of interest rate hikes positively impacted the performance of growth style companies held within the Fund. Artificial Intelligence and robotics technology supported additional growth avenues for technology sector constituents leading to optimistic sentiment amongst investors. Furthermore, positive inflation-adjusted wage growth in the labor market helped the U.S. economy remain resilient, and positively impacted U.S. consumer confidence, thus benefitting the Fund. During the reporting period, the Fund retained its highest average sector exposures to Information Technology at 25.68%, Health Care at 14.21% and Financials at 13.26%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X S&P 500® Tail Risk ETF 5.51% 5.37% -3.72% -3.74%
Cboe S&P 500® Tail Risk Index 6.06% 6.06% -3.11% -3.11%
S&P 500® Index 10.14% 10.14% -1.60% -1.60%

 

50

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Tail Risk ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

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 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 above.

 

51

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Risk Managed Income ETF

 

Global X S&P 500® Risk Managed Income ETF

 

The Global X S&P 500 Risk Managed Income ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P 500 Risk Managed Income Index (the “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 a risk managed income strategy that holds the underlying stocks of the S&P 500® Index (the “Reference Index”) and applies an options collar strategy which is a mix of short (sold) call options and long (purchased) put options on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in the 5% out-of-the-money (“OTM”) put options and a short position in at-the-money (“ATM”) call options, each corresponding to the value of the portfolio of stocks in the Reference Index. The options collar seeks to generate a net-credit, meaning that the premium received from the sale of the call options will be greater than the premium paid when buying the put options.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 0.61%, while the Underlying Index increased 0.16%. The Fund had a net asset value of $21.05 per share on October 31, 2022 and ended the reporting period with a net asset value of $18.56 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

During the reporting period, subdued market volatility had an impact on the performance of the Fund. The Fund experienced a modestly negative return during the reporting period, underperforming its Reference Index. The Fund’s methodical net credit collar implementation lowered the Fund’s ability to retain upside participation during most of the reporting period. A steep downturn in the Fund’s holdings towards the end of the reporting period was only partially thwarted by the Fund’s put option protection. During the reporting period, the Fund had an average approximate sector exposure to Information Technology of 25.65%, Health Care at 14.15%, and Financials at 13.26%.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X S&P 500® Risk Managed Income ETF  -0.61%  -0.31%  -5.46%  -5.37%
Cboe S&P 500® Risk Managed Income Index 0.16% 0.16% -4.93% -4.93%
S&P 500® Index 10.14% 10.14% -1.60% -1.60%

 

52

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Risk Managed Income ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

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 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.

 

53

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Collar 95-110 ETF

 

Global X S&P 500® Collar 95-110 ETF

 

The Global X S&P 500® Collar 95-110 ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P 500® 3-Month Collar 95-110 Index (the “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 a risk management strategy that holds the underlying stocks of the S&P 500® Index (the “Reference Index”) and applies an options collar strategy with a mix of short (sold) call options and long (purchased) put options on Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with a long position in 5% out-of-the-money (“OTM”) put options and a short position in 10% OTM call options, each corresponding to the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 2.20%, while the Underlying Index increased 2.79%. The Fund had a net asset value of $24.47 per share on October 31, 2022 and ended the reporting period with a net asset value of $24.68 on October 31, 2023.

 

During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp, which returned 223.39% and 202.32%, respectively. The worst performers were Signature Bank and SVB Financial Group, which returned -99.92% and -99.83%, respectively.

 

During the reporting period, better-than-expected corporate earnings in the U.S., spurred by softening inflation and resilient jobs data, weighed positively on holdings within the Fund. Concurrently, domestic equity markets derived optimism from the slowing pace of interest rate hikes being taken by the U.S. Federal Reserve. This environment promoted positive returns for the Fund, which had its largest average sector exposures within Information Technology at 25.59%, Health Care at 14.10% and Financials at 13.20%, during the reporting period.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X S&P 500® Collar 95-110 ETF 2.20% 2.07% -2.99% -3.03%
Cboe S&P 500® 3-Month Collar 95-110 Index 2.79% 2.79% -2.54% -2.54%
S&P 500® Index 10.14% 10.14% -1.60% -1.60%

 

54

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® Collar 95-110 ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on August 25, 2021.

 

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 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 above.

 

55

 

 

Management Discussion of Fund Performance (unaudited)

Global X Disruptive Materials ETF

 

Global X Disruptive Materials ETF

 

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

 

The Underlying Index is designed to provide exposure to companies that produce metals and other raw or composite materials that have been identified as being essential to disruptive technologies such as lithium batteries, solar panels, wind turbines, fuel cells, robotics, and 3D printers. Each material has been determined by Solactive AG, the provider of the Underlying Index (the “Index Provider”) to be instrumental to the development and materialization of one or more disruptive technologies. Disruptive technologies refer to those technologies that are essential to the development and materialization of long-term, structural changes to existing products, services, industries, or sectors. Specifically, the Underlying Index will include securities issued by “Disruptive Materials Companies” as defined by the Index Provider.

 

For the 12-month period ended October 31, 2023 (the “reporting period”), the Fund decreased 19.96%, while the Underlying Index decreased 19.66%. The Fund had a net asset value of $18.07 per share on October 31, 2022 and ended the reporting period with a net asset value of $14.23 on October 31, 2023.

 

During the reporting period, the highest returns came from China Nonferrous Mining Corp. Ltd. and Southern Copper Corporation, which returned 77.19% and 58.23%, respectively. The worst performers were Jervois Global Ltd and Syrah Resources Ltd, which returned -93.20% and -72.45%, respectively.

 

The Fund generated negative returns during the reporting period as the performances of many disruptive materials producers were negatively impacted by dampened demand and higher supply levels amid global macroeconomic headwinds. In particular, prices for key battery materials such as lithium, graphite, cobalt, and nickel saw declines over the reporting period. These prices were primarily impacted by weakened demand and bearish sentiment due to the Chinese economy and the potential for resulting weakened demand for electric vehicles (EVs) and EV batteries. Furthermore, platinum miners continued to face short-term headwinds with a challenging operating environment due to South Africa’s energy crisis, as well as elevated production costs and lower platinum prices. During the reporting period, the Fund had an average approximate stock exposure of 27.62% in China and 19.14% in the United States.

 

  AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Disruptive Materials ETF -19.96% -19.47% -23.95% -23.92%
Solactive Disruptive Materials Index -19.66% -19.66% -23.64% -23.64%
MSCI ACWI (Net) 10.50% 10.50% -4.04% -4.04%

 

56

 

 

Management Discussion of Fund Performance (unaudited)

Global X Disruptive Materials ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on January 24, 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 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 above.

 

57

 

 

Management Discussion of Fund Performance (unaudited)

Global X Dow 30® Covered Call ETF

 

Global X Dow 30® Covered Call ETF

 

The Global X Dow 30® Covered Call ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the DJIA Cboe BuyWrite v2 Index (the “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 a covered call strategy that holds a theoretical portfolio of the underlying stocks of the Dow Jones Industrial Average® (the “Reference Index”) and “writes” (or sells) a succession of one-month at-the-money (“ATM”) covered call options on the Reference Index. The Underlying Index specifically reflects the performance of the component securities of the Reference Index, combined with written (sold) ATM call options corresponding to the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ending October 31, 2023 (the “reporting period”), the Fund increased 3.30%, while the Underlying Index increased 4.27%. The Fund had a net asset value of $21.89 per share on October 31, 2022 and it ended the reporting period with a net asset value of $20.89 on October 31, 2023.

 

During the reporting period, the highest returns came from Microsoft Corp and Intel Corp, which returned 47.06% and 32.70%, respectively. The worst performers were Walgreens Boots Alliance Inc and 3M Co, which returned -38.80% and -23.63%, respectively.

 

During the reporting period, the Fund recorded positive returns as a product of supportive data regarding the U.S. economy. Positive corporate earnings results, softening levels of inflation, and high consumer confidence positively impacted holdings within the Fund. Despite the Reference Index experiencing mostly muted levels of volatility, the Fund was still able to deliver modest outperformance relative to the Reference Index over the course of the reporting period. This outperformance was driven by the premiums received from the Fund’s covered call writing strategy. During the reporting period, the Fund had the highest average sector exposure to Financials at 20.33%, Health Care at 19.96% and Information Technology at 16.81%.

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Dow 30® Covered Call ETF 3.30% 4.53% 0.26% 1.12%
DJIA Cboe BuyWrite v2 Index 4.27% 4.27% 1.30% 1.30%
DJIA Index 3.17% 3.17% 1.97% 1.97%

 

58

 

 

Management Discussion of Fund Performance (unaudited)

Global X Dow 30® Covered Call ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on February 23, 2022.

 

The Dow Jones Industrial Average®, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes.

 

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 above.

 

59

 

 

Management Discussion of Fund Performance (unaudited)

Russell 2000 Covered Call & Growth ETF

 

Global X Russell 2000 Covered Call & Growth ETF

 

The Global X Russell 2000 Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe Russell 2000 Half BuyWrite Index (the “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 a covered call strategy that holds a theoretical portfolio of the underlying stocks of the Russell 2000 Index (the “Reference Index”) and “writes” (or sells) a succession of one-month at-the-money covered call options on the Reference Index. The written covered call options on the Reference Index correspond to approximately 50% of the value of the portfolio of stocks in the Reference Index.

 

For the 12-month period ended October 31, 2022 (the “reporting period”), the Fund decreased 8.16%, while the Underlying Index decreased 7.66%. The Fund had a net asset value of $26.58 per share on October 31, 2022 and ended the reporting period with a net asset value of $22.38 on October 31, 2023.

 

During the reporting period, the Vanguard Russell 2000 ETF, the only equity holding of the Fund, returned -8.60%.

 

During the reporting period, holdings within the Fund experienced a sell-off as a product of rising interest rates and the fallout of the regional banking crisis. Thus, the Reference Index’s decline negatively impacted the performance of the Fund. Furthermore, performance was also deterred by biotechnology companies within the Fund as merger and acquisition activities remained stifled during the reporting period. When the market was volatile, the Fund collected elevated levels of option premiums, offsetting a portion of its negative equity performance. This led to the Fund’s outperformance of its Reference Index during the reporting period.

 

  AVERAGE TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2023
  One Year Return Annualized Inception to Date*
  Net Asset Value Market Price Net Asset Value Market Price
Global X Russell 2000 Covered Call & Growth ETF -8.16% -8.07% -4.92% -4.77%
Cboe Russell 2000 Half BuyWrite Index -7.66% -7.66% -4.58% -4.58%
Russell 2000 Index -8.56% -8.56% -4.53% -4.53%

 

60

 

 

Management Discussion of Fund Performance (unaudited)

Russell 2000 Covered Call & Growth ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on October 4, 2022.

 

The Russell 2000 Index is a U.S. small-cap stock market index of the bottom 2,000 stocks in the Russell 3000 Index. The index is maintained by FTSE Russell, a subsidiary of the London Stock Exchange Group.

 

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 above.

 

61

 

 

Management Discussion of Fund Performance (unaudited)

Global X Financials Covered Call & Growth ETF

 

Global X Financials Covered Call & Growth ETF

 

The Global X Financials Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P Financial Select Sector Half BuyWrite Index (the “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 a partially covered call strategy that holds a theoretical portfolio of the underlying securities of the Financial Select Sector Index (the “Reference Index”). The Index “writes” (or sells) a succession of one-month at-the-money covered call options on the Financial Select Sector SPDR Fund (the “Reference Fund”), or such other fund that seeks to track the performance of the Reference Index, as determined by Cboe. The call options correspond to approximately 50% of the value of the securities in the Reference Index, thereby representing a partially covered call strategy.

 

From the inception of the Fund to the period ending October 31, 2023 (the “reporting period”), the Fund decreased 5.40% and the Underlying Index decreased 4.31%. The Fund had a net asset value of $24.88 per share on November 21, 2022 and ended the reporting period with a net asset value of $22.30 on October 31, 2023.

 

During the reporting period, the highest returns came from Arch Capital Group Ltd. and Cboe Global markets Inc., which returned 51.64% and 34.19%, respectively. The worst performers were Signature Bank and First Republic Bank, which returned -99.82% and -99.73%, respectively.

 

Since its inception, the Fund has recorded negative returns as a product of banking sector volatility stemming from elevated interest rates. The U.S. regional banking crisis and its aftermath had a negative impact on investor confidence within the financial sector. These negative catalysts came in conjunction with higher loan charge-offs, which resulted in decreased equity valuations within the banking sector over the course of the reporting period. Financial company performance was also impaired by higher deposit funding costs due to higher short-term interest rates. A level of the downside performance associated with the Fund’s underlying equity positions was partially offset by premiums received from its covered call strategy.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Financials Covered Call & Growth ETF -5.40% -5.49%
Cboe S&P Financials Select Sector Half BuyWrite Index -4.31% -4.31%
Financial Select Sector Index -6.91% -6.91%

 

62

 

 

Management Discussion of Fund Performance (unaudited)

Global X Financials Covered Call & Growth ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 21, 2022.

 

The Financial Select Sector Index is a modified market capitalization weighted index containing the securities of the S&P 500® Index that are classified within the financials sector under the Global Industry Classification System (“GICS”), including securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts (“REITs”); consumer finance; and thrifts and mortgage finance.

 

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 above.

 

63

 

 

Management Discussion of Fund Performance (unaudited)

Global X Health Care Covered Call & Growth ETF

 

Global X Health Care Covered Call & Growth ETF

 

The Global X Health Care Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P Health Care Select Sector Half BuyWrite Index (the “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 a partially covered call strategy that holds a theoretical portfolio of the underlying securities of the Health Care Select Sector Index (the “Reference Index”). The Index “writes” (or sells) a succession of one-month at-the-money covered call options on the Health Care Select Sector SPDR Fund (the “Reference Fund”), or such other fund that seeks to track the performance of the Reference Index, as determined by Cboe. The call options correspond to approximately 50% of the value of the securities in the Reference Index, thereby representing a partially covered call strategy.

 

From the Fund’s inception through the period ending October 31, 2023 (the “reporting period”), the Fund decreased 2.05%, while the Underlying Index decreased 2.26%. The Fund had a net asset value of $25.06 per share on November 21, 2022 and ended the reporting period with a net asset value of $23.42 on October 31, 2023.

 

During the reporting period, the highest returns came from Eli Lilly and Co and West Pharmaceutical Services, which returned 54.59% and 41.56%, respectively. The worst performers were Insulet Corp and Moderna Inc, which returned -57.61% and -57.02%, respectively.

 

Since its inception, the Fund recorded a negative return as a result of economic instability across the broader health care sector. Contracting operating margins, declining patient volumes, and pressured payer relationships impacted performance and, consequently, the Fund’s underlying holdings. Inflationary pressures increased the cost of drugs, equipment, and supplies, dampening investor sentiment over the course of the reporting period, including towards the U.S. health care sector. A level of the downside performance associated with the Fund’s underlying equity positions was partially offset by premiums received from its covered call strategy.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Health Care Covered Call & Growth ETF -2.05% -1.97%
Cboe S&P Health Care Select Sector Half BuyWrite Index  -2.26%  -2.26%
Health Care Select Sector Index -5.91% -5.91%

 

64

 

 

Management Discussion of Fund Performance (unaudited)

Global X Health Care Covered Call & Growth ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 21, 2022.

 

The Health Care Select Sector Index is a modified market capitalization weighted index containing the securities of the S&P 500® Index that are classified within the health care sector under the Global Industry Classification System (“GICS”), including securities of companies from the following industries: pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology.

 

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 above.

 

65

 

 

Management Discussion of Fund Performance (unaudited)

Global X Information Technology Covered Call & Growth ETF

 

Global X Information Technology Covered Call & Growth ETF

 

The Global X Information Technology Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe S&P Technology Select Sector Half BuyWrite Index. (the “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 a partially covered call strategy that holds a theoretical portfolio of the underlying securities of the Information Technology Select Sector Index (the “Reference Index”). The Underlying Index “writes” (or sells) a succession of one-month at-the-money covered call options on the Information Technology Select Sector SPDR® Fund, or such other fund that seeks to track the performance of the Reference Index, as determined by Cboe. The call options correspond to approximately 50% of the value of the securities in the Reference Index, creating a partially covered call strategy.

 

From inception of the Fund to the period ending October 31, 2023 (the “reporting period”), the Fund increased 23.27% and the Underlying Index increased 23.97%. The Fund had a net asset value of $24.74 per share on November 21, 2022 and ended the reporting period with a net asset value of $28.86 on October 31, 2023.

 

During the reporting period, the highest returns came from Nvidia Corp. and Broadcom Inc., which returned 166.40% and 66.96%, respectively. The worst performers were SolarEdge Technologies Inc and Enphase Energy Inc, which returned -74.80 % and -74.17%, respectively.

 

Since its inception, the Fund has recorded positive returns supported by evolving artificial intelligence (AI) capabilities, increased internal investment activity, and a heightened need for data security. Generative AI technology enabled companies to create personalized user experiences and made it easier for advertisers to produce targeted messaging. Thus, technology companies who offered generative AI solutions and/or technology largely benefited during the reporting period. These developments led to increased investor sentiment towards many of the holdings within the Fund.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Information Technology Covered Call & Growth ETF 23.27% 23.27%
Cboe S&P Technology Select Sector Half BuyWrite Index 23.97% 23.97%
Information Technology Select Sector Index 26.84% 26.84%

 

66

 

 

Management Discussion of Fund Performance (unaudited)

Global X Information Technology Covered Call & Growth ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on November 21, 2021.

 

The Information Technology Select Sector Index is a modified market capitalization weighted index containing the securities of the S&P 500 Index® that are classified within the information technology sector under the Global Industry Classification System (“GICS”), including securities of companies from the following industries: technology hardware, storage, and peripherals; software; communications equipment; semiconductors and semiconductor equipment; IT services; and electronic equipment, instruments and components.

 

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 above.

 

67

 

 

Management Discussion of Fund Performance (unaudited)

Global X Nasdaq 100® ESG Covered Call ETF

 

Global X NASDAQ 100® ESG Covered Call ETF

 

The Global X NASDAQ 100® ESG Covered Call ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Nasdaq-100 ESG BuyWrite Index (the “Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.

 

The Underlying Index seeks to provide long exposure to an equity portfolio that applies a set of specific Environmental, Social and Governance (“ESG”) criteria as part of its security selection process, while also selling call options generally associated with such exposure. Specifically, the Underlying Index measures the performance of a covered call strategy, also known as a “buy-write” strategy, that seeks to provide long exposure by “buying” the underlying components of the Nasdaq-100 ESG Index (the “Reference Index”) and to generate options premium income by “writing” (selling) a succession of one-month, at-the-money (“ATM”) covered call options on the Nasdaq-100 Index. In seeking to track the Underlying Index, the Fund invests in the securities reflected in the Underlying Index by purchasing the underlying holdings of the Reference Index in proportion to their weight in the Reference Index, and systematically writing (selling) a succession of one-month, ATM covered call options on the Nasdaq-100 Index.

 

From inception of the Fund on February 21, 2023 through the period ending October 31, 2023 (the “reporting period”), the Fund increased 9.67%, while the Underlying Index increased 9.53%. The Fund had a net asset value of $24.46 per share on February 21, 2023 and ended the reporting period with a net asset value of $24.77 on October 31, 2023.

 

During the reporting period, the highest returns came from Nvidia Corp and Meta Platforms Inc., which returned 97.51% and 75.08%, respectively. The worst performers were SolarEdge Technologies Inc and Enphase Energy Inc, which returned -74.21% and -60.54%, respectively.

 

Since its inception, the Fund experienced positive returns as inflationary pressures lessened and supported the Federal Reserve’s decision to slow the pace of its interest rate hikes. This positively impacted growth-oriented names within the fund over the course of the reporting period. During the reporting period, the Fund had an average approximate sector exposure to Information Technology at 58.61% and Communication Services at 12.65%.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X NASDAQ 100® ESG Covered Call ETF  9.67%  9.23%
NASDAQ-100 ESG BuyWrite Index 9.53% 9.53%
NASDAQ-100® Index 20.13% 20.13%

 

68

 

 

Management Discussion of Fund Performance (unaudited)

Global X Nasdaq 100® ESG Covered Call ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on February 21, 2023.

 

The NASDAQ-100® Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization.

 

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 above.

 

69

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® ESG Covered Call ETF

 

Global X S&P 500® ESG Covered Call ETF

 

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

 

The Underlying Index seeks to provide long exposure to an equity portfolio that applies a set of specific Environmental, Social and Governance criteria as part of its security selection process, while also “selling” call options generally associated with such exposure. Specifically, the Underlying Index measures the performance of a covered call strategy, also known as a “buy-write” strategy, that seeks to provide long exposure by “buying” the underlying components of the S&P 500 ESG Index (the “Reference Index”) and “writing” (selling) a succession of one-month, at-the-money (“ATM”) covered call options on the Reference Index to generate premium income.

 

From the inception of the Fund through the period ending October 31, 2023 (the “reporting period”), the Fund increased 1.79%, while the Underlying Index increased 2.42%. The Fund had a net asset value of $24.65 per share on February 21, 2023 and ended the reporting period with a net asset value of $23.79 on October 31, 2023.

 

During the reporting period, the highest returns came from Nvidia Corp and Eli Lilly & Co, which returned 97.51% and 69.93%, respectively. The worst performers were SolarEdge Technologies Inc and FMC Corp, which returned -73.41% and -57.01%, respectively.

 

Softening inflation and a deceleration of interest rate hikes by central banks around the world supported investor sentiment resulting in modestly positive performance for the Fund since its inception. Due to the Fund’s ATM call option writing strategy, the Fund has a propensity to underperform its Reference Index during times when the underlying asset is trending on a strong upward trajectory. Thus, the Reference Index’s increase during the reporting period led to the Fund trailing the Reference Index during the reporting period. The Fund produced its returns harnessing its largest sector exposures to Information Technology at 30.07%, Health Care at 13.95% and Financials at 12.56%.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X S&P 500® ESG Covered Call ETF 1.79% 1.23%
Cboe S&P 500® ESG BuyWrite Index 2.42% 2.42%
S&P 500® Index 6.06% 6.06%

 

70

 

 

Management Discussion of Fund Performance (unaudited)

Global X S&P 500® ESG Covered Call ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on February 21, 2023.

 

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 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 above.

 

71

 

 

Management Discussion of Fund Performance (unaudited)

Global X Dow 30® Covered Call & Growth ETF

 

Global X Dow 30® Covered Call & Growth ETF

 

The Global X Dow 30® Covered Call & Growth ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cboe DJIA Half BuyWrite Index (the “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 a partially covered call strategy that holds a theoretical portfolio of the underlying stocks of the Dow Jones Industrial Average® (the “Reference Index”) and “writes” (or sells) a succession of one-month at-the-money covered call options on the same. The call options correspond to approximately 50% of the value of the securities in the Reference Index, thereby creating a partially covered call strategy.

 

From the inception of the Fund through the period ending October 31, 2023 (the “reporting period”), the Fund decreased 5.35% and the Underlying Index decreased 5.31%. The Fund had a net asset value of $25.81 per share on July 25, 2023 and ended the reporting period with a net asset value of $24.20 on October 31, 2023.

 

During the reporting period, the highest returns came from Microsoft Corporation and Intel Corporation, which returned 47.06% and 32.70%, respectively. The worst performers were Walgreens Boots Alliance, Inc. and 3M Company, which returned -38.80% and -23.63%, respectively.

 

Since its inception, the Fund has recorded negative returns as a product of elevated interest rates and concerns over inflation, which in turn negatively impacted U.S. equities held by the Fund during the reporting period. Rising unemployment since the Fund’s inception and weaker consumer confidence, coupled with adverse geopolitical proceedings detracted from the Fund’s performance. Option premiums collected by the Fund helped dampen a level of the impact of its negative performance. During the reporting period, the Fund’s average sector exposure was most heavily weighted towards Health Care at 19.88%, followed by Financials 19.84%, and Information Technology 18.23%.

 

  AVERAGE TOTAL RETURN FOR THE PERIOD ENDED
OCTOBER 31, 2023
  Cumulative Inception to Date*
  Net Asset Value Market Price
Global X Dow 30® Covered Call & Growth ETF -5.35% -4.88%
Cboe DJIA Half BuyWrite Index -5.31% -5.31%
DJIA Index -6.23% -6.23%

 

72

 

 

Management Discussion of Fund Performance (unaudited)

Global X Dow 30® Covered Call & Growth ETF

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

* The Fund commenced operations on July 25, 2023.

 

The Dow Jones Industrial Average®, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes.

 

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 above.

 

73

 

Schedule of Investments October 31, 2023
Global X Lithium & Battery Tech 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 — 99.0%                
AUSTRALIA — 14.9%                
Materials — 14.9%                
Allkem *     7,796,762     $ 47,094,536  
Core Lithium * (A)     25,594,350       5,833,839  
IGO     9,961,628       59,981,691  
Latin Resources *     29,199,660       4,529,516  
Liontown Resources * (A)     16,716,362       17,040,232  
Mineral Resources     2,262,475       82,740,633  
Pilbara Minerals (A)     38,700,546       89,927,190  
Sayona Mining * (A)     108,471,888       5,150,938  
                 
TOTAL AUSTRALIA             312,298,575  
BRAZIL — 0.8%                
Materials — 0.8%                
Sigma Lithium * (A)     728,522       17,812,363  
                 
CANADA — 1.8%                
Materials — 1.8%                
Lithium Americas * (A)     2,083,047       13,969,507  
Lithium Americas Argentina * (A)     1,598,678       8,832,602  
Patriot Battery Metals *     1,333,768       9,338,538  
Standard Lithium *     1,694,261       4,686,448  
                 
TOTAL CANADA             36,827,095  

 

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

74

 

Schedule of Investments October 31, 2023
Global X Lithium & Battery Tech ETF

 

     Shares      Value  
COMMON STOCK — continued                
CHILE — 4.4%                
Industrials — 4.4%                
Sociedad Quimica y Minera de Chile ADR (A)     1,893,841     $ 91,661,904  
                 
CHINA — 40.4%                
Consumer Discretionary — 4.4%                
BYD, Cl H     3,054,274       92,667,312  
                 
Industrials — 14.2%                
Contemporary Amperex Technology, Cl A     3,712,909       93,858,787  
Eve Energy, Cl A     15,434,988       97,587,478  
Jiangxi Special Electric Motor, Cl A *     12,860,477       20,949,368  
Sunwoda Electronic, Cl A     17,318,891       37,977,696  
Wuxi Lead Intelligent Equipment, Cl A     12,563,036       47,893,896  
              298,267,225  
Information Technology — 4.7%                
NAURA Technology Group, Cl A     2,791,441       97,330,977  
                 
Materials — 17.1%                
Ganfeng Lithium Group, Cl A     13,978,540       84,304,758  
Guangzhou Tinci Materials Technology, Cl A     14,742,778       55,842,259  
Shanghai Putailai New Energy Technology, Cl A     10,760,211       36,638,988  
Sinomine Resource Group, Cl A     6,616,800       33,678,579  
Tianqi Lithium, Cl A     12,313,841       92,244,163  
Yunnan Energy New Material, Cl A     6,062,459       55,323,071  
              358,031,818  
TOTAL CHINA             846,297,332  
FRANCE — 0.3%                
Materials — 0.3%                
Eramet     102,840       7,092,826  
                 
JAPAN — 7.9%                
Consumer Discretionary — 3.7%                
Panasonic Holdings     8,878,727       76,742,406  

 

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

75

 

Schedule of Investments October 31, 2023
Global X Lithium & Battery Tech ETF

 

    Shares     Value  
COMMON STOCK — continued                
Information Technology — 4.2%                
TDK     2,430,410     $ 89,195,541  
                 
TOTAL JAPAN             165,937,947  
NETHERLANDS — 0.5%                
Materials — 0.5%                
AMG Critical Materials     398,733       10,359,548  
                 
SOUTH KOREA — 8.8%                
Industrials — 3.7%                
LG Energy Solution *     267,833       76,450,055  
                 
Information Technology — 5.1%                
L&F (A)     324,685       31,349,394  
Samsung SDI     242,806       76,497,688  
              107,847,082  
TOTAL SOUTH KOREA             184,297,137  
UNITED STATES — 19.2%                
Consumer Discretionary — 5.6%                
Lucid Group * (A)     10,858,875       44,738,565  
Tesla *     368,733       74,056,336  
              118,794,901  
Industrials — 2.2%                
EnerSys     536,968       45,953,721  
              45,953,721  
Materials — 11.4%                
Albemarle     1,560,625       197,856,037  
Livent *     2,368,637       34,558,414  
Piedmont Lithium *     231,972       6,372,271  
              238,786,722  
TOTAL UNITED STATES             403,535,344  
TOTAL COMMON STOCK
(Cost $2,429,692,845)
            2,076,120,071  

 

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

76

 

Schedule of Investments October 31, 2023
Global X Lithium & Battery Tech ETF

 

    Face Amount     Value  
REPURCHASE AGREEMENT(B) — 6.3%                
BNP Paribas
5.210%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $131,510,882 (collateralized by U.S. Treasury Obligations, ranging in par value $17,335,318 - $2,796,013, 4.000% - 2.000%, 02/15/26 - 02/15/25, with a total market value of $133,924,739)
(Cost $131,491,852)
  $ 131,491,852     $ 131,491,852  
TOTAL INVESTMENTS — 105.3%
(Cost $2,561,184,697)
          $ 2,207,611,923  

 

Percentages are based on Net Assets of $2,095,790,645.

 

* Non-income producing security.
(A) This security or a partial position of this security is on loan at October 31, 2023. The total market value of securities on loan at October 31, 2023 was $121,159,472.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2023 was $131,491,852. The total value of non-cash collateral held from securities on loan as of October 31, 2023 was $–.

 

The following is a summary of the level of inputs used as of October 31, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3      Total  
Common Stock   $ 2,076,120,071     $     $     $ 2,076,120,071  
Repurchase Agreement           131,491,852             131,491,852  
Total Investments in Securities   $ 2,076,120,071     $ 131,491,852     $     $ 2,207,611,923  

 

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.

77

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® 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 — 94.8%                
ARGENTINA — 1.1%                
Materials — 1.1%                
Loma Negra Cia Industrial Argentina ADR     1,302,681     $ 7,425,282  
                 
AUSTRALIA — 10.6%                
Consumer Discretionary — 0.8%                
Harvey Norman Holdings (A)     2,540,206       5,902,593  
                 
Energy — 3.3%                
New Hope (A)     1,918,391       7,008,431  
Woodside Energy Group     364,506       7,906,785  
Yancoal Australia (A)     2,731,852       8,354,340  
              23,269,556  
Financials — 1.8%                
Magellan Financial Group (A)     1,456,702       5,985,815  
Platinum Asset Management     8,888,971       6,331,577  
              12,317,392  

 

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

78

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
Industrials — 1.1%                
McMillan Shakespeare     729,782     $ 7,744,173  
                 
Materials — 3.6%                
BHP Group     245,762       6,924,407  
Fortescue Metals Group     490,671       6,927,924  
Grange Resources     16,686,207       4,384,435  
Incitec Pivot     3,962,683       6,874,605  
              25,111,371  
TOTAL AUSTRALIA             74,345,085  
BELGIUM — 1.0%                
Communication Services — 1.0%                
Proximus     856,455       7,081,073  
                 
BRAZIL — 5.1%                
Consumer Discretionary — 0.8%                
Mahle-Metal Leve     740,900       5,353,638  
                 
Consumer Staples — 0.9%                
BrasilAgro - Brasileira de Propriedades Agricolas     1,342,220       6,584,676  
                 
Materials — 2.1%                
Cia Siderurgica Nacional     2,640,100       6,156,569  
CSN Mineracao     8,618,500       8,852,633  
              15,009,202  
Utilities — 1.3%                
CPFL Energia     1,352,411       8,967,802  
                 
TOTAL BRAZIL             35,915,318  
                 
CHILE — 0.9%                
Communication Services — 0.9%                
ENTEL Chile     1,970,449       6,617,320  

 

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

79

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
CHINA — 10.1%                
Consumer Discretionary — 0.9%                
China Yongda Automobiles Services Holdings     16,175,061     $ 6,201,618  
                 
Energy — 2.2%                
China Petroleum & Chemical, Cl H     15,083,500       7,710,810  
China Shenhua Energy, Cl H     2,511,400       7,703,090  
              15,413,900  
Financials — 2.6%                
China Everbright Bank, Cl H     28,892,000       8,234,179  
Chongqing Rural Commercial Bank, Cl H     26,250,700       9,930,485  
              18,164,664  
Industrials — 1.3%                
Shanghai Industrial Holdings     7,233,700       8,847,291  
                 
Materials — 2.4%                
Fufeng Group (A)     12,935,300       6,711,821  
Shougang Fushan Resources Group     30,678,200       10,076,295  
              16,788,116  
Real Estate — 0.7%                
Midea Real Estate Holding     7,258,974       4,963,258  
                 
TOTAL CHINA             70,378,847  
DENMARK — 0.9%                
Industrials — 0.9%                
AP Moller - Maersk, Cl B     3,635       6,035,726  
                 
FRANCE — 1.6%                
Communication Services — 0.8%                
Eutelsat Communications (A)     1,196,386       5,096,278  
                 
Financials — 0.8%                
Coface     479,161       5,763,688  
                 
TOTAL FRANCE             10,859,966  

 

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

80

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
GERMANY — 0.8%                
Financials — 0.8%                
Deutsche Pfandbriefbank (A)     842,944     $ 5,613,271  
                 
HONG KONG — 5.6%                
Communication Services — 2.0%                
HKBN     13,413,710       4,645,752  
PCCW     18,625,100       9,116,649  
              13,762,401  
Industrials — 1.7%                
Orient Overseas International     930,100       11,726,397  
                 
Information Technology — 1.1%                
VTech Holdings     1,352,500       7,873,422  
                 
Real Estate — 0.8%                
New World Development     3,264,000       5,981,873  
                 
TOTAL HONG KONG             39,344,093  
INDONESIA — 2.5%                
Energy — 2.5%                
Adaro Energy     43,887,700       7,072,868  
Bukit Asam     28,994,900       4,526,746  
Indo Tambangraya Megah     3,719,600       6,211,041  
                 
TOTAL INDONESIA             17,810,655  
ITALY — 1.0%                
Financials — 1.0%                
BFF Bank     764,950       7,337,640  
                 
JAPAN — 1.0%                
Industrials — 1.0%                
Mitsui OSK Lines     281,269       7,211,645  

 

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

81

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
KUWAIT — 1.0%                
Consumer Discretionary — 1.0%                
Humansoft Holding KSC     679,680     $ 6,674,938  
                 
MEXICO — 1.0%                
Financials — 1.0%                
Banco del Bajio     2,223,400       6,795,946  
                 
NORWAY — 2.3%                
Energy — 2.3%                
FLEX LNG     250,268       7,643,185  
SFL     791,412       8,594,734  
                 
TOTAL NORWAY             16,237,919  
POLAND — 1.1%                
Materials — 1.1%                
Grupa Kety (A)     44,661       7,524,753  
                 
PORTUGAL — 1.2%                
Materials — 1.2%                
Portucel     2,102,029       8,354,169  
               
RUSSIA — 0.0%                
Materials — 0.0%                
Magnitogorsk Iron & Steel Works PJSC *(B)     6,332,020        
PhosAgro PJSC GDR *(B)     119        
Severstal PJSC *(B)     312,897        
               
Utilities — 0.0%                
Unipro PJSC *(B)     209,143,887        
                 
TOTAL RUSSIA              
SINGAPORE — 1.8%                
Energy — 1.5%                
BW LPG     756,133       10,693,898  

 

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

82

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
Real Estate — 0.3%                
Manulife US Real Estate Investment Trust     35,440,805     $ 1,772,040  
                 
TOTAL SINGAPORE             12,465,938  
SOUTH AFRICA — 3.8%                
Energy — 0.9%                
Exxaro Resources     658,409       6,566,213  
                 
Materials — 0.8%                
African Rainbow Minerals (A)     686,933       5,627,553  
                 
Real Estate — 2.1%                
Equites Property Fund     11,703,190       7,147,930  
Redefine Properties     39,808,030       7,432,061  
              14,579,991  
TOTAL SOUTH AFRICA             26,773,757  
TAIWAN — 1.8%                
Industrials — 0.9%                
Wisdom Marine Lines     4,563,000       5,866,413  
                 
Information Technology — 0.9%                
Raydium Semiconductor     592,000       6,543,302  
                 
TOTAL TAIWAN             12,409,715  
THAILAND — 0.7%                
Industrials — 0.7%                
Regional Container Lines NVDR     9,116,276       4,971,246  
                 
UNITED ARAB EMIRATES — 2.4%                
Energy — 1.3%                
Dana Gas PJSC     41,109,409       9,065,783  
                 
Materials — 1.1%                
Fertiglobe     8,649,081       7,558,821  
                 
TOTAL UNITED ARAB EMIRATES             16,624,604  

 

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

83

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
UNITED KINGDOM — 1.0%                
Financials — 1.0%                
M&G     2,987,545     $ 7,185,189  
                 
UNITED STATES — 34.5%                
Consumer Staples — 1.1%                
JBS     2,014,417       8,000,946  
                 
Energy — 4.0%                
Civitas Resources     101,461       7,653,203  
Diversified Energy     7,453,753       6,046,395  
Equitrans Midstream     815,450       7,233,042  
Kimbell Royalty Partners     426,928       6,882,079  
              27,814,719  
Financials — 21.3%                
AGNC Investment     704,089       5,196,177  
Annaly Capital Management     376,835       5,882,394  
Apollo Commercial Real Estate Finance     679,909       6,771,894  
Arbor Realty Trust     599,935       7,565,180  
Ares Commercial Real Estate     699,558       6,414,947  
B Riley Financial     202,751       7,341,614  
Blackstone Mortgage Trust, Cl A     352,634       7,035,048  
BrightSpire Capital, Cl A     1,061,004       6,005,283  
Chimera Investment     1,252,917       6,014,002  
Claros Mortgage Trust     603,644       6,296,007  
Dynex Capital     563,468       5,657,219  
Ellington Financial     640,673       7,707,296  
Franklin BSP Realty Trust     495,534       6,248,684  
KKR Real Estate Finance Trust     534,808       5,583,395  
MFA Financial     746,931       6,640,217  
New York Mortgage Trust     826,874       6,441,348  
PennyMac Mortgage Investment Trust     594,117       7,515,580  
Ready Capital     1,478,525       13,942,491  
Rithm Capital     834,824       7,788,908  
Starwood Property Trust     367,344       6,520,356  
TPG RE Finance Trust     870,398       4,795,893  
Two Harbors Investment     456,896       5,304,562  
              148,668,495  

 

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

84

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Shares     Value  
COMMON STOCK — continued                
Materials — 1.0%                
Arch Resources     45,967     $ 6,933,203  
                 
Real Estate — 7.1%                
Brandywine Realty Trust     1,354,021       5,064,039  
Global Net Lease     1,080,441       8,578,705  
Medical Properties Trust     937,366       4,480,609  
Omega Healthcare Investors     255,506       8,457,249  
Sabra Health Care     613,696       8,370,813  
SL Green Realty     223,735       6,553,198  
Uniti Group     1,764,499       8,116,695  
              49,621,308  
TOTAL UNITED STATES             241,038,671  
TOTAL COMMON STOCK
(Cost $794,115,166)
            663,032,766  
                 
PREFERRED STOCK — 4.2%                
BRAZIL—4.2%                
Materials — 2.8%                
Gerdau (C)     1,506,508       6,503,407  
Metalurgica Gerdau, Cl A (C)     3,012,200       6,170,142  
Unipar Carbocloro (C)     464,969       6,557,326  
              19,230,875  
Utilities — 1.4%                
Cia Paranaense de Energia (C)     5,918,385       9,846,371  
TOTAL BRAZIL             29,077,246  
TOTAL PREFERRED STOCK
(Cost $31,374,608)
            29,077,246  
                 
    Face Amount          
REPURCHASE AGREEMENTS(D) — 2.8%                
Bank of America
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $4,635,176 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $77,123 - $2,013,749, 2.000% - 6.500%, 04/01/48 - 10/01/53, with a total market value of $4,727,182)
  $ 4,634,492       4,634,492  

 

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

85

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

    Face Amount     Value  
REPURCHASE AGREEMENTS — continued                
Citigroup Global Markets
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $4,635,176 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $646 - $848,846, 2.000% - 7.715%, 12/01/27 - 06/20/73, with a total market value of $4,727,182)
  $ 4,634,492     $ 4,634,492  
Daiwa Capital Markets
5.320%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $4,635,177 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $288 - $366,107, 0.125% - 7.000%, 01/15/24 - 11/01/53, with a total market value of $4,727,182)
    4,634,492       4,634,492  
Deutsche Bank Securities
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $1,183,453 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $125 - $233,918, 1.000% - 7.000%, 09/01/28 - 01/01/61, with a total market value of $1,206,944)
    1,183,278       1,183,278  
RBC Dominion Securities
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $4,635,176 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $156 - $1,214,752, 0.000% - 6.500%, 11/07/23 - 08/20/53, with a total market value of $4,727,182)
    4,634,492       4,634,492  
TOTAL REPURCHASE AGREEMENTS
(Cost $19,721,246)
            19,721,246  
TOTAL INVESTMENTS — 101.8%
(Cost $845,211,020)
          $ 711,831,258  

 

Percentages are based on Net Assets of $699,110,630.

 

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

86

 

 

 

Schedule of Investments   October 31, 2023
  Global X SuperDividend® ETF  

 

 

* Non-income producing security.
Real Estate Investment Trust
(A) This security or a partial position of this security is on loan at October 31, 2023. The total market value of securities on loan at October 31, 2023 was $24,017,012.
(B) Level 3 security in accordance with fair value hierarchy.
(C) There is currently no stated interest rate.
(D) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2023 was $19,721,246. The total value of non-cash collateral held from securities on loan as of October 31, 2023 was $5,597,097.

 

The following is a summary of the level of inputs used as of October 31, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3(1)     Total  
Common Stock   $ 663,032,766     $     $ ^   $ 663,032,766  
Preferred Stock     29,077,246                   29,077,246  
Repurchase Agreements           19,721,246             19,721,246  
Total Investments in Securities   $ 692,110,012     $ 19,721,246     $     $ 711,831,258  

 

^ Includes Securities in which the fair value is $0 or has been rounded to $0.
(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.

 

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.

87

 

 

 

Schedule of Investments October 31, 2023

 

Global X Social Media 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 — 100.1%                
CHINA — 34.0%                
Communication Services — 34.0%                
Baidu ADR *     58,262     $ 6,117,510  
Bilibili ADR * (A)     176,296       2,367,655  
Hello Group ADR     100,679       712,807  
HUYA ADR *     30,236       94,639  
JOYY ADR     21,997       856,123  
Kuaishou Technology, Cl B *     1,809,788       11,645,685  
Meitu (A)     1,973,700       789,521  
NetEase ADR     67,247       7,190,049  
Tencent Holdings     380,427       14,060,717  
Tencent Music Entertainment Group ADR *     451,370       3,276,946  
Weibo ADR     51,198       605,673  
                 
TOTAL CHINA             47,717,325  
GERMANY — 0.8%                
Communication Services — 0.8%                
United Internet     56,455       1,172,578  
                 
JAPAN — 5.3%                
Communication Services — 5.3%                
DeNA     51,086       495,023  
giftee *     12,892       108,451  
Gree     36,158       134,179  
Kakaku.com     90,610       866,941  
MIXI     26,040       391,688  

 

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

88

 

 

 

Schedule of Investments October 31, 2023

 

Global X Social Media ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Communication Services — continued                
Nexon     298,616     $ 5,413,518  
                 
TOTAL JAPAN             7,409,800  
SOUTH KOREA — 14.5%                
Communication Services — 14.5%                
AfreecaTV     5,808       287,702  
Com2uSCorp     5,134       159,469  
Kakao     210,208       5,883,427  
NAVER     101,409       14,071,339  
                 
TOTAL SOUTH KOREA             20,401,937  
TAIWAN — 0.1%                
Consumer Discretionary — 0.1%                
PChome Online *     83,426       114,458  
                 
UNITED ARAB EMIRATES — 0.3%                
Communication Services — 0.3%                
Yalla Group ADR *     69,398       372,667  
                 
UNITED KINGDOM — 0.2%                
Communication Services — 0.2%                
Trustpilot Group *     241,757       293,359  
                 
UNITED STATES — 44.9%                
Communication Services — 42.4%                
Alphabet, Cl A *     49,938       6,196,307  
Angi, Cl A *     52,054       83,807  
Bumble, Cl A *     70,225       943,824  
IAC *     53,273       2,266,766  
Match Group *     198,590       6,871,214  
Meta Platforms, Cl A *     45,357       13,664,704  
Nextdoor Holdings *     94,137       171,329  
Pinterest, Cl A *     411,993       12,310,351  
Rumble * (A)     56,025       251,552  
Snap, Cl A *     722,367       7,230,894  
Spotify Technology *     44,354       7,307,765  
Vimeo *     101,839       313,664  

 

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

89

 

 

 

Schedule of Investments October 31, 2023

 

Global X Social Media ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Communication Services — continued                
Yelp, Cl A *     45,796     $ 1,932,133  
              59,544,310  
Consumer Discretionary — 0.1%                
Groupon, Cl A * (A)     11,034       141,125  
                 
Industrials — 0.4%                
Fiverr International *     23,633       500,310  
                 
Information Technology — 2.0%                
Life360 *     73,717       361,724  
Sprinklr, Cl A *     75,195       1,021,900  
Sprout Social, Cl A *     33,625       1,455,290  
              2,838,914  
TOTAL UNITED STATES             63,024,659  
TOTAL COMMON STOCK
(Cost $222,875,833)
            140,506,783  
                 
    Face Amount          
REPURCHASE AGREEMENTS(B) — 1.8%                
Bank of America
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $603,858 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $10,047 - $262,346, 2.000% - 6.500%, 04/01/48 - 10/01/53, with a total market value of $615,844)
  $ 603,769       603,769  
Citigroup Global Markets
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $603,858 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $84 - $110,585, 2.000% - 7.715%, 12/01/27 - 06/20/73, with a total market value of $615,844)
    603,769       603,769  

 

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

90

 

 

 

Schedule of Investments October 31, 2023

 

Global X Social Media ETF

 

 

    Face Amount     Value  
REPURCHASE AGREEMENTS — continued                
Daiwa Capital Markets
5.320%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $603,858 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $38 - $47,695, 0.125% - 7.000%, 01/15/24 - 11/01/53, with a total market value of $615,844)
  $ 603,769     $ 603,769  
HSBC Securities
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $591,780 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $5,917 - $590,109, 2.500% - 7.000%, 06/20/33 - 10/20/53, with a total market value of $603,527)
    591,693       591,693  
RBC Dominion Securities
5.310%, dated 10/31/2023, to be repurchased on 11/01/2023, repurchase price $166,256 (collateralized by various U.S. Government Obligations and U.S. Treasury Obligations, ranging in par value $6 - $43,571, 0.000% - 6.500%, 11/07/23 - 08/20/53, with a total market value of $169,556)
    166,231       166,231  
TOTAL REPURCHASE AGREEMENTS
(Cost $2,569,231)
            2,569,231  
TOTAL INVESTMENTS — 101.9%
(Cost $225,445,064)
          $ 143,076,014  

 

 

Percentages are based on Net Assets of $140,396,996.

 

* Non-income producing security.
(A) This security or a partial position of this security is on loan at October 31, 2023. The total market value of securities on loan at October 31, 2023 was $2,413,260.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2023 was $2,569,231. The total value of non-cash collateral held from securities on loan as of October 31, 2023 was $–.

 

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

91

 

 

 

Schedule of Investments October 31, 2023

 

Global X Social Media ETF

 

 

The following is a summary of the level of inputs used as of October 31, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3     Total  
Common Stock   $ 140,506,783     $     $     $ 140,506,783  
Repurchase Agreements           2,569,231             2,569,231  
Total Investments in Securities   $ 140,506,783     $ 2,569,231     $     $ 143,076,014  

 

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.

92

 

 

 

Schedule of Investments October 31, 2023

 

Global X Guru® Index 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 — 98.7%                
CAMEROON — 1.7%                
Energy — 1.7%                
Golar LNG     32,330     $ 725,162  
                 
CANADA — 3.2%                
Industrials — 3.2%                
Canadian National Railway     6,353       672,020  
Canadian Pacific Kansas City     9,166       650,511  
                 
TOTAL CANADA             1,322,531  
CHINA — 1.5%                
Consumer Discretionary — 1.5%                
Alibaba Group Holding ADR *     7,902       652,231  
                 
DENMARK — 1.7%                
Health Care — 1.7%                
Ascendis Pharma ADR *     7,825       698,851  

 

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

93

 

 

 

Schedule of Investments October 31, 2023

 

Global X Guru® Index ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
UNITED KINGDOM — 2.8%                
Communication Services — 1.5%                
Liberty Global, Cl C *     37,135     $ 629,810  
                 
Health Care — 1.3%                
Immunocore Holdings ADR *     12,011       533,288  
                 
TOTAL UNITED KINGDOM             1,163,098  
UNITED STATES — 87.8%                
Communication Services — 3.3%                
Liberty Broadband, Cl C *     7,844       653,484  
Meta Platforms, Cl A *     2,397       722,144  
              1,375,628  
Consumer Discretionary — 11.8%                
Asbury Automotive Group *     3,243       620,613  
Dutch Bros, Cl A * (A)     22,265       541,930  
Expedia Group *     6,737       641,969  
Hilton Worldwide Holdings     4,710       713,706  
Home Depot     2,179       620,339  
Lithia Motors, Cl A     2,332       564,834  
Lowe’s     3,233       616,113  
SeaWorld Entertainment *     14,594       628,710  
              4,948,214  
Consumer Staples — 4.9%                
Albertsons, Cl A     33,128       718,877  
Mondelez International, Cl A     10,013       662,961  
Post Holdings *     8,045       645,853  
              2,027,691  
Energy — 5.4%                
Chesapeake Energy     8,735       751,909  
Marathon Petroleum     5,075       767,594  
Texas Pacific Land     392       723,612  
              2,243,115  
Financials — 14.7%                
Arch Capital Group *     9,357       811,065  
Discover Financial Services     7,786       639,075  

 

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

94

 

 

 

Schedule of Investments October 31, 2023

 

Global X Guru® Index ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Financials — continued                
First American Financial     11,464     $ 589,708  
Fiserv *     5,876       668,395  
KKR     11,974       663,359  
LPL Financial Holdings     3,258       731,486  
S&P Global     1,870       653,210  
Visa, Cl A     3,018       709,532  
Wells Fargo     16,939       673,664  
              6,139,494  
                 
Health Care — 17.1%                
Amicus Therapeutics *     55,709       611,128  
Eli Lilly     1,324       733,403  
IQVIA Holdings *     3,325       601,260  
Jazz Pharmaceuticals *     5,171       656,820  
MoonLake Immunotherapeutics, Cl A * (A)     12,862       666,380  
Revvity     6,180       512,013  
Royalty Pharma, Cl A     24,288       652,619  
Seagen *     3,727       793,143  
Tenet Healthcare *     9,923       532,865  
United Therapeutics *     3,071       684,403  
Universal Health Services, Cl B     5,535       696,801  
              7,140,835  
                 
Industrials — 6.5%                
Avis Budget Group *     3,229       525,681  
Delta Air Lines     16,821       525,656  
Ferguson     4,517       678,454  
Hertz Global Holdings *     41,340       348,496  
Howmet Aerospace     14,840       654,444  
              2,732,731  
                 
Information Technology — 11.9%                
Apple     4,079       696,571  
GoDaddy, Cl A *     10,333       756,685  
Microsoft     2,249       760,409  
NVIDIA     1,647       671,647  
Salesforce *     3,467       696,278  
Snowflake, Cl A *     4,791       695,318  

 

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

95

 

 

 

Schedule of Investments October 31, 2023

 

Global X Guru® Index ETF

 

 

    Shares     Value  
COMMON STOCK — continued                
Information Technology — continued                
VMware, Cl A * (A)     4,640     $ 675,816  
              4,952,724  
Materials — 4.9%                
Ashland Global Holdings     8,324       637,868  
International Flavors & Fragrances     11,208       766,067  
Sherwin-Williams     2,629       626,254  
              2,030,189  
Real Estate — 4.2%                
American Tower     3,899       694,763  
ProLogis     5,899       594,324  
Zillow Group, Cl C *     13,213       478,971  
              1,768,058  
Utilities — 3.1%                
AES     40,200       598,980  
PG&E *     42,727       696,450  
              1,295,430  
TOTAL UNITED STATES             36,654,109  
TOTAL COMMON STOCK
(Cost $43,364,944)
            41,215,982  
                 
MASTER LIMITED PARTNERSHIP — 1.2%                
UNITED STATES— 1.2%                
Industrials — 1.2%                
Icahn Enterprises     30,480       502,920  
TOTAL MASTER LIMITED PARTNERSHIP
(Cost $906,119)
            502,920  
TOTAL MASTER LIMITED PARTNERSHIP                

 

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

96

 

 

 

Schedule of Investments   October 31, 2023

 

Global X Guru® Index ETF

 

 

    Face Amount     Value  
REPURCHASE AGREEMENT(B) — 3.6%                
BNP Paribas
5.210%, dated 10/31/2023, to be repurchased on 11/01/2023, to be repurchased on 11/01/23, repurchase price $1,484,722 (collateralized by U.S. Treasury Obligations, ranging in par value $195,711 - $31,566, 4.000% - 2.000%, 02/15/26 - 02/15/25, with a total market value of $1,511,975) (Cost $1,484,508)
  $ 1,484,508     $ 1,484,508  
TOTAL INVESTMENTS — 103.5%
(Cost $45,755,571)
          $ 43,203,410  

 

Percentages are based on Net Assets of $41,757,248.

 

* Non-income producing security.
Real Estate Investment Trust
(A) This security or a partial position of this security is on loan at October 31, 2023. The total market value of securities on loan at October 31, 2023 was $1,409,565.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2023 was $1,484,508. The total value of non-cash collateral held from securities on loan as of October 31, 2023 was $–.

 

The following is a summary of the level of inputs used as of October 31, 2023, in valuing the Fund’s investments carried at value:

 

Investments in Securities   Level 1     Level 2     Level 3     Total  
Common Stock   $ 41,215,982     $     $     $ 41,215,982  
Master Limited Partnership     502,920