| | Notes to Financial Statements | |
| | April 30, 2022 (Unaudited) | |
1. ORGANIZATION
Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of April 30, 2022, the Trust had one hundred and two portfolios, ninety-four of which were operational. The financial statements herein and the related notes pertain to the Global X Social Media ETF, Global X Lithium & Battery Tech ETF, Global X Disruptive Materials ETF, Global X E-commerce ETF, Global X Emerging Markets Internet & E-commerce ETF, Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X MSCI SuperDividend® EAFE ETF, Global X MSCI SuperDividend® Emerging Markets ETF, Global X SuperDividend® REIT ETF, Global X NASDAQ 100® Covered Call ETF, Global X S&P 500® Covered Call ETF, Global X Russell 2000 Covered Call ETF, Global X Dow 30® Covered Call ETF, Global X Nasdaq 100® Covered Call & Growth ETF, Global X S&P 500® Covered Call & Growth ETF, Global X SuperIncome™ Preferred ETF, Global X Renewable Energy Producers ETF, Global X S&P 500® Catholic Values ETF, Global X S&P Catholic Values Developed ex-U.S. ETF, Global X Guru® Index ETF, Global X S&P 500® Tail Risk ETF, Global X S&P 500® Risk Managed Income ETF, Global X S&P 500® Collar 95-110 ETF, Global X NASDAQ 100® Tail Risk ETF, Global X NASDAQ 100® Risk Managed Income ETF and Global X NASDAQ 100® Collar 95-110 ETF (each a “Fund”, collectively, the “Funds”).
Each Fund (except the Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X MSCI SuperDividend® Emerging Markets ETF, Global X MSCI SuperDividend® EAFE ETF, Global X SuperDividend® REIT ETF, Global X SuperIncomeTM Preferred ETF, Global X Guru® Index ETF, Global X S&P 500® Catholic Values ETF, Global X Russell 2000 Covered Call ETF, Global X Dow 30® Covered Call ETF, Global X S&P 500® Covered Call ETF, Global X S&P 500® Covered Call & Growth ETF, Global X S&P 500® Tail Risk ETF, Global X S&P 500® Risk Managed Income ETF, and Global X S&P 500® Collar 95-110 ETF) has elected non-diversified status.
Global X Disruptive Materials ETF commenced operations on January 24, 2022.
Global X Dow 30® Covered Call ETF commenced operations on February 23, 2022.
On December 24, 2018, the shareholders of the Horizons NASDAQ 100® Covered Call ETF and Horizons S&P 500® Covered Call ETF (each, a “Predecessor Fund” and together, the “Predecessor Funds”) approved a proposed agreement and plan of reorganization (the “Reorganization”) that provided for (a) the transfer of all the assets and assumption of certain of the liabilities of each Predecessor Fund to the Global X Nasdaq 100® Covered Call ETF and the Global X S&P 500® Covered Call ETF (together, the “Successor Funds”), respectively; (b) the issuance of shares of the Successor Fund to the shareholders of the corresponding Predecessor Fund; and (c) the liquidation and termination of the Predecessor Funds. The effective date of the Reorganization of each Predecessor Fund was December 24, 2018. The Successor Funds had no operations prior
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
1. ORGANIZATION (continued)
to the Reorganization. The Predecessor Funds had substantially similar investment objectives, investment strategies, policies and restrictions as those of the Successor Funds. The financial statements and financial highlights include the financial information of the Predecessor Funds through December 21, 2018.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds:
USE OF ESTIMATES – The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.
RETURN OF CAPITAL ESTIMATES – Distributions received by the Funds from underlying master limited partnership (“MLP”) and real estate investment trust (“REIT”) investments generally are comprised of income and return of capital. The Funds record investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on historical information available from the MLPs, REITs and other industry sources. These estimates may subsequently be revised based on information received from the MLPs and REITs after their tax reporting periods are concluded.
MLPs – Certain Funds may invest in MLPs. MLPs are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation. To qualify as an MLP and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include natural resource-based activities such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners: the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners typically own the remainder of the partnership through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.
SECURITY VALUATION - Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm EST if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices, which approximates fair value (absent both bid and asked prices on such exchange, the bid price may be used).
For securities traded on NASDAQ, the NASDAQ official closing price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates as of the reporting date. The exchange rates used by the Trust for valuation are captured as of the New York or London close each day. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Securities for which market prices are not “readily available” are valued in accordance with fair value procedures (the “Fair Value Procedures”) established by the Board of Trustees (the “Board”) of the Trust. The Funds’ Fair Value Procedures are implemented through a fair value committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using the Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value a security if an event that may materially affect the value of the Funds’ security that is traded outside the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Funds calculate their net asset values. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC, the Funds’ investment advisor (the “Adviser”), becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate their net asset values, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of April 30, 2022 the following Funds had fair valued securities:
| Fund | | Fair Valued Amount | |
| Global X Social Media ETF | | $ | 1,422 | |
Global X SuperDividend® ETF | | | 31,925,845 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 1,403,134 | |
| Global X Renewable Energy Producers ETF | | | 330,300 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 2,092 | |
There were no other securities priced using the Fair Value Procedures.
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date
Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost)
Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments, and fair value of investments for which the Funds do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term)
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
For the period ended April 30, 2022, there have been no significant changes to the Funds’ fair valuation methodologies.
The following table summarizes the quantitative inputs and assumptions used for items categorized as material Level 3 investments as of April 30, 2022. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Global X SuperDividend® ETF
| Assets | Fair Value at 4/30/22 | Valuation Technique(s) | Unobservable Input | Discount Percentage |
| Common Stock | $75,192 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | -6332.4% |
| Common Stock | $42,952 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | -10358.5% |
| Common Stock | $424,610 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $636,489 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $401,942 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $484,068 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $9,949,897 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 10.0% |
| Common Stock | $9,870,534 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 10.0% |
| Common Stock | $10,040,161 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 10.0% |
Global X MSCI SuperDividend® Emerging Markets ETF
| Assets | Fair Value at 4/30/22 | Valuation Technique(s) | Unobservable Input | Discount Percentage |
| Common Stock | $22,243 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | -6332.4% |
| Common Stock | $9,467 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | -10358.5% |
| Common Stock | $112,075 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $110,799 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $148,759 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $135,467 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 90.0% |
| Common Stock | $555,824 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 10.0% |
| Common Stock | $308,499 | Discount from the Last Traded Price | Last Traded Price Comparability Adjustment % | 30.0% |
The unobservable inputs used to determine fair value of Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
DUE TO/FROM BROKERS – Due to/from brokers includes cash and collateral balances with the Funds’ clearing brokers or counterparties as of April 30, 2022. The Funds continuously monitor the credit standing of each broker or counterparty with whom they conduct business. In the event a broker or counterparty is unable to fulfill its obligations, the Funds would be subject to counterparty credit risk.
REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase agreements by BNP Paribas are held by Brown Brothers Harriman & Co. (“BBH”), the Funds’ custodian (“Custodian”), and are designated as being held on each Fund’s behalf by the Custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest.
It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the counterparty to a repurchase agreement defaults on its obligations, and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (included in repurchase agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under an MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Funds.
As of April 30, 2022, the open repurchase agreements by counterparty which are subject to an MRA on a net payment basis are as follows:
| | | Repurchase Agreements* | | | Fair Value of Non-cash Collateral Received(1) | | | Cash Collateral Received | | | Net Amount(2) | |
| Global X Social Media ETF | | | | | | | | | | | | |
| BNP Paribas | | | 1,849,932 | | | | 1,849,932 | | | $ | − | | | $ | − | |
| Global X Lithium & Battery Tech ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 73,687,127 | | | | 73,687,127 | | | | − | | | | − | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
| | | Repurchase Agreements* | | | Fair Value of Non-cash Collateral Received(1) | | | Cash Collateral Received | | | Net Amount(2) | |
| Global X E-commerce ETF | | | | | | | | | | | | |
| BNP Paribas | | | 1,099,688 | | | | 1,099,688 | | | $ | − | | | $ | − | |
Global X SuperDividend® ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 29,481,944 | | | | 29,481,944 | | | | − | | | | − | |
Global X SuperDividend® U.S. ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 9,420,766 | | | | 9,420,766 | | | | − | | | | − | |
Global X SuperDividend® REIT ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 6,101,856 | | | | 6,101,856 | | | | − | | | | − | |
| Global X SuperIncome™ Preferred ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 984,872 | | | | 984,872 | | | | − | | | | − | |
| Global X Renewable Energy Producers ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 350,210 | | | | 350,210 | | | | − | | | | − | |
Global X Guru® Index ETF | | | | | | | | | | | | | | | | |
| BNP Paribas | | | 507,915 | | | | 507,915 | | | | − | | | | − | |
| * | Repurchase agreements with an overstated and continous maturity. |
| (1) | Excess collateral received is not presented in the table above. Please refer to the Schedules of Investments for the market value of the collateral received for each Fund. |
| (2) | Net Amount represents the net amount receivable due from the counterparty in the event of default. |
FEDERAL INCOME TAXES – It is each Fund’s intention to qualify, or continue to qualify, as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Code. Accordingly, no provisions for Federal income taxes have been made in the financial statements except as described below.
The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax positions in the current period; however, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), and on-going analysis of and changes to tax laws and regulations, and interpretations thereof.
If a Fund has foreign tax filings that have not been made, the tax years that remain subject to examination may date back to the inception of the Fund.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
As of and during the reporting period ended April 30, 2022, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense on the Statements of Operations. During the reporting period, the Funds did not incur any interest or penalties.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION – The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statements of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS – The Funds distribute their net investment income on a pro rata basis. Any net investment income and net realized capital gains are distributed at least annually. All distributions are recorded on ex-dividend date.
INVESTMENTS IN REITs – With respect to the Funds, dividend income is recorded based on the income included in distributions received from REIT investments using published REIT reclassifications, including some management estimates when actual amounts are not available. Distributions received in excess of these estimated amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year end, and may differ from the estimated amounts.
CREATION UNITS – The Funds issue and redeem their shares (“Shares”) on a continuous basis at net asset value (“NAV”) and only in large blocks of 10,000 Shares, referred to as “Creation Units”. Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
charge and will be the same regardless of the number of Creation Units purchased by an Authorized Participant on the same day.
An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to BBH, on the date of such redemption, regardless of the number of Creation Units redeemed that day.
If a Creation Unit is purchased or redeemed for cash, an additional variable fee may be charged. The following table discloses Creation Unit breakdown:
| | | Creation Unit Shares | | | Creation Fee | | | Value at April 30, 2022 | | | Redemption Fee | |
| Global X Social Media ETF | | | 10,000 | | | $ | 300 | | | $ | 383,600 | | | $ | 300 | |
| Global X Lithium & Battery Tech ETF | | | 10,000 | | | | 1,500 | | | | 664,500 | | | | 1,500 | |
| Global X Disruptive Materials ETF | | | 10,000 | | | | 800 | | | | 226,200 | | | | 800 | |
| Global X E-commerce ETF | | | 10,000 | | | | 500 | | | | 195,200 | | | | 500 | |
| Global X Emerging Markets Internet & E-commerce ETF | | | 10,000 | | | | 800 | | | | 73,000 | | | | 800 | |
Global X SuperDividend® ETF | | | 10,000 | | | | 2,000 | | | | 106,600 | | | | 2,000 | |
Global X SuperDividend® U.S. ETF | | | 10,000 | | | | 150 | | | | 202,600 | | | | 150 | |
Global X MSCI SuperDividend® EAFE ETF | | | 10,000 | | | | 1,000 | | | | 149,300 | | | | 1,000 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 10,000 | | | | 1,600 | | | | 95,300 | | | | 3,000 | |
Global X SuperDividend® REIT ETF | | | 10,000 | | | | 250 | | | | 87,400 | | | | 250 | |
Global X NASDAQ 100® Covered Call ETF | | | 10,000 | | | | 500 | | | | 192,800 | | | | 500 | |
Global X S&P 500® Covered Call ETF | | | 10,000 | | | | 2,000 | | | | 465,500 | | | | 2,000 | |
| Global X Russell 2000 Covered Call ETF | | | 10,000 | | | | 250 | | | | 221,100 | | | | 250 | |
Global X Dow 30® Covered Call ETF | | | 10,000 | | | | 250 | | | | 243,300 | | | | 250 | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 10,000 | | | | 500 | | | | 263,800 | | | | 500 | |
Global X S&P 500® Covered Call & Growth ETF | | | 10,000 | | | | 1,500 | | | | 282,600 | | | | 1,500 | |
| Global X SuperIncome™ Preferred ETF | | | 10,000 | | | | 300 | | | | 107,300 | | | | 300 | |
| Global X Renewable Energy Producers ETF | | | 10,000 | | | | 800 | | | | 149,700 | | | | 500 | |
Global X S&P 500® Catholic Values ETF | | | 10,000 | | | | 1,300 | | | | 505,700 | | | | 1,300 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 10,000 | | | | 8,900 | | | | 272,100 | | | | 8,900 | |
Global X Guru® Index ETF | | | 10,000 | | | | 250 | | | | 370,500 | | | | 250 | |
Global X S&P 500® Tail Risk ETF | | | 10,000 | | | | 2,000 | | | | 241,900 | | | | 2,000 | |
Global X S&P 500® Risk Managed Income ETF | | | 10,000 | | | | 2,000 | | | | 243,400 | | | | 2,000 | |
Global X S&P 500® Collar 95-110 ETF | | | 10,000 | | | | 2,000 | | | | 245,000 | | | | 2,000 | |
Global X NASDAQ 100® Tail Risk ETF | | | 10,000 | | | | 500 | | | | 206,600 | | | | 500 | |
Global X NASDAQ 100® Risk Managed Income ETF | | | 10,000 | | | | 500 | | | | 208,100 | | | | 500 | |
Global X NASDAQ 100® Collar 95-110 ETF | | | 10,000 | | | | 500 | | | | 224,700 | | | | 500 | |
CASH OVERDRAFT CHARGES – Per the terms of an agreement with BBH, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of LIBOR plus 2.00%. Cash overdraft charges are included in custodian fees on the Statements of Operations.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS
On July 2, 2018, the Adviser consummated a transaction pursuant to which it became an indirect, wholly-owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae”). In this manner, the Adviser is ultimately controlled by Mirae, which is a leading financial services company in Korea and is the headquarters for the Mirae Asset Global Investments Group.
The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board, the Adviser is responsible for managing the investment
activities of the Funds and the Funds’ business affairs and other administrative matters and provides, or causes to be furnished, all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate distribution agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate Investment Advisory Agreement), under what is essentially an “all-in” fee structure. For the Adviser’s service to the Funds, under a supervision and administration agreement (the “Supervision and Administration Agreement”), each Fund pays a monthly fee to the Adviser at the annual rate below (stated as a percentage of the average daily net assets of the Fund). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions, custodian fees, acquired fund fees, and other transaction expenses, interest expenses and extraordinary expenses (such as litigation and indemnification expenses).
The following table discloses supervision and administration fees payable pursuant to the Supervision and Administration Agreement:
| | | Supervision and Administration Fee | |
| Global X Social Media ETF | | | 0.65 | % |
| Global X Lithium & Battery Tech ETF | | | 0.75 | % |
| Global X Disruptive Materials ETF | | | 0.59 | % |
| Global X E-commerce ETF | | | 0.50 | % |
| Global X Emerging Markets Internet & E-commerce ETF | | | 0.65 | % |
Global X SuperDividend® ETF | | | 0.58 | % |
Global X SuperDividend® U.S. ETF | | | 0.45 | % |
Global X MSCI SuperDividend® EAFE ETF | | | 0.55 | % |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 0.65 | % |
Global X SuperDividend® REIT ETF | | | 0.58 | % |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
| | | Supervision and Administration Fee | |
Global X NASDAQ 100® Covered Call ETF | | | 0.60 | % |
Global X S&P 500® Covered Call ETF* | | | 0.60 | % |
| Global X Russell 2000 Covered Call ETF** | | | 0.60 | % |
Global X Dow 30® Covered Call ETF | | | 0.60 | % |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 0.60 | % |
Global X S&P 500® Covered Call & Growth ETF | | | 0.60 | % |
| Global X SuperIncomeTM Preferred ETF | | | 0.58 | % |
| Global X Renewable Energy Producers ETF | | | 0.65 | % |
Global X S&P 500® Catholic Values ETF*** | | | 0.29 | % |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 0.35 | % |
Global X Guru® Index ETF | | | 0.75 | % |
Global X S&P 500® Tail Risk ETF | | | 0.60 | % |
Global X S&P 500® Risk Managed Income ETF | | | 0.60 | % |
Global X S&P 500® Collar 95-110 ETF | | | 0.60 | % |
Global X NASDAQ 100® Tail Risk ETF | | | 0.60 | % |
Global X NASDAQ 100® Risk Managed Income ETF | | | 0.60 | % |
Global X NASDAQ 100® Collar 95-110 ETF | | | 0.60 | % |
*Pursuant to an expense limitation agreement in existence between the Global X S&P 500® Covered Call ETF (the “Fund”) and the Adviser, the Adviser agreed to reimburse or waive fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund, exclusive of taxes, commissions, and other transaction expenses, interest, and extraordinary expenses (such as litigation and indemnification expenses) will not exceed 0.60% of the Fund’s average daily net assets per year, effective August 21, 2020, until at least March 1, 2022.
**Pursuant to an expense limitation agreement in existence between the Global X Russell 2000 Covered Call ETF (the “Fund”) and the Adviser, the Adviser agreed to waive or reimburse fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund, exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest, and extraordinary expenses (such as litigation and indemnification expenses) will not exceed 0.60% of the Fund’s average daily net assets per year, effective March 1, 2022, until at least March 1, 2023.
***Pursuant to an expense limitation agreement in existence between the Global X S&P 500® Catholic Values ETF (the “Fund”) and the Adviser prior to March 1, 2018, the Adviser agreed to waive or reimburse fees and/or limit fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses and extraordinary expenses (such as litigation and indemnification expenses) (“Total Annual Fund Operating Expenses”) would not exceed 0.29% of the Fund’s average daily net assets per year until at least March 1, 2018. Pursuant to the expense limitation agreement, the Fund (at a later date) could reimburse the Adviser for the fees and expenses it waived or reimbursed
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
and/or limited during any of the prior three fiscal years, provided that, among other things, any reimbursement made to the Adviser would not cause Total Annual Fund Operating Expenses to exceed the maximum permitted rate during the period in which it is paid and the Board had approved such reimbursement to the Adviser. Although the Board voted on December 19, 2017, to permanently reduce the Fund’s fees to 0.29% and end the expense limitation agreement as of March 1, 2018, prior waived or reimbursed fees are still subject to recoupment. As of October 31, 2021, the amounts of waivers/reimbursements subject to recoupment for the Fund were $0 expiring in 2022, $43,032 expiring 2021 and $88,406 expiring 2020. As of October 31, 2021 there had been no recoupment of previously waived and reimbursed fees.
SEI Investments Global Funds Services (“SEIGFS”) serves as sub-administrator to the Funds. As sub-administrator, SEIGFS provides the Funds with required general
administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements, and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, SEIGFS receives certain out-of-pocket costs, transaction fees, and asset-based fees which are accrued daily and paid monthly by the Adviser.
SEI Investments Distribution Co. (“SIDCO”) serves as each Fund’s underwriter and distributor of Creation Units pursuant to a distribution agreement. SIDCO has no obligation to sell any specific quantity of Fund Shares.
SIDCO bears the following costs and expenses relating to the distribution of Shares: (1) the costs of processing and maintaining records of creations of Creation Units; (2) all costs of maintaining the records required of a registered broker/dealer; (3) the expenses of maintaining its registration or qualification as a dealer or broker under federal or state laws; (4) filing fees; and (5) all other expenses incurred in connection with the distribution services as contemplated in the distribution agreement. SIDCO receives no fee from the Funds for its distribution services under the distribution agreement, rather, the Adviser compensates SIDCO for certain expenses, out-of-pocket costs, and transaction fees.
BBH serves as Custodian and transfer agent of the Funds’ assets. As Custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Funds; (2) collect and receive all income and other payments and distributions on account of the Funds’ portfolio investments; (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Funds concerning the Funds’ operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As transfer agent, BBH has agreed to (1) issue and redeem Shares of each Fund; (2) make dividend and other distributions to shareholders of each Fund; (3) respond to correspondence by shareholders and others relating to its
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
3. RELATED PARTY TRANSACTIONS AND SERVICE PROVIDER TRANSACTIONS (continued)
duties; (4) maintain shareholder accounts; and (5) make periodic reports to the Funds. As compensation for these services, BBH receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.
4. INVESTMENT TRANSACTIONS
For the period ended April 30, 2022, the purchases and sales of investments in securities, excluding in-kind transactions, long-term U.S. Government and short-term securities, were:
| | | Purchases | | | Sales and Maturities | |
| Global X Social Media ETF | | $ | 23,652,484 | | | $ | 28,477,344 | |
| Global X Lithium & Battery Tech ETF | | | 479,016,068 | | | | 209,478,212 | |
| Global X Disruptive Materials ETF | | | 1,983,902 | | | | 287,923 | |
| Global X E-commerce ETF | | | 18,320,255 | | | | 19,238,300 | |
| Global X Emerging Markets Internet & E-commerce ETF | | | 402,596 | | | | 421,763 | |
Global X SuperDividend® ETF | | | 515,226,261 | | | | 497,304,478 | |
Global X SuperDividend® U.S. ETF | | | 227,872,384 | | | | 238,574,595 | |
Global X MSCI SuperDividend® EAFE ETF | | | 1,406,021 | | | | 1,564,936 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 34,069,500 | | | | 18,975,570 | |
Global X SuperDividend® REIT ETF | | | 287,091,959 | | | | 294,280,955 | |
Global X NASDAQ 100® Covered Call ETF | | | 922,997,748 | | | | 903,280,957 | |
Global X S&P 500® Covered Call ETF | | | 52,566,995 | | | | 42,974,045 | |
| Global X Russell 2000 Covered Call ETF | | | 1,578,445,727 | | | | 1,506,281,037 | |
Global X Dow 30® Covered Call ETF | | | 99,115 | | | | 36,981 | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 5,408,058 | | | | 7,511,789 | |
Global X S&P 500® Covered Call & Growth ETF | | | 1,418,724 | | | | 2,279,566 | |
| Global X SuperIncome™ Preferred ETF | | | 33,666,440 | | | | 33,997,488 | |
| Global X Renewable Energy Producers ETF | | | 8,595,129 | | | | 10,476,431 | |
Global X S&P 500® Catholic Values ETF | | | 27,872,246 | | | | 27,945,912 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 508,556 | | | | 440,347 | |
Global X Guru® Index ETF | | | 38,721,456 | | | | 38,689,241 | |
Global X S&P 500® Tail Risk ETF | | | 32,640 | | | | 207,416 | |
Global X S&P 500® Risk Managed Income ETF | | | 596,534 | | | | 1,071,412 | |
Global X S&P 500® Collar 95-110 ETF | | | 58,329 | | | | 223,021 | |
Global X NASDAQ 100® Tail Risk ETF | | | 190,099 | | | | 337,971 | |
Global X NASDAQ 100® Risk Managed Income ETF | | | 1,437,954 | | | | 1,330,630 | |
Global X NASDAQ 100® Collar 95-110 ETF | | | 317,225 | | | | 272,597 | |
For the period ended April 30, 2022, there were no purchases and sales of long-term U.S. Government securities.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
4. INVESTMENT TRANSACTIONS (continued)
For the year ended April 30, 2022, in-kind transactions associated with creations and redemptions were:
| 2022 | | Purchases | | | Sales and Maturities | | | Realized Gain/(Loss) | |
| Global X Social Media ETF | | $ | – | | | $ | 39,028,748 | | | $ | 5,579,805 | |
| Global X Lithium & Battery Tech ETF | | | 359,413,113 | | | | 150,257,553 | | | | 60,932,744 | |
| Global X Disruptive Materials ETF | | | 4,336,469 | | | | 509,556 | | | | 87,063 | |
| Global X E-commerce ETF | | | 21,340,199 | | | | 69,973,380 | | | | (4,089,851 | ) |
| Global X Emerging Markets Internet & E-commerce ETF | | | – | | | | 155,764 | | | | (74,102 | ) |
Global X SuperDividend® ETF | | | 42,981,153 | | | | 13,630,773 | | | | 2,123,896 | |
Global X SuperDividend® U.S. ETF | | | 60,359,489 | | | | 33,948,865 | | | | 6,290,804 | |
Global X MSCI SuperDividend® EAFE ETF | | | – | | | | 2,347,252 | | | | 237,029 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 5,459,847 | | | | – | | | | – | |
Global X SuperDividend® REIT ETF | | | – | | | | 52,830,805 | | | | 5,766,949 | |
Global X NASDAQ 100® Covered Call ETF | | | 3,036,360,454 | | | | 59,498,085 | | | | 35,607,464 | |
Global X S&P 500® Covered Call ETF | | | 988,088,480 | | | | 7,489,656 | | | | 3,177,962 | |
| Global X Russell 2000 Covered Call ETF | | | 866,308,451 | | | | – | | | | – | |
Global X Dow 30® Covered Call ETF | | | 12,093,372 | | | | – | | | | – | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 42,835,790 | | | | 13,511,831 | | | | 2,786,272 | |
Global X S&P 500® Covered Call & Growth ETF | | | 12,131,893 | | | | 7,595,503 | | | | 1,221,822 | |
| Global X SuperIncome™ Preferred ETF | | | 5,538,221 | | | | 12,292,107 | | | | 408,150 | |
| Global X Renewable Energy Producers ETF | | | 21,218,635 | | | | 30,613,911 | | | | 3,936,041 | |
Global X S&P 500® Catholic Values ETF | | | 96,605,186 | | | | 19,939,999 | | | | 7,777,570 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 2,851,073 | | | | – | | | | – | |
Global X Guru® Index ETF | | | 2,090,830 | | | | 4,688,185 | | | | 660,080 | |
Global X S&P 500® Tail Risk ETF | | | – | | | | – | | | | – | |
Global X S&P 500® Risk Managed Income ETF | | | 18,385,915 | | | | – | | | | – | |
Global X S&P 500® Collar 95-110 ETF | | | 1,001,485 | | | | – | | | | – | |
Global X NASDAQ 100® Tail Risk ETF | | | 1,334,937 | | | | 1,934,246 | | | | (38,325 | ) |
Global X NASDAQ 100® Risk Managed Income ETF | | | 12,751,338 | | | | 2,603,748 | | | | 36,646 | |
Global X NASDAQ 100® Collar 95-110 ETF | | | 1,704,952 | | | | – | | | | – | |
For the year or period ended October 31, 2021, in-kind transactions associated with creations and redemptions were:
| 2021 | | Purchases | | | Sales and Maturities | | | Realized Gain/(Loss) | |
| Global X Social Media ETF | | $ | 249,814,697 | | | $ | 161,825,652 | | | $ | 104,250,876 | |
| Global X Lithium & Battery Tech ETF | | | 1,301,530,281 | | | | 366,384,618 | | | | 234,758,649 | |
| Global X E-commerce ETF | | | 154,359,054 | | | | 55,200,159 | | | | 21,442,562 | |
| Global X Emerging Markets Internet & E-commerce ETF | | | 5,524,406 | | | | 757,687 | | | | (121,392 | ) |
Global X SuperDividend® ETF | | | 116,148,336 | | | | 4,825,925 | | | | 1,306,373 | |
Global X SuperDividend® U.S. ETF | | | 141,063,730 | | | | 33,098,332 | | | | 5,304,331 | |
Global X MSCI SuperDividend® EAFE ETF | | | 4,473,039 | | | | 929,987 | | | | 89,950 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 12,009,994 | | | | – | | | | – | |
Global X SuperDividend® REIT ETF | | | 109,800,947 | | | | 53,971,417 | | | | 11,010,490 | |
Global X NASDAQ 100® Covered Call ETF | | | 3,619,325,170 | | | | 26,690,549 | | | | 15,759,156 | |
Global X S&P 500® Covered Call ETF | | | 548,443,411 | | | | 7,302,890 | | | | 2,537,496 | |
| Global X Russell 2000 Covered Call ETF | | | 533,979,476 | | | | 501,604 | | | | 234,461 | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 38,168,292 | | | | 2,820,576 | | | | 245,511 | |
Global X S&P 500® Covered Call & Growth ETF | | | 33,475,572 | | | | 4,125,677 | | | | 427,939 | |
| Global X SuperIncome™ Preferred ETF | | | 44,678,336 | | | | 7,476,659 | | | | 831,987 | |
| Global X Renewable Energy Producers ETF | | | 103,945,368 | | | | 48,932,053 | | | | 11,012,881 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
4. INVESTMENT TRANSACTIONS (continued)
| 2021 | | Purchases | | | Sales and Maturities | | | Realized Gain/(Loss) | |
Global X S&P 500® Catholic Values ETF | | $ | 124,592,947 | | | $ | 80,395,996 | | | $ | 39,980,846 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 930,692 | | | | – | | | | – | |
Global X Guru® Index ETF | | | 22,438,467 | | | | 22,168,067 | | | | 6,600,357 | |
Global X S&P 500® Tail Risk ETF | | | 3,506,784 | | | | – | | | | – | |
Global X S&P 500® Risk Managed Income ETF | | | 5,908,307 | | | | – | | | | – | |
Global X S&P 500® Collar 95-110 ETF | | | 3,242,149 | | | | – | | | | – | |
Global X NASDAQ 100® Tail Risk ETF | | | 3,252,445 | | | | – | | | | – | |
Global X NASDAQ 100® Risk Managed Income ETF | | | 4,512,650 | | | | – | | | | – | |
Global X NASDAQ 100® Collar 95-110 ETF | | | 2,796,085 | | | | – | | | | – | |
To the extent consistent with their investment policies, certain Funds may either purchase or write options.
When a Fund purchases an option, the premium paid by it is recorded as an asset of the Fund. When a Fund writes an option, an amount equal to the net premium (the premium less the commission) received by the Fund is included in the liability section of the Fund’s Statement of Assets and Liabilities as a deferred credit. The amount of this asset or deferred credit will be subsequently marked-to-market to reflect the current value of the option purchased or written. The current value of the traded option is the last sale price or, in the absence of a sale, the current bid price. If an option purchased by a Fund expires unexercised, the Fund realizes a loss equal to the premium paid. If a Fund enters into a closing sale transaction on an option purchased by it, the Fund will realize a gain if the premium received by the Fund on the closing transaction is more than the premium paid to purchase the option, or a loss if it is less. If an option written by a Fund expires on the stipulated expiration date or if a Fund enters into a closing purchase transaction, it will realize a gain (or loss if the cost of a closing purchase transaction exceeds the net premium received when the option is sold) and the deferred credit related to such option will be eliminated. If an option written by a Fund is exercised, the proceeds of the sale will be increased by the net premium originally received and the Fund will realize a gain or loss.
Risks may arise from an imperfect correlation between the change in market value of the securities held and the prices of options relating to the securities purchased or sold and from possible lack of a liquid secondary market for an option. The maximum exposure to loss for any purchased option is limited to the premium initially paid for the option. Written uncovered call options subject a Fund to unlimited risk of loss. Written covered call options limit the upside potential of a security above the strike price. Written put options expose a Fund to risk of loss if the value of the security declines below the strike price.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
4. INVESTMENT TRANSACTIONS (continued)
The Global X NASDAQ 100® Covered Call ETF, Global X S&P 500® Covered Call ETF, Global X Russell 2000 Covered Call ETF, Global X Dow 30® Covered Call ETF, Global X Nasdaq 100® Covered Call & Growth ETF, Global X S&P 500® Covered Call & Growth ETF, Global X S&P 500® Tail Risk ETF, Global X S&P 500® Risk Managed Income ETF, Global X S&P 500® Collar 95-110 ETF, Global X Nasdaq 100® Tail Risk ETF, Global X Nasdaq 100® Risk Managed Income ETF, and Global X Nasdaq 100® Collar 95-110 ETF may write covered call and/or put options that correspond to their respective reference index. By writing a covered call option, a Fund, in exchange for the premium, foregoes the opportunity for capital appreciation above the strike price should the market price of the underlying security increase. Conversely, by writing a put option, the Fund, in exchange for the premium, accepts the risk of having to purchase a security at a fixed strike price even should the price of the underlying security decrease, exposing the Fund to downside risk in the underlying security.
For the period ended April 30, 2022, all options were subject to Equity Risk.
When the written option expires, is terminated or is sold, a Fund will record a gain or loss. The net realized gain or loss on options contracts is reflected in the Statements of Operations and the net unrealized gains/(losses) are included as a component of the net change in unrealized appreciation/(depreciation) on options contracts in the Statements of Operations.
For the period ended April 30, 2022, the monthly average cost of the written and purchased options contracts held by the Funds were as follows:
| Fund Name | | Short Average | | | Short End | | | Long Average | | | Long End | |
Global X NASDAQ 100® Covered Call ETF | | $ | (174,311,360 | ) | | $ | (216,847,049 | ) | | $ | − | | | $ | − | |
Global X S&P 500® Covered Call ETF | | | (23,477,960 | ) | | | (32,844,397 | ) | | | − | | | | − | |
| Global X Russell 2000 Covered Call ETF | | | (27,093,842 | ) | | | (36,166,352 | ) | | | − | | | | − | |
Global X Dow 30® Covered Call ETF | | | (107,247 | ) | | | (193,673 | ) | | | − | | | | − | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | (759,927 | ) | | | (949,118 | ) | | | − | | | | − | |
Global X S&P 500® Covered Call & Growth ETF | | | (394,351 | ) | | | (378,527 | ) | | | − | | | | − | |
Global X S&P 500® Tail Risk ETF | | | − | | | | − | | | | 53,730 | | | | 54,491 | |
Global X S&P 500® Risk Managed Income ETF | | | (376,888 | ) | | | (481,741 | ) | | | 198,790 | | | | 246,115 | |
Global X S&P 500® Collar 95-110 ETF | | | (9,502 | ) | | | (17,053 | ) | | | 92,772 | | | | 106,455 | |
Global X NASDAQ 100® Tail Risk ETF | | | − | | | | − | | | | 85,908 | | | | 42,600 | |
Global X NASDAQ 100® Risk Managed Income ETF | | | (340,746 | ) | | | (288,606 | ) | | | 215,631 | | | | 262,240 | |
Global X NASDAQ 100® Collar 95-110 ETF | | | (36,869 | ) | | | (54,880 | ) | | | 111,895 | | | | 130,540 | |
5. TAX INFORMATION
The Global X SuperDividend® REIT ETF has a tax year that ends on December 31. The following tax disclosures are representative as of October 31, 2021. Accordingly, the disclosures are for informational use by shareholders and are subject to change attributable to activity through the end of the tax year ending December 31, 2021.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the years or periods ended October 31, 2021 and October 31, 2020 were as follows:
| Global X Funds | | Ordinary Income | | | Long-Term Capital Gain | | | Return of Capital | | | Totals | |
| Global X Social Media ETF | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
| 2020 | | | – | | | | – | | | | – | | | | – | |
| Global X Lithium & Battery Tech ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 4,617,167 | | | $ | – | | | $ | – | | | $ | 4,617,167 | |
| 2020 | | | 7,964,116 | | | | – | | | | – | | | | 7,964,116 | |
| Global X E-commerce ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 1,105,636 | | | $ | – | | | $ | – | | | $ | 1,105,636 | |
| 2020 | | | 11,908 | | | | – | | | | – | | | | 11,908 | |
| Global X Emerging Markets Internet & E-commerce ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
Global X SuperDividend® ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 65,648,210 | | | $ | – | | | $ | – | | | $ | 65,648,210 | |
| 2020 | | | 57,676,007 | | | | – | | | | 6,836,903 | | | | 64,512,910 | |
Global X SuperDividend® U.S. ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 31,364,614 | | | $ | – | | | $ | 3,660,741 | | | $ | 35,025,355 | |
| 2020 | | | 28,896,892 | | | | – | | | | 9,790,983 | | | | 38,687,875 | |
Global X MSCI SuperDividend® EAFE ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 542,165 | | | $ | – | | | $ | – | | | $ | 542,165 | |
| 2020 | | | 454,057 | | | | – | | | | 119,148 | | | | 573,205 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 2,831,439 | | | $ | – | | | $ | – | | | $ | 2,831,439 | |
| 2020 | | | 1,074,084 | | | | – | | | | 222,316 | | | | 1,296,400 | |
Global X SuperDividend® REIT ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 21,690,155 | | | $ | – | | | $ | 9,729,725 | | | $ | 31,419,880 | |
| 2020 | | | 17,057,314 | | | | 482,944 | | | | 2,127,168 | | | | 19,667,426 | |
Global X NASDAQ 100® Covered Call ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 320,053,733 | | | $ | – | | | $ | – | | | $ | 320,053,733 | |
| 2020 | | | 2,834,579 | | | | – | | | | 117,268,361 | | | | 120,102,940 | |
Global X S&P 500® Covered Call ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 26,627,258 | | | $ | – | | | $ | – | | | $ | 26,627,258 | |
| 2020 | | | 1,539,799 | | | | – | | | | 7,321,411 | | | | 8,861,210 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
| Global X Funds | | Ordinary Income | | | Long-Term Capital Gain | | | Return of Capital | | | Totals | |
| Global X Russell 2000 Covered Call ETF | | | | | | | | | | | | |
| 2021 | | $ | 21,788,088 | | | $ | – | | | $ | – | | | $ | 21,788,088 | |
| 2020 | | | 82,683 | | | | 74,655 | | | | 1,449,526 | | | | 1,606,864 | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 919,727 | | | $ | – | | | $ | – | | | $ | 919,727 | |
| 2020 | | | – | | | | – | | | | 20,955 | | | | 20,955 | |
Global X S&P 500® Covered Call & Growth ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 376,497 | | | $ | – | | | $ | – | | | $ | 376,497 | |
| 2020 | | | 2,931 | | | | – | | | | 16,682 | | | | 19,613 | |
| Global X SuperIncome™ Preferred ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 12,037,890 | | | $ | – | | | $ | – | | | $ | 12,037,890 | |
| 2020 | | | 10,818,268 | | | | – | | | | 549,532 | | | | 11,367,800 | |
| Global X Renewable Energy Producers ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 1,677,449 | | | $ | 177,538 | | | $ | – | | | $ | 1,854,987 | |
| 2020 | | | 1,352,385 | | | | – | | | | – | | | | 1,352,385 | |
Global X S&P 500® Catholic Values ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 5,511,704 | | | $ | – | | | $ | – | | | $ | 5,511,704 | |
| 2020 | | | 4,513,893 | | | | 128,757 | | | | – | | | | 4,642,650 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 59,322 | | | $ | – | | | $ | – | | | $ | 59,322 | |
| 2020 | | | – | | | | – | | | | – | | | | – | |
Global X Guru® Index ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 1,352,859 | | | $ | – | | | $ | – | | | $ | 1,352,859 | |
| 2020 | | | 538,248 | | | | – | | | | 28,732 | | | | 566,980 | |
Global X S&P 500® Tail Risk ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
Global X S&P 500® Risk Managed Income ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | 51,640 | | | $ | – | | | $ | – | | | $ | 51,640 | |
Global X S&P 500® Collar 95-110 ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
Global X NASDAQ 100® Tail Risk ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
Global X NASDAQ 100® Risk Managed Income ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | 52,273 | | | $ | 52,273 | |
Global X NASDAQ 100® Collar 95-110 ETF | | | | | | | | | | | | | | | | |
| 2021 | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
| | | Global X Funds | |
| | | Global X Social Media ETF | | | Global X Lithium & Battery Tech ETF | | | Global X E-commerce ETF | | | Global X Emerging Markets Internet & E-commerce ETF | |
| Undistributed Ordinary Income | | $ | – | | | $ | 9,202,844 | | | $ | – | | | $ | – | |
| Undistributed Long-Term Capital Gain | | | – | | | | – | | | | 613,980 | | | | – | |
| Capital Loss Carryforwards | | | (28,132,536 | ) | | | (63,831,937 | ) | | | – | | | | (198,274 | ) |
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | | | (1,417,828 | ) | | | 1,737,482,168 | | | | (14,138,587 | ) | | | (1,464,448 | ) |
| Late Year Loss Deferral | | | (1,697,484 | ) | | | – | | | | (138,055 | ) | | | (25,979 | ) |
| Other Temporary Differences | | | 1 | | | | (7 | ) | | | (1 | ) | | | (5 | ) |
| Total Distributable Earnings (Accumulated Losses) | | $ | (31,247,847 | ) | | $ | 1,682,853,068 | | | $ | (13,662,663 | ) | | $ | (1,688,706 | ) |
| | | Global X Funds | |
| | | Global X SuperDividend® ETF | | | Global X SuperDividend® U.S. ETF | | | Global X MSCI SuperDividend® EAFE ETF | | | Global X MSCI SuperDividend® Emerging Markets ETF | |
| Undistributed Ordinary Income | | $ | 9,620,906 | | | $ | – | | | $ | 113,120 | | | $ | 1,051,269 | |
| Capital Loss Carryforwards | | | (539,182,806 | ) | | | (185,337,870 | ) | | | (1,391,460 | ) | | | (6,225,122 | ) |
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | | | (14,921,184 | ) | | | 90,841,482 | | | | 364,649 | | | | (3,219,585 | ) |
| Other Temporary Differences | | | (18 | ) | | | 6 | | | | (3 | ) | | | (2 | ) |
| Total Accumulated Losses | | $ | (544,483,102 | ) | | $ | (94,496,382 | ) | | $ | (913,694 | ) | | $ | (8,393,440 | ) |
| | | Global X Funds | |
| | | Global X SuperDividend® REIT ETF(1) | | | Global X NASDAQ 100® Covered Call ETF | | | Global X S&P 500® Covered Call ETF | | | Global X Russell 2000 Covered Call ETF | |
| Undistributed Ordinary Income | | $ | – | | | $ | 131,295,980 | | | $ | 2,004,805 | | | $ | 9,982,417 | |
| Capital Loss Carryforwards | | | (200,308,013 | ) | | | – | | | | – | | | | – | |
| Unrealized Depreciation on Investments and Foreign Currency | | | (28,695,167 | ) | | | – | | | | – | | | | – | |
| Other Temporary Differences | | | (2,376,001 | ) | | | 7 | | | | 5,381 | | | | 6 | |
| Total Distributable Earnings (Accumulated Losses) | | $ | (231,379,181 | ) | | $ | 131,295,987 | | | $ | 2,010,186 | | | $ | 9,982,423 | |
(1) | The Global X SuperDividend® REIT ETF has a tax year that ends on December 31. |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
| | | Global X Funds | |
| | | Global X Nasdaq 100® Covered Call & Growth ETF | | | Global X S&P 500® Covered Call & Growth ETF | | | Global X SuperIncome™ Preferred ETF | | | Global X Renewable Energy Producers ETF | |
| Undistributed Ordinary Income | | $ | 2,838,227 | | | $ | 1,299,834 | | | $ | 457,430 | | | $ | 465,503 | |
| Undistributed Long-Term Capital Gain | | | – | | | | 2,570 | | | | – | | | | – | |
| Capital Loss Carryforwards | | | – | | | | – | | | | (58,846,382 | ) | | | (2,081,509 | ) |
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | | | – | | | | – | | | | 5,619,780 | | | | (511,888 | ) |
| Other Temporary Differences | | | (1 | ) | | | – | | | | 3 | | | | 5 | |
| Total Distributable Earnings (Accumulated Losses) | | $ | 2,838,226 | | | $ | 1,302,404 | | | $ | (52,769,169 | ) | | $ | (2,127,889 | ) |
| | | Global X Funds | |
| | | Global X S&P 500® Catholic Values ETF | | | Global X S&P Catholic Values Developed ex-U.S. ETF | | | Global X Guru® Index ETF | |
| Undistributed Ordinary Income | | $ | 2,153,515 | | | $ | 87,737 | | | $ | 4,425 | |
| Undistributed Long-Term Capital Gain | | | 863,038 | | | | 15,110 | | | | – | |
| Capital Loss Carryforwards | | | – | | | | – | | | | (5,779,354 | ) |
| Unrealized Appreciation on Investments and Foreign Currency | | | 175,044,230 | | | | 685,321 | | | | 6,895,905 | |
| Other Temporary Differences | | | 4 | | | | 2 | | | | (559 | ) |
| Total Distributable Earnings | | $ | 178,060,787 | | | $ | 788,170 | | | $ | 1,120,417 | |
| | | Global X Funds | |
| | | Global X S&P 500® Tail Risk ETF | | | Global X S&P 500® Risk Managed Income ETF | | | Global X S&P 500® Collar 95-110 ETF | |
| Undistributed Ordinary Income | | $ | 73,485 | | | $ | 36,462 | | | $ | 50,940 | |
| Undistributed Long-Term Capital Gain | | | 4,518 | | | | – | | | | 334 | |
| Other Temporary Differences | | | – | | | | 1 | | | | 1 | |
| Total Distributable Earnings | | $ | 78,003 | | | $ | 36,463 | | | $ | 51,275 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
| | | Global X Funds | |
| | | Global X NASDAQ 100® Tail Risk ETF | | | Global X NASDAQ 100® Risk Managed Income ETF | | | Global X NASDAQ 100® Collar 95-110 ETF | |
| Undistributed Ordinary Income | | $ | 63,330 | | | $ | – | | | $ | 51,836 | |
| Undistributed Long-Term Capital Gain | | | – | | | | – | | | | 2,343 | |
| Capital Loss Carryforwards | | | – | | | | (5,450 | ) | | | – | |
| Late Year Loss Deferral | | | – | | | | (940 | ) | | | – | |
| Other Temporary Differences | | | – | | | | – | | | | 2 | |
| Total Distributable Earnings (Accumulated Losses) | | $ | 63,330 | | | $ | (6,390 | ) | | $ | 54,181 | |
For taxable years beginning after December 22, 2010, a Registered Investment Company within the meaning of the 1940 Act is permitted to carry forward net capital losses to offset capital gains realized in later years, and the losses carried forward retain their original character as either long-term or short-term losses. Losses carried forward under these provisions are as follows:
| | | Short-Term Loss | | | Long-Term Loss | | | Total * | |
| Global X Social Media ETF | | $ | 10,937,731 | | | $ | 17,194,805 | | | $ | 28,132,536 | |
| Global X Lithium & Battery Tech ETF | | | – | | | | 63,831,937 | | | | 63,831,937 | |
| Global X Emerging Markets Internet & E-commerce ETF | | | 198,274 | | | | – | | | | 198,274 | |
Global X SuperDividend® ETF | | | 196,838,358 | | | | 342,344,448 | | | | 539,182,806 | |
Global X SuperDividend® U.S. ETF | | | 135,731,524 | | | | 49,606,346 | | | | 185,337,870 | |
Global X MSCI SuperDividend® EAFE ETF | | | – | | | | 1,391,460 | | | | 1,391,460 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 3,110,894 | | | | 3,114,228 | | | | 6,225,122 | |
Global X SuperDividend® REIT ETF | | | 157,576,754 | | | | 42,731,259 | | | | 200,308,013 | |
| Global X SuperIncome™ Preferred ETF | | | 14,218,863 | | | | 44,627,519 | | | | 58,846,382 | |
| Global X Renewable Energy Producers ETF | | | 405,177 | | | | 1,676,332 | | | | 2,081,509 | |
Global X Guru® Index ETF | | | 5,779,354 | | | | – | | | | 5,779,354 | |
Global X NASDAQ 100® Risk Managed Income ETF | | | 2,180 | | | | 3,270 | | | | 5,450 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
During the year ended October 31, 2021, the following Funds utilized capital loss carryforwards to offset capital gains amounting to:
| | | Short-Term Loss | | | Long-Term Loss | | | Total | |
| Global X Social Media ETF | | $ | – | | | $ | 3,339,255 | | | $ | 3,339,255 | |
| Global X Lithium & Battery Tech ETF | | | 26,035,129 | | | | 64,776,767 | | | | 90,811,896 | |
Global X SuperDividend® ETF | | | 48,915,810 | | | | 14,853,324 | | | | 63,769,134 | |
Global X SuperDividend® U.S. ETF | | | 32,460,722 | | | | 2,349,841 | | | | 34,810,563 | |
Global X MSCI SuperDividend® EAFE ETF | | | 817,164 | | | | 352,232 | | | | 1,169,396 | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 1,160,861 | | | | 414,784 | | | | 1,575,645 | |
Global X NASDAQ 100® Covered Call ETF | | | 16,425,608 | | | | 24,638,412 | | | | 41,064,020 | |
Global X S&P 500® Covered Call ETF | | | 13,227,988 | | | | 19,848,520 | | | | 33,076,508 | |
| Global X Russell 2000 Covered Call ETF | | | 566,196 | | | | 801,805 | | | | 1,368,001 | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 45,654 | | | | 68,481 | | | | 114,135 | |
Global X S&P 500® Covered Call & Growth ETF | | | 28,095 | | | | 42,122 | | | | 70,217 | |
| Global X SuperIncome™ Preferred ETF | | | 4,008,352 | | | | 1,656,031 | | | | 5,664,383 | |
Global X S&P 500® Catholic Values ETF | | | – | | | | 205,691 | | | | 205,691 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 3,244 | | | | – | | | | 3,244 | |
Global X Guru® Index ETF | | | 10,813,764 | | | | – | | | | 10,813,764 | |
The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at April 30, 2022 were as follows:
| Global X Funds | | Federal Tax Cost | | | Aggregated Gross Unrealized Appreciation | | | Aggregated Gross Unrealized Depreciation | | | Net Unrealized Appreciation (Depreciation) | |
| Global X Social Media ETF | | $ | 329,596,897 | | | $ | 15,803,956 | | | $ | (124,983,848 | ) | | $ | (109,179,892 | ) |
| Global X Lithium & Battery Tech ETF | | | 4,260,114,378 | | | | 682,062,914 | | | | (512,063,988 | ) | | | 169,998,926 | |
| Global X Disruptive Materials ETF | | | 5,562,067 | | | | 31,920 | | | | (629,199 | ) | | | (597,279 | ) |
| Global X E-commerce ETF | | | 156,153,099 | | | | 1,191,918 | | | | (72,979,353 | ) | | | (71,787,435 | ) |
| Global X Emerging Markets Internet & E-commerce ETF | | | 5,010,288 | | | | 6,522 | | | | (2,393,227 | ) | | | (2,386,705 | ) |
Global X SuperDividend® ETF | | | 1,015,347,469 | | | | 39,449,410 | | | | (164,680,667 | ) | | | (125,231,257 | ) |
Global X SuperDividend® U.S. ETF | | | 664,510,944 | | | | 93,197,198 | | | | (41,990,945 | ) | | | 51,206,253 | |
Global X MSCI SuperDividend® EAFE ETF | | | 11,268,916 | | | | 739,171 | | | | (895,084 | ) | | | (155,913 | ) |
Global X MSCI SuperDividend® Emerging Markets ETF | | | 78,209,437 | | | | 9,929,964 | | | | (15,276,996 | ) | | | (5,347,032 | ) |
Global X SuperDividend® REIT ETF | | | 391,657,826 | | | | 14,086,982 | | | | (28,050,953 | ) | | | (13,963,971 | ) |
Global X NASDAQ 100® Covered Call ETF | | | 6,928,281,396 | | | | 589,003,591 | | | | (608,063,905 | ) | | | (19,060,314 | ) |
Global X S&P 500® Covered Call ETF | | | 1,593,418,648 | | | | 54,767,208 | | | | (115,277,615 | ) | | | (60,510,407 | ) |
| Global X Russell 2000 Covered Call ETF | | | 1,347,753,022 | | | | 3,214,750 | | | | (66,718,949 | ) | | | (63,504,199 | ) |
Global X Dow 30® Covered Call ETF | | | 12,154,435 | | | | 101,694 | | | | (497,786 | ) | | | (396,092 | ) |
Global X Nasdaq 100® Covered Call & Growth ETF | | | 70,136,815 | | | | 702,640 | | | | (10,637,378 | ) | | | (9,934,738 | ) |
Global X S&P 500® Covered Call & Growth ETF | | | 38,494,497 | | | | 1,362,148 | | | | (4,554,921 | ) | | | (3,192,773 | ) |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
5. TAX INFORMATION (continued)
| Global X Funds | | Federal Tax Cost | | | Aggregated Gross Unrealized Appreciation | | | Aggregated Gross Unrealized Depreciation | | | Net Unrealized Appreciation (Depreciation) | |
| Global X SuperIncome™ Preferred ETF | | $ | 219,465,221 | | | $ | 3,615,348 | | | $ | (16,504,957 | ) | | $ | (12,889,609 | ) |
| Global X Renewable Energy Producers ETF | | | 136,468,742 | | | | 10,689,611 | | | | (27,549,294 | ) | | | (16,859,683 | ) |
Global X S&P 500® Catholic Values ETF | | | 495,290,207 | | | | 114,499,174 | | | | (17,153,745 | ) | | | 97,345,429 | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | 6,428,454 | | | | 329,700 | | | | (513,878 | ) | | | (184,178 | ) |
Global X Guru® Index ETF | | | 63,355,648 | | | | 3,484,771 | | | | (11,936,685 | ) | | | (8,451,914 | ) |
Global X S&P 500® Tail Risk ETF | | | 3,296,602 | | | | 171,351 | | | | (411,132 | ) | | | (239,781 | ) |
Global X S&P 500® Risk Managed Income ETF | | | 23,729,186 | | | | 645,133 | | | | (2,765,304 | ) | | | (2,120,171 | ) |
Global X S&P 500® Collar 95-110 ETF | | | 4,021,222 | | | | 169,790 | | | | (452,907 | ) | | | (283,117 | ) |
Global X NASDAQ 100® Tail Risk ETF | | | 2,424,642 | | | | 26,321 | | | | (471,986 | ) | | | (445,665 | ) |
Global X NASDAQ 100® Risk Managed Income ETF | | | 14,567,429 | | | | 93,635 | | | | (2,915,215 | ) | | | (2,821,580 | ) |
Global X NASDAQ 100® Collar 95-110 ETF | | | 4,467,183 | | | | 62,297 | | | | (763,117 | ) | | | (700,820 | ) |
The preceding differences between book and tax cost are primarily due to mark-to-market treatment of passive foreign investment companies, mixed straddles, MLP adjustments and wash sales.
6. CONCENTRATION OF RISKS
The Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments, the level of governmental supervision and regulation of securities markets in the respective countries.
The securities markets of emerging countries are less liquid, subject to greater price volatility, and have a smaller market capitalization than those of U.S. securities markets. In certain countries, there may be fewer publicly traded securities and the market may be dominated by a few issuers or sectors. Issuers and securities markets in such countries are not subject to as extensive and frequent accounting, financial and other reporting requirements or as comprehensive government regulations as are issuers and securities markets in the United States. In particular, the assets and profits appearing on the financial statements of emerging country issuers may not reflect their financial position or results of operations in the same manner as financial statements for U.S. issuers. Substantially less information may be publicly available about emerging country issuers than is available about issuers in the United States.
The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
6. CONCENTRATION OF RISKS (continued)
Except for the Global X Russell 2000® Covered Call, which uses a representative sampling strategy, the Funds use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of an underlying index in approximately the same proportions as in the underlying index. A representative sampling strategy is an indexing strategy that involves investing in a representative sample of securities (including indirect investments through underlying ETFs) that collectively has an investment profile similar to an underlying index in terms of key risk factors, performance attributes and other characteristics. Each Fund may utilize a representative sampling strategy with respect to its underlying index when a replication strategy might be detrimental to its shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow their underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to a Fund but not the underlying index).
The elimination of the London Inter-Bank Offered Rate (“LIBOR”) may adversely affect the interest rates on, and value of, certain Fund investments for which the value is tied to LIBOR. The U.K. Financial Conduct Authority has announced that it intends to stop compelling or inducing banks to submit LIBOR rates after 2021. On March 5, 2021, the administrator of LIBOR clarified that the publication of LIBOR on a representative basis will cease for the one-week and two-month U.S. dollar LIBOR settings immediately after December 31, 2021, and for the remaining U.S. dollar LIBOR settings immediately after June 30, 2023. Alternatives to LIBOR are established or in development in most major currencies, including the Secured Overnight Financing Rate (“SOFR”), which is intended to replace U.S. dollar LIBOR. Markets are slowly developing in response to these new rates. Questions regarding the impact of this transition remain a concern for the Fund. Accordingly, it is difficult to predict the full impact of the transition away from LIBOR on the Funds until new reference rates and fallbacks for both legacy and new products, instruments and contracts are commercially accepted. Please refer to each Fund’s prospectus and statement of additional information (“SAI”) for a more complete description of risks.
7. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend portfolio securities having a market value up to one-third of its total assets. Security loans made pursuant to a securities lending agreement with BBH are initially required to be secured by collateral equal to at least 102% of the value of domestic equity securities and American Depositary Receipts (“ADRs”) and 105% of the value of foreign equity securities (other than ADRs). Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements, short term investments or U.S. Treasury obligations, and is recognized in the Schedules of Investments and Statements of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statements of Assets
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
7. LOANS OF PORTFOLIO SECURITIES (continued)
and Liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.
Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. In the event the borrower may not provide additional collateral when required or may not return the securities when due, the securities lending agency agreement requires the lending agent to indemnify the Funds by replacing either the security or the security’s current market value to the Funds. The Funds could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. The Funds could also experience delays and costs in gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested.
As of April 30, 2022, the following Funds had securities on loan, by counterparty:
| | | Market Value | | | Cash Collateral | |
| Global X Social Media ETF | | | | | | |
| BofA Securities, Inc. | | $ | 3,624,052 | | | $ | 3,438,317 | (1) |
| Citigroup | | | 514,044 | | | | 478,371 | (1) |
| Morgan Stanley | | | 497,437 | | | | 511,266 | |
| SG Americas Securities LLC | | | 1,814 | | | | 1,930 | |
| Total | | $ | 4,637,347 | | | $ | 4,429,884 | |
| Global X Lithium & Battery Tech ETF | | | | | | | | |
| Barclays Capital | | $ | 4,682,752 | | | $ | 5,007,440 | |
| BMO Capital Markets | | | 473,112 | | | | 495,767 | |
| BNP Paribas Securities Corp | | | 13,368,432 | | | | 13,951,825 | |
| BofA Securities, Inc. | | | 35,380,996 | | | | 37,605,129 | |
| Citigroup | | | 33,294,142 | | | | 34,673,694 | |
| Credit Suisse | | | 3,836,354 | | | | 4,001,251 | |
| Goldman Sachs & Co. | | | 26,916,481 | | | | 27,778,357 | |
| JPMorgan | | | 14,099,002 | | | | 14,874,800 | |
| Morgan Stanley | | | 16,494,926 | | | | 17,650,272 | |
| Scotia Capital | | | 7,579,935 | | | | 7,904,266 | |
| SG Americas Securities LLC | | | 788,918 | | | | 1,047,296 | |
| UBS Securities LLC | | | 9,739,518 | | | | 10,174,500 | |
| Total | | $ | 166,654,568 | | | $ | 175,164,597 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
7. LOANS OF PORTFOLIO SECURITIES (continued)
| | | Market Value | | | Cash Collateral | |
| Global X E-commerce ETF | | | | | | |
| Barclays Capital | | $ | 100,150 | | | $ | 104,859 | |
| BNP Paribas Securities Corp | | | 231,173 | | | | 242,535 | |
| BofA Securities, Inc. | | | 463,130 | | | | 507,929 | |
| Citigroup | | | 233,892 | | | | 263,194 | |
| Credit Suisse | | | 193,434 | | | | 217,257 | |
| Goldman Sachs & Co. | | | 100,022 | | | | 110,578 | |
| Morgan Stanley | | | 398,004 | | | | 422,280 | |
| UBS Securities LLC | | | 333,581 | | | | 764,702 | |
| Total | | $ | 2,053,386 | | | $ | 2,633,334 | |
Global X SuperDividend® ETF | | | | | | | | |
| Barclays Capital | | $ | 10,309,646 | | | $ | 12,491,346 | |
| BNP Paribas Securities Corp | | | 3,263,722 | | | | 3,463,200 | |
| BofA Securities, Inc. | | | 79,975 | | | | 85,000 | |
| Citigroup | | | 10,104,183 | | | | 10,286,036 | (1) |
| Goldman Sachs & Co. | | | 12,998,541 | | | | 14,295,770 | |
| JPMorgan | | | 2,268,925 | | | | 2,516,932 | |
| Morgan Stanley | | | 22,112,473 | | | | 24,345,849 | |
| National Financial Services | | | 207,889 | | | | 255,812 | |
| Scotia Capital | | | 284,012 | | | | 362,000 | |
| UBS Securities LLC | | | 2,357,075 | | | | 2,496,115 | |
| Total | | $ | 63,986,441 | | | $ | 70,598,060 | |
Global X SuperDividend® U.S. ETF | | | | | | | | |
| BMO Capital Markets | | $ | 2,213,065 | | | $ | 2,305,380 | |
| BofA Securities, Inc. | | | 6,568,861 | | | | 7,048,778 | |
| Goldman Sachs & Co. | | | 4,513,298 | | | | 4,754,218 | |
| JPMorgan | | | 201,116 | | | | 212,350 | |
| Morgan Stanley | | | 7,555,028 | | | | 8,238,430 | |
| Total | | $ | 21,051,368 | | | $ | 22,559,156 | |
Global X SuperDividend® REIT ETF | | | | | | | | |
| Goldman Sachs & Co. | | $ | 834,259 | | | $ | 866,497 | |
| JPMorgan | | | 3,924,414 | | | | 4,110,600 | |
| Nomura Securities | | | 1,658,777 | | | | 1,756,800 | |
| Scotia Capital | | | 2,856,207 | | | | 3,024,990 | |
| UBS Securities LLC | | | 4,662,462 | | | | 4,852,740 | |
| Total | | $ | 13,936,119 | | | $ | 14,611,627 | |
| | Notes to Financial Statements (Continued) | |
| | April 30, 2022 (Unaudited) | |
7. LOANS OF PORTFOLIO SECURITIES (continued)
| | | Market Value | | | Cash Collateral | |
| Global X SuperIncome™ Preferred ETF | | | | | | |
| BNP Paribas Securities Corp | | $ | 2,175,117 | | | $ | 2,220,696 | (1) |
| Wells Fargo | | | 132,192 | | | | 137,700 | |
| Total | | $ | 2,307,309 | | | $ | 2,358,396 | |
| Global X Renewable Energy Producers ETF | | | | | | | | |
| Barclays Capital | | $ | 257,115 | | | $ | 256,200 | (1) |
| BNP Paribas Securities Corp | | | 65,667 | | | | 69,915 | |
| BofA Securities, Inc. | | | 490,364 | | | | 512,504 | |
| Total | | $ | 813,146 | | | $ | 838,619 | |
Global X Guru® Index ETF | | | | | | | | |
| Citigroup | | $ | 781,060 | | | $ | 786,714 | (1) |
| JPMorgan | | | 446,164 | | | | 429,550 | (1) |
| Total | | $ | 1,227,224 | | | $ | 1,216,264 | |
| (1) | It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. |
8. CONTRACTUAL OBLIGATIONS
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these contracts is unknown; however, the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
Pursuant to the Trust’s organizational documents, the Trustees of the Trust (the “Trustees”) and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.
| | Notes to Financial Statements (Concluded) | |
| | April 30, 2022 (Unaudited) | |
9. REGULATORY MATTERS
In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted a related recordkeeping rule, (together with Rule 2a-5, the “Rules”) and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Funds will be required to comply with the Rules by September 8, 2022. Management is currently assessing the potential impact of the new Rules on the Funds’ financial statements.
10. SUBSEQUENT EVENTS
The Funds have been evaluated by management regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional adjustments were required to the financial statements.
| | Disclosure of Fund Expenses (Unaudited) | |
| | | |
All ETFs (such as the Funds) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of the shareholder’s investment in a Fund.
Operating expenses such as these are deducted from a Fund’s gross income and directly reduce their final investment returns. These expenses are expressed as a percentage of the Fund’s average net assets; this percentage is known as the Fund’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (November 1, 2021 through April 30, 2022).
The table on the next page illustrates the Funds’ costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
| | Disclosure of Fund Expenses (Unaudited)
| |
| | | |
| | | Beginning Account Value 11/1/2021 | | | Ending Account Value 4/30/2022 | | | Annualized Expense Ratios | | | Expenses Paid During Period(1) | |
| Global X Social Media ETF | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 626.20 | | | | 0.65 | % | | $ | 2.62 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.57 | | | | 0.65 | | | | 3.26 | |
| | | | | | | | | | | | | | | | | |
| Global X Lithium & Battery Tech ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 730.90 | | | | 0.75 | % | | $ | 3.22 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.08 | | | | 0.75 | | | | 3.76 | |
| | | | | | | | | | | | | | | | | |
| Global X Disruptive Materials ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 952.40 | | | | 0.59 | % | | $ | 1.19 | (2) |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1.51 | | | | 0.59 | | | | 1.56 | |
| | | | | | | | | | | | | | | | | |
| Global X E-commerce ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 629.40 | | | | 0.50 | % | | $ | 2.02 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,022.32 | | | | 0.50 | | | | 2.51 | |
| | | | | | | | | | | | | | | | | |
| Global X Emerging Markets Internet & E-commerce ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 608.80 | | | | 0.65 | % | | $ | 2.59 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.57 | | | | 0.65 | | | | 3.26 | |
| | | | | | | | | | | | | | | | | |
Global X SuperDividend® ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 862.80 | | | | 0.58 | % | | $ | 2.68 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.92 | | | | 0.58 | | | | 2.91 | |
| | | | | | | | | | | | | | | | | |
Global X SuperDividend® U.S. ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 1,035.00 | | | | 0.45 | % | | $ | 2.27 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,022.56 | | | | 0.45 | | | | 2.26 | |
| | | | | | | | | | | | | | | | | |
Global X MSCI SuperDividend® EAFE ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 985.00 | | | | 0.55 | % | | $ | 2.71 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,022.07 | | | | 0.55 | | | | 2.76 | |
| | | | | | | | | | | | | | | | | |
Global X MSCI SuperDividend® Emerging Markets ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 891.10 | | | | 0.65 | % | | $ | 3.05 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.57 | | | | 0.65 | | | | 3.26 | |
| | | | | | | | | | | | | | | | | |
Global X SuperDividend® REIT ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 919.30 | | | | 0.58 | % | | $ | 2.76 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.92 | | | | 0.58 | | | | 2.91 | |
| | | | | | | | | | | | | | | | | |
Global X NASDAQ 100® Covered Call ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 908.20 | | | | 0.60 | % | | $ | 2.84 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | Disclosure of Fund Expenses (Unaudited)
| |
| | | |
| | | Beginning Account Value 11/1/2021 | | | Ending Account Value 4/30/2022 | | | Annualized Expense Ratios | | | Expenses Paid During Period(1) | |
Global X S&P 500® Covered Call ETF | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 978.10 | | | | 0.60 | % | | $ | 2.94 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
| Global X Russell 2000 Covered Call ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 934.90 | | | | 0.50 | % | | $ | 2.40 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,022.32 | | | | 0.50 | | | | 2.51 | |
| | | | | | | | | | | | | | | | | |
Global X Dow 30® Covered Call ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 1,025.80 | | | | 0.60 | % | | $ | 1.10 | (3) |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,007.96 | | | | 0.60 | | | | 1.09 | |
| | | | | | | | | | | | | | | | | |
Global X Nasdaq 100® Covered Call & Growth ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 858.20 | | | | 0.60 | % | | $ | 2.76 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
Global X S&P 500® Covered Call & Growth ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 940.90 | | | | 0.60 | % | | $ | 2.89 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
| Global X SuperIncome™ Preferred ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 925.70 | | | | 0.58 | % | | $ | 2.77 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.92 | | | | 0.58 | | | | 2.91 | |
| | | | | | | | | | | | | | | | | |
| Global X Renewable Energy Producers ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 894.60 | | | | 0.65 | % | | $ | 3.05 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.57 | | | | 0.65 | | | | 3.26 | |
| | | | | | | | | | | | | | | | | |
Global X S&P 500® Catholic Values ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 889.60 | | | | 0.29 | % | | $ | 1.36 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,023.36 | | | | 0.29 | | | | 1.45 | |
| | | | | | | | | | | | | | | | | |
| Global X S&P Catholic Values Developed ex-U.S. ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 849.70 | | | | 0.35 | % | | $ | 1.61 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,023.06 | | | | 0.35 | | | | 1.76 | |
| | | | | | | | | | | | | | | | | |
Global X Guru® Index ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 738.10 | | | | 0.75 | % | | $ | 3.23 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.08 | | | | 0.75 | | | | 3.76 | |
| | | | | | | | | | | | | | | | | |
Global X S&P 500® Tail Risk ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 892.90 | | | | 0.60 | % | | $ | 2.82 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | Disclosure of Fund Expenses (Unaudited)
| |
| | | |
| | | Beginning Account Value 11/1/2021 | | | Ending Account Value 4/30/2022 | | | Annualized Expense Ratios | | | Expenses Paid During Period(1) | |
Global X S&P 500® Risk Managed Income ETF | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 955.10 | | | | 0.60 | % | | $ | 2.91 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
Global X S&P 500® Collar 95-110 ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 903.80 | | | | 0.60 | % | | $ | 2.83 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
Global X NASDAQ 100® Tail Risk ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 822.80 | | | | 0.60 | % | | $ | 2.71 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| | | | | | | | | | | | | | | | | |
Global X NASDAQ 100® Risk Managed Income ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 900.00 | | | | 0.60 | % | | $ | 2.87 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.77 | | | | 0.60 | | | | 3.06 | |
| | | | | | | | | | | | | | | | | |
Global X NASDAQ 100® Collar 95-110 ETF | | | | | | | | | | | | | | | | |
| Actual Fund Return | | $ | 1,000.00 | | | $ | 885.80 | | | | 0.60 | % | | $ | 2.81 | |
| Hypothetical 5% Return | | | 1,000.00 | | | | 1,021.82 | | | | 0.60 | | | | 3.01 | |
| (1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 181/365 (to reflect the one-half year period), unless otherwise noted. |
| (2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 96/365 (to reflect the one-half year period), unless otherwise note. |
| (3) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 66/365 (to reflect the one-half year period), unless otherwise note. |
Approval of Investment Advisory Agreement (Unaudited) |
| | | |
Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), requires that the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not “interested persons” of the ETF, as defined in the 1940 Act (“Independent Trustees”), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each ETF’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.
At a Board meeting of the Global X Funds (the “Trust”) held by videoconference on November 12, 20211 (the “New Fund Board Meeting”), the Board of Trustees (the “Board”) (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved (i) the initial Investment Advisory Agreement (the “New Investment Advisory Agreement”) for the Global X Dow 30® Covered Call ETF(the “New Fund”) and (ii) the initial Supervision and Administration Agreement between the Trust (the “New Supervision and Administration Agreement”), on behalf of the New Fund, and Global X Management Company LLC (“Global X Management”). The New Investment Advisory Agreement and New Supervision and Administration Agreement are referred to collectively as the “New Fund Agreements.”
At a Board meeting of the Trust held via videoconference November 12, 20211, called for such purpose, the Board (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved the continuation of (i) the Investment Advisory Agreement (“Renewal Investment Advisory Agreement”) for each Fund included in this Annual Report (each, a “Renewal Fund”); and (ii) the Supervision and Administration Agreement between the Trust (“Renewal Supervision and Administration Agreement”), on behalf of each Renewal Fund, and Global X Management. The Renewal Investment Advisory Agreement and the Renewal Supervision and Administration Agreement are referred to herein as the “Renewal Agreements.”
In advance of the Board meetings, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management in connection with the Board’s consideration of the Renewal Agreements and New Fund Agreements and received and reviewed written responses from Global X Management and supporting materials relating to those requests for information. In the course of their consideration of the Renewal Agreements and New Fund Agreements, the Trust’s Independent Trustees were advised by their independent legal counsel and, in addition to meetings with management of Global X Management, the Independent Trustees met separately in executive sessions with their counsel.
1 | This meeting was held via videoconference in reliance on an exemptive order issued by the Securities and Exchange Commission on March 25, 2020. Reliance on the exemptive order is necessary and appropriate due to circumstances related to current or potential effects of COVID-19. All Trustees participating in the videoconference meeting were able to hear each other simultaneously during the meeting. Reliance on the exemptive order requires Trustees, including a majority of the Independent Trustees, to ratify actions taken pursuant to the exemptive order by vote cast at the next in-person meeting. |
Approval of Investment Advisory Agreement (Unaudited) |
| | | |
NEW FUND AGREEMENTS
In determining to approve the New Fund Agreements for the New Fund, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
| – | the terms of the New Fund Agreements and the range of services proposed to be provided to the New Fund in accordance with the New Fund Agreements; |
| – | Global X Management’s key personnel and the portfolio managers who would provide investment advisory, supervision and administrative services to the New Fund; |
| – | Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of the New Fund and the composition of the New Fund’s assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New Fund, (iv) select broker-dealers to execute portfolio transactions for the New Fund when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the New Fund, and the periodic updating of the registration statements, prospectuses, statements of additional information, and other reports and documents for the New Fund that are required to be filed by the Trust with the U.S. Securities and Exchange Commission (“SEC”) and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the New Fund by shareholders and new investors; |
| – | the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that are proposed to be provided by Global X Management or made available to the New Fund; and |
| – | the quality of Global X Management’s resources and personnel that would be made available to the New Fund, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel. |
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that it was satisfied with the nature, extent and quality of the services proposed to be provided to the New Fund by Global X Management.
Approval of Investment Advisory Agreement (Unaudited) |
| | | |
Performance
The Board determined that, because the New Fund had not yet begun investment operations as of the date of the New Fund Board Meeting, meaningful data relating to the investment performance of the New Fund was not available and, therefore, could not be a factor in approving the New Fund Agreements.
Cost of Services and Profitability
With respect to this factor, the Board considered:
| – | Global X Management’s expected costs to provide investment management, supervision and administrative and related services to the New Fund; |
| – | the management fee (including the proposed investment advisory fee) (“Management Fee”) that was proposed to be borne by the New Fund under the respective New Fund Agreement for the various investment advisory, supervisory and administrative services that the New Fund require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the New Fund); and |
| – | the expected profitability to Global X Management, if any, from all of the services proposed to be provided to the New Fund by Global X Management and all aspects of the relationship between Global X Management and the New Fund. |
Based on these considerations, the Board concluded that the proposed Management Fee to be paid by the New Fund to Global X Management, in light of the nature, extent and quality of the services to be provided, was reasonable and in the best interests of the New Fund’s shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
| – | comparative information with respect to the proposed Management Fee to be paid to Global X Management by the New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for the New Fund, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs, and/or other similar registered funds. The Board considered Global X Management’s detailed |
Approval of Investment Advisory Agreement (Unaudited) |
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| | explanation of the proposed fee structures of any New Fund that was above the average or median for the New Fund’s peer group; |
| – | the structure of the unitary Management Fee (which includes as one component the investment advisory fee for the Renewal Funds) and the current total expense ratios for the Renewal Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the Renewal Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of the Renewal Funds and that the proposed Management Fees for the Renewal Funds were set at a competitive levels to make the Renewal Funds viable in the marketplace; and |
| – | that, under the proposed unified Management Fee structure, Global X Management would be responsible for most ordinary expenses of the New Fund, including the costs of various third-party services required by the New Fund, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that the New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses. |
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that the services to be received and the fees to be charged under the New Fund Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
| – | the extent to which economies of scale would be realized as the New Fund grows and whether the proposed unitary Management Fee for the New Fund reflected these economies of scale; |
| – | the significant investment of time, personnel and other resources that Global X Management intends to make in the New Fund in order to seek to assure that the New Fund are attractive to investors; and |
Approval of Investment Advisory Agreement (Unaudited) |
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| – | that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for the New Fund and its shareholders. |
Based on these considerations, the Board concluded, at the New Fund Board Meeting, that the proposed unitary Management Fee for the New Fund appropriately addressed economies of scale.
Other Benefits
In considering each New Fund Agreement, in addition to the factors discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Fund. As a result, the Board concluded that, in the case of the New Fund, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the New Fund Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in their consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the New Fund Agreements were fair and reasonable and in the best interest of the New Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
RENEWAL AGREEMENTS
In determining to approve the continuation of the Renewal Agreements for the Renewal Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
| – | the terms of the Renewal Agreements and the range of services that would continue to be provided to each Renewal Fund in accordance with the Renewal Agreements; |
Approval of Investment Advisory Agreement (Unaudited) |
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| – | Global X Management’s key personnel and the portfolio managers who would continue to provide investment advisory, supervision and administrative services to each Renewal Fund; |
| – | Global X Management’s responsibilities under the Renewal Agreements, among other things, to: (i) manage the investment operations of the Renewal Funds and the composition of the Renewal Funds’ assets, including the purchase, retention and disposition of their holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights relating to securities and assets held by the Renewal Funds, (iv) select broker-dealers to execute portfolio transactions for the Renewal Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the Renewal Funds, and the periodic updating of the registration statement, prospectuses, statements of additional information, and other reports and documents for the Renewal Funds that are required to be filed by the Trust with the SEC and other regulatory and governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the Renewal Funds by shareholders and new investors; |
| – | the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that have been provided by Global X Management or made available to the Renewal Funds; and |
| – | the quality of Global X Management’s resources and personnel that would continue to be made available to the Renewal Funds, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel. |
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Renewal Funds by Global X Management.
Approval of Investment Advisory Agreement (Unaudited) |
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Performance
The Board considered the performance of each Renewal Fund. They examined the performance of the Renewal Funds for the one-year, three-year, five-year and since-inception periods, as applicable. Also, the Board considered the total return and investments performance of the Renewal Funds relative to (i) the performance of unaffiliated comparable ETFs and/or other registered funds, which performance information is publicly available from such registered funds, as well as other third party sources; and (ii) the performance of pertinent indexes. The Board considered instances of under-performance and over-performance with respect to the competitor funds. The Board also considered the Renewal Funds’ tracking against their underlying indexes in absolute terms.
Based on these considerations and comparisons, the Board concluded that the investment performance of the Renewal Funds did not adversely affect the Board’s approval of the continuance of the Renewal Agreements.
Cost of Services and Profitability
The Board considered Global X Management’s cost to provide investment management, supervision and administrative and related services to the Renewal Funds. In this regard, the Board considered the management fee (“Management Fee”) that has been borne or is expected to be borne by the Renewal Funds under the Renewal Agreements for the various investment advisory, supervisory and administrative services that the Renewal Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the Renewal Funds).
In addition, the Board considered expected profitability to Global X Management, as applicable, from all services provided or expected to be provided to the Renewal Funds and all aspects of Global X Management’s relationship with the Renewal Funds. In connection with these considerations, Global X Management provided the Board with financial information regarding its operations and the services provided to the Renewal Funds and discussed with the Board its current and expected, as applicable, profitability with respect to the Renewal Funds.
Based on these considerations, the Board concluded that the Management Fee rate paid by the Renewal Funds to Global X Management, in light of the nature, extent and quality of the services provided, was reasonable and in the best interests of the Renewal Funds’ shareholders.
Approval of Investment Advisory Agreement (Unaudited) |
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Comparison of Fees and Services
With respect to this factor, the Board considered:
| – | comparative information with respect to the Management Fee paid to Global X Management by the Renewal Funds. In connection with this consideration, Global X Management provided the Board with comparative expense data for the Renewal Funds, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs and/or other comparable registered funds. The Board considered the Global X Management’s detailed explanation of the fee structures of any Renewal Fund that was above the average or median for its peer group; |
| – | the structure of the unitary Management Fee (which includes as one component the investment advisory fee for the Renewal Funds) and the current total expense ratios for the Renewal Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the Renewal Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of the Renewal Funds and that the proposed Management Fees for the Renewal Funds were set at a competitive levels to make the Renewal Funds viable in the marketplace; and |
Based on these considerations, the Board concluded that the services received and the fees charged under the Renewal Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
| – | the extent to which economies of scale would be realized as the Renewal Funds grow and whether the unitary Management Fee for the Renewal Funds reflected these economies of scale; |
| – | the significant investment of time, personnel and other resources that Global X Management has made and intends to continue to make in the Renewal Funds in order to seek to assure that the Renewal Funds are attractive to investors; and |
| – | that the unitary Management Fee would provide a high level of certainty as to the total level of expenses for the Renewal Funds and their shareholders. |
Approval of Investment Advisory Agreement (Unaudited) |
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Based on these considerations, the Board concluded that the unitary Management Fee for the Renewal Funds appropriately addressed economies of scale.
Other Benefits
In considering the Renewal Agreements, in addition to the factors above, the Board considered any other benefits realized by Global X Management as a result of its relationships with the Renewal Funds and concluded that, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the continuation of the Renewal Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in its consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the Renewal Agreements were fair and reasonable and in the best interest of each Renewal Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
Supplemental Information (Unaudited) |
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NAV is the price per Share at which a Fund issues and redeems Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. The Fund’s Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of the Fund’s holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Funds’ website at www.globalxetfs.com
605 Third Avenue, 43rd Floor
New York, NY 10158
1-888-493-8631
www.globalxetfs.com
Investment Adviser and Administrator:
Global X Management Company LLC
605 Third Avenue, 43rd Floor
New York, NY 10158
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Sub-Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Counsel for Global X Funds and the Independent Trustees:
Stradley Ronon Stevens & Young, LLP
2000 K Street, N.W.
Suite 700
Washington, DC 20006-1871
Custodian and Transfer Agent:
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Independent Registered Public Accounting Firm:
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Funds described.
GLX-SA-003-1100
