UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM N-CSR
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-22209
THE GLOBAL X FUNDS
(Exact name of registrant as specified in charter)
________
410 Park Avenue, 4th Floor
New York, NY 10022
(Address of principal executive offices) (Zip code)
SEI Investments Global Fund Services
One Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (888) 493-8631
DATE OF FISCAL YEAR END: OCTOBER 31, 2010
DATE OF REPORTING PERIOD: OCTOBER 31, 2010
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
GLOBAL X SILVER MINERS ETF
GLOBAL X LITHIUM ETF
GLOBAL X COPPER MINERS ETF
GLOBAL X BRAZIL MID CAP ETF
GLOBAL X BRAZIL FINANCIALS ETF
GLOBAL X BRAZIL CONSUMER ETF
GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF
GLOBAL X FTSE NORDIC 30 ETF
GLOBAL X CHINA CONSUMER ETF
GLOBAL X CHINA ENERGY ETF
GLOBAL X CHINA FINANCIALS ETF
GLOBAL X CHINA INDUSTRIALS ETF
GLOBAL X CHINA TECHNOLOGY ETF
GLOBAL X CHINA MATERIALS ETF
ANNUAL REPORT
OCTOBER 31, 2010
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Management Discussion of Fund Performance 1
Schedules of Investments
Global X Silver Miners ETF 15
Global X Lithium ETF 17
Global X Copper Miners ETF 19
Global X Brazil Mid Cap ETF 21
Global X Brazil Financials ETF 24
Global X Brazil Consumer ETF 26
Global X/InterBolsa FTSE Colombia 20 ETF 28
Global X FTSE Nordic 30 ETF 30
Global X China Consumer ETF 33
Global X China Energy ETF 35
Global X China Financials ETF 37
Global X China Industrials ETF 39
Global X China Technology ETF 41
Global X China Materials ETF 43
Statements of Assets and Liabilities 45
Statements of Operations 48
Statements of Changes in Net Assets 51
Financial Highlights 55
Notes to Financial Statements 56
Report of Independent Registered Public Accounting Firm 69
Disclosure of Fund Expenses 70
Approval of Investment Advisory Agreement 72
Supplemental Information 77
Trustees and Officers of the Trust 80
Notice to Shareholders 83
The Funds file their complete schedules of Fund holdings with the Securities
and Exchange Commission (the "Commission") for the first and third quarters of
each fiscal year on Form N-Q within sixty days after the end of the period.
The Funds' Forms N-Q are available on the Commission's website at
http://www.sec.gov, and may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that Global X Funds uses to
determine how to vote proxies relating to Fund securities, as well as
information relating to how the Funds voted proxies relating to Fund securities
during the most recent 12-month period ended June 30, will be available (i)
without charge, upon request, by calling 1-888-GXFund-1; and (ii) on the
Commission's website at http://www.sec.gov.
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X SILVER MINERS ETF
- --------------------------------------------------------------------------------
GLOBAL X SILVER MINERS ETF (TICKER: SIL)
The Global X Silver Miners ETF (the "Fund") seeks to provide investment results
that correspond generally to the price and yield performance, before fees and
expenses, of the Solactive Global Silver Miners Index (the "Index"). The Fund
generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the silver mining industry.
It is comprised of selected companies globally that are actively engaged in
some aspect of the silver mining industry, such as silver mining, refining, or
exploration. The Fund is the first Exchange Traded Fund ("ETF") globally
focused exclusively on the silver mining sector.
For the period from the Fund's commencement date on April 19, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 39.31%, while the
Index increased 40.04% . The Fund commenced operations with a net asset value
of $14.50 per share on April 19, 2010 and ended the period with a net asset
value of $20.20 on October 31, 2010.
Twenty-one of the Fund's twenty-six holdings as of October 31, 2010 increased
in value for the reporting period, led by First Majestic Silver and Hochschild
Mining, which returned 127.66% and 82.74% respectively. The worst performers
were Excellon Resources and Scorpio Mining, which returned -19.53% and -8.55%
respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Silver Miners ETF 39.31% 39.86%
-----------------------------------
Solactive Global Silver Miners Index 40.04% 40.04%
-----------------------------------
[LINE GRAPH OMITTED]
4/19/2010 10/31/2010
Global X Silver Miners ETF $ 10,000 $ 13,931
Solactive Global Silver Miners Index $ 10,000 $ 14,004
Global X Silver Miners ETF*
Solactive Global Silver Miners Index
*FUND COMMENCED OPERATIONS ON APRIL 19, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY IN AN
UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
1
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X LITHIUM ETF
- --------------------------------------------------------------------------------
GLOBAL X LITHIUM ETF (TICKER: LIT)
The Global X Lithium ETF (the "Fund") seeks to provide investment results that
correspond generally to the price and yield performance, before fees and
expenses, of the Solactive Global Lithium Index (the "Index"). The Fund
generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the largest and most liquid
listed companies that are active in the exploration and/or mining of Lithium or
the production of Lithium batteries. The Fund is the first ETF globally focused
exclusively on the lithium sector.
For the period from the Fund's commencement date on July 22, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 27.85%, while the
Index increased 27.99% . The Fund commenced operations with a net asset value
of $15.51 per share on July 22, 2010 and ended the period with a net asset
value of $19.83 on October 31, 2010.
Nineteen of the Fund's twenty holdings as of October 31, 2010 increased in
value for the reporting period, led by Avalon Rare Metals and Valance
Technology, which returned 80.07% and 67.53% respectively. Only one holding as
of October 31, 2010 lost value during the reporting period, Coslight Technology
International Group, which returned -16.14% .
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Lithium ETF 27.85% 28.18%
-----------------------------------
Solactive Global Lithium Index 27.99% 27.99%
-----------------------------------
[LINE GRAPH OMITTED]
7/22/2010 10/31/2010
Global X Lithium ETF $ 10,000 $ 12,785
Solactive Global Lithium Index $ 10,000 $ 12,799
Global X Lithium ETF*
Solactive Global Lithium Index
*FUND COMMENCED OPERATIONS ON JULY 22, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
2
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X COPPER MINERS ETF
- --------------------------------------------------------------------------------
GLOBAL X COPPER MINERS ETF (TICKER: COPX)
The Global X Copper Miners ETF (the "Fund") seeks to provide investment results
that correspond generally to the price and yield performance, before fees and
expenses, of the Solactive Global Copper Miners Index (the "Index"). The Fund
generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the copper mining industry.
It is comprised of selected companies globally that are actively engaged in
some aspect of the copper mining industry, such as copper mining, refining, or
exploration.
For the period from the Fund's commencement date on April 19, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 15.49%, while the
Index increased 16.17% . The Fund commenced operations with a net asset value
of $14.40 per share on April 19, 2010 and ended the period with a net asset
value of $16.63 on October 31, 2010.
Twenty-five of the Fund's thirty-one holdings as of October 31, 2010 increased
in value for the reporting period, led by Augusta Resource and Duluth Metals,
which returned 57.66% and 57.30% respectively. The worst performers were
Cudeco and Vedanta Resources, which returned -49.22% and -20.26% respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Copper Miners ETF 15.49% 15.90%
-----------------------------------
Solactive Global Copper Miners Index 16.17% 16.17%
-----------------------------------
[LINE GRAPH OMITTED]
4/19/2010 10/31/2010
Global X Copper Miners ETF $ 10,000 $ 11,549
Solactive Global Copper Miners Index $ 10,000 $ 11,617
Global X Copper Miners ETF*
Solactive Global Copper Miners Index
*FUND COMMENCED OPERATIONS ON APRIL 19, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
3
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X BRAZIL MID CAP ETF
- --------------------------------------------------------------------------------
GLOBAL X BRAZIL MID CAP ETF (TICKER: BRAZ)
The Global X Brazil Mid Cap ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive Brazil Mid Cap Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of Brazilian mid cap
companies. It is comprised of mid-market capitalization securities of companies
that are domiciled or have their main business operations in Brazil. The Fund
is the first ETF globally focused exclusively on Brazil mid cap companies.
For the period from the Fund's commencement date on June 21, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 20.58%, while the
Index increased 20.64% . The Fund commenced operations with a net asset value
of $15.16 per share on June 21, 2010 and ended the period with a net asset
value of $18.28 on October 31, 2010.
Thirty-seven of the Fund's forty-one holdings as of October 31, 2010 increased
in value for the reporting period, led by TAM and Lojas Renner, which returned
65.17% and 48.63% respectively. The worst performers were Metalurgica Gerdau
and Marfrig Alimentos, which returned -14.80% and -6.56% respectively.
GROWTH OF A $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Brazil Mid Cap ETF 20.58% 22.30%
-----------------------------------
Solactive Brazil Mid Cap Index 20.64% 20.64%
-----------------------------------
[LINE GRAPH OMITTED]
6/21/2010 10/31/2010
Global X Brazil Mid Cap ETF $ 10,000 $ 12,058
Solactive Brazil Mid Cap Index $ 10,000 $ 12,064
Global X Brazil Mid Cap ETF*
Solactive Brazil Mid Cap Index
*FUND COMMENCED OPERATIONS ON JUNE 21, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
4
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X BRAZIL FINANCIALS ETF
- --------------------------------------------------------------------------------
GLOBAL X BRAZIL FINANCIALS ETF (TICKER: BRAF)
The Global X Brazil Financials ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive Brazil Financials Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the financial sector in
Brazil. It is comprised of selected companies which have their main business
operations in the financial sector and are domiciled or have their main
business operations in Brazil. The Fund is the first ETF globally focused
exclusively on the Brazil financial sector.
For the period from the Fund's commencement date on July 28, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 15.38%, while the
Index increased 15.57% . The Fund commenced operations with a net asset value
of $15.08 per share on July 28, 2010 and ended the period with a net asset
value of $17.40 on October 31, 2010.
Twenty-two of the Fund's twenty-five holdings as of October 31, 2010 increased
in value for the reporting period, led by Brasil Brokers Participacoe and Sul
America, which returned 42.72% and 38.17% respectively. The worst performers
were Banco Panamericano and Redecard, which returned -10.23% and -6.08%
respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Brazil Financials ETF 15.38% 17.37%
-----------------------------------
Solactive Brazil Financials Index 15.57% 15.57%
-----------------------------------
[LINE GRAPH OMITTED]
7/28/2010 10/31/2010
Global X Brazil Financials ETF $ 10,000 $ 11,538
Solactive Brazil Financials Index $ 10,000 $ 11,557
Global X Brazil Financials ETF*
Solactive Brazil Financials Index
*FUND COMMENCED OPERATIONS ON JULY 28, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
5
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X BRAZIL CONSUMER ETF
- --------------------------------------------------------------------------------
GLOBAL X BRAZIL CONSUMER ETF (TICKER: BRAQ)
The Global X Brazil Consumer ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive Brazil Consumer Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the consumer sector in
Brazil. It is comprised of selected companies which have their main business
operations in the consumer sector and are domiciled or have their main business
operations in Brazil. The Fund is the nation's first ETF focused exclusively on
the Brazil consumer sector.
For the period from the Fund's commencement date on July 7, 2010 through
October 31, 2010 (the "reporting period"), the Fund increased 28.88%, while the
Index increased 29.31% . The Fund commenced operations with a net asset value
of $15.48 per share on July 7, 2010 and ended the period with a net asset value
of $19.95 on October 31, 2010.
Twenty-seven of the Fund's twenty-nine holdings as of October 31, 2010
increased in value for the reporting period, led by Cia Hering and SLC
Agricola, which returned 84.72% and 67.51% respectively. Only two holdings as
of October 31, 2010 lost value during the reporting period, JBS and Marfrig
Alimentos, which returned -14.83% and -9.62% respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X Brazil Consumer ETF 28.88% 31.01%
-----------------------------------
Solactive Brazil Consumer Index 29.31% 29.31%
-----------------------------------
[LINE GRAPH OMITTED]
7/7/2010 10/31/2010
Global X Brazil Consumer ETF $ 10,000 $ 12,888
Solactive Brazil Consumer Index $ 10,000 $ 12,931
Global X Brazil Consumer ETF*
Solactive Brazil Consumer Index
*FUND COMMENCED OPERATIONS ON JULY 7, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION OF FUND
PERFORMANCE.
6
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF
- --------------------------------------------------------------------------------
GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF (TICKER: GXG)
The Global X/InterBolsa FTSE Colombia 20 ETF (the "Fund") seeks to provide
investment results that correspond generally to the price and yield
performance, before fees and expenses, of the FTSE Colombia 20 Index (the
"Index"). The Fund generally seeks to replicate the Index but may at times
invest in a representative sample of securities that collectively has an
investment profile similar to the Index and as a result may or may not hold all
the securities that are included in the Index.
The Index is a market capitalization-weighted index of the 20 most liquid
stocks in the Colombian market. The Index is designed to measure broad based
equity market performance in Colombia. The Fund is the first ETF globally
focused exclusively on Colombia.
For the 12-month period ended October 31, 2010 (the "reporting period"), the
Fund increased 71.28%, while the Index increased 75.53% . The Fund had a net
asset value of $27.84 per share on October 31, 2009 and ended the period with a
net asset value of $45.98 on October 31, 2010.
Colombia was among the world's top performing countries for the reporting
period. Twenty of the Fund's twenty-two holdings as of October 31, 2010
increased in value for the reporting period led by Grupo Aval Acciones y
Valores and Tableros y Maderas de Caldas, which returned 125.02% and 91.31%
respectively. Only two holdings as of October 31, 2010 lost value during the
reporting period, Empresa de Telecomunicaciones de Bogota and Sociedad de
Inversiones en Energia, which returned -18.84% and -0.35% respectively.
GROWTH OF A $10,000 INVESTMENT
---------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010*
---------------------------------------------------------------------
One Year Return Annualized Inception to Date
---------------------------------------------------------------------
Net Asset Value Market Price Net Asset Value Market Price
---------------------------------------------------------------------
Global X/InterBolsa FTSE Colombia 20 ETF 71.28% 64.38% 94.75% 90.90%
---------------------------------------------------------------------
FTSE Colombia 20 Index 75.53% 75.53% 97.61% 97.61%
---------------------------------------------------------------------
[LINE GRAPH OMITTED]
2/5/2009 10/31/2009 10/31/2010
Global X/InterBolsa FTSE Colombia 20 ETF $ 10,000 $ 18,560 $ 31,790
FTSE Colombia 20 Index $ 10,000 $ 18,563 $ 32,584
Global X/InterBolsa FTSE Columbia 20 ETF
FTSE Colombia 20 Index
*FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST
DIRECTLY IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
7
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X FTSE NORDIC 30 ETF
- --------------------------------------------------------------------------------
GLOBAL X FTSE NORDIC 30 ETF (TICKER: GXF)
The Global X FTSE Nordic 30 ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the FTSE Nordic 30 Index (the "Index"). The Fund
generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is a market capitalization-weighted index of the 30 largest and most
liquid stocks in Sweden, Denmark, Norway and Finland. The Index is designed to
measure broad based equity market performance in these countries. The Fund is
the nation's first ETF focused exclusively on the Nordic region.
For the 12-month period ended October 31, 2010 (the "reporting period"), the
Fund increased 19.68%, while the Index increased 20.20% . The Fund had a net
asset value of $16.07 per share on October 31, 2009 and ended the period with a
net asset value of $19.22 on October 31, 2010.
The Nordic region was among the top performing developed market regions for the
reporting period. Twenty-seven of the Fund's thirty holdings as of October 31,
2010 increased in value for the reporting period, led by Novo Nordisk and SKF,
which returned 70.73% and 62.28% respectively. The worst performers were
Vestas Wind Systems and Nokia, which returned -55.15% and -12.38% respectively.
GROWTH OF A $10,000 INVESTMENT
------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2010*
------------------------------------------------------------------
One Year Return Annualized Inception to Date
------------------------------------------------------------------
Net Asset Value Market Price Net Asset Value Market Price
------------------------------------------------------------------
Global X FTSE Nordic 30 ETF 19.68% 19.71% 26.43% 26.86%
------------------------------------------------------------------
FTSE Nordic 30 Index 20.20% 20.20% 27.59% 27.59%
------------------------------------------------------------------
[LINE GRAPH OMITTED]
8/17/2009 10/31/2009 10/31/2010
Global X FTSE Nordic 30 ETF $ 10,000 $ 11,083 $ 13,263
FTSE Nordic 30 Index $ 10,000 $ 11,160 $ 13,415
Global X FTSE Nordic 30 ETF*
FTSE Nordic 30 Index
*FUND COMMENCED OPERATIONS ON AUGUST 17, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
8
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA CONSUMER ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA CONSUMER ETF (TICKER: CHIQ)
The Global X China Consumer ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive China Consumer Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the consumer sector in
China. It is comprised of selected companies which have their main business
operations in the consumer sector and are domiciled in China or have their main
business operations in this country. Only securities which are tradable for
foreign investors without restrictions are eligible. The Fund is the first ETF
globally focused exclusively on the China consumer sector.
For the period from the Fund's commencement date on November 30, 2009 through
October 31, 2010 (the "reporting period"), the Fund increased 29.90%, while the
Index increased 30.37% . The Fund commenced operations with a net asset value
of $15.65 per share on November 30, 2009 and ended the period with a net asset
value of $20.33 on October 31, 2010.
Thirty-one of the Fund's forty holdings as of October 31, 2010 increased in
value for the reporting period, led by Great Wall Motor and Bosideng
International Holdings, which returned 169.58% and 160.96% respectively. The
worst performers were VisionChina Media and China Dongxiang Group, which
returned -54.77% and -19.38% respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X China Consumer ETF 29.90% 31.18%
-----------------------------------
Solactive China Consumer Index 30.37% 30.37%
-----------------------------------
[LINE GRAPH OMITTED]
11/30/2009 10/31/2010
Global X China Consumer ETF $ 10,000 $ 12,990
Solactive China Consumer Index $ 10,000 $ 13,037
Global X China Consumer ETF*
Solactive China Consumer Index
*FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
9
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA ENERGY ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA ENERGY ETF (TICKER: CHIE)
The Global X China Energy ETF (the "Fund") seeks to provide investment results
that correspond generally to the price and yield performance, before fees and
expenses, of the Solactive China Energy Index (the "Index"). The Fund generally
seeks to replicate the Index but may at times invest in a representative sample
of securities that collectively has an investment profile similar to the Index
and as a result may or may not hold all the securities that are included in the
Index.
The Index is designed to reflect the performance of the energy sector in China.
It is comprised of selected companies which have their main business operations
in the energy sector and are domiciled in China or have their main business
operations in this country. Only securities which are tradable for foreign
investors without restrictions are eligible. The Fund is the nation's first ETF
focused exclusively on the China energy sector.
For the period from the Fund's commencement date on December 15, 2009 through
October 31, 2010 (the "reporting period"), the Fund increased 4.66%, while the
Index increased 5.79% . The Fund commenced operations with a net asset value of
$15.02 per share on December 15, 2009 and ended the period with a net asset
value of $15.72 on October 31, 2010.
Sixteen of the Fund's twenty-seven holdings as of October 31, 2010 increased in
value for the reporting period, led by Renesola and JA Solar Holdings, which
returned 166.00% and 44.62% respectively. The worst performers were Suntech
Power Holdings and Honghua Group, which returned -52.57% and -27.32%
respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X China Energy ETF 4.66% 5.46%
-----------------------------------
Solactive China Energy Index 5.79% 5.79%
-----------------------------------
[LINE GRAPH OMITTED]
12/15/2009 10/31/2010
Global X China Energy ETF $ 10,000 $ 10,466
Solactive China Energy Index $ 10,000 $ 10,579
Global X China Energy ETF*
Solactive China Energy Index
*FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
10
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA FINANCIALS ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA FINANCIALS ETF (TICKER: CHIX)
The Global X China Financials ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive China Financials Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the financial sector in
China. It is comprised of selected companies which have their main business
operations in the financial sector and are domiciled in China or have their
main business operations in this country. Only securities which are tradable
for foreign investors without restrictions are eligible. The Fund is the
nation's first ETF focused exclusively on the China financial sector.
For the period from the Fund's commencement date on December 10, 2009 through
October 31, 2010 (the "reporting period"), the Fund decreased 0.87%, while the
Index decreased 0.23% . The Fund commenced operations with a net asset value of
$14.90 per share on December 10, 2009 and ended the period with a net asset
value of $14.77 on October 31, 2010.
Eleven of the Fund's thirty-three holdings as of October 31, 2010 increased in
value for the reporting period, led by Soho China and PICC Property & Casualty,
which returned 70.66% and 65.79% respectively. The worst performers were
Greentown China Holdings and Sino-Ocean Land Holdings, which returned -35.09%
and -34.47% respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X China Financials ETF (0.87%) (0.27)%
-----------------------------------
Solactive China Financials Index (0.23%) (0.23)%
-----------------------------------
[LINE GRAPH OMITTED]
12/10/2009 10/31/2010
Global X China Financials ETF $ 10,000 $ 9,913
Solactive China Financials Index $ 10,000 $ 9,977
Global X China Financials ETF*
Solactive China Financials Index
*FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
11
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA INDUSTRIALS ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA INDUSTRIALS ETF (TICKER: CHII)
The Global X China Industrials ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive China Industrials Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the industrial sector in
China. It is comprised of selected companies which have their main business
operations in the industrial sector and are domiciled in China or have their
main business operations in this country. Only securities which are tradable
for foreign investors without restrictions are eligible. The Fund is the first
ETF globally focused exclusively on the China industrial sector.
For the period from the Fund's commencement date on November 30, 2009 through
October 31, 2010 (the "reporting period"), the Fund increased 10.52%, while the
Index increased 11.32% . The Fund commenced operations with a net asset value
of $15.50 per share on November 30, 2009 and ended the period with a net asset
value of $17.13 on October 31, 2010.
Twenty-three of the Fund's thirty-six holdings as of October 31, 2010 increased
in value for the reporting period, led by Dongfang Electric and Weichai Power,
which returned 85.90% and 58.32% respectively. The worst performers were
Duoyuan Global Water and A-Power Energy Generation Systems, which returned
- -68.50% and -58.60% respectively.
GROWTH OF A $10,000 INVESTMENT
----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
----------------------------------
Cumulative Inception to Date
----------------------------------
Net Asset Value Market Price
----------------------------------
Global X China Industrials ETF 10.52% 11.10%
----------------------------------
Solactive China Industrials Index 11.32% 11.32%
----------------------------------
[LINE GRAPH OMITTED]
11/30/2009 10/31/2010
Global X China Industrials ETF $ 10,000 $ 11,052
Solactive China Industrials Index $ 10,000 $ 11,132
Global X China Industrials ETF*
Solactive China Industrials Index
*FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
12
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA TECHNOLOGY ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA TECHNOLOGY ETF (TICKER: CHIB)
The Global X China Technology ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive China Technology Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the technology sector in
China. It is comprised of selected companies which have their main business
operations in the technology sector and are domiciled in China or have their
main business operations in this country. Only securities which are tradable
for foreign investors without restrictions are eligible.
For the period from the Fund's commencement date on December 8, 2009 through
October 31, 2010 (the "reporting period"), the Fund increased 15.50%, while the
Index increased 16.14% . The Fund commenced operations with a net asset value
of $14.90 per share on December 8, 2009 and ended the period with a net asset
value of $17.21 on October 31, 2010.
Eighteen of the Fund's twenty-six holdings as of October 31, 2010 increased in
value for the reporting period, led by Baidu and Kingdee International Software
Group, which returned 162.65% and 121.58% respectively. The worst performers
were BYD Electronic International and KongZhong, which returned -37.44% and
- -32.97% respectively.
GROWTH OF A $10,000 INVESTMENT
-----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
-----------------------------------
Cumulative Inception to Date
-----------------------------------
Net Asset Value Market Price
-----------------------------------
Global X China Technology ETF 15.50% 15.91%
-----------------------------------
Solactive China Technology Index 16.14% 16.14%
-----------------------------------
[LINE GRAPH OMITTED]
12/8/2009 10/31/2010
Global X China Technology ETF $ 10,000 $ 11,550
Solactive China Technology Index $ 10,000 $ 11,614
Global X China Technology ETF*
Solactive China Technology Index
*FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
13
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
MANAGEMENT DISCUSSION OF FUND PERFORMANCE
GLOBAL X CHINA MATERIALS ETF
- --------------------------------------------------------------------------------
GLOBAL X CHINA MATERIALS ETF (TICKER: CHIM)
The Global X China Materials ETF (the "Fund") seeks to provide investment
results that correspond generally to the price and yield performance, before
fees and expenses, of the Solactive China Materials Index (the "Index"). The
Fund generally seeks to replicate the Index but may at times invest in a
representative sample of securities that collectively has an investment profile
similar to the Index and as a result may or may not hold all the securities
that are included in the Index.
The Index is designed to reflect the performance of the materials sector in
China. It is comprised of selected companies which have their main business
operations in the materials sector and are domiciled in China or have their
main business operations in this country. Only securities which are tradable
for foreign investors without restrictions are eligible. The Fund is the
nation's first ETF focused exclusively on the China materials sector.
For the period from the Fund's commencement date on January 12, 2010 through
October 31, 2010 (the "reporting period"), the Fund decreased 2.41%, while the
Index decreased 1.82% . The Fund commenced operations with a net asset value of
$14.95 per share on January 12, 2010 and ended the period with a net asset
value of $14.59 on October 31, 2010.
Fifteen of the Fund's thirty holdings as of October 31, 2010 increased in value
for the reporting period, led by Dongyue Group and China Rare Earth Holdings,
which returned 126.12% and 92.76% respectively. The worst performers were
China Green Agriculture and Shougang Concord International Enterprises, which
returned -54.35% and -40.07% respectively.
GROWTH OF A $10,000 INVESTMENT
----------------------------------
AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2010*
----------------------------------
Cumulative Inception to Date
----------------------------------
Net Asset Value Market Price
----------------------------------
Global X China Materials ETF (2.41%) (1.87)%
----------------------------------
Solactive China Materials Index (1.82%) (1.82)%
----------------------------------
[LINE GRAPH OMITTED]
1/12/2010 10/31/2010
Global X China Materials ETF $ 10,000 $ 9,759
Solactive China Materials Index $ 10,000 $ 9,818
Global X China Materials ETF*
Solactive China Materials Index
*FUND COMMENCED OPERATIONS ON JANUARY 12, 2010.
THE PERFORMANCE DATA QUOTED HEREIN REPRESENTS PAST PERFORMANCE AND THE RETURN
AND VALUE OF AN INVESTMENT IN THE FUND WILL FLUCTUATE SO THAT, WHEN REDEEMED,
MAY BE WORTH LESS THAN ITS ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE PERFORMANCE AND SHOULD NOT BE CONSIDERED AS A REPRESENTATION OF THE
FUTURE RESULTS OF THE FUND. THE FUND'S PERFORMANCE ASSUMES THE REINVESTMENT OF
ALL DIVIDENDS AND ALL CAPITAL GAINS. INDEX RETURNS ASSUME REINVESTMENT OF
DIVIDENDS AND, UNLIKE A FUND'S RETURNS, DO NOT REFLECT ANY FEES OR EXPENSES. IF
SUCH FEES AND EXPENSES WERE INCLUDED IN THE INDEX RETURNS, THE PERFORMANCE WOULD
HAVE BEEN LOWER. PLEASE NOTE THAT ONE CANNOT INVEST DIRECTLY
IN AN UNMANAGED INDEX.
THERE ARE NO ASSURANCES THAT THE FUND WILL MEET ITS STATED OBJECTIVES.
THE FUND'S HOLDINGS AND ALLOCATIONS ARE SUBJECT TO CHANGE AND SHOULD NOT BE
CONSIDERED RECOMMENDATIONS TO BUY INDIVIDUAL SECURITIES.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY
ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
SEE DEFINITION OF COMPARATIVE INDICES IN MANAGEMENT DISCUSSION.
14
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X SILVER MINERS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
99.9% Basic Materials
0.1% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
--------- -------------
COMMON STOCK -- 100.0%
CANADA-- 56.3%
Basic Materials -- 56.3%
Alexco Resource (*) .................... 425,000 $ 2,635,000
Bear Creek Mining (*) .................. 459,000 3,540,818
ECU Silver Mining (*) .................. 2,380,000 1,751,889
Endeavour Silver (*) ................... 418,200 2,044,998
Excellon Resources (*) ................. 2,016,200 1,642,405
First Majestic Silver (*) .............. 705,500 5,414,673
Fortuna Silver Mines (*) ............... 858,500 3,218,638
Gammon Gold (*) ........................ 799,000 5,457,170
Great Panther Silver (*) ............... 858,500 1,019,516
Impact Silver (*) ...................... 323,000 374,070
MAG Silver CAD(*) ...................... 4,640 38,663
MAG Silver USD(*) ...................... 389,760 3,235,008
Minefinders (*) ........................ 510,000 4,493,100
Orko Silver (*) ........................ 901,000 1,750,888
Pan American Silver .................... 600,100 19,155,192
Scorpio Mining (*) ..................... 850,000 725,783
Silver Standard Resources (*) .......... 307,700 7,470,956
Silver Wheaton (*) ..................... 875,500 25,170,625
Silvercorp Metals ...................... 803,250 7,510,387
-------------
TOTAL CANADA ............................. 96,649,779
-------------
MEXICO-- 11.5%
Basic Materials -- 11.5%
Industrias Penoles ..................... 696,400 19,762,260
-------------
PERU-- 5.3%
Basic Materials -- 5.3%
Hochschild Mining ...................... 1,173,000 9,093,547
-------------
RUSSIA-- 4.6%
Basic Materials -- 4.6%
Polymetal GDR (*) ...................... 496,250 7,840,750
-------------
UNITED STATES-- 22.3%
Basic Materials -- 22.3%
Coeur d'Alene Mines (*) ................ 357,000 7,357,770
Fresnillo .............................. 1,173,690 23,479,811
Hecla Mining (*) ....................... 1,031,900 7,109,791
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
15
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X SILVER MINERS ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
------------ --------------
COMMON STOCK -- continued
Basic Materials -- continued
Mines Management (*) ............... 144,500 $ 358,360
-------------
TOTAL UNITED STATES .................. 38,305,732
-------------
TOTAL COMMON STOCK
(Cost $142,354,887) ................ 171,652,068
-------------
TIME DEPOSIT -- 0.0%
Brown Brothers, 0.031%
(Cost $86,755) ................... $ 86,755 86,755
-------------
TOTAL INVESTMENTS -- 100.0%
(Cost $142,441,642) ................ $ 171,738,823
=============
PERCENTAGES ARE BASED ON NET ASSETS OF $171,671,834.
* Non-income producing security.
CAD -- CANADIAN DOLLAR
GDR -- GLOBAL DEPOSITARY RECEIPT
USD-- UNITED STATES DOLLAR
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ -------- -------- -------------
Common Stock $ 171,652,068 $ -- $ -- $ 171,652,068
Time Deposit -- 86,755 -- 86,755
------------- -------- -------- -------------
Total Investments
in Securities $ 171,652,068 $ 86,755 $ -- $ 171,738,823
============= ======== ======== =============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X LITHIUM ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
59.7% Basic Materials
40.3% Industrials
+ Percentages based on total investments.
SHARES VALUE
---------- -------------
COMMON STOCK -- 100.0%
AUSTRALIA-- 5.1%
Basic Materials -- 5.1%
Galaxy Resources (*) ..................... 1,892,523 $ 2,717,650
Orocobre (*) ............................. 542,872 1,293,059
-------------
TOTAL AUSTRALIA ............................ 4,010,709
-------------
CANADA-- 7.9%
Basic Materials -- 6.2%
Avalon Rare Metals (*) ................... 738,643 3,298,485
Canada Lithium (*) ....................... 1,268,039 1,008,059
Lithium One (*) .......................... 548,277 570,393
-------------
4,876,937
-------------
Industrials -- 1.7%
Electrovaya (*) .......................... 444,874 1,331,696
-------------
TOTAL CANADA ............................... 6,208,633
-------------
HONG KONG-- 2.7%
Industrials -- 2.7%
Coslight Technology International Group .. 2,933,027 2,126,534
-------------
TOTAL HONG KONG 2,126,534
-------------
UNITED STATES-- 84.3%
Basic Materials -- 48.4%
FMC ...................................... 180,289 13,179,126
Rockwood Holdings (*) .................... 186,349 6,320,958
Sociedad Quimica y Minera de Chile ADR ... 355,392 18,409,306
-------------
37,909,390
-------------
Industrials -- 35.9%
A123 Systems (*) ......................... 317,675 3,087,801
Advanced Battery Technologies (*) ........ 915,945 3,617,983
China BAK Battery (*) .................... 1,152,331 2,200,952
Ener1 (*) ................................ 918,620 3,325,404
Exide Technologies (*) ................... 519,415 3,059,354
GS Yuasa ................................. 455,157 3,034,380
Saft Groupe .............................. 93,160 3,558,644
Sanyo Electric (*) ....................... 837,528 1,362,088
Ultralife (*) ............................ 425,880 2,235,870
Valence Technology (*) ................... 2,036,000 2,606,080
-------------
28,088,556
-------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
17
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X LITHIUM ETF
- --------------------------------------------------------------------------------
VALUE
------------
COMMON STOCK -- CONTINUED
TOTAL UNITED STATES ....................................... $ 65,997,946
------------
TOTAL COMMON STOCK
(Cost $71,144,283) ...................................... 78,343,822
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $71,144,283) ...................................... $ 78,343,822
============
PERCENTAGES ARE BASED ON NET ASSETS OF $78,316,565.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ -------- ------- ------------
Common Stock $ 78,343,822 $ -- $ -- $ 78,343,822
------------ -------- ------- ------------
Total Investments in Securities $ 78,343,822 $ -- $ -- $ 78,343,822
============ ======== ======= ============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X COPPER MINERS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
99.8% Basic Materials
0.2% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
--------- ------------
COMMON STOCK -- 100.0%
AUSTRALIA-- 12.8%
Basic Materials -- 12.8%
Aditya Birla Minerals (*) ................... 226,800 $ 270,106
Cudeco (*) .................................. 86,400 202,408
Equinox Minerals (*) ........................ 300,600 1,634,433
OZ Minerals ................................. 1,123,200 1,723,003
------------
TOTAL AUSTRALIA ............................... 3,829,950
------------
CANADA-- 43.6%
Basic Materials -- 43.6%
Augusta Resource (*) ........................ 88,200 345,744
Capstone Mining (*) ......................... 126,720 445,243
Continental Minerals (*) .................... 81,000 203,514
Copper Mountain Mining CAD(*) ............... 135,200 652,845
Copper Mountain Mining USD(*) ............... 12,300 59,815
Duluth Metals (*) ........................... 57,600 158,288
First Quantum Minerals ...................... 16,128 1,413,673
HudBay Minerals, Cl B ....................... 95,400 1,507,449
Imperial Metals (*) ......................... 11,196 272,510
Inmet Mining ................................ 21,600 1,292,735
Ivanhoe Mines (*) ........................... 68,760 1,655,053
Lundin Mining (*) ........................... 235,800 1,495,012
Mercator Minerals (*) ....................... 142,200 445,204
Northern Dynasty Minerals (*) ............... 67,500 608,850
Polymet Mining (*) .......................... 237,800 439,930
Quadra FNX Mining (*) ....................... 82,971 1,172,620
Taseko Mines (*) ............................ 141,690 896,898
------------
TOTAL CANADA .................................. 13,065,383
------------
CHINA-- 5.1%
Basic Materials -- 5.1%
Jiangxi Copper, Cl H ........................ 547,200 1,524,824
------------
MEXICO-- 4.8%
Basic Materials -- 4.8%
Grupo Mexico, Cl B .......................... 435,600 1,436,552
------------
POLAND-- 4.7%
Basic Materials -- 4.7%
KGHM Polska Miedz ........................... 31,104 1,396,756
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
19
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X COPPER MINERS ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
----------- ------------
COMMON STOCK -- continued
SOUTH AFRICA-- 0.9%
Basic Materials -- 0.9%
Metorex (*) ................................... 414,000 $ 258,672
------------
SWITZERLAND-- 4.2%
Basic Materials -- 4.2%
Xstrata ....................................... 65,340 1,264,783
------------
UNITED KINGDOM-- 8.9%
Basic Materials -- 8.9%
Antofagasta ................................... 80,640 1,706,134
Vedanta Resources ............................. 28,800 956,405
------------
TOTAL UNITED KINGDOM ............................ 2,662,539
------------
UNITED STATES-- 15.0%
Basic Materials -- 15.0%
Freeport-McMoRan Copper & Gold ................ 19,085 1,806,968
Kazakhmys ..................................... 54,000 1,137,315
Southern Copper ............................... 36,000 1,540,800
------------
TOTAL UNITED STATES ............................ 4,485,083
------------
TOTAL COMMON STOCK
(Cost $29,160,650) ............................ 29,924,542
------------
TIME DEPOSIT -- 0.2%
Brown Brothers, 0.031%
(Cost $63,927) .............................. $ 63,927 63,927
------------
TOTAL INVESTMENTS -- 100.2%
(Cost $29,224,577) ............................ $ 29,988,469
============
PERCENTAGES ARE BASED ON NET ASSETS OF $29,928,577.
* Non-income producing security.
CAD -- CANADIAN DOLLAR
CL -- CLASS
USD -- UNITED STATES DOLLAR
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ --------- ----------- ------------
Common Stock $ 29,924,542 $ -- $ -- $ 29,924,542
Time Deposit -- 63,927 -- 63,927
------------ --------- ----------- ------------
Total Investments in Securities $ 29,924,542 $ 63,927 $ -- $ 29,988,469
============ ========= =========== ============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL MID CAP ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
24.4% Utilities
19.1% Financials
18.6% Industrials
13.3% Consumer Services
10.8% Consumer Goods
8.0% Basic Materials
5.8% Telecommunications
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 82.9%
BRAZIL-- 82.9%
Basic Materials -- 3.0%
Fibria Celulose ADR (*) ...................... 49,258 $ 884,674
------------
Consumer Goods -- 10.5%
Cosan, Cl A .................................. 27,430 360,705
Cosan Industria e Comercio ................... 22,080 351,764
Hypermarcas (*) .............................. 59,200 981,196
Marfrig Alimentos ............................ 30,400 271,832
Natura Cosmeticos ............................ 38,400 1,100,767
------------
3,066,264
------------
Consumer Services -- 11.1%
Cia Brasileira de Distribuicao Grupo Pao de
Acucar ADR ................................. 26,713 1,058,102
Gol Linhas Aereas Inteligentes ADR ........... 22,390 394,960
Lojas Renner ................................. 27,200 1,082,289
NET Servicos de Comunicacao ADR (*) .......... 20,369 273,148
TAM ADR ...................................... 17,344 427,876
------------
3,236,375
------------
Financials -- 13.4%
BR Malls Participacoes ....................... 65,280 614,912
Cyrela Brazil Realty Empreendimentos
e Participacoes ............................ 64,000 882,577
MRV Engenharia e Participacoes ............... 70,400 687,224
Multiplan Empreendimentos Imobiliarios ....... 15,360 357,772
PDG Realty Empreendimentos e Participacoes ... 65,600 814,486
Porto Seguro ................................. 37,600 550,228
------------
3,907,199
------------
Industrials -- 18.5%
All America Latina Logistica ................. 144,000 1,365,766
Cia de Concessoes Rodoviarias ................ 35,200 955,055
Duratex ...................................... 51,200 591,907
Empresa Brasileira de Aeronautica ADR ........ 36,376 1,049,448
LLX Logistica (*) ............................ 102,400 562,916
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL MID CAP ETF
- --------------------------------------------------------------------------------
SHARES VALUE
-------- ------------
COMMON STOCK -- continued
Industrials -- continued
Weg ........................................... 68,800 $ 900,885
------------
5,425,977
------------
Telecommunications -- 4.8%
Telegraph Norte Leste Participacoes ADR ....... 60,804 932,733
Tim Participacoes ADR ......................... 15,028 484,803
------------
1,417,536
------------
Utilities -- 21.6%
Cia de Saneamento Basico do Estado de
Sao Paulo ADR ............................... 13,317 612,049
Cia Energetica de Minas Gerais ADR ............ 87,421 1,559,591
Cia Paranaense de Energia ADR ................. 23,443 544,581
CPFL Energia ADR .............................. 20,354 1,462,028
EDP - Energias do Brasil ...................... 12,480 271,845
Tractebel Energia ............................. 42,880 647,474
Ultrapar Participacoes ADR .................... 19,484 1,208,982
------------
6,306,550
------------
TOTAL BRAZIL .................................... 24,244,575
------------
TOTAL COMMON STOCK
(Cost $21,986,842) ............................ 24,244,575
------------
PREFERRED STOCK -- 16.8%
BRAZIL-- 16.8%
Basic Materials -- 4.9%
Metalurgica Gerdau, Cl A ...................... 60,800 933,481
Suzano Papel e Celulose ....................... 54,400 513,068
------------
1,446,549
------------
Consumer Services -- 2.4%
Lojas Americanas .............................. 64,000 686,658
------------
Financials -- 5.8%
Banco do Estado do Rio Grande do Sul .......... 36,000 394,951
Bradespar ..................................... 51,200 1,298,573
------------
1,693,524
------------
Telecommunications -- 0.8%
Telemar Norte Leste (*) ....................... 8,800 250,183
------------
Utilities -- 2.9%
Cia Energetica de Sao Paulo ................... 31,200 489,513
Eletropaulo Metropolitana Eletricidade
de Sao Paulo ................................ 20,160 350,784
------------
840,297
------------
TOTAL BRAZIL .................................... 4,917,211
------------
TOTAL PREFERRED STOCK
(Cost $4,582,331) ............................. 4,917,211
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
22
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL MID CAP ETF
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
----------- ------------
CORPORATE OBLIGATION -- 0.3%
0Marfrig Alimentos, Convertible (1,2)
1.04%, 07/15/15
(Cost $70,659) ........................ $ 12 $ 71,750
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $26,639,832) ......................... $ 29,233,536
============
PERCENTAGES ARE BASED ON NET ASSETS OF $29,242,121.
* Non-income producing security.
(1) Security is fair valued using methods determined in good faith by the Fair
Value Committee of the Fund. The total value of such security as of October
31 2010, was $71,750 and represents 0.3% of net assets.
(2) Securities considered illiquid. The total value of such securities as of
October 31, 2010 was $71,750 and represented 0.3% of net assets
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ --------- --------- ------------
Common Stock $ 24,244,575 $ -- $ -- $ 24,244,575
Preferred Stock 4,917,211 -- -- 4,917,211
Corporate Obligation -- -- 71,750 71,750
------------ --------- --------- ------------
Total Investments in Securities $ 29,161,786 $ -- $ 71,750 $ 29,233,536
============ ========= ========= ============
Investments in Corporate
Obligations
------------------------
Beginning balance as of June 21, 2010 $ --
Accrued discounts/premiums --
Realized gain/(loss) --
Change in unrealized appreciation/(depreciation) 1,091
Net purchases 70,659
Net sales --
Net transfer in Level 3 --
Net transfer out of Level 3 --
----------
Ending balance as of October 31, 2010 $ 71,750
==========
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL FINANCIALS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTING (UNAUDITED)+:
[BAR GRAPH OMITTED]
99.7% Financials
0.3% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
------ ----------
COMMON STOCK -- 93.7%
BRAZIL-- 93.7%
Financials -- 93.7%
Banco Bradesco ADR ................................. 39,600 $ 823,680
Banco da Amazonia .................................. 453,600 157,853
Banco do Brasil .................................... 40,950 795,136
Banco Santander Brasil ADR ......................... 26,910 387,504
BM&F Bovespa ....................................... 41,670 348,520
BR Malls Participacoes ............................. 43,560 410,318
Brasil Brokers Participacoes ....................... 25,200 139,571
Brookfield Incorporacoes ........................... 30,600 165,508
CETIP - Balcao Organizado de Ativos e Derivativos .. 30,825 328,177
Cielo .............................................. 32,805 283,469
Cyrela Brazil Realty Empreendimentos e Participacoes 25,560 352,479
Even Construtora e Incorporadora ................... 18,450 103,818
Iguatemi Empresa de Shopping Centers ............... 5,625 131,949
Itau Unibanco Holding ADR .......................... 31,680 778,061
MRV Engenharia e Participacoes ..................... 42,750 417,313
Multiplan Empreendimentos Imobiliarios ............. 10,530 245,269
PDG Realty Empreendimentos e Participacoes ......... 32,940 408,981
Porto Seguro ....................................... 25,650 375,355
Redecard ........................................... 18,360 238,136
Rossi Residencial .................................. 24,300 238,930
Sul America ........................................ 17,280 203,744
----------
TOTAL BRAZIL ......................................... 7,333,771
----------
TOTAL COMMON STOCK
(Cost $6,873,882) .................................. 7,333,771
----------
PREFERRED STOCK -- 5.9%
BRAZIL-- 5.9%
Financials -- 5.9%
Banco ABC Brasil ................................... 7,380 68,124
Banco do Estado do Rio Grande do Sul ............... 24,570 269,554
Banco Industrial e Comercial ....................... 9,360 87,008
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
24
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL FINANCIALS ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
----------- ----------
PREFERRED STOCK -- continued
Financials -- continued
Banco Panamericano ............................ 7,470 $ 33,442
-----------
TOTAL BRAZIL .................................... 458,128
-----------
TOTAL PREFERRED STOCK
(Cost $422,607) ............................... 458,128
-----------
TIME DEPOSIT -- 0.3%
Brown Brothers, 0.031%
(Cost $21,192) .............................. $ 21,192 21,192
-----------
TOTAL INVESTMENTS -- 99.9%
(Cost $7,317,681) ............................. $ 7,813,091
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $7,829,337.
ADR -- AMERICAN DEPOSITARY RECEIPT
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
----------- --------- ------- -----------
Common Stock $ 7,333,771 $ -- $ -- $ 7,333,771
Preferred Stock 458,128 -- -- 458,128
Time Deposit -- 21,192 -- 21,192
----------- --------- ------- -----------
Total Investments in Securities $ 7,791,899 $ 21,192 $ -- $ 7,813,091
=========== ========= ======= ===========
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL CONSUMER ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
52.8% Consumer Goods
47.2% Consumer Services
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 87.3%
BRAZIL-- 87.3%
Consumer Goods -- 46.1%
BRF - Brasil Foods ADR .......................... 69,757 $ 1,020,545
Cia Hering ...................................... 28,660 1,415,588
Cosan, Cl A ..................................... 77,447 1,018,428
Cosan Industria e Comercio ...................... 60,150 958,270
Gafisa ADR ...................................... 74,922 1,257,940
Hypermarcas (*) ................................. 61,400 1,017,660
JBS ............................................. 207,800 801,588
M Dias Branco ................................... 11,515 292,052
Marfrig Alimentos ............................... 82,650 739,043
Natura Cosmeticos ............................... 40,075 1,148,782
Sao Martinho .................................... 24,400 293,451
SLC Agricola .................................... 28,775 356,420
Souza Cruz ...................................... 22,580 1,184,671
------------
11,504,438
------------
Consumer Services -- 41.2%
Anhanguera Educacional Participacoes ............ 57,575 1,127,457
B2W Cia Global Do Varejo ........................ 29,040 529,106
Companhia Brasileira de Distribuicao Grupo
Pao de Acucar ADR ............................. 28,454 1,127,063
Drogasil ........................................ 18,655 481,835
Gol Linhas Aereas Inteligentes ADR .............. 62,790 1,107,616
Localiza Rent a Car ............................. 60,100 997,885
Lojas Renner .................................... 34,810 1,385,091
Marisa Lojas .................................... 29,280 473,205
Multiplus ....................................... 80,200 1,348,177
NET Servicos de Comunicacao ADR (*) ............. 36,950 495,499
TAM ADR ......................................... 48,609 1,199,184
------------
10,272,118
------------
TOTAL BRAZIL ...................................... 21,776,556
------------
TOTAL COMMON STOCK
(Cost $19,904,813) .............................. 21,776,556
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
26
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X BRAZIL CONSUMER ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
----------- -----------
PREFERRED STOCK -- 12.7%
BRAZIL-- 12.7%
Consumer Goods -- 6.6%
Cia de Bebidas das Americas ADR ................. 9,387 $ 1,307,046
Sao Paulo Alpargatas ............................ 55,050 339,314
-----------
1,646,360
-----------
Consumer Services -- 6.1%
Lojas Americanas ................................ 122,650 1,315,916
Saraiva Livreiros Editores ...................... 9,760 212,654
-----------
1,528,570
-----------
TOTAL BRAZIL ...................................... 3,174,930
-----------
TOTAL PREFERRED STOCK
(Cost $2,736,528) ............................... 3,174,930
-----------
CORPORATE OBLIGATION -- 0.2%
Marfrig Alimentos, Convertible (1,2)
1.04%, 07/15/15
(Cost $35,152) ............................. $ 6 35,852
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $22,676,493) .............................. $24,987,338
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $24,934,269.
* Non-income producing security.
(1) Security is fair valued using methods determined in good faith by the Fair
Value Committee of the Fund. The total value of such security as of October
31 2010 was $35,852 and represents 0.2% of net assets.
(2) Securities considered illiquid. The total value of such securities as of
October 31, 2010 was $35,852 and represented 0.2% of Net Assets
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ ---------- --------- ------------
Common Stock $ 21,776,556 $ -- $ -- $ 21,776,556
Preferred Stock 3,174,930 -- -- 3,174,930
Corporate Obligation -- -- 35,852 35,852
------------ ---------- --------- ------------
Total Investments in Securities $ 24,951,486 $ -- $ 35,852 $ 24,987,338
============ ========== ========= ============
Investments in Corporate
Obligations
------------------------
Beginning balance as of July 7, 2010 $ --
Accrued discounts/premiums --
Realized gain/(loss) --
Change in unrealized appreciation/(depreciation) 700
Net purchases 35,152
Net sales --
Net transfer in and/or out of Level 3 --
---------
Ending balance as of October 31, 2010 $ 35,852
=========
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
40.0% Financials
33.1% Oil & Gas
9.0% Industrials
7.8% Utilities
4.6% Consumer Goods
4.4% Consumer Services
0.6% Short-Term Investments
0.5% Telecommunications
+ Percentages based on total investments.
SHARES VALUE
--------- ------------
COMMON STOCK -- 99.9%
COLOMBIA-- 99.9%
Consumer Goods -- 4.6%
Grupo Nacional de Chocolates .................. 582,413 $ 8,596,737
Textiles Fabricato Tejicondor (*) ............. 33,549,557 476,869
------------
9,073,606
------------
Consumer Services -- 4.4%
Almacenes Exito ............................... 661,847 8,683,757
------------
Financials -- 40.2%
BanColombia ADR ............................... 580,699 39,168,147
Bolsa de Valores de Colombia .................. 102,183,484 2,524,980
Cia Colombiana de Inversiones ................. 2,363,190 8,449,192
Financiera Colombiana ......................... 454,807 8,448,689
Grupo Aval Acciones y Valores ................. 11,828,195 9,634,819
Grupo de Inversiones Suramericana ............. 407,813 9,140,790
Helm Bank ..................................... 3,130,916 818,160
Interbolsa .................................... 559,122 803,898
------------
78,988,675
------------
Industrials -- 9.1%
Cementos Argos ................................ 1,235,448 8,577,624
Inversiones Argos ............................. 716,197 8,613,784
Tableros y Maderas de Caldas .................. 105,578,704 573,722
------------
17,765,130
------------
Oil & Gas -- 33.3%
Ecopetrol ADR ................................. 869,494 41,509,644
Pacific Rubiales Energy CAD(*) ................ 547,729 17,476,366
Pacific Rubiales Energy COP(*) ................ 30,089 954,058
Pacific Rubiales Energy USD(*) ................ 44,894 1,427,629
Sociedad de Inversiones en Energia ............ 503,012 4,014,856
------------
65,382,553
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
28
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X /INTERBOLSA FTSE COLOMBIA 20 ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
----------- -------------
COMMON STOCK -- continued
Telecommunications -- 0.5%
Empresa de Telecomunicaciones de Bogota (*) .... 2,317,881 $ 937,695
-------------
Utilities -- 7.8%
Interconexion Electrica ........................ 1,139,101 9,091,884
Isagen ......................................... 4,473,808 6,297,866
-------------
15,389,750
-------------
TOTAL COLOMBIA ................................... 196,221,166
-------------
TOTAL COMMON STOCK
(Cost $174,289,129) ............................ 196,221,166
-------------
TIME DEPOSIT -- 0.6%
Brown Brothers, 0.031%
(Cost $1,101,675) ............................ $ 1,101,675 1,101,675
-------------
TOTAL INVESTMENTS -- 100.5%
(Cost $175,390,804) ............................ $ 197,322,841
=============
PERCENTAGES ARE BASED ON NET ASSETS OF $196,354,919.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CAD -- CANADIAN DOLLAR
COP -- COLOMBIAN PESO
USD -- UNITED STATES DOLLAR
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------- ------------ ----------- -------------
Common Stock $ 196,221,166 $ -- $ -- $ 196,221,166
Time Deposit -- 1,101,675 -- 1,101,675
------------- ------------ ----------- -------------
Total Investments in Securities $ 196,221,166 $ 1,101,675 $ -- $ 197,322,841
============= ============ =========== =============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X FTSE NORDIC 30 ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
29.0% Financials
16.1% Industrials
12.6% Technology
9.9% Health Care
8.2% Oil & Gas
6.3% Consumer Goods
6.0% Telecommunications
5.3% Basic Materials
3.9% Consumer Services
2.4% Utilities
0.3% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
------ -----------
COMMON STOCK -- 100.0%
DENMARK-- 20.0%
Consumer Goods -- 2.6%
Carlsberg, Cl B ................................... 3,000 $ 328,059
-----------
Financials -- 3.6%
Danske Bank ....................................... 17,200 457,378
-----------
Health Care -- 9.9%
Novo Nordisk ADR .................................. 11,939 1,251,207
-----------
Industrials -- 2.7%
A P Moller - Maersk, Cl B ......................... 40 347,093
-----------
Oil & Gas -- 1.2%
Vestas Wind Systems (*) ........................... 4,880 155,721
-----------
TOTAL DENMARK ....................................... 2,539,458
-----------
FINLAND-- 15.1%
Basic Materials -- 1.7%
UPM-Kymmene ....................................... 12,850 213,690
-----------
Financials -- 3.0%
Sampo, Cl A ....................................... 13,618 381,478
-----------
Industrials -- 1.7%
Kone, Cl B ........................................ 3,940 211,091
-----------
Technology -- 6.3%
Nokia ADR ......................................... 74,850 799,398
-----------
Utilities -- 2.4%
Fortum ............................................ 10,850 307,563
-----------
TOTAL FINLAND ....................................... 1,913,220
-----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
30
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X FTSE NORDIC 30 ETF
- --------------------------------------------------------------------------------
SHARE VALUE
----- -----------
COMMON STOCK -- continued
NORWAY-- 18.3%
Basic Materials -- 3.7%
Norsk Hydro ...................................... 29,559 $ 180,273
Yara International ............................... 5,500 288,100
-----------
468,373
-----------
Consumer Goods -- 1.9%
Orkla ............................................ 24,700 238,183
-----------
Financials -- 3.2%
DnB .............................................. 29,575 404,400
-----------
Oil & Gas -- 7.0%
Seadrill ......................................... 7,517 226,792
Statoil ADR ...................................... 30,248 660,314
-----------
887,106
-----------
Telecommunications -- 2.5%
Telenor .......................................... 19,800 318,051
-----------
TOTAL NORWAY ....................................... 2,316,113
-----------
SWEDEN-- 46.6%
Consumer Goods -- 1.8%
Svenska Cellulosa, Cl B .......................... 14,900 230,528
-----------
Consumer Services -- 3.9%
Hennes & Mauritz, Cl B ........................... 14,172 498,214
-----------
Financials -- 19.2%
Investor, Cl B ................................... 11,400 233,411
Nordea Bank ...................................... 98,000 1,076,432
Skandinaviska Enskilda Banken, Cl A .............. 50,200 387,965
Svenska Handelsbanken, Cl A ...................... 15,300 499,025
Swedbank * ....................................... 16,977 236,422
-----------
2,433,255
-----------
Industrials -- 11.8%
Atlas Copco, Cl A ................................ 15,900 331,482
Sandvik .......................................... 29,400 442,135
SKF, Cl B ........................................ 10,300 265,341
Volvo, Cl B * .................................... 34,200 461,969
-----------
1,500,927
-----------
Technology -- 6.3%
Ericsson ADR ..................................... 73,100 803,369
-----------
Telecommunications -- 3.6%
TeliaSonera ...................................... 54,000 449,590
-----------
TOTAL SWEDEN ....................................... 5,915,883
-----------
TOTAL COMMON STOCK
(Cost $11,126,807) ............................... 12,684,674
-----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
31
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X FTSE NORDIC 30 ETF
- --------------------------------------------------------------------------------
FACE AMOUNT VALUE
----------- ------------
TIME DEPOSIT -- 0.3%
Brown Brothers, 0.031%
(Cost $34,696) .............................. $ 34,696 $ 34,696
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $11,161,503) ............................ $ 12,719,370
============
PERCENTAGES ARE BASED ON NET ASSETS OF $12,683,474.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ --------- ----------- --------------
Common Stock $ 12,684,674 $ -- $ -- $ 12,684,674
Time Deposit -- 34,696 -- 34,696
------------ --------- ----------- --------------
Total Investments in Securities $ 12,684,674 $ 34,696 $ -- $ 12,719,370
============ ========= =========== ==============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
32
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA CONSUMER ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
50.5% Consumer Goods
43.0% Consumer Services
6.5% Health Care
0.0% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
------ -----------
COMMON STOCK -- 100.0%
CHINA-- 78.9%
Consumer Goods -- 39.0%
361 Degrees International ..................... 1,896,200 $ 1,837,147
Anta Sports Products .......................... 2,318,000 4,784,684
AviChina Industry & Technology, Cl H (*) ...... 5,178,000 2,798,955
BaWang International Group Holding ............ 2,646,000 1,112,826
China Huiyuan Juice Group ..................... 1,376,500 923,420
China Yurun Food Group ........................ 2,320,687 9,026,591
Dongfeng Motor Group, Cl H .................... 4,935,900 10,697,825
Great Wall Motor, Cl H ........................ 1,255,600 3,944,302
Li Ning ....................................... 1,839,719 5,245,219
Shenzhou International Group Holdings ......... 1,135,200 1,318,059
Tingyi Cayman Islands Holding ................. 2,890,920 7,869,341
Tsingtao Brewery, Cl H ........................ 1,134,947 6,069,040
Uni-President China Holdings .................. 3,061,600 2,180,256
Want Want China Holdings ...................... 9,478,100 8,742,732
Zhongpin (*) .................................. 77,106 1,559,083
-----------
68,109,480
-----------
Consumer Services -- 33.4%
Air China, Cl H ............................... 6,279,000 8,440,692
AirMedia Group ADR (*) ........................ 206,400 1,426,224
Ajisen China Holdings ......................... 1,221,200 2,196,188
China Southern Airlines, Cl H (*) ............. 4,281,522 2,910,909
Focus Media Holding ADR (*) ................... 190,900 4,724,775
Golden Eagle Retail Group ..................... 1,909,200 5,073,860
Home Inns & Hotels Management ADR (*) ......... 80,870 4,137,309
Intime Department Store Group ................. 3,113,200 4,771,373
New Oriental Education & Technology Group
ADR (*) ..................................... 74,120 7,958,264
Parkson Retail Group .......................... 4,146,000 7,498,893
PCD Stores .................................... 7,534,444 2,430,027
Peak Sport Products ........................... 2,631,600 2,098,110
Shanghai Jin Jiang International Hotels Group,
Cl H ........................................ 3,887,200 972,878
VisionChina Media ADR (*) ..................... 146,050 609,028
Wumart Stores, Cl H ........................... 1,341,600 3,150,027
-----------
58,398,557
-----------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA CONSUMER ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
---------- -------------
COMMON STOCK -- continued
Health Care -- 6.5%
Shandong Weigao Group Medical Polymer, Cl H .. 1,996,060 $ 5,291,823
Sinopharm Group, Cl H ........................ 1,548,000 6,081,043
-------------
11,372,866
-------------
TOTAL CHINA ..................................... 137,880,903
-------------
HONG KONG-- 21.1%
Consumer Goods -- 11.6%
Bosideng International Holdings .............. 6,725,200 3,401,035
China Agri-Industries Holdings ............... 4,180,161 6,083,058
China Foods .................................. 2,304,800 1,914,869
Guangzhou Automobile Group, Cl H ............. 5,829,514 8,874,302
-------------
20,273,264
-------------
Consumer Services -- 9.5%
China Dongxiang Group ........................ 8,100,764 4,535,609
China Resources Enterprise ................... 2,045,643 8,642,930
China Travel International Inv HK * .......... 8,669,400 2,069,096
New World Department Store China ............. 1,494,900 1,388,559
-------------
16,636,194
-------------
TOTAL HONG KONG ................................. 36,909,458
-------------
TOTAL COMMON STOCK
(Cost $153,554,971) .......................... 174,790,361
-------------
TIME DEPOSIT -- 0.0%
Brown Brothers, 0.031%
(Cost $50,636) ............................. $ 50,636 50,636
-------------
TOTAL INVESTMENTS -- 100.0%
(Cost $153,605,607) .......................... $ 174,840,997
=============
PERCENTAGES ARE BASED ON NET ASSETS OF $174,875,063.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
INVESTMENTS IN SECURITIES LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------- -------- --------- -------------
Common Stock $ 174,790,361 $ -- $ -- $ 174,790,361
Time Deposit -- 50,636 -- 50,636
------------- -------- --------- -------------
Total Investments in Securities $ 174,790,361 $ 50,636 $ -- $ 174,840,997
============= ======== ========= =============
There have been no significant transfers between Level 1 & Level 2.
The accompanying notes are an integral part of the financial statements.
34
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA ENERGY ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
83.8% Energy
16.0% Utilities
0.2% Short-Term Investments
+ Percentages based on total investments.
SHARES VALUE
------ -----------
COMMON STOCK -- 100.0%
CHINA-- 69.2%
Energy -- 60.6%
China Coal Energy, Cl H ......................... 135,000 $ 233,377
China Longyuan Power Group, Cl H (*) ............ 144,655 150,601
China Oilfield Services, Cl H ................... 107,043 173,723
China Petroleum & Chemical, Cl H ................ 557,400 525,659
China Shenhua Energy, Cl H ...................... 96,800 430,838
Honghua Group * ................................. 113,400 17,117
JA Solar Holdings ADR (*) ....................... 10,750 89,763
LDK Solar ADR (*) ............................... 8,475 96,361
PetroChina, Cl H ................................ 386,000 471,084
Renesola ADR (*) ................................ 4,775 57,156
Solarfun Power Holdings ADR (*) ................. 3,724 38,022
Suntech Power Holdings ADR (*) .................. 8,140 69,109
Tianneng Power International .................... 69,000 30,978
Trina Solar ADR (*) ............................. 6,040 161,630
Yanzhou Coal Mining, Cl H ....................... 84,204 242,247
Yingli Green Energy Holding ADR (*) ............. 6,225 72,583
-----------
2,860,248
-----------
Utilities -- 8.6%
Datang International Power Generation, Cl H ..... 217,069 87,372
ENN Energy Holdings ............................. 57,712 155,442
Huadian Power International, Cl H ............... 149,400 34,308
Huaneng Power International, Cl H ............... 224,123 128,088
-----------
405,210
-----------
TOTAL CHINA ....................................... 3,265,458
-----------
HONG KONG-- 30.8%
Energy -- 23.3%
Beijing Enterprises Holdings .................... 31,800 217,637
CNOOC ........................................... 263,400 545,734
Fushan International Energy Group ............... 210,609 141,286
Kunlun Energy ................................... 155,341 197,598
-----------
1,102,255
-----------
Utilities -- 7.5%
China Power International Development ........... 183,600 41,687
China Resources Power Holdings .................. 92,400 177,853
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA ENERGY ETF
- --------------------------------------------------------------------------------
SHARES/FACE
AMOUNT VALUE
--------------- ------------
COMMON STOCK -- continued
Utilities -- continued
GCL Poly Energy Holdings * ................... 418,657 $ 132,866
-----------
352,406
-----------
TOTAL HONG KONG ................................ 1,454,661
-----------
TOTAL COMMON STOCK
(Cost $4,505,984) ............................ 4,720,119
-----------
TIME DEPOSIT -- 0.2%
Brown Brothers, 0.031%
(Cost $7,123) .............................. $ 7,123 7,123
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $4,513,107) ............................ $ 4,727,242
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $4,717,314.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
----------- ---------- --------- -----------
Common Stock $ 4,720,119 $ -- $ -- $ 4,720,119
Time Deposit -- 7,123 -- 7,123
----------- ---------- --------- -----------
Total Investments in Securities $ 4,720,119 $ 7,123 $ -- $ 4,727,242
=========== ========== ========= ===========
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
36
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA FINANCIALS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
100.0% Financials
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 99.8%
CHINA-- 85.1%
Financials -- 85.1%
Agile Property Holdings ....................... 771,900 $ 1,015,737
Bank of China, Cl H ........................... 12,564,153 7,520,921
Bank of Communications, Cl H .................. 2,825,427 3,087,361
China Citic Bank, Cl H ........................ 4,590,079 3,333,868
China Construction Bank, Cl H ................. 7,946,439 7,575,945
China Life Insurance, Cl H .................... 1,379,431 6,041,707
China Merchants Bank, Cl H .................... 1,243,433 3,529,108
China Minsheng Banking, Cl H .................. 594,190 552,689
China Pacific Insurance Group, Cl H ........... 720,792 2,989,584
CNinsure ADR .................................. 25,690 660,233
Country Garden Holdings ....................... 1,972,057 697,092
E-House China Holdings ADR .................... 26,050 435,295
Evergrande Real Estate Group .................. 2,610,558 1,108,024
Greentown China Holdings ...................... 333,692 386,582
Guangzhou R&F Properties ...................... 538,355 768,146
Industrial & Commercial Bank of China, Cl H ... 8,816,833 7,097,690
Longfor Properties ............................ 706,223 840,937
PICC Property & Casualty, Cl H (*) ............ 1,916,611 2,828,654
Ping An Insurance Group of China, Cl H ........ 337,866 3,637,397
Renhe Commercial Holdings ..................... 4,988,163 952,406
Shimao Property Holdings ...................... 826,892 1,367,592
Shui On Land .................................. 1,455,157 730,263
Sino-Ocean Land Holdings ...................... 2,390,350 1,646,731
Soho China .................................... 1,050,674 893,250
------------
TOTAL CHINA ..................................... 59,697,212
------------
HONG KONG-- 14.7%
Financials -- 14.7%
China Everbright .............................. 400,722 1,041,689
China Overseas Land & Investment .............. 1,523,310 3,203,286
China Resources Land .......................... 1,046,429 2,062,780
China Taiping Insurance Holdings (*) .......... 427,730 1,572,658
Franshion Properties China .................... 1,484,979 480,855
Hopson Development Holdings ................... 342,496 383,085
KWG Property Holding .......................... 667,262 528,548
Poly Hong Kong Investments .................... 639,659 658,524
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
37
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA FINANCIALS ETF
- --------------------------------------------------------------------------------
SHARES VALUE
-------- ------------
COMMON STOCK -- continued
Financials -- continued
Shenzhen Investment ............................ 1,067,862 $ 382,983
------------
TOTAL HONG KONG .................................. 10,314,408
------------
TOTAL COMMON STOCK
(Cost $67,004,786) ............................. 70,011,620
------------
TOTAL INVESTMENTS -- 99.8%
(Cost $67,004,786) ............................. $ 70,011,620
============
PERCENTAGES ARE BASED ON NET ASSETS OF $70,158,407.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ --------- --------- -------------
Common Stock $ 70,011,620 $ -- $ -- $ 70,011,620
------------ --------- --------- -------------
Total Investments in Securities $ 70,011,620 $ -- $ -- $ 70,011,620
============ ========= ========= =============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
38
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA INDUSTRIALS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
100.0% Industrials
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 100.0%
CHINA-- 83.6%
Industrials -- 83.6%
Anhui Conch Cement, Cl H ........................ 161,200 $ 675,878
A-Power Energy Generation Systems (*) ........... 8,780 62,689
Asia Cement China Holdings ...................... 142,500 65,262
BBMG ............................................ 302,410 429,930
Byd, Cl H ....................................... 60,400 368,179
China Communications Construction, Cl H ......... 558,592 533,990
China COSCO Holdings, Cl H ...................... 406,356 473,909
China National Building Material, Cl H .......... 350,906 855,603
China National Materials ........................ 312,953 278,983
China Railway Construction, Cl H ................ 405,000 506,289
China Railway Group, Cl H ....................... 783,100 631,418
China Shanshui Cement Group ..................... 512,467 364,943
China Shipping Container Lines, Cl H (*) ........ 980,870 398,604
China Shipping Development, Cl H ................ 350,075 509,437
CSR Corp ........................................ 497,481 506,376
Dongfang Electric, Cl H ......................... 86,104 418,779
Duoyuan Global Water ADR (*) .................... 6,340 79,313
Guangshen Railway, Cl H ......................... 389,154 157,140
Harbin Electric (*) ............................. 5,140 110,818
Harbin Power Equipment, Cl H .................... 166,895 224,783
Metallurgical Corp of China, Cl H (*) ........... 807,000 390,413
Sany Heavy Equipment International Holdings ..... 161,792 231,686
Shanghai Electric Group, Cl H ................... 759,418 508,473
Sinotrans, Cl H ................................. 415,609 112,060
Sinotruk Hong Kong .............................. 178,806 205,994
Weichai Power, Cl H ............................. 49,545 650,680
Yangzijiang Shipbuilding Holdings ............... 447,376 646,417
Zhuzhou CSR Times Electric, Cl H ................ 114,447 349,185
------------
TOTAL CHINA ...................................... 10,747,231
------------
HONG KONG-- 16.4%
Industrials -- 16.4%
Beijing Capital International Airport, Cl H ..... 397,811 219,655
China High Speed Transmission Equipment Group ... 210,276 429,699
China Resources Cement Holdings (*) ............. 466,362 329,703
Citic Resources Holdings (*) .................... 566,208 144,631
Shanghai Industrial Holdings .................... 121,631 560,186
Shenzhen International Holdings ................. 1,855,046 145,984
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
39
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA INDUSTRIALS ETF
- --------------------------------------------------------------------------------
SHARES VALUE
-------- -------------
COMMON STOCK -- continued
Industrials -- continued
Sinotrans Shipping .............................. 347,450 $ 140,299
Tianjin Development Holdings * .................. 168,000 129,608
------------
TOTAL HONG KONG ................................... 2,099,765
------------
TOTAL COMMON STOCK
(Cost $12,307,366) .............................. 12,846,996
------------
TOTAL INVESTMENTS -- 100.0%
(Cost $12,307,366) .............................. $ 12,846,996
============
PERCENTAGES ARE BASED ON NET ASSETS OF $12,850,150.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ ---------- --------- ------------
Common Stock $ 12,846,996 $ -- $ -- $ 12,846,996
------------ ---------- --------- ------------
Total Investments in Securities $ 12,846,996 $ -- $ -- $ 12,846,996
============ ========== ========= ============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA TECHNOLOGY ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
86.1% Techhnology
13.9% Telecommunications
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 100.1%
CHINA-- 91.4%
Technology -- 81.5%
AAC Acoustic Technologies Holdings .............. 79,000 $ 190,381
Alibaba.com (*) ................................. 96,567 188,614
AsiaInfo Holdings (*) ........................... 4,350 96,657
Baidu ADR (*) ................................... 2,670 293,727
BYD Electronic International .................... 94,000 49,599
China Communications Services, Cl H ............. 223,000 130,036
Ctrip.com International ADR (*) ................. 5,070 263,995
Foxconn International Holdings (*) .............. 182,000 134,304
Giant Interactive Group ADR ..................... 23,700 168,270
Kingdee International Software Group ............ 173,000 91,283
Kingsoft ........................................ 58,000 29,332
Lenovo Group .................................... 289,500 187,487
Netease.com ADR (*) ............................. 5,190 216,942
Perfect World ADR (*) ........................... 4,600 149,040
Semiconductor Manufacturing International (*) ... 1,925,000 161,422
Shanda Interactive Entertainment ADR (*) ........ 4,100 165,681
Sina (*) ........................................ 4,460 251,098
Sohu.com (*) .................................... 3,340 248,830
Tencent Holdings ................................ 9,450 216,396
VanceInfo Technologies ADR (*) .................. 3,241 117,875
ZTE, Cl H ....................................... 41,400 153,820
------------
3,504,789
------------
Telecommunications -- 9.9%
China Telecom, Cl H ............................. 363,000 187,789
China Unicom Hong Kong .......................... 149,904 213,116
KongZhong ADR (*) ............................... 3,480 25,752
------------
426,657
------------
TOTAL CHINA ....................................... 3,931,446
------------
HONG KONG-- 8.7%
Technology -- 4.7%
Longtop Financial Technologies ADR (*) .......... 5,485 199,325
------------
Telecommunications -- 4.0%
China Mobile .................................... 17,000 173,149
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA TECHNOLOGY ETF
- --------------------------------------------------------------------------------
VALUE
-----------
COMMON STOCK -- continued
TOTAL HONG KONG ................................... $ 372,474
-----------
TOTAL COMMON STOCK
(Cost $3,810,056) ............................... 4,303,920
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $3,810,056) ............................... $ 4,303,920
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $4,301,280.
* Non-income producing security.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
----------- --------- -------- ------------
Common Stock $ 4,303,920 $ -- $ -- $ 4,303,920
----------- --------- -------- ------------
Total Investments in Securities $ 4,303,920 $ -- $ -- $ 4,303,920
=========== ========= ======== ============
There have been no significant transfers between Level 1 & Level 2.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
42
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA MATERIALS ETF
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS (UNAUDITED)+:
[BAR GRAPH OMITTED]
100.0% Basic Materials
+ Percentages based on total investments.
SHARES VALUE
-------- ------------
COMMON STOCK -- 100.1%
CHINA-- 78.2%
Basic Materials -- 78.2%
Aluminum Corp of China, Cl H * .................. 2,346,300 $ 2,227,826
Angang Steel, Cl H .............................. 1,460,700 2,295,240
China Agritech (*) .............................. 44,240 568,484
China BlueChemical .............................. 4,053,285 3,205,439
China Green Agriculture (*) ..................... 67,150 493,552
China Molybdenum, Cl H .......................... 2,891,314 2,775,160
China Rare Earth Holdings * ..................... 3,790,945 2,063,858
China Vanadium Titano - Magnetite Mining (*) .... 4,241,900 2,205,390
China XLX Fertiliser ............................ 1,533,679 699,174
Chongqing Iron & Steel, Cl H * .................. 1,990,617 559,840
Dongyue Group ................................... 3,554,334 1,563,624
General Steel Holdings (*) ...................... 59,250 175,973
Gulf Resources (*) .............................. 66,280 556,752
Hunan Non-Ferrous Metal, Cl H * ................. 5,798,600 2,588,327
Jiangxi Copper, Cl H ............................ 1,098,100 3,059,958
Maanshan Iron & Steel, Cl H ..................... 4,495,908 2,575,255
Real Gold Mining (*) ............................ 1,209,005 2,152,420
ShengdaTech (*) ................................. 117,400 743,142
Sinopec Shanghai Petrochemical, Cl H ............ 6,478,000 2,908,306
Sinopec Yizheng Chemical Fibre, Cl H (*) ........ 5,482,817 2,044,191
Xinjiang Xinxin Mining Industry, Cl H ........... 2,606,954 1,762,319
Yongye International (*) ........................ 134,350 1,073,456
Zhaojin Mining Industry ......................... 1,248,200 3,880,798
Zijin Mining Group, Cl H ........................ 3,058,149 2,884,004
------------
TOTAL CHINA ....................................... 45,062,488
------------
HONG KONG-- 21.9%
Basic Materials -- 21.9%
Citic Pacific ................................... 1,106,489 2,947,725
Fufeng Group .................................... 2,859,807 2,542,001
Lumena Resources (1,2) .......................... 2,773,555 1,048,393
Shougang Concord International Enterprises * .... 11,067,900 1,856,216
Sinofert Holdings * ............................. 4,566,200 2,415,231
Yingde Gases (*) ................................ 2,115,900 1,815,251
------------
12,624,817
------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
43
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SCHEDULE OF INVESTMENTS OCTOBER 31, 2010
GLOBAL X CHINA MATERIALS ETF
- --------------------------------------------------------------------------------
VALUE
------------
COMMON STOCK -- continued
TOTAL HONG KONG ................................... $ 12,624,817
------------
TOTAL COMMON STOCK
(Cost $46,775,714) .............................. 57,687,305
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $46,775,714) .............................. $ 57,687,305
============
PERCENTAGES ARE BASED ON NET ASSETS OF $57,641,714.
* Non-income producing security.
(1) Security is fair valued using methods determined in good faith by the Fair
Value Committee of the Fund. The total value of such security as of October
31, 2010, was $1,048,393 and represents 1.8% of net assets.
(2) Securities considered illiquid. The total value of such securities as of
October 31, 2010 was $1,048,393 and represented 1.8% of Net Assets.
CL -- CLASS
The following is a summary of the inputs used as of October 31, 2010, in
valuing the Fund's investments carried at value:
Investments in Securities Level 1 Level 2 Level 3 Total
------------ -------- ----------- ------------
Common Stock $ 56,638,912 $ -- $ 1,048,393 $ 57,687,305
------------ -------- ----------- ------------
Total Investments in Securities $ 56,638,912 $ -- $ 1,048,393 $ 57,687,305
============ ======== =========== ============
Investments in Securities
-------------------------
Beginning balance as of January 12, 2010 $ --
Accrued discounts/premiums --
Realized gain/(loss) --
Change in unrealized appreciation/(depreciation) --
Net purchases --
Net sales --
Net transfer in Level 3 1,048,393
Net transfer out of Level 3 --
-----------
Ending balance as of October 31, 2010 $ 1,048,393
===========
For the period ended October 31, 2010, transfers between Level 1 and Level 3
assets and liabilities totaled $1,048,393.
The Level 3 investment presented above was considered a Level 1 investment at
the beginning of the reporting period. The reason for the classification change
was a temporary trading suspension of the investment's shares, which
necessitated a fair value determination by the Fair Value Committee at the end
of the reporting period.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
44
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL X SILVER GLOBAL X GLOBAL X COPPER GLOBAL X BRAZIL
MINERS ETF LITHIUM ETF MINERS ETF MID CAP ETF
-------------- ---------------- --------------- ---------------
ASSETS:
Cost of Investments $ 142,441,642 $ 71,144,283 $ 29,224,577 $ 26,639,832
Cost of Foreign Currency 14,006 1,625,084 4,255 40,154
------------- ------------ ------------ ------------
Investments at Value $ 171,738,823 $ 78,343,822 $ 29,988,469 $ 29,233,536
Foreign Currency at Value 14,192 1,639,069 4,365 40,558
Unrealized Appreciation on Forward
Foreign Currency Contracts -- 701 35 --
Receivable for Capital Shares Sold 4,040,000 2,964,000 1,641,500 --
Dividend and Interest Receivable 2 -- 3,023 10,760
Receivable for Foreign Currency Contracts -- -- -- --
Reclaim Receivable -- -- 112 --
------------- ------------ ------------ ------------
TOTAL ASSETS 175,793,017 82,947,592 31,637,504 29,284,854
------------- ------------ ------------ ------------
LIABILITIES:
Payable for Investment Securities Purchased 4,039,316 2,962,443 1,699,089 --
Payable due to Investment Adviser 81,867 39,487 9,838 14,735
Payable due to Custody -- -- -- --
Payable for Foreign Currency Contracts -- -- -- --
Unrealized Depreciation on Forward
Foreign Currency Contracts -- 14,104 -- --
Due to Custodian -- 1,614,993 -- 27,998
Overdraft of Foreign Currency -- -- -- --
Other Payables -- -- -- --
------------- ------------ ------------ ------------
TOTAL LIABILITIES 4,121,183 4,631,027 1,708,927 42,733
------------- ------------ ------------ ------------
NET ASSETS $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121
============= ============ ============ ============
Proceeds of Foreign Currency $ -- $ -- $ -- $ --
------------- ------------ ------------ ------------
NET ASSETS CONSIST OF:
Paid-in Capital $ 142,150,366 $ 71,062,500 $ 29,170,000 $ 26,555,500
Undistributed Net Investment Income
(Accumulated Net Investment Loss) 221,096 (50,941) 4,749 57,041
Accumulated Net Realized Gain (Loss) on
Investments and Foreign Currency
Translations 3,005 104,884 (10,213) 35,266
Net Unrealized Appreciation on Investments 29,297,181 7,199,539 763,892 2,593,704
Net Unrealized Appreciation (Depreciation)
on Foreign Currency Translations 186 583 149 610
------------- ------------ ------------ ------------
NET ASSETS $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121
============= ============ ============ ============
Outstanding Shares of Beneficial Interest
(unlimited authorization -- no par value) 8,500,000 3,950,000 1,800,000 1,600,000
============= ============ ============ ============
Net Asset Value, Offering and Redemption
Price Per Share $20.20 $19.83 $16.63 $18.28
============= ============ ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
45
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL
GLOBAL X BRAZIL GLOBAL X BRAZIL X/INTERBOLSA FTSE GLOBAL X FTSE GLOBAL X CHINA GLOBAL X CHINA
FINANCIALS ETF CONSUMER ETF COLOMBIA 20 ETF NORDIC 30 ETF CONSUMER ETF ENERGY ETF
--------------- --------------- ----------------- ------------- -------------- -------------
$ 7,317,681 $ 22,676,493 $ 175,390,804 $ 11,161,503 $ 153,605,607 $ 4,513,107
11,404 5,621 -- -- -- --
----------- ------------ ------------- ------------ ------------- -----------
$ 7,813,091 $ 24,987,338 $ 197,322,841 $ 12,719,370 $ 174,840,997 $ 4,727,242
11,469 5,789 -- -- -- --
-- -- -- 6 4 1
864,500 997,500 8,253,900 -- 7,048,500 --
4,473 3,412 91,448 -- 146,189 --
-- -- 1,066,082 -- -- --
-- -- -- 1,854 -- --
----------- ------------ ------------- ------------ ------------- -----------
8,693,533 25,994,039 206,734,271 12,721,230 182,035,690 4,727,243
----------- ------------ ------------- ------------ ------------- -----------
860,091 996,969 8,253,638 -- 7,042,929 --
4,105 13,866 90,899 6,584 88,366 2,642
-- -- 52,277 -- -- --
-- -- 1,067,758 -- -- --
-- -- -- 85 -- --
-- 48,935 -- -- -- --
-- -- 895,512 31,087 29,332 7,287
-- -- 19,268 -- -- --
----------- ------------ ------------- ------------ ------------- -----------
864,196 1,059,770 10,379,352 37,756 7,160,627 9,929
----------- ------------ ------------- ------------ ------------- -----------
$ 7,829,337 $ 24,934,269 $ 196,354,919 $ 12,683,474 $ 174,875,063 $ 4,717,314
=========== ============ ============= ============ ============= ===========
$ -- $ -- $ 895,512 $ 31,547 $ 29,693 $ 7,283
----------- ------------ ------------- ------------ ------------- -----------
$ 7,320,000 $ 22,596,500 $ 174,174,500 $ 11,010,644 $ 153,390,500 $ 4,500,000
13,826 3,670 87,541 127,846 513,701 58,057
(3) 23,090 164,905 (13,283) (265,101) (54,875)
495,410 2,310,845 21,932,037 1,557,867 21,235,390 214,135
104 164 (4,064) 400 573 (3)
----------- ------------ ------------- ------------ ------------- -----------
$ 7,829,337 $ 24,934,269 $ 196,354,919 $ 12,683,474 $ 174,875,063 $ 4,717,314
=========== ============ ============= ============ ============= ===========
450,000 1,250,000 4,270,000 660,000 8,600,000 300,000
=========== ============ ============= ============ ============= ===========
$17.40 $19.95 $45.98 $19.22 $20.33 $15.72
=========== ============ ============= ============ ============= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
46
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA
FINANCIALS ETF INDUSTRIALS ETF TECHNOLOGY ETF MATERIALS ETF
-------------- --------------- -------------- ---------------
ASSETS:
Cost of Investments $ 67,004,786 $ 12,307,366 $ 3,810,056 $ 46,775,714
Cost of Foreign Currency 201,885 5,810 14,334 87,464
------------ ------------ ----------- ------------
Investments at Value $ 70,011,620 $ 12,846,996 $ 4,303,920 $ 57,687,305
Foreign Currency at Value 202,013 6,540 14,373 87,549
Receivable for Foreign Currency Contracts 24,493 -- -- --
Dividend and Interest Receivable 14,106 16,280 -- --
------------ ------------ ----------- ------------
TOTAL ASSETS 70,252,232 12,869,816 4,318,293 57,774,854
------------ ------------ ----------- ------------
LIABILITIES:
Payable due to Investment Adviser 44,838 11,168 2,312 33,512
Payable for Foreign Currency Contracts 24,495 -- -- --
Due to Custodian 24,492 8,449 14,699 99,618
Unrealized Depreciation on Forward Foreign
Currency Contracts -- 49 2 10
------------ ------------ ----------- ------------
TOTAL LIABILITIES 93,825 19,666 17,013 133,140
------------ ------------ ----------- ------------
NET ASSETS $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714
============ ============ =========== ============
NET ASSETS CONSIST OF:
Paid-in Capital $ 67,366,879 $ 12,380,221 $ 3,761,500 $ 46,701,000
Undistributed Net Investment Income 1,177,309 149,709 7,571 44,666
Accumulated Net Realized Gain (Loss) on
Investments and Foreign Currency Translations (1,392,752) (220,120) 38,308 (15,617)
Net Unrealized Appreciation on Investments 3,006,834 539,630 493,864 10,911,591
Net Unrealized Appreciation on Foreign
Currency Translations 137 710 37 74
------------ ------------ ----------- ------------
NET ASSETS $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714
============ ============ =========== ============
Outstanding Shares of Beneficial Interest
(unlimited authorization -- no par value) 4,750,000 750,000 250,000 3,950,000
============ ============ =========== ============
Net Asset Value, Offering and Redemption
Price Per Share $14.77 $17.13 $17.21 $14.59
============ ============ =========== ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
47
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL X GLOBAL X
GLOBAL X COPPER GLOBAL X BRAZIL
GLOBAL X SILVER LITHIUM MINERS BRAZIL MID FINANCIALS
MINERS ETF(1) ETF(2) ETF(1) CAP ETF(3) ETF(4)
--------------- -------- -------- ---------- -----------
INVESTMENT INCOME:
Dividend Income $ 493,392 $ 12,708 $ 17,805 $ 94,914 $ 21,844
Interest Income 63 13 1 8 4
Less: Foreign Taxes Withheld (17,528) -- (1,013) (1,916) (1,122)
------------ ----------- --------- ----------- ---------
TOTAL INVESTMENT INCOME 475,927 12,721 16,793 93,006 20,726
------------ ----------- --------- ----------- ---------
Supervision and Administrations Fees(5) 246,319 72,966 15,452 32,458 8,323
------------ ----------- --------- ----------- ---------
TOTAL EXPENSES 246,319 72,966 15,452 32,458 8,323
------------ ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS) 229,608 (60,245) 1,341 60,548 12,403
------------ ----------- --------- ----------- ---------
NET REALIZED GAIN (LOSS) ON:
Investments 284,871(6) 104,884 (10,213) 33,357 (2)
Foreign Currency Transactions (8,512) 9,304 3,408 (1,598) 1,422
------------ ----------- --------- ----------- ---------
NET REALIZED GAIN (LOSS) ON INVESTMENTS 276,359 114,188 (6,805) 31,759 1,420
------------ ----------- --------- ----------- ---------
NET CHANGE IN UNREALIZED APPRECIATION
Investments 29,297,181 7,199,539 763,892 2,593,704 495,410
Foreign Currency Transactions 186 583 149 610 104
------------ ----------- --------- ----------- ---------
NET CHANGE IN UNREALIZED APPRECIATION
ON INVESTMENTS 29,297,367 7,200,122 764,041 2,594,314 495,514
------------ ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 29,573,726 7,314,310 757,236 2,626,073 496,934
------------ ----------- --------- ----------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 29,803,334 $ 7,254,065 $ 758,577 $ 2,686,621 $ 509,337
============ =========== ========= =========== =========
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010.
(2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010.
(3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010.
(4) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010.
(5) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND
ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE
INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES
TO FINANCIAL STATEMENTS.)
(6) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
48
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL X GLOBAL GLOBAL X
BRAZIL X/INTERBOLSA GLOBAL X GLOBAL X CHINA CHINA
CONSUMER FTSE COLOMBIA FTSE NORDIC CONSUMER ENERGY
ETF(1) 20 ETF 30 ETF ETF(2) ETF(3)
----------- ------------ ----------- ------------ ---------
INVESTMENT INCOME:
Dividend Income $ 30,159 $ 586,088 $ 195,415 $ 842,656 $ 84,877
Interest Income 4 35 4 75 12
Less: Foreign Taxes Withheld (2,863) (57,642) (31,543) (6,286) (6,189)
----------- ------------ ----------- ------------ ---------
TOTAL INVESTMENT INCOME 27,300 528,481 163,876 836,445 78,700
----------- ------------ ----------- ------------ ---------
Supervision and Administrations Fees(4) 24,160 221,067 33,950 323,137 20,854
Custodian Fees -- 58,518 -- -- --
----------- ------------ ----------- ------------ ---------
TOTAL EXPENSES 24,160 279,585 33,950 323,137 20,854
----------- ------------ ----------- ------------ ---------
NET INVESTMENT INCOME 3,140 248,896 129,926 513,308 57,846
----------- ------------ ----------- ------------ ---------
NET REALIZED GAIN (LOSS) ON:
Investments 22,240 192,512 412,160(5) (265,101) (54,875)
Foreign Currency Transactions 1,380 (44,317) (73) 393 211
----------- ------------ ----------- ------------ ---------
NET REALIZED GAIN (LOSS) ON
INVESTMENTS 23,620 148,195 412,087 (264,708) (54,664)
----------- ------------ ----------- ------------ ---------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) ON:
Investments 2,310,845 20,399,073 1,292,671 21,235,390 214,135
Foreign Currency Transactions 164 (6,565) 504 573 (3)
----------- ------------ ----------- ------------ ---------
NET CHANGE IN UNREALIZED
APPRECIATION ON INVESTMENTS 2,311,009 20,392,508 1,293,175 21,235,963 214,132
----------- ------------ ----------- ------------ ---------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 2,334,629 20,540,703 1,705,262 20,971,255 159,468
----------- ------------ ----------- ------------ ---------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,337,769 $ 20,789,599 $ 1,835,188 $ 21,484,563 $ 217,314
=========== ============ =========== ============ =========
(1) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010.
(2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
(3) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009.
(4) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND
ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE
INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES
TO FINANCIAL STATEMENTS.)
(5) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
49
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED OCTOBER 31, 2010
- --------------------------------------------------------------------------------
GLOBAL X GLOBAL X GLOBAL X GLOBAL X
CHINA CHINA CHINA CHINA
FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS
ETF(1) ETF(2) ETF(3) ETF(4)
----------- ----------- ---------- ---------
INVESTMENT INCOME:
Dividend Income $ 1,622,695 $ 291,033 $ 29,563 $ 186,206
Interest Income 16 8 1 10
Less: Foreign Taxes Withheld (108,977) (12,682) (1,857) (7,335)
----------- ----------- --------- ------------
TOTAL INVESTMENT INCOME 1,513,734 278,359 27,707 178,881
----------- ----------- --------- ------------
Supervision and Administrations Fees(5) 338,609 143,352 20,303 132,463
----------- ----------- --------- ------------
TOTAL EXPENSES 338,609 143,352 20,303 132,463
----------- ----------- --------- ------------
NET INVESTMENT INCOME 1,175,125 135,007 7,404 46,418
----------- ----------- --------- ------------
NET REALIZED GAIN (LOSS) ON:
Investments 1,587,627(6) 1,501,101(6) 38,309 (15,617)
Foreign Currency Transactions 2,184 14,702 166 (1,752)
----------- ----------- --------- ------------
NET REALIZED GAIN (LOSS) ON INVESTMENTS 1,589,811 1,515,803 38,475 (17,369)
----------- ----------- --------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
ON:
Investments 3,006,834 539,630 493,864 10,911,591
Foreign Currency Transactions 137 710 37 74
----------- ----------- --------- ------------
NET CHANGE IN UNREALIZED APPRECIATION
ON INVESTMENTS 3,006,971 540,340 493,901 10,911,665
----------- ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS 4,596,782 2,056,143 532,376 10,894,296
----------- ----------- --------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 5,771,907 $ 2,191,150 $ 539,780 $ 10,940,714
=========== =========== ========= ============
(1) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009.
(2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
(3) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009.
(4) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010.
(5) THE SUPERVISION AND ADMINISTRATION FEES REFLECT THE SUPERVISORY AND
ADMINISTRATIVE FEE, WHICH INCLUDES FEES PAID BY THE FUNDS FOR THE
INVESTMENT ADVISORY SERVICES PROVIDED BY THE ADVISER. (SEE NOTE 3 IN NOTES
TO FINANCIAL STATEMENTS.)
(6) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
50
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GLOBAL X
GLOBAL X SILVER GLOBAL X COPPER MINERS GLOBAL X BRAZIL
MINERS ETF LITHIUM ETF ETF MID CAP ETF
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2010(1) 2010(2) 2010(1) 2010(3)
--------------- ------------- ------------- ---------------
OPERATIONS:
Net Investment Income (Loss) $ 229,608 $ (60,245) $ 1,341 $ 60,548
Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions 276,359(4) 114,188 (6,805) 31,759
Net Change in Unrealized Appreciation
(Depreciation) on Investments and Foreign
Currency Transactions 29,297,367 7,200,122 764,041 2,594,314
------------- ------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 29,803,334 7,254,065 758,577 2,686,621
------------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Issued 143,459,000 71,062,500 29,170,000 26,555,500
Redeemed (1,590,500) -- -- --
------------- ------------ ------------ ------------
INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS 141,868,500 71,062,500 29,170,000 26,555,500
------------- ------------ ------------ ------------
TOTAL INCREASE IN NET ASSETS 171,671,834 78,316,565 29,928,577 29,242,121
------------- ------------ ------------ ------------
NET ASSETS:
Beginning of Period -- -- -- --
------------- ------------ ------------ ------------
End of Period $ 171,671,834 $ 78,316,565 $ 29,928,577 $ 29,242,121
============= ============ ============ ============
UNDISTRIBUTED NET INVESTMENT
INCOME/(ACCUMULATED NET INVESTMENT LOSS) $ 221,096 $ (50,941) $ 4,749 $ 57,041
============= ============ ============ ============
SHARE TRANSACTIONS:
Issued 8,600,000 3,950,000 1,800,000 1,600,000
Redeemed (100,000) -- -- --
------------- ------------ ------------ ------------
NET INCREASE IN SHARES OUTSTANDING FROM SHARE
TRANSACTIONS 8,500,000 3,950,000 1,800,000 1,600,000
============= ============ ============ ============
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010.
(2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010.
(3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010.
(4) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
51
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GLOBAL X GLOBAL X
BRAZIL BRAZIL GLOBAL X/INTERBOLSA FTSE
FINANCIALS ETF CONSUMER ETF COLOMBIA 20 ETF
PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, YEAR ENDED OCTOBER 31,
2010(1) 2010(2) OCTOBER 31, 2010 2009(3)
----------- ------------ ---------------- ------------
OPERATIONS:
Net Investment Income $ 12,403 $ 3,140 $ 248,896 $ 68,711
Net Realized Gain on Investments and Foreign
Currency Transactions 1,420 23,620 148,195 51,378
Net Change in Unrealized Appreciation
(Depreciation) on Investments and Foreign
Currency Transactions 495,514 2,311,009 20,392,508 1,535,465
----------- ------------ ------------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 509,337 2,337,769 20,789,599 1,655,554
----------- ------------ ------------- -----------
DIVIDENDS AND DISTRIBUTIONS:
Net Investment Income -- -- (264,734) --
----------- ------------ ------------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS -- -- (264,734) --
----------- ------------ ------------- -----------
CAPITAL SHARE TRANSACTIONS:
Issued 7,320,000 22,596,500 168,870,000 5,304,500
----------- ------------ ------------- -----------
INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS 7,320,000 22,596,500 168,870,000 5,304,500
----------- ------------ ------------- -----------
TOTAL INCREASE IN NET ASSETS 7,829,337 24,934,269 189,394,865 6,960,054
----------- ------------ ------------- -----------
NET ASSETS:
Beginning of Period -- -- 6,960,054 --
----------- ------------ ------------- -----------
End of Period $ 7,829,337 $ 24,934,269 $ 196,354,919 $ 6,960,054
=========== ============ ============= ===========
UNDISTRIBUTED NET INVESTMENT INCOME $ 13,826 $ 3,670 $ 87,541 $ 116,542
=========== ============ ============= ===========
SHARE TRANSACTIONS:
Issued 450,000 1,250,000 4,020,000 250,000
----------- ------------ ------------- -----------
NET INCREASE IN SHARES OUTSTANDING FROM SHARE
TRANSACTIONS 450,000 1,250,000 4,020,000 250,000
=========== ============ ============= ===========
(1) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010.
(2) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010.
(3) THE FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
52
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GLOBAL X
GLOBAL X CHINA CHINA ENERGY
GLOBAL X FTSE NORDIC 30 ETF CONSUMER ETF ETF
YEAR ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2010 2009(1) 2010(2) 2010(3)
------------- ------------- -------------- -------------
OPERATIONS:
Net Investment Income (Loss) $ 129,926 $ (2,689) $ 513,308 $ 57,846
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 412,087(4) 2,840 (264,708) (54,664)
Net Change in Unrealized Appreciation
(Depreciation) on Investments and Foreign
Currency Transactions 1,293,175 265,092 21,235,963 214,132
------------ ----------- ------------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 1,835,188 265,243 21,484,563 217,314
------------ ----------- ------------- -----------
DIVIDENDS AND DISTRIBUTIONS:
Net Investment Income (2,158) -- -- --
------------ ----------- ------------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS (2,158) -- -- --
------------ ----------- ------------- -----------
CAPITAL SHARE TRANSACTIONS:
Issued 9,938,400 3,009,396 153,390,500 4,500,000
Redeemed (2,462,600) -- -- --
------------ ----------- ------------- -----------
INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS 7,475,800 3,009,396 153,390,500 4,500,000
------------ ----------- ------------- -----------
TOTAL INCREASE IN NET ASSETS 9,308,830 3,274,639 174,875,063 4,717,314
------------ ----------- ------------- -----------
NET ASSETS:
Beginning of Period 3,374,644 100,005 -- --
------------ ----------- ------------- -----------
End of Period $ 12,683,474 $ 3,374,644 $ 174,875,063 $ 4,717,314
============ =========== ============= ===========
UNDISTRIBUTED NET INVESTMENT
INCOME/(ACCUMULATED NET INVESTMENT LOSS) $ 127,846 $ (2,006) $ 513,701 $ 58,057
============ =========== ============= ===========
SHARE TRANSACTIONS:
Issued 590,000 210,000 8,600,000 300,000
Redeemed (140,000) -- -- --
------------ ----------- ------------- -----------
NET INCREASE IN SHARES OUTSTANDING FROM SHARE
TRANSACTIONS 450,000 210,000 8,600,000 300,000
============ =========== ============= ===========
(1) THE FUND COMMENCED OPERATIONS ON AUGUST 17, 2009.
(2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
(3) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009.
(4) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
The accompanying notes are an integral part of the financial statements.
53
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
GLOBAL X
CHINA
GLOBAL X CHINA GLOBAL X CHINA TECHNOLOGY GLOBAL X CHINA
FINANCIALS ETF INDUSTRIALS ETF ETF MATERIALS ETF
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2010(1) 2010(2) 2010(3) 2010(4)
--------------- --------------- ------------- --------------
OPERATIONS:
Net Investment Income $ 1,175,125 $ 135,007 $ 7,404 $ 46,418
Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions 1,589,811(5) 1,515,803(5) 38,475 (17,369)
Net Change in Unrealized Appreciation
(Depreciation) on Investments and Foreign
Currency Transactions 3,006,971 540,340 493,901 10,911,665
------------ ------------ ----------- ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 5,771,907 2,191,150 539,780 10,940,714
------------ ------------ ----------- ------------
CAPITAL SHARE TRANSACTIONS:
Issued 82,874,000 27,227,000 3,761,500 46,701,000
Redeemed (18,487,500) (16,568,000) -- --
------------ ------------ ----------- ------------
INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS 64,386,500 10,659,000 3,761,500 46,701,000
------------ ------------ ----------- ------------
TOTAL INCREASE IN NET ASSETS 70,158,407 12,850,150 4,301,280 57,641,714
------------ ------------ ----------- ------------
NET ASSETS:
Beginning of Period -- -- -- --
------------ ------------ ----------- ------------
End of Period $ 70,158,407 $ 12,850,150 $ 4,301,280 $ 57,641,714
============ ============ =========== ============
UNDISTRIBUTED NET INVESTMENT INCOME $ 1,177,309 $ 149,709 $ 7,571 $ 44,666
============ ============ =========== ============
SHARE TRANSACTIONS:
Issued 6,000,000 1,700,000 250,000 3,950,000
Redeemed (1,250,000) (950,000) -- --
------------ ------------ ----------- ------------
NET INCREASE IN SHARES OUTSTANDING FROM SHARE
TRANSACTIONS 4,750,000 750,000 250,000 3,950,000
============ ============ =========== ============
(1) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009.
(2) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
(3) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009.
(4) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010.
(5) INCLUDES REALIZED GAINS AS A RESULT OF IN-KIND TRANSACTIONS. (SEE NOTE 4
IN NOTES TO FINANCIAL STATEMENTS.)
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
54
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SELECTED PER SHARE DATA & RATIOS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET RATIO
REALIZED RATIO OF OF NET
AND NET NET EXPENSES INVESTMENT
NET ASSET NET UNREALIZED DISTRIBUTION ASSET ASSETS TO INCOME
VALUE, INVESTMENT GAIN (LOSS) TOTAL FROM NET VALUE, END OF AVERAGE (LOSS) TO
BEGINNING INCOME ON FROM INVESTMENT END OF TOTAL PERIOD NET AVERAGE NET PORTFOLIO
OF PERIOD (LOSS)* INVESTMENTS OPERATIONS INCOME PERIOD RETURN** (000) ASSETS ASSETS TURNOVER
--------- ---------- ----------- ---------- ------------ ------ -------- ------- -------- ----------- ---------
Global X Silver Miners ETF(1)
Institutional Shares
2010 $14.50 $0.05 $5.65 $5.70 $-- $20.20 39.31% $171,672 0.65%+ 0.61%+ 0.35%++
Global X Lithium ETF(2)
Institutional Shares
2010 $15 .51 $(0.03) $4.35 $4 .32 $-- $19.83 27.85% $78,317 0.75%+ (0.62)%+ 5.55%++
Global X Copper Miners ETF(1)
Institutional Shares
2010 $14.40 $-- $2 .23 $2.23 $-- $16.63 15.49% $29,929 0.65%+ 0.06%+ 1.36%++
Global X Brazil Mid Cap ETF(3)
Institutional Shares
2010 $15.16 $0.08 $3.04 $3.12 $-- $18.28 20.58% $29,242 0.69%+ 1.24%+ 2.69%++
Global X Brazil Financials ETF(4)
Institutional Shares
2010 $15.08 $0.05 $2.27 $2.32 $-- $17.40 15.38% $7,829 0.77%+ 1.15%+ --%++
Global X Brazil Consumer ETF(5)
Institutional Shares
2010 $15.48 $-- $4.47 $4.47 $-- $19.95 28.88% $24,934 0.77%+ 0.07%+ 4.72%++
Global X/InterBolsa FTSE Colombia 20 ETF
Institutional Shares
2010 $27.84 $0.31 $18.89 $19.20 $(1.06) $45.98 71.28% $196,355 0.86% 0.77% 40.95%++
2009(6) $15.00 $0.50 $12.34 $12.84 $-- $27.84 85.60% $6,960 0.86%+ 2.93%+ 1.94%
Global X FTSE Nordic 30 ETF
Institutional Shares
2010 $16.07 $0.32 $2.84 $3.16 $(0.01) $19.22 19.68% $12,683 0.50% 1.91% 4.07%++
2009(7) $14.50 $(0.02) $1.59 $1.57 $-- $16.07 10.83% $3,375 0.50%+ (0.50)%+ 0.70%
Global X China Consumer ETF(8)
Institutional Shares
2010 $15.65 $0.17 $4.51 $4.68 $-- $20.33 29.90% $174,875 0.65%+ 1.03%+ 3.91%++
Global X China Energy ETF(9)
Institutional Shares
2010 $15.02 $0.23 $0.47 $0.70 $-- $15.72 4.66% $4,717 0.65%+ 1.80%+ 20.55%++
Global X China Financials ETF(10)
Institutional Shares
2010 $14.90 $0.27 $(0.40) $(0.13) $-- $14.77 (0.87)% $70,158 0.65%+ 2.26%+ 14.42%++
Global X China Industrials ETF(8)
Institutional Shares
2010 $15.50 $0.08 $1.55 $1.63 $-- $17.13 10.52% $12,850 0.65%+ 0.61%+ 12.74%++
Global X China Technology ETF(11)
Institutional Shares
2010 $14.90 $0.03 $2.28 $2.31 $-- $17.21 15.50% $4,301 0.65%+ 0.24%+ 5.15%++
Global X China Materials ETF(12)
Institutional Shares
2010 $14.95 $0.02 $(0.38) $(0.36) $-- $14.59 (2.41)% $57,642 0.65%+ 0.23%+ 6.13%++
(1) THE FUND COMMENCED OPERATIONS ON APRIL 19, 2010.
(2) THE FUND COMMENCED OPERATIONS ON JULY 22, 2010.
(3) THE FUND COMMENCED OPERATIONS ON JUNE 21, 2010.
(4) THE FUND COMMENCED OPERATIONS ON JULY 28, 2010.
(5) THE FUND COMMENCED OPERATIONS ON JULY 7, 2010.
(6) THE FUND COMMENCED OPERATIONS ON FEBRUARY 5, 2009.
(7) THE FUND COMMENCED OPERATIONS ON AUGUST 17, 2009.
(8) THE FUND COMMENCED OPERATIONS ON NOVEMBER 30, 2009.
(9) THE FUND COMMENCED OPERATIONS ON DECEMBER 15, 2009.
(10) THE FUND COMMENCED OPERATIONS ON DECEMBER 10, 2009.
(11) THE FUND COMMENCED OPERATIONS ON DECEMBER 8, 2009.
(12) THE FUND COMMENCED OPERATIONS ON JANUARY 12, 2010.
* PER SHARE CALCULATIONS WERE PERFORMED USING AVERAGE SHARES.
** TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. THE
RETURN SHOWN DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
+ ANNUALIZED.
++ PORTFOLIO TURNOVER RATE IS FOR THE PERIOD INDICATED AND HAS NOT BEEN
ANNUALIZED. EXCLUDES THE EFFECTS OF IN-KIND TRANSFERS.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
55
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Global X Funds (the "Trust") is a Delaware Statutory Trust formed on March
6, 2008. The Trust is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as an open-end management
investment company and as of October 31, 2010 had thirty-nine investment
portfolios: Global X FTSE Nordic 30 ETF, Global X FTSE Denmark 30 ETF, Global
X FTSE Finland 30 ETF, Global X FTSE Norway 30 ETF, Global X FTSE Argentina 20
ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE Egypt 30 ETF,
Global X FTSE Peru 20 ETF, Global X FTSE Philippines 30 ETF, Global X FTSE
Poland 30 ETF, Global X FTSE United Arab Emirates 20 ETF, Global X Emerging
Africa NR-40 ETF, Global X Pakistan KSE30 ETF, Global X China Consumer ETF,
Global X China Energy ETF, Global X China Financials ETF, Global X China
Industrials ETF, Global X China Materials ETF, Global X China Technology ETF,
Global X Copper Miners ETF, Global X Gold Miners ETF, Global X Platinum Miners
ETF, Global X Silver Miners ETF, Global X Brazil Consumer ETF, Global X Brazil
Financials ETF, Global X Brazil Industrials ETF, Global X Brazil Materials ETF,
Global X Brazil Utilities ETF, Global X Mid Cap ETF, Global X China Mid Cap,
Global X Aluminum ETF, Global X Lithium ETF, Global X Uranium ETF, Global X
Fishing ETF, Global X Food ETF, Global X Shipping ETF, Global X Waste
Management ETF, Global X Gold Explorers ETF, Global X Oil & Gas Explorers
ETF.(1, 2) As of October 31, 2010, the following investment portfolios were
operational: Global X Silver Miners ETF, Global X Lithium ETF, Global X Copper
Miners ETF, Global X Brazil Mid Cap ETF, Global X Brazil Financials ETF, Global
X Brazil Consumer ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE
Nordic 30 ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X
China Financials ETF, Global X China Industrials ETF, Global X China Technology
ETF, and the Global X China Materials ETF (the "Funds").(3) The Funds seek to
provide investment results that correspond generally to the price and yield
performance, before fees and expenses, of its underlying index. Each Fund is
classified as "non-diversified" for purposes of the 1940 Act. This means that
each Fund may invest most of its assets in securities issued by or representing
a small number of companies. As a result, each Fund may be more susceptible to
the risks associated with these particular companies, or to a single economic,
political or regulatory occurrence affecting these companies. Global X
Management Company LLC (the "Adviser"), a Delaware Limited Liability Company,
serves as the investment adviser and the administrator for the Funds. Subject
to the supervision of the Board of Trustees (the "Board"), the Adviser is
responsible for managing the investment activities of the Funds, the Funds'
business affairs and other administrative matters.
- ---------------
(1) As of November 17, 2010, the Trust added the following nine investment
portfolios: Global X Russell Emerging Markets Growth ETF, Global X Russell
Emerging Markets Value ETF, Global X Next 11 ETF, Global X FTSE ASEAN ETF,
Global X FTSE Andean ETF, Global X S&P/TSX Venture ETF, Global X Oil
Equities ETF, Global X Auto ETF.
(2) As of November 17, 2010 the Trust discontinued the following three
investment portfolios: Global X FTSE Egypt 30 ETF, Global X FTSE Peru 20
ETF, and Global X FTSE Poland ETF.
(3) The following investment portfolios became operational as of November 3,
2010, November 4, 2010 and November 9, 2010, respectively: Global X Gold
Explorers ETF, Global X Uranium ETF, and Global X FTSE Norway ETF.
56
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Significant Accounting Policies followed by
the Funds.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
U.S. Generally Accepted Accounting Principals ("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
differ from those estimates, and could have a material impact to the Funds.
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 if
a security's primary exchange is normally open at that time), or, if there is
no such reported sale, at the most recent mean between the quoted bid and asked
prices (absent both bid and asked prices on such exchange, the bid price may be
used).
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be
used. If available, debt securities are priced based upon valuations provided
by independent, third-party pricing agents. Such values generally reflect the
last reported sales price if the security is actively traded. The third-party
pricing agents may also value debt securities at an evaluated bid price by
employing methodologies that utilize actual market transactions,
broker-supplied valuations, or other methodologies designed to identify the
market value for such securities. Debt obligations with remaining maturities of
sixty days or less 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. Prices for most
securities held in the Funds are provided daily by recognized independent
pricing agents. If a security price cannot be obtained from an independent,
third-party pricing agent, the Funds seek to obtain a bid price from at least
one independent broker.
Securities for which market prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Board. 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 Fair Value Procedures include: the
security's trading has been halted or suspended; the security has been
de-listed from a national 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. When a
security is valued in accordance with the Fair Value Procedures, the Committee
will determine the value after taking into consideration relevant information
reasonably available to the Committee. As of October 31, 2010 there were
$71,750, $35,852 and $1,048,393, of fair valued securities in the Global X
Brazil Mid Cap ETF, Global X Brazil Consumer ETF and Global X China Materials
ETF, respectively. As of October 31, 2010, no other Fund has fair valued
securities.
57
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY VALUATION (concluded)
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular security's
last trade and the time at which the Fund's calculated their net asset value.
The closing prices of such securities may no longer reflect their market value
at the time the Funds calculated net asset value if an event that could
materially affect the value of those securities (a "Significant Event") has
occurred between the time of the security's last close and the time that the
Funds calculate net asset value. A Significant Event may relate to a single
issuer or to an entire market sector. If 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
net asset value, it may request that a Committee meeting be called. In
addition, the Funds' Sub-administrator, SEI Investments Global Funds Services
("SEIGFS"), monitors price movements among certain selected indices, securities
and/or baskets of securities that may be an indicator that the closing prices
received earlier from foreign exchanges or markets may not reflect market value
at the time the Funds calculate net asset value. If price movements in a
monitored index or security exceed levels established by the Sub-administrator,
the Sub-administrator notifies the Adviser that such limits have been exceeded.
In such event, the Adviser makes the determination whether a Committee meeting
should be called based on the information provided.
In accordance with the authoritative guidance on fair value measurements and
disclosure under U.S. GAAP, the Funds disclose the fair value of their
investments in a hierarchy that prioritizes the inputs to valuation techniques
used to measure the fair value. The objective of a fair value measurement is to
determine the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the
measurement date (an exit price). Accordingly, the fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The three levels of the fair value hierarchy are
described below:
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 has the ability to
access at the measurement date;
Level 2 -- Other significant observable inputs (including quoted prices for
similar investments, fair value of investments for which the Fund has the
ability to fully redeem tranches at net asset value as of the measurement
date or within the near term, and short-term investments valued at
amortized cost)
Level 3 -- Significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments, fair value of
investments for which the Fund does not have the ability to fully redeem
tranches at net asset value as of the measurement date or within the near
term)
Investments are classified within the level of the lowest
significant input considered in determining fair value. Investments classified
within Level 3 whose fair value measurement considers several inputs may
include Level 1 or Level 2 inputs as components of the overall fair value
measurement.
For the period ended October 31, 2010 there has been no significant changes to
the Funds' fair valuation methodologies.
58
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
FEDERAL INCOME TAXES -- It is the Funds' intention to qualify or continue to
qualify as a regulated investment company for Federal income tax purposes by
complying with the appropriate provisions of Subchapter M of the Internal
Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income
taxes have been made in the financial statements.
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 provision 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), on-going analysis of and changes to tax laws, regulations and
interpretations thereof.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on trade date. 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 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 (i) investment securities,
(ii) income and (iii) expenses are translated into U.S. dollars at the relevant
rates of exchange prevailing on the respective dates of such transactions. The
Funds' do not isolate that portion of realized or unrealized gains and losses
resulting from changes in the foreign exchange rate from fluctuations arising
from changes in the market prices of the securities. These gains and losses are
included in net realized and unrealized gains and losses on investments on the
Statement of Operations. Net realized and unrealized gains and losses on
foreign currency transactions represent net foreign exchange gains or losses
from foreign currency exchange 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
substantially all of their net investment income annually. Any net realized
capital gains are distributed annually. All distributions are recorded on
ex-dividend date.
CREATION UNITS -- The Funds issue and redeem shares ("Shares") at NAV and only
in large blocks of Shares, (each block of Shares for a Fund is called a
"Creation Unit" or multiples thereof). Purchasers of Creation Units
("Authorized Participants") at NAV must pay a standard Creation Transaction Fee
per transaction. The fee is a single charge and will be the same regardless of
the number of Creation Units purchased by an investor 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
59
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (concluded)
CREATION UNITS (concluded)
transaction 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, a higher Transaction Fee
will be charged. The following table discloses Creation Unit breakdown:
CREATION UNIT
SHARES TRANSACTION FEE VALUE REDEMPTION FEE
--------------------------------------------------------------
Global X Silver Miners ETF 50,000 $ 1,000 $ 1,010,000 $ 1,000
Global X Lithium ETF 50,000 1,000 991,500 1,000
Global X Copper Miners ETF 50,000 1,000 831,500 1,000
Global X Brazil Mid Cap ETF 50,000 1,900 914,000 1,900
Global X Brazil Financials ETF 50,000 1,900 870,000 1,900
Global X Brazil Consumer ETF 50,000 1,900 997,500 1,900
Global X/InterBolsa FTSE Colombia 20 ETF 30,000 2,600 1,379,400 2,600
Global X FTSE Nordic 30 ETF 50,000 1,500 961,000 1,500
Global X China Consumer ETF 50,000 2,300 1,016,500 2,300
Global X China Energy ETF 50,000 2,300 786,000 2,300
Global X China Financials ETF 50,000 2,300 738,500 2,300
Global X China Industrials ETF 50,000 2,300 856,500 2,300
Global X China Technology ETF 50,000 2,300 860,500 2,300
Global X China Materials ETF 50,000 2,300 729,500 2,300
3. RELATED PARTY TRANSACTIONS
The Adviser serves as the investment adviser and the administrator for the
Funds. Subject to the supervision of the Board of Trustees, 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 its service to the Funds, under the
Supervision and Administration Agreement, each Fund pays a monthly a fee to the
Adviser at the annual rate (stated as a percentage of the average daily net
assets of the Fund). In addition, the Funds bear other expenses 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 and governmental
fees, brokerage fees, commissions and other transaction expenses, costs of
borrowing money, including interest expenses and extraordinary expenses (such
as litigation and indemnification expenses). In addition, the Global
X/InterBolsa FTSE Colombia 20 ETF pays custodial fees that are not covered by
the Supervision and Administration Agreement.
60
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
3. RELATED PARTY TRANSACTIONS (continued)
SUPERVISION AND
ADMINISTRATION FEE
------------------
Global X Silver Miners ETF 0.65%
Global X Lithium ETF 0.75%
Global X Copper Miners ETF 0.65%
Global X Brazil Mid Cap ETF 0.69%
Global X Brazil Financials ETF 0.77%
Global X Brazil Consumer ETF 0.77%
Global X/InterBolsa FTSE Colombia 20 ETF* 0.68%
Global X FTSE Nordic 30 ETF 0.50%
Global X China Consumer ETF 0.65%
Global X China Energy ETF 0.65%
Global X China Financials ETF 0.65%
Global X China Industrials ETF 0.65%
Global X China Technology ETF 0.65%
Global X China Materials ETF 0.65%
*The Global X/InterBolsa FTSE Colombia 20 ETF Fund paid 0.18% in Custody Fees
(in addition to the Supervision and Administration Fee) during the fiscal year
ended October 31, 2010.
The Adviser and InterBolsa S.A. ("InterBolsa"), one of the leading
broker-dealers located in Colombia, entered into an agreement, pursuant to
which InterBolsa has agreed to provide certain marketing, marketing-related and
other services and allows the use of InterBolsa's name and brand with respect
to the Global X/InterBolsa FTSE Colombia 20 ETF. Under this agreement,
InterBolsa agreed to make an initial payment to the Adviser regarding certain
start up expenses for the Fund and the Adviser has agreed to share with
InterBolsa fifty percent (50%) of the Adviser's legitimate profits and losses
with respect to the Global X/InterBolsa FTSE Colombia 20 ETF.
The Adviser and MCCA Lithium ETF, LLC ("MCCA"), a single purpose limited
liability firm, have entered into an agreement, pursuant to which MCCA has
agreed to assist the Adviser, in its capacity as sponsor of the Global X
Lithium ETF, by providing initial capital and additional financial resources to
the Adviser in connection with the listing, launch and the continuing operation
of the Global X Lithium Fund. In return, the Adviser has agreed to compensate
MCCA for its financial assistance to the Adviser with respect to the Global X
Lithium ETF by sharing with MCCA fifty percent (50%) of the Adviser's Net
Profits with respect to the Global X Lithium ETF. For this purpose, the term
Net Profits means, for any calendar quarter, the total management fees received
by the Adviser with respect to the Global X Lithium ETF less direct expenses,
marketing expenses and overhead expenses for the Global X Lithium ETF during
such quarter. In the event that there are no Net Profits with respect to the
Global X Lithium ETF in any calendar quarter, MCCA shall pay fifty percent of
the negative shortfall in Net Profits to the Adviser. The agreement between the
parties does not contemplate that MCCA or any of its affiliates will be
involved directly or indirectly in the distribution of shares of the Global X
Lithium ETF.
SEIGFS serves as Sub-Administrator to the Funds. As Sub-Administrator, SEIGFS
provides the Funds with the required general administrative services,
including, without limitation: office space,
61
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
3. RELATED PARTY TRANSACTIONS (concluded)
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, the Sub-Administrator 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 Funds underwriter and
distributor of Shares pursuant to a Distribution Agreement. Under the
Distribution Agreement, SIDCO, as agent, receives orders to create and redeem
Shares in Creation Unit Aggregations and transmits such orders to the Trust's
custodian and transfer agent. The Distributor has no obligation to sell any
specific quantity of Fund Shares. SIDCO bears the following costs and expenses
relating to the distribution of Shares: (i) the costs of processing and
maintaining records of creations of Creation Units; (ii) all costs of
maintaining the records required of a registered broker/dealer; (iii) the
expenses of maintaining its registration or qualification as a dealer or broker
under Federal or state laws; (iv) filing fees; and (v) all other expenses
incurred in connection with the distribution services as contemplated in the
Distribution Agreement.
4. INVESTMENT TRANSACTIONS
For the period ended October 31, 2010, the purchases and sales of investments
in securities excluding in-kind transactions, long-term U.S. Government and
short-term securities were:
SALES AND
PURCHASES MATURITIES
------------ ------------
Global X Silver Miners ETF $ 761,535 $ 269,077
Global X Lithium ETF 2,396,151 2,185,097
Global X Copper Miners ETF 387,186 84,900
Global X Brazil Mid Cap ETF 2,711,705 376,160
Global X Brazil Financials ETF -- --
Global X Brazil Consumer ETF 3,411,239 581,764
Global X/InterBolsa FTSE Colombia 20 ETF 79,173,144 15,416,228
Global X FTSE Nordic 30 ETF 410,772 270,793
Global X China Consumer ETF 12,704,437 2,458,933
Global X China Energy ETF 837,906 770,349
Global X China Financials ETF 10,388,240 8,506,932
Global X China Industrials ETF 3,307,450 3,055,691
Global X China Technology ETF 199,003 184,871
Global X China Materials ETF 4,504,283 1,655,385
62
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
4. INVESTMENT TRANSACTIONS (concluded)
For the period ended October 31, 2010, in-kind transactions associated with
creations and redemptions were:
SALES AND REALIZED
PURCHASES MATURITIES GAIN/(LOSS)
------------- ----------- ------------
Global X Silver Miners ETF $ 143,160,788 $ 1,583,258 $ 281,866
Global X Lithium ETF 70,828,329 - -
Global X Copper Miners ETF 28,868,578 - -
Global X Brazil Mid Cap ETF 24,269,019 - -
Global X Brazil Financials ETF 7,296,489 - -
Global X Brazil Consumer ETF 19,823,929 - -
Global X/InterBolsa FTSE Colombia 20 ETF 105,039,233 - -
Global X FTSE Nordic 30 ETF 9,922,895 2,458,244 425,443
Global X China Consumer ETF 143,572,922 - -
Global X China Energy ETF 4,497,831 - -
Global X China Financials ETF 81,981,287 18,445,435 2,980,379
Global X China Industrials ETF 27,130,981 16,576,366 1,721,221
Global X China Technology ETF 3,757,614 - -
Global X China Materials ETF 43,942,433 - -
During the period ended October 31, 2010, there were no purchases or sales of
long-term U.S. Government securities for the Funds.
5. TAX INFORMATION
The amount and character of income and capital gain distributions to be paid,
if any, are determined in accordance with Federal income tax regulations, which
may differ from U.S. GAAP. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent. To the extent these differences are
permanent in nature, they are charged or credited to undistributed net
investment income (loss), accumulated net realized gain (loss) or paid-in
capital, as appropriate, in the period that the differences arise.
63
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
5. TAX INFORMATION (continued)
The following differences, primarily attributable to foreign currency,
redemptions in-kind, sales of passive foreign investment companies and net
operating losses, have been reclassified to/from the following accounts during
the fiscal period ended October 31, 2010.
UNDISTRIBUTED
NET ACCUMULATED
PAID-IN INVESTMENT NET REALIZED
GLOBAL X FUNDS CAPITAL INCOME/(LOSS) GAIN/(LOSS)
- -------------- -------- -------------- ------------
Global X Silver Miners ETF $281,866 $(8,512) $(273,354)
Global X Lithium ETF -- 9,304 (9,304)
Global X Copper Miners ETF -- 3,408 (3,408)
Global X Brazil Mid Cap ETF -- (3,507) 3,507
Global X Brazil Financials ETF -- 1,423 (1,423)
Global X Brazil Consumer ETF -- 530 (530)
Global X/InterBolsa FTSE Colombia 20 ETF -- (13,163) 13,163
Global X FTSE Nordic 30 ETF 425,443 2,084 (427,527)
Global X China Consumer ETF -- 393 (393)
Global X China Energy ETF -- 211 (211)
Global X China Financials ETF 2,980,379 2,184 (2,982,563)
Global X China Industrials ETF 1,721,221 14,702 (1,735,923)
Global X China Technology ETF -- 167 (167)
Global X China Materials ETF -- (1,752) 1,752
The tax character of dividends and distributions paid during the last period
ended October 31, 2010 and 2009 were as follows:
LONG-TERM
GLOBAL X ORDINARY CAPITAL
FUNDS INCOME GAIN TOTALS
- -------- --------- ---------- ---------
Global X/InterBolsa FTSE Colombia 20 ETF
2010 $ 264,734 $ -- $ 264,734
2009 $ -- $ -- $ --
Global X FTSE Nordic 30 ETF
2010 $ 2,158 $ -- $ 2,158
2009 $ -- $ -- $ --
64
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
5. TAX INFORMATION (continued)
As of October 31, 2010, the components of Distributable Earnings on a tax basis
were as follows:
GLOBAL X SILVER GLOBAL X GLOBAL X COPPER
MINERS ETF LITHIUM ETF MINERS ETF
------------- ------------ ---------------
Undistributed Ordinary Income $ 2,989,314 $ 1,619,934 $ 367,992
Capital Loss Carryforwards -- -- (10,213)
Unrealized Appreciation on Investments and
Foreign Currency 26,532,154 5,620,698 400,798
Other Temporary Differences -- 13,433 --
------------ ------------ -----------
Total Distributable Earnings $ 29,521,468 $ 7,254,065 $ 758,577
============ ============ ===========
GLOBAL X BRAZIL GLOBAL X BRAZIL GLOBAL X BRAZIL
MID CAP ETF FINANCIALS ETF CONSUMER ETF
--------------- --------------- ---------------
Undistributed Ordinary Income $ 318,873 $ 13,826 $ 26,760
Capital Loss Carryforwards -- (3) --
Unrealized Appreciation on Investments and
Foreign Currency 2,367,748 495,514 2,311,009
------------ ------------ -----------
Total Distributable Earnings $ 2,686,621 $ 509,337 $ 2,337,769
============ ============ ===========
GLOBAL
X/INTERBOLSA
FTSE COLOMBIA GLOBAL X FTSE GLOBAL X CHINA
20 ETF NORDIC 30 ETF CONSUMER ETF
-------------- -------------- --------------
Undistributed Ordinary Income $ 891,803 $ 150,580 $ 1,734,523
Undistributed Long-Term Capital Gain 456,069 -- --
Capital Loss Carryforwards -- (7,319) (173,208)
Unrealized Appreciation on Investments and
Foreign Currency 20,832,547 1,529,491 19,923,248
Other Temporary Differences -- 78 --
------------ ------------ -----------
Total Distributable Earnings $ 22,180,419 $ 1,672,830 $21,484,563
============ ============ ===========
GLOBAL X CHINA GLOBAL X CHINA GLOBAL X CHINA
ENERGY ETF FINANCIALS ETF INDUSTRIALS ETF
-------------- -------------- ---------------
Undistributed Ordinary Income $ 61,491 $ 1,177,309 $ 149,709
Capital Loss Carryforwards -- (626,459) (220,121)
Unrealized Appreciation on Investments and
Foreign Currency 155,823 2,240,678 540,341
------------ ------------ -----------
Total Distributable Earnings $ 217,314 $ 2,791,528 $ 469,929
============ ============ ===========
GLOBAL X CHINA GLOBAL X CHINA
TECHNOLOGY ETF MATERIALS ETF
-------------- --------------
Undistributed Ordinary Income $ 45,879 $ 336,119
Unrealized Appreciation on Investments and
Foreign Currency 493,901 10,604,595
------------ ------------
Total Distributable Earnings $ 539,780 $ 10,940,714
============ ============
65
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
5. TAX INFORMATION (concluded)
For Federal income tax purposes, capital loss carryforwards represent realized
losses of the Funds that may be carried forward for a maximum period of eight
years and applied against future gains. As of October 31, 2010, the Funds that
had capital loss carryforwards are listed below.
GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X GLOBAL X
COPPER BRAZIL FTSE CHINA CHINA CHINA
MINERS FINANCIALS NORDIC 30 CONSUMER FINANCIALS INDUSTRIALS
ETF ETF ETF ETF ETF ETF
-------- ---------- --------- --------- ---------- -----------
Oct. 2018 $ 10,213 $ 3 $ 7,319 $ 173,208 $ 626,459 $ 220,121
-------- ------ ------- --------- --------- ---------
Total $ 10,213 $ 3 $ 7,319 $ 173,208 $ 626,459 $ 220,121
======== ====== ======= ========= ========= =========
The Federal tax cost and aggregate gross unrealized appreciation and
depreciation on investments held by the Funds at October 31, 2010 were as
follows:
AGGREGATED AGGREGATED
GROSS GROSS NET
FEDERAL UNREALIZED UNREALIZED UNREALIZED
GLOBAL X FUNDS TAX COST APPRECIATION DEPRECIATION APPRECIATION
- -------------- ------------ ------------ ------------ -------------
Global X Silver Miners ETF $145,206,855 $27,326,430 $ (794,462) $26,531,968
Global X Lithium ETF 72,723,707 5,914,192 (294,077) 5,620,115
Global X Copper Miners ETF 29,587,819 705,573 (304,923) 400,650
Global X Brazil Mid Cap ETF 26,866,398 2,505,276 (138,138) 2,367,138
Global X Brazil Financials ETF 7,317,681 534,975 (39,565) 495,410
Global X Brazil Consumer ETF 22,676,493 2,511,479 (200,634) 2,310,845
Global X/InterBolsa FTSE Colombia 20 ETF 176,486,230 21,135,759 (299,148) 20,836,611
Global X FTSE Nordic 30 ETF 11,190,279 1,743,185 (214,094) 1,529,091
Global X China Consumer ETF 154,918,322 21,933,951 (2,011,276) 19,922,675
Global X China Energy ETF 4,571,416 314,902 (159,076) 155,826
Global X China Financials ETF 67,771,080 4,239,020 (1,998,480) 2,240,540
Global X China Industrials ETF 12,307,366 1,641,488 (1,101,858) 539,630
Global X China Technology ETF 3,810,056 737,701 (243,837) 493,864
Global X China Materials ETF 47,082,784 11,489,427 (884,906) 10,604,521
The preceding differences between book and tax cost are primarily due to mark
to market treatment of passive foreign investment companies and wash sales.
6. CONCENTRATION OF RISKS
The Funds invest in securities of foreign issuers in several countries. These
investments may involve certain considerations and risks not typically
associated with investments in the United States as a result of, among other
factors, the possibility of future political and economic developments and the
level of governmental supervision and regulation of securities markets in the
respective countries.
The Funds may be subject to taxes imposed by countries in which it invests.
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.
66
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
7. OTHER
At October 31, 2010, the total Shares outstanding that were held by Authorized
Participants were as follows. The Authorized Participants have entered into an
agreement with the Funds' Distributor.
PERCENTAGE OF
AUTHORIZED SHARES
PARTICIPANTS OUTSTANDING
------------ -------------
Global X Silver Miners ETF 5 100%
Global X Lithium ETF 4 100%
Global X Copper Miners ETF 4 100%
Global X Brazil Mid Cap ETF 3 100%
Global X Brazil Financials ETF 3 100%
Global X Brazil Consumer ETF 3 100%
Global X/InterBolsa FTSE Colombia 20 ETF 5 100%
Global X FTSE Nordic 30 ETF 4 100%
Global X China Consumer ETF 5 100%
Global X China Energy ETF 2 100%
Global X China Financials ETF 4 100%
Global X China Industrials ETF 2 100%
Global X China Technology ETF 2 100%
Global X China Materials ETF 4 100%
Pursuant to the Trust's organizational documents, the Trustees of the Trust and
the Trust's officers are indemnified against certain liabilities that may arise
out of the performance of their duties. Additionally, in the normal course of
business, the Funds enter into contracts that provide general indemnifications.
The Funds' maximum exposure under these arrangements is dependent on future
claims that may be made against the Funds and, therefore, cannot be
established.
8. NEW ACCOUNTING PRONOUNCEMENT
In January 2010, the Financial Accounting Standards Board ("FASB") issued
Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about
Fair Value Measurements." ASU No. 2010-06 amends FASB Accounting Standards
Codification Topic 820, Fair Value Measurements and Disclosures, to require
additional disclosures regarding fair value measurements. Certain disclosures
required by ASU No. 2010-06 are effective for interim and annual periods
beginning after December 15, 2009, and other required disclosures are effective
for fiscal years beginning after December 15, 2010, and for interim periods
within those fiscal years. Management is currently evaluating the impact ASU
No. 2010-06 will have on the Funds' financial statement disclosure.
67
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
9. SUBSEQUENT EVENT
The Funds have evaluated the need for additional disclosures and/or adjustments
resulting from subsequent events. Based on this evaluation, no additional
disclosures or adjustments were required to the financial statements as of the
date the financial statements were issued.
Subsequent to year end, the following investment portfolios of the Trust
commenced operations.
FUND NAME COMMENCED OPERATIONS
- --------- --------------------
Global X Gold Explorers ETF November 3, 2010
Global X Uranium ETF November 4, 2010
Global X FTSE Norway ETF November 9, 2010
68
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
OCTOBER 31, 2010
- --------------------------------------------------------------------------------
To the Shareholders and Board of Trustees
of the Global X Funds
We have audited the accompanying statement of assets and liabilities of the
Global X Silver Miners ETF, Global X Lithium ETF, Global X Copper Miners ETF,
Global X Brazil Mid Cap ETF, Global X Brazil Financials, Global X Brazil
Consumer ETF, Global X/InterBolsa FTSE Colombia 20 ETF, Global X FTSE Nordic 30
ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X China
Financials ETF, Global X China Industrials ETF, Global X China Technology ETF,
and Global X China Materials ETF, (each a series of the Global X Funds, (the
"Trust') and collectively referred to as the "Funds") including the schedules
of investments, as of October 31, 2010 and the related statements of
operations, changes in net assets and financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities and cash owned as of October 31, 2010, by
correspondence with the custodian and brokers. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Funds, as of October 31, 2010, the results of their operations, changes in
their net assets and the financial highlights for the periods indicated
therein, in conformity with accounting principles generally accepted in the
United States of America.
Abington, Pennsylvania /s/ Sanville & Company
December 23, 2010 ----------------------
69
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
All Exchange Traded Funds ("ETF") 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, brokerage
fees, and shareholder reports like this one. It is important for you to
understand the impact of these costs on your investment returns.
Operating expenses such as these are deducted from an ETF's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the ETF's average net assets; this percentage is known as the
ETF's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other funds. The examples are based on an
investment of $1,000 made at the beginning of the period shown and held for the
entire period.
The table on the next page illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that
your Fund incurred over the period. The "Expenses Paid During Period" column
shows the actual dollar expense cost incurred by a $1,000 investment in the
Fund, and the "Ending Account Value" number is derived from deducting that
expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Funds, to estimate the expenses you paid over that period. Simply divide
your actual account value by $1,000 to arrive at a ratio (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the
number shown for your Funds under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with
those of other funds. It assumes that the Funds had an annual 5% return before
expenses during the year, but that the expense ratio (Column 3) for the period
is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all funds to make this 5%
calculation. You can assess your Fund's comparative cost by comparing the
hypothetical result for your Fund in the "Expense 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.
70
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
DISCLOSURE OF FUND EXPENSES (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
05/01/10 10/31/10 RATIOS PERIOD
- ------------------------------------------------------------------------------------------
GLOBAL X SILVER MINERS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN $1,000.00 $1,336.90 0.65% $3.83(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X LITHIUM ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,278.50 0.75 2.39(2)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.42 0.75 3.82(1)
- ------------------------------------------------------------------------------------------
GLOBAL X COPPER MINERS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,221.90 0.65 3.64(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X BRAZIL MID CAP ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,205.80 0.69 2.77(3)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.68 0.69 3.52(1)
- ------------------------------------------------------------------------------------------
GLOBAL X BRAZIL FINANCIALS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,153.80 0.77 2.18(4)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.32 0.77 3.92(1)
- ------------------------------------------------------------------------------------------
GLOBAL X BRAZIL CONSUMER ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,288.80 0.77 2.46(5)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.32 0.77 3.92(1)
- ------------------------------------------------------------------------------------------
GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,395.40 0.86 5.19(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,020.87 0.86 4.38(1)
- ------------------------------------------------------------------------------------------
GLOBAL X FTSE NORDIC 30 ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,091.41 0.50 2.64(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,022.68 0.50 2.55(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA CONSUMER ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,165.00 0.65 3.55(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA ENERGY ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,069.40 0.65 3.39(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA FINANCIALS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,099.80 0.65 3.44(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA INDUSTRIALS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,148.10 0.65 3.52(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA TECHNOLOGY ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,109.60 0.65 3.46(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
GLOBAL X CHINA MATERIALS ETF
- ------------------------------------------------------------------------------------------
ACTUAL FUND RETURN 1,000.00 1,136.30 0.65 3.50(1)
HYPOTHETICAL 5% RETURN 1,000.00 1,021.93 0.65 3.31(1)
- ------------------------------------------------------------------------------------------
(1) EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED 184/365 (TO REFLECT
THE ONE-HALF YEAR PERIOD.)
(2) COMMENCED OPERATIONS ON JULY 22, 2010. EXPENSES ARE EQUAL TO THE FUND'S
ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE
PERIOD, MULTIPLIED BY 102/365 (TO REFLECT THE PERIOD FROM INCEPTION TO
DATE.)
(3) COMMENCED OPERATIONS ON JUNE 21, 2010. EXPENSES ARE EQUAL TO THE FUND'S
ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE
PERIOD, MULTIPLIED BY 133/365 (TO REFLECT THE PERIOD FROM INCEPTION TO
DATE.)
(4) COMMENCED OPERATIONS ON JULY 28, 2010. EXPENSES ARE EQUAL TO THE FUND'S
ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE
PERIOD, MULTIPLIED BY 96/365 (TO REFLECT THE PERIOD FROM INCEPTION TO
DATE.)
(5) COMMENCED OPERATIONS ON JULY 7, 2010. EXPENSES ARE EQUAL TO THE FUND'S
ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE AVERAGE ACCOUNT VALUE OVER THE
PERIOD, MULTIPLIED BY 117/365 (TO REFLECT THE PERIOD FROM INCEPTION TO
DATE.)
71
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED)\
- --------------------------------------------------------------------------------
Section 15(c) of the Investment Company Act of 1940, as amended ("1940 Act"),
requires that each mutual fund's board of trustees, including a majority of
those trustees who are not "interested persons" of the mutual fund, as defined
in the 1940 Act ("Independent Trustees"), consider and approve the terms of the
Funds' investment advisory agreement.
At the June 4, 2010 quarterly meeting of the Trust's Board of Trustees
("Board"), the Board approved the initial (i) Investment Advisory Agreement
between the Trust, on behalf of Global X Lithium ETF, Global X Brazil Mid Cap
ETF, Global X Brazil Financials ETF, and Global X Brazil Consumer ETF (each a
"New Fund," and, collectively, the "New Funds"), and Global X Management ("New
Funds Advisory Agreement"); and (ii) Supervision and Administration Agreement
between the Trust, on behalf of the New Funds, and Global X Management Company
("New Funds S&A Agreement"). At the August 27, 2010 quarterly meeting of the
Board of Trustees of the Trust, the Board approved the continuation of the (i)
Investment Advisory Agreement between the Trust, on behalf of Global X FTSE
Nordic 30 ETF ("Nordic Fund"), and Global X Management ("Nordic Advisory
Agreement"); and (ii) Supervision and Administration Agreement between the
Trust, on behalf the Nordic Fund, and Global X Management Company ("Nordic S&A
Agreement"). The New Funds Advisory Agreement and the New Funds S&A Agreement
are referred to herein collectively as the "New Funds Agreements." The Nordic
Advisory Agreement and the Nordic S&A Agreement are referred to herein
collectively as the "Nordic Agreements."
In advance of each of the Board meetings noted above, the Board (including the
Independent Trustees) requested (in writing) detailed information from Global X
Management Company ("Global X Management") in connection with their
consideration of the New Funds Agreements and the Nordic Agreements and
received and reviewed written responses from Global X Management and supporting
materials relating to those requests for information.
In determining to approve the New Funds Agreements the Board concluded that
each agreement was fair and reasonable and in the best interests of each New
Fund and its shareholders. In determining to approve the continuation of the
Nordic Agreements the Board concluded that each agreement was fair and
reasonable and in the best interests of the Nordic Fund and its shareholders.
The Board considered the following categories of material factors, among
others, relating to the New Funds Agreements and the Nordic Agreements. Based
upon its review of these various factors, as well as other information
considered by the Board, the Board concluded that approval of the New Funds
Agreements and the continuation of the Nordic Agreements was in the best
interests of the each New Fund and the Nordic Fund, respectively. In reaching
this decision, the Board did not assign relative weights to the factors
discussed below or deem any one factor or group of them to be controlling in
and of themselves. The factors considered by the Board (including the
Independent Trustees) with respect to the approval of the New Funds Agreements
and the Nordic Agreements are discussed separately below.
NEW FUNDS AGREEMENTS
NATURE, EXTENT AND QUALITY OF SERVICES
With respect to this factor, the Board considered:
o the terms of the New Funds Agreements and the range of services to be
provided to the New Funds in accordance with the New Funds Agreements;
72
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
o Global X Management's key personnel and the portfolio managers who
would provide investment advisory services to the New Funds;
o Global X Management's responsibilities under the New Funds Agreements
to, among other things, (i) manage the investment operations of the
New Funds and the composition of each New Fund's assets, including the
purchase, retention and disposition of its holdings, (ii) provide
quarterly reports to the Trust's officers and Board, (iii) vote
proxies, exercise consents, and exercise all other rights appertaining
to securities and assets held by the New Funds, (iv) select
broker-dealers to execute portfolio transactions for the New Funds
when necessary, (v) assist in the preparation and filing of reports
and proxy statements (if any) to the shareholders of the New Funds,
the periodic updating of the registration statement, prospectuses,
statement of additional information, and other reports and documents
for the New Funds required to be filed by the Trust with the
Securities and Exchange Commission ("SEC") and other regulatory or
governmental bodies, and (vi) monitor anticipated purchases and
redemptions of the shares (including creation units) of the New Funds
by shareholders and new investors;
o the nature, extent and quality of Global X Management's services
(including advisory, administrative and compliance services) for the
existing Funds; and
o the quality of Global X Management's resources and personnel that
would be made available to the New Funds, including Global X
Management's experience and the professional qualifications of Global
X Management's key personnel.
Based on these considerations, the Board concluded that it was satisfied with
the nature, extent and quality of the services to be provided to the New Funds
by Global X Management.
PERFORMANCE
The Board determined that because the New Funds had not started operations,
meaningful data relating to investment performance was not available and,
therefore, could not be a factor in approving the New Funds Agreements.
COST OF SERVICES AND PROFITABILITY
With respect to this factor, the Board considered:
o Global X Management's cost to provide investment management,
supervision and administrative and related services to the New Funds
and the profitability to it, if any, from managing the New Funds;
o the proposed advisory fees under the New Funds Advisory Agreement and
the proposed fees under the New Funds S&A Agreement for each New Fund;
and
o the expected profitability to Global X Management, if any, from all
services to be provided to the New Funds and all aspects of its
relationships with the New Funds. In connection with these
considerations, the Board noted that Global X Management advised the
Board that it did not expect to generate any profits from its services
to the New Funds during the first 12 months of their operation but
expected to generate profits after that initial period.
Based on these considerations, the Board concluded that the profits anticipated
to be realized by Global X Management from its relationship with the New Funds
would not be excessive.
73
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
COMPARISON OF FEES AND SERVICES
With respect to this factor, the Board considered:
o comparative information with respect to the proposed investment
advisory fees to be paid to Global X Management by each of the New
Funds. In connection with this consideration, Global X Management
provided the Board with detailed comparative expense data for each of
the New Funds, including fees and expenses paid by comparable
specialized and/or focused exchange-traded funds and fees and expenses
paid by other Funds that are series of the Trust under their unitary
fee structure;
o the proposed unitary fee structure (which includes as one component
the proposed investment advisory fee for each New Fund) and the
projected total expense ratios for each of the New Funds; and
o that, under the New Funds S&A Agreement, Global X Management would be
responsible for certain expenses of the New Funds.
Based on these considerations, the Board concluded that the proposed advisory
fee, proposed supervision and administrative fee, and total expense ratio of
each New Fund should not preclude approval of the Agreements.
ECONOMIES OF SCALE
With respect to this factor, the Board considered:
o the extent to which economies of scale would be realized as the New
Funds grow and whether the proposed fees for each New Fund reflected
these economies of scale; and
o the significant investment of time, personnel and other resources
that Global X Management intends to made in the New Funds in order to
seek to assure that the New Funds are attractive to shareholders and
investors.
Based on these considerations, the Board concluded that approval of the
proposed unitary fee for each New Fund was reasonable.
OTHER BENEFITS
In considering the New Funds Agreement, in addition to the categories discussed
above, the Board considered other benefits that may be realized by Global X
Management as a result of its relationships with the New Funds.
NORDIC AGREEMENTS
NATURE, EXTENT AND QUALITY OF SERVICES
With respect to this factor, the Board considered:
o the terms of the Nordic Agreements and the range of services that
would continue to be provided to the Nordic Fund in accordance with
the Nordic Agreements;
74
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
o Global X Management's key personnel and the portfolio managers who
would continue to provide investment advisory, supervision and
administrative services to the Nordic Fund. In connection with these
considerations, the Board noted that Global X Management had
significantly increased its support staff since the inception of the
Nordic Fund;
o Global X Management's responsibilities under the Agreements, among
other things, to: (i) manage the investment operations of the Nordic
Fund and the composition of the Nordic Fund's assets, including the
purchase, retention and disposition of its holdings, (ii) provide
quarterly reports to the Trust's officers and Board, (iii) vote
proxies, exercise consents, and exercise all other rights relating to
securities and assets held by the Nordic Fund, (iv) select
broker-dealers to execute portfolio transactions for the Nordic Fund
when necessary, (v) assist in the preparation and filing of reports
and proxy statements (if any) to the shareholders of the Nordic Fund,
the periodic updating of the registration statement, prospectuses,
statement of additional information, and other reports and documents
for the Nordic Fund 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 Nordic Fund by shareholders and new investors;
o the nature, extent and quality of the all of the services (including
advisory, administrative and compliance services) that have been
provided by Global X Management to the Nordic Fund and the adequacy of
Global X Management's personnel resources that would continue to be
made available to the Nordic Fund; and
o 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 Nordic Funds by
Global X Management.
PERFORMANCE
With respect to this fact, the Board considered the Nordic Fund's total return
and investment performance relative to (i) the average performance of mutual
funds in the same classification as the Funds, as determined by third party
services that rank mutual fund performance; and (ii) the performance of
comparable funds, pertinent indexes, and pertinent mutual fund performance
rankings.
In connection with these considerations, the Board received and reviewed
information that in the period from inception, August 17, 2009, to August 13,
2010, the Nordic Fund achieved total returns of 13.87%, versus 15.17% for the
underlying index, the FTSE Nordic 30 Total Return Index. The Board considered
that part of the performance difference is attributable to management fees and
transaction cost. In addition, the Board considered that although Global X
Management followed a replication strategy, perfect replication is impractical
in light of transaction costs.
Based on these considerations and comparisons, the Board concluded that the
investment performance of the Nordic Fund did not adversely affect the Board
approval of the continuance of the Nordic Agreements.
75
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
COST OF SERVICES AND PROFITABILITY
The Board considered that Global X Management's cost to provide investment
management and related services to the Nordic Fund and the expected
profitability to it from managing the Nordic Fund and all aspects of its
relationships with the Nordic Fund. The Board received and reviewed information
that disclosed that Global X Management did not generate any profits from its
services to the Nordic Fund since its inception date to July 31, 2010. The
Board considered that it was expected that the Nordic Fund would continue not
to generate profits for Global X Management. Based on these considerations, the
Board concluded that the profits anticipated to be realized, if any, by Global
X Management from its relationship with the Nordic Fund would not be excessive
and supported approval of the continuance of the Nordic Fund.
COMPARISON OF FEES AND SERVICES
With respect to this factor, the Board considered:
o comparative expense data for the Nordic Fund, including fees and
expenses paid by comparable emerging market, frontier country and
regional focused exchange-traded funds. In connection with this
consideration, Global X Management provided the Board with detailed
comparative expense data for Nordic Fund, including fees and expenses
paid by other Funds that are series of the Trust under their unitary
fee structure;
o the proposed unitary fee structure (which includes as one component
the proposed investment advisory fee for each New Fund) and the
current total expense ratio for the Nordic Fund; and
o that, under the Nordic S&A Agreement, Global X Management would
continue to be responsible for certain expenses of the Nordic Fund,
including the cost of transfer agency, custody, fund administration,
legal, audit, and other services for the Nordic Fund, except taxes and
governmental fees, brokerage fees, commissions and other transaction
expenses, costs of borrowing money, including interest expenses and
extraordinary expenses (such as litigation and indemnification
expenses).
Based on these considerations, the Board concluded that the advisory fee,
supervision and administrative fee, and total expense ratio of the Nordic Fund
supported approval of the continuation of the Nordic Agreements.
ECONOMIES OF SCALE
The Board considered the extent to which economies of scale would be realized
if the Nordic Fund grows and whether the fees for the Nordic Fund reflected
these economies of scale. Based on these considerations, the Board concluded
that approval of the continuation of the unitary fee was reasonable.
OTHER BENEFITS
The Board considered any other benefits realized by Global X Management as a
result from its relations relationships with the Nordic Fund and concluded that
all information it considered supported approval of the continuation of the
Nordic Agreements.
76
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SUPPLEMENTAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value, or "NAV", is the price per Share at which the Funds issue and
redeems Shares. It is calculated in accordance with the standard formula for
valuing mutual fund shares. The "Market Price" of the Funds generally is
determined using the midpoint between the highest bid and the lowest offer on
the stock exchange on which the Shares of the Funds are listed for trading, as
of the time that the Funds' NAV is calculated. The Funds' Market Price may be
at, above or below their NAV. The NAV of the Funds will fluctuate with changes
in the market value of their Funds holdings. The Market Price of the Funds 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 the Funds on a given day, generally at the time NAV
is calculated. A premium is the amount that the Funds are trading above the
reported NAV, expressed as a percentage of the NAV. A discount is the amount
that the Funds are trading below the reported NAV, expressed as a percentage of
the NAV.
The following information shows the frequency distributions of premiums and
discounts for the Funds. The information shown is for the full calendar quarter
completed after the inception date through the date of the most recent calendar
quarter end.
Information for the Global X Lithium ETF, Global X Brazil Financials ETF and
the Global X Brazil Consumer ETF, showing the frequency distributions of
premiums and discounts for the Funds are not presented as they did not have a
full quarter of information as of October 31, 2010.
Each line in the table shows the number of trading days in which the Funds
traded within the premium/discount range indicated. The number of trading days
in each premium/discount range is also shown as a percentage of the total
number of trading days in the period covered by each table. All data presented
here represents past performance, which cannot be used to predict future
results.
77
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SUPPLEMENTAL INFORMATION (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
PERCENTAGE OF TOTAL DAYS
----------------------------------------------------------------------------
GLOBAL
GLOBAL X GLOBAL X X/INTERBOLSA GLOBAL X GLOBAL X
SILVER COPPER GLOBAL X FTSE FTSE CHINA
MINERS MINERS BRAZIL MID COLOMBIA 20 NORDIC 30 CONSUMER
PREMIUM/DISCOUNT RANGE ETF(1) ETF(1) CAP ETF(2) ETF(3) ETF(4) ETF(5)
- -------------------------------------------------------------------------------------------------------------------
Greater than 3.0% and Less than 3.5% - - - - - -
Greater than 2.5% and Less than 3.0% - - 2.20% - - 0.88%
Greater than 2.0% and Less than 2.5% - - 21.98% 0.40% - 2.65%
Greater than 1.5% and Less than 2.0% - - 68.13% 0.40% 1.22% 6.64%
Greater than 1.0% and Less than 1.5% 1.52% - 6.59% 6.07% 2.44% 14.16%
Greater than 0.5% and Less than 1.0% 16.67% 25.00% 1.10% 18.62% 12.60% 27.88%
Between 0.5% and -0.5% 69.70% 56.82% - 34.82% 44.31% 22.12%
Less than -0.5% and Greater than -1.0% 12.11% 13.64% - 21.05% 29.27% 12.83%
Less than -1.0% and Greater than -1.5% - 4.54% - 9.72% 9.35% 5.31%
Less than -1.5% and Greater than -2.0% - - - 6.88% 0.81% 4.42%
Less than -2.0% and Greater than -2.5% - - - 1.63% - 2.21%
Less than -2.5% and Greater than -3.0% - - - 0.41% - 0.45%
Less than -3.0% and Greater than -3.5% - - - - - 0.45%
----------------------------------------------------------------------------
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
----------------------------------------------------------------------------
NUMBER OF DAYS
----------------------------------------------------------------------------
GLOBAL
GLOBAL X GLOBAL X X/INTERBOLSA GLOBAL X GLOBAL X
SILVER COPPER GLOBAL X FTSE FTSE CHINA
MINERS MINERS BRAZIL MID COLOMBIA 20 NORDIC 30 CONSUMER
PREMIUM/DISCOUNT RANGE ETF(1) ETF(1) CAP ETF(2) ETF(3) ETF(4) ETF(5)
- -------------------------------------------------------------------------------------------------------------------
Greater than 3.0% and Less than 3.5% - - - - - -
Greater than 2.5% and Less than 3.0% - - 2 - - 2
Greater than 2.0% and Less than 2.5% - - 20 1 - 6
Greater than 1.5% and Less than 2.0% - - 62 1 3 15
Greater than 1.0% and Less than 1.5% 2 - 6 15 6 32
Greater than 0.5% and Less than 1.0% 22 33 1 46 31 63
Between 0.5% and -0.5% 92 75 - 86 109 50
Less than -0.5% and Greater than -1.0% 16 18 - 52 72 29
Less than -1.0% and Greater than -1.5% - 6 - 24 23 12
Less than -1.5% and Greater than -2.0% - - - 17 2 10
Less than -2.0% and Greater than -2.5% - - - 4 - 5
Less than -2.5% and Greater than -3.0% - - - 1 - 1
Less than -3.0% and Greater than -3.5% - - - - - 1
----------------------------------------------------------------------------
Total 132 132 91 247 246 226
----------------------------------------------------------------------------
78
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
SUPPLEMENTAL INFORMATION (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
PERCENTAGE OF TOTAL DAYS
---------------------------------------------------------------------
GLOBAL X GLOBAL X GLOBAL X GLOBAL X
GLOBAL X CHINA CHINA CHINA CHINA
CHINA ENERGY FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS
PREMIUM/DISCOUNT RANGE ETF(6) ETF(7) ETF(5) ETF(8) ETF(9)
- ------------------------------------------------------------------------------------------------------------
Greater than 3.0% and Less than 3.5% - - - - -
Greater than 2.5% and Less than 3.0% - 1.36% 0.88% - 0.51%
Greater than 2.0% and Less than 2.5% 1.84% 2.27% 2.63% - 2.53%
Greater than 1.5% and Less than 2.0% 2.30% 5.00% 3.51% - 4.55%
Greater than 1.0% and Less than 1.5% 11.06% 11.82% 11.84% 4.05% 11.62%
Greater than 0.5% and Less than 1.0% 20.28% 22.73% 20.61% 15.32% 23.74%
Between 0.5% and -0.5% 28.11% 22.73% 27.19% 44.14% 22.73%
Less than -0.5% and Greater than -1.0% 17.51% 17.73% 16.23% 26.58% 15.66%
Less than -1.0% and Greater than -1.5% 7.37% 6.36% 6.58% 6.76% 8.08%
Less than -1.5% and Greater than -2.0% 6.91% 4.09% 5.26% 3.15% 4.54%
Less than -2.0% and Greater than -2.5% 2.76% 2.27% 1.75% - 3.53%
Less than -2.5% and Greater than -3.0% 1.39% 1.82% 3.07% - 1.51%
Less than -3.0% and Greater than -3.5% 0.47% 1.82% 0.45% - 1.00%
---------------------------------------------------------------------
Total 100.00% 100.00% 100.00% 100.00% 100.00%
---------------------------------------------------------------------
NUMBER OF DAYS
---------------------------------------------------------------------
GLOBAL X GLOBAL X GLOBAL X GLOBAL X
GLOBAL X CHINA CHINA CHINA CHINA
CHINA ENERGY FINANCIALS INDUSTRIALS TECHNOLOGY MATERIALS
PREMIUM/DISCOUNT RANGE ETF(6) ETF(7) ETF(5) ETF(8) ETF(9)
- ------------------------------------------------------------------------------------------------------------
Greater than 3.0% and Less than 3.5% - - - - -
Greater than 2.5% and Less than 3.0% - 3 2 - 1
Greater than 2.0% and Less than 2.5% 4 5 6 - 5
Greater than 1.5% and Less than 2.0% 5 11 8 - 9
Greater than 1.0% and Less than 1.5% 24 26 27 9 23
Greater than 0.5% and Less than 1.0% 44 50 47 34 47
Between 0.5% and -0.5% 61 50 62 98 45
Less than -0.5% and Greater than -1.0% 38 39 37 59 31
Less than -1.0% and Greater than -1.5% 16 14 15 15 16
Less than -1.5% and Greater than -2.0% 15 9 12 7 9
Less than -2.0% and Greater than -2.5% 6 5 4 - 7
Less than -2.5% and Greater than -3.0% 3 4 7 - 3
Less than -3.0% and Greater than -3.5% 1 4 1 - 2
---------------------------------------------------------------------
Total 217 220 228 222 198
---------------------------------------------------------------------
(1) The Fund commenced operations on April 19, 2010.
(2) The Fund commenced operations on June 21, 2010.
(3) The Fund commenced operations on February 5, 2009.
(4) The Fund commenced operations on August 17, 2009.
(5) The Fund commenced operations on November 30, 2009.
(6) The Fund commenced operations on December 15, 2009.
(7) The Fund commenced operations on December 10, 2009.
(8) The Fund commenced operations on December 8, 2009.
(9) The Fund commenced operations on January 12, 2010.
79
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
- --------------------------------------------------------------------------------
Set forth below are the names, addresses, ages, position with the Trust, Term
of Office and Length of Time Served, the principal occupations for the last
five years, number of Funds in fund complex overseen by trustee, and other
directorships outside the fund complex of each of the persons currently serving
as Trustees and Officers of the Trust.
- -------------------------------------------------------------------------------------------------------------
NAME,
ADDRESS POSITION(S) NUMBER OF FUNDS OTHER DIRECTORSHIPS
(YEAR OF HELD PRINCIPAL OCCUPATION(S) DURING IN TRUST OVERSEEN HELD
BIRTH) WITH FUNDS THE PAST 5 YEARS BY DIRECTOR BY TRUSTEES
- -------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES(2)
- -------------------------------------------------------------------------------------------------------------
Sanjay Director President of Risk Advisors Inc. (since 14(3) Director of Kellton
Ram (since 2008) 2007); Chief Information Officer, M. Financial Services
Bharwani Safra & Co (2004-2006). (since 2009).
410 Park
Ave,
4th floor
New York,
NY 10022
(1974)
- -------------------------------------------------------------------------------------------------------------
Scott R. Director Founder and President, DirectPay USA 14(3) None.
Chichester(1) (since 2008) LLC (since 2006); Chief Financial
410 Park Officer, Ong Corporation (2002-2008).
Ave,
4th floor
New York,
NY 10022
(1970)
- -------------------------------------------------------------------------------------------------------------
Kartik Director Senior Product Manager, Wireless 14(3) None.
Kiran Shah (since 2008) Generation (since 2008).
410 Park
Ave,
4th floor
New York,
NY 10022
(1977)
- -------------------------------------------------------------------------------------------------------------
80
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
The Trust's Statement of Additional Information ("SAI") includes additional
information about the Trustees and Officers. The SAI may be obtained without
charge by calling 1-888-493-8631. The following chart lists Trustees and
Officers as of October 31, 2010.
- ------------------------------------------------------------------------------------------------------------
NUMBER OF FUNDS
PRINCIPAL OCCUPATION(S) IN TRUST OTHER
NAME, ADDRESS POSITION(S) HELD DURING OVERSEEN BY DIRECTORSHIPS HELD
(YEAR OF BIRTH) WITH FUNDS THE PAST 5 YEARS DIRECTOR BY TRUSTEES
- ------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE / OFFICERS(2)
- ------------------------------------------------------------------------------------------------------------
Bruno del Ama Director (since 2008), Chief Executive Officer, Global 14(3) None.
410 Park Ave, President, Chief X Management Company LLC
4th floor Executive Officer (since 2008); Head of Global
New York, NY (since 2008) Structured Products Operations
10022 at Radian Asset Assurance
(1976) (2004-2008).
- ------------------------------------------------------------------------------------------------------------
Jose C. Gonzalez Chief Operating Chief Operating Officer, Global N/A N/A
410 Park Ave, Officer, Chief X Management Company LLC
4th floor Compliance Officer (since 2008); Founder and
New York, NY and Chief Financial President of GWM Group, Inc.
10022 Officer, Secretary (since 2006); Financial Advisor,
(1976) (since 2008) Broad Street Securities, Inc.
(2004-2006).
- ------------------------------------------------------------------------------------------------------------
Joseph Gallo(4) Assistant Secretary Corporate Counsel of Sub- N/A N/A
One Freedom Administrator (since 2007);
Valley Drive Associate Counsel, ICMA
Oaks, PA 19456 Retirement Corporation (2004-
(1973) 2007).
- ------------------------------------------------------------------------------------------------------------
81
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
OTHER DIRECTORSHIPS
NAME, ADDRESS POSITION(S) HELD PRINCIPAL OCCUPATION(S) DURING HELD
(YEAR OF BIRTH) WITH FUNDS THE PAST 5 YEARS BY TRUSTEES
- ----------------------------------------------------------------------------------------------------
Stephen Panner(4) Assistant Treasurer Fund Accounting Director of the N/A
One Freedom Valley Drive Sub-Administrator since 2005.
Oaks, PA 19456 Fund Administration Manager,
(1970) Old Mutual Fund Services, 2000-
2005. Chief Financial Officer,
Controller and Treasurer, PBHG
Funds and PBHG Insurance Series
Fund, 2004-2005. Assistant
Treasurer.
- ----------------------------------------------------------------------------------------------------
(1) Mr. Chichester is currently married to a sister of Mr. del Ama's wife.
While an "immediate family member" as defined in Section 2(a) (19) of the
1940 Act of Mr. del Ama would be considered an Interested Person, Mr.
Chichester is not considered an immediate family member for this purpose.
Although this fact was taken into consideration in determining whether Mr.
Chichester should be considered to be an independent trustee for purposes
of the Section 2(a)(19) of the 1940 Act, it was determined that this
relationship was not one that should disqualify Mr. Chichester from serving
as an independent trustee of the Trust.
(2) Each Trustee serves until his or her successor is duly elected or
appointed and qualified.
(3) As of October 31, 2010, the Trust had thirty-nine investment portfolios,
fourteen of which were operational. As of November 9, 2010, the Trust had
17 investment portfolios that were operational. See "ORGANIZATION" section
of the Notes to the Financial Statements herein for additional information.
(4) These officers of the Trust also serve as officers of one or more mutual
funds for which SEI Investments Company or an affiliate acts as investment
manager, administrator or distributor.
82
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTICE TO SHAREHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
For shareholders that do not have an October 31, 2010 tax year end, this notice
is for informational purposes only. For shareholders with an October 31, 2010
tax year end, please consult your tax advisor as to the pertinence of this
notice. For the fiscal year ended October 31, 2010, the Funds are designating
the following items with regard to distributions paid during the year.
QUALIFYING
FOR SHORT-
CORPORATE TERM
LONG-TERM ORDINARY DIVIDENDS QUALIFYING INTEREST CAPITAL
CAPITAL GAIN INCOME TOTAL RECEIVED DIVIDEND RELATED GAIN
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION(1) INCOME(2) DIVIDENDS(3) DIVIDENDS(4)
------------- --------------------------- -------------- ----------- -------------- --------------
Global X/InterBolsa FTSE
Colombia 20 ETF 0.00% 100.00% 100.00% 1.54% 19.92% 0.00% 100.00%
Global X FTSE Nordic 30
ETF 0.00% 100.00% 100.00% 0.00% 93.60% 0.00% 100.00%
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of ordinary
income distributions (the total of short term capital gain and net
investment income distributions).
(2) The percentage in this column represents the amount of "Qualifying
Dividend Income" as created by the Jobs and Growth Relief Reconciliation
Act of 2003 and is reflected as a percentage of ordinary income
distributions (the total of short term capital gain and net investment
income distributions). It is the intention of each of the aforementioned
funds to designate the maximum amount permitted by law.
(3) The percentage in this column represents the amount of "Interest Related
Dividends" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of net investment income distributions that is
exempt from U.S. withholding tax when paid for foreign investors.
(4) The percentage in this column represents the amount of "Short-Term Capital
Gain Dividends" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of short-term capital gain distributions that is
exempt from U.S. withholding tax when paid to foreign investors.
The Fund intends to pass through a foreign tax credit to shareholders. For the
fiscal year ended October 31, 2010, the total amount of foreign source income
and foreign tax credit are as follows:
FOREIGN TAX
FOREIGN SOURCE CREDIT PASS
INCOME THROUGH
-------------- ----------
Global X Copper Miners ETF $ 16,774 $ 685
Global X/InterBolsa FTSE Colombia 20 ETF 457,874 57,643
Global X FTSE Nordic 30 ETF 164,711 31,543
Global X China Consumer ETF 710,727 6,286
Global X China Energy ETF 64,884 6,189
Global X China Financials ETF 1,284,544 108,977
Global X China Industrials ETF 154,579 12,682
Global X China Technology ETF 20,742 1,857
Global X China Materials ETF 134,379 7,335
The information reported herein may differ from the information and
distributions taxable to the shareholders for the calendar year ending December
31, 2010. Complete information will be computed and reported in conjunction
with your 2010 Form 1099-DIV.
83
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
NOTES
- --------------------------------------------------------------------------------
[LOGO OMITTED]
GLOBAL FUNDS
The World in your Hands
410 Park Ave, 4th floor
New York, NY 10022
1-888-GXFund-1
(1-888-493-8631)
www.globalxfunds.com
INVESTMENT ADVISER:
Global X Management Company LLC
410 Park Ave, 4th floor
New York, NY 10022
DISTRIBUTOR:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
SUB-ADMINISTRATOR:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
COUNSEL FOR THE INDEPENDENT TRUSTEES:
Dechert LLP
1175 I Street N.W.
Washington, DC 20007
This information must be preceded or accompanied by a current prospectus for
the Funds described.
GLX-AR-001-0200
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, comptroller or
principal accounting officer, and any person who performs a similar function.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant
has at least one audit committee financial expert serving on the audit
committee.
(a)(2) The audit committee financial expert is Scott Chichester and is
independent as defined in Form N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fees billed by Sanville & Company related to the Trust.
Sanville & Company billed the Trust aggregate fees for services rendered to the
Trust for the last two fiscal years was as follows:
- ------------------ ----------------------------------------------------- -----------------------------------------------------
2010 2009
- ------------------ ----------------------------------------------------- -----------------------------------------------------
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
All fees and All fees and All other fees All fees and All fees and All other fees
services to the services to and services to services to the services to and services to
Trust that were service service Trust that were service service
pre-approved affiliates that affiliates that pre-approved affiliates that affiliates that
were did not require were did not require
pre-approved pre-approval pre-approved pre-approval
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(a) Audit $112,000 $0 $0 $31,000 $0 $0
Fees(1)
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(b) Audit-Related $0 $0 $0 $0 $0 $0
Fees
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(c) Tax Fees $0 $0 $0 $0 $0 $0
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(d) All $0 $0 $0 $0 $0 $0
Other
Fees
- ------- ---------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
(e)(1) Not applicable.
(e)(2) Percentage of fees billed applicable to non-audit services pursuant
to waiver of pre-approval requirement were as follows Sanville & Company:
---------------------------- ----------------- ----------------
2010 2009
---------------------------- ----------------- ----------------
---------------------------- ----------------- ----------------
Audit-Related Fees 0% 0%
---------------------------- ----------------- ----------------
---------------------------- ----------------- ----------------
Tax Fees 0% 0%
---------------------------- ----------------- ----------------
---------------------------- ----------------- ----------------
All Other Fees 0% 0%
---------------------------- ----------------- ----------------
(f) Not applicable.
(g) The aggregate non-audit fees and services billed by Sanville & Company
for the last two fiscal years were $0 and $0 for 2010 and 2009, respectively.
(h) During the past fiscal year, all non-audit services provided by
Registrant's principal accountant to either Registrant's investment adviser or
to any entity controlling, controlled by, or under common control with
Registrant's investment adviser that provides ongoing services to Registrant
were pre-approved by the audit committee of Registrant's Board of Trustees.
Included in the audit committee's pre-approval was the review and consideration
as to whether the provision of these non-audit services is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies. Effective for
closed-end management investment companies for fiscal years ending on or after
December 31, 2005
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation,
the registrant's disclosure controls and procedures are adequately designed, and
are operating effectively to ensure, that information required to be disclosed
by the registrant in the reports it files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) The Global X Funds
By (Signature and Title)* /s/ Bruno del Ama
-----------------
Bruno del Ama
President
Date: December 23, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruno del Ama
-----------------
Bruno del Ama
President
Date: December 23, 2010
By (Signature and Title)* /s/ Jose C. Gonzalez
--------------------
Jose C. Gonzalez
CFO
Date: December 23, 2010
* Print the name and title of each signing officer under his or her signature.