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
Global X Funds
(Exact name of registrant as specified in charter)
605 Third Avenue, 43rd floor
New York, NY 10158
(Address of principal executive offices) (Zip code)
Thomas Park
Global X Management Company LLC
605 Third Avenue, 43rd floor
New York, NY 10158
(Name and address of agent for service)
With a copy to:
|
Global X Management Company LLC 605 Third Avenue, 43rd floor New York, NY 10158
|
Eric S. Purple, Esq. Stradley Ronon Stevens & Young, LLP 2000 K Street, N.W., Suite 700 Washington, DC 20006-1871 |
Registrant’s telephone number, including area code: (212) 644-6440
Date of fiscal year end: November 30, 2023
Date of reporting period: November 30, 2023
Item 1. Reports to Stockholders.
(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (the “Act”) (17 CFR § 270.30e-1), is attached hereto.
Global X MLP ETF (ticker: MLPA)
Global X MLP & Energy Infrastructure ETF (ticker: MLPX)
Global X Alternative Income ETF (ticker: ALTY)
Global X Conscious Companies ETF (ticker: KRMA)
Global X U.S. Preferred ETF (ticker: PFFD)
Global X S&P 500® Quality Dividend ETF (ticker: QDIV)
Global X Adaptive U.S. Factor ETF (ticker: AUSF)
Global X Variable Rate Preferred ETF (ticker: PFFV)
Global X Adaptive U.S. Risk Management ETF (ticker: ONOF)
Global X 1-3 Month T-Bill ETF (ticker: CLIP)
Global X U.S. Cash Flow Kings 100 ETF (ticker: FLOW)
Annual Report
November 30, 2023
As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ (defined below) shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary (such as a broker-dealer or bank). Instead, shareholder reports will be available on the Funds’ website (www. globalxetfs.com/explore), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of Fund shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.
Table of Contents
Shares are bought and sold at market price (not net asset value (“NAV”)) and are not individually redeemed from a Fund. Shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/ redemption units. Brokerage commissions will reduce returns.
The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “SEC” or “Commission”) for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the Commission’s website at https://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-493-8631; and (ii) on the Commission’s website at https://www.sec.gov.
Management
Discussion of Fund Performance (unaudited)
Global X MLP ETF
Global X MLP ETF
The Global X MLP ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive MLP Infrastructure Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Solactive MLP Infrastructure Index is intended to give investors a means of tracking the performance of the energy infrastructure MLP asset class in the United States. The Underlying Index is composed of Midstream MLPs engaged in the transportation, storage, and processing of natural resources, as defined by Solactive AG, the provider of the Underlying Index.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 15.79%, while the Underlying Index increased 20.63%. The Fund had a net asset value of $42.99 per share on November 30, 2022 and ended the reporting period with a net asset value of $46.08 on November 30, 2023.
During the reporting period, the highest returns came from NGL Energy Partners LP and Magellan Midstream Partners LP, which returned 270.09% and 38.82%, respectively. The worst performers were USD Partners LP and Martin Midstream Partners LP, which returned -91.57% and -20.49%, respectively.
The Fund recorded a positive performance during the reporting period as the US saw record levels of oil and gas production, which raised demand for midstream infrastructure. Compared to other energy sector divisions, midstream was particularly well positioned to profit from a volatile market because of its defensive contracts and fee structure. Investor views remained positive despite an uncertain macroeconomic climate, thanks in part to the midstream industry’s consolidation of mergers and acquisitions (M&A) with the purpose of expanding operations and profitability. Finally, the US oil sector filled the void created by the Organization of Petroleum Exporting Countries’ (OPEC) decision to continue with further supply curbs.
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||||
| One Year Return | Three Year Return | Five Year Return | Ten Year Return | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X MLP ETF | 15.79% | 15.87% | 29.90% | 30.00% | 7.32% | 7.36% | 0.79% | 0.80% |
| Hybrid Solactive MLP Infrastructure Index/Solactive MLP Composite Index Gross** | 20.63% | 20.63% | 33.13% | 33.13% | 9.09% | 9.09% | 1.79% | 1.79% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 11.82% | 11.82% |
1
Management
Discussion of Fund Performance (unaudited)
Global X MLP ETF
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on April 18, 2012.
**Reflects performance of Solactive MLP Composite Index through March 31, 2015 and Solactive MLP Infrastructure Index thereafter.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Solactive MLP Composite Index tracks the price movements in shares of the largest entities that are structured as Master Limited Partnerships (MLP) and that are engaged in the transportation, storage, processing, refining, marketing, exploration, production, or mining of natural resources.
The Solactive MLP Infrastructure Index tracks the price movements in shares of companies that are structured as Master Limited Partnerships (MLP) and that are engaged in own and operate assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
2
Management
Discussion of Fund Performance (unaudited)
Global X MLP ETF
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
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 above.
3
Management
Discussion of Fund Performance (unaudited)
Global X MLP & Energy Infrastructure
ETF
Global X MLP & Energy Infrastructure ETF
The Global X MLP & Energy Infrastructure ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive MLP & Energy Infrastructure Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is intended to give investors a means of tracking the performance of MLPs and energy infrastructure corporations. Midstream energy infrastructure MLPs and corporations principally own and operate assets used in energy logistics, including, but not limited to, pipelines, storage facilities and other assets used in transporting, storing, gathering, and processing natural gas, natural gas liquids, crude oil or refined products. The Underlying Index limits its exposure to partnerships in order to comply with applicable tax diversification rules. Securities must be publicly traded in the United States. The Underlying Index is maintained by Solactive AG.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 9.42%, while the Underlying Index increased 10.24%. The Fund had a net asset value of $43.47 per share on November 30, 2022 and ended the reporting period with a net asset value of $44.99 on November 30, 2023.
During the reporting period, the highest returns came from Archrock Inc. and Magellan Midstream Partners, L.P., which returned 75.60% and 38.82%, respectively. The worst performers were TC Energy Corporation and Enbridge Inc., which returned -9.43% and -9.32%, respectively.
The Fund recorded a positive performance during the reporting period due to record oil and gas production in the US, which increased demand for midstream infrastructure. The Organization of the Petroleum Exporting Countries’ (OPEC) decision to follow through with additional supply cuts benefited the US oil industry, which filled the supply gap. Moreover, the US surpassed Australia and Qatar as the world’s leading liquefied natural gas supplier. Merger and Acquisition (M&A) consolidation in the midstream industry geared towards expanding operations and profitability contributed to the positive perception of investors in an uncertain macroeconomic environment. Finally, in a volatile market, midstream’s defensive contracts and fee structure made it uniquely positioned to benefit compared to other segments of the energy sector.
4
Management
Discussion of Fund Performance (unaudited)
Global X MLP & Energy Infrastructure
ETF
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||||
| One Year Return | Three Year Return | Five Year Return | Ten Year Return | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X MLP & Energy Infrastructure ETF | 9.42% | 9.50% | 26.11% | 26.01% | 11.16% | 11.13% | 5.02% | 5.02% |
| Solactive MLP & Energy Infrastructure Index | 10.24% | 10.24% | 27.04% | 27.04% | 11.89% | 11.89% | 5.95% | 5.95% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 11.82% | 11.82% |
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on August 6, 2013.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Solactive MLP & Energy Infrastructure Index tracks the performance of MLPs and energy infrastructure corporations.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
5
Management
Discussion of Fund Performance (unaudited)
Global X MLP & Energy Infrastructure
ETF
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
6
Management
Discussion of Fund Performance (unaudited)
Global X Alternative Income ETF
Global X Alternative Income ETF
The Global X Alternative Income ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend Alternatives Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is intended to provide exposure to five income-producing categories: Master Limited Partnerships (“MLPs”) and Infrastructure, Real Estate, Preferreds, Emerging Market Bonds and Covered Calls. The MLPs and Infrastructure categories primarily consist of units of MLPs and shares of infrastructure companies. The Real Estate category provides exposure to global real estate investment trusts (“REITs”), and gains this exposure through investing directly in the Global X SuperDividend® REIT ETF. The Preferreds category provides exposure to U.S. preferred securities, and gains this exposure through investing directly in the Global X U.S. Preferred ETF. The Emerging Markets Bonds category provides exposure to emerging markets debt, and gains this exposure through investing directly in the Global X Emerging Markets Bond ETF. The Covered Call category provides exposure to a covered call strategy, and gains this exposure through investing directly in the Global X Nasdaq 100 Covered Call ETF.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 4.01%, while the Underlying Index increased 4.10%. The Fund had a net asset value of $11.42 per share on November 30, 2022 and ended the reporting period with a net asset value of $11.05 on November 30, 2023.
During the reporting period, the highest returns came from USA Compression Partners L.P. and Magellan Midstream Partners, L.P., which returned 42.84% and 38.82%, respectively. The worst performers were Icahn Enterprises L.P. and Avista Corporation, which returned -55.40% and -18.70%, respectively.
Volatility in global capital markets eased amid lower inflationary pressures and supported the Fund’s modestly positive performance during the reporting period. The slowing pace of interest rate hikes, stronger than expected economic growth, and speculation surrounding an end to the rate hiking cycle pushed prices higher on bonds and interest-rate sensitive equities. The Fund’s allocation to a covered-call strategy on the Nasdaq 100 Index helped lead returns in the Fund as strong performance in this technology sector-focused index contributed to robust total returns. Much of this covered call strategy’s performance was fueled by investors pivoting towards growth stocks spurred on by the excitement surrounding artificial intelligence (AI) and mega-cap technology stocks. Energy was also a top performing sector in the Fund as partnerships linked to midstream and downstream industries benefited from resilient demand and elevated energy prices. Furthermore, the November decline in interest rates sparked a broad end-of-year rally among interest-rate sensitive holdings, a segment that includes preferreds and REITs. However, these gains were tempered by poor performance from the utilities sector, as elevated interest rates throughout the reporting period lessened the appeal of utilities companies, which tend to be highly leveraged.
7
Management
Discussion of Fund Performance (unaudited)
Global X Alternative Income ETF
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||||
| One Year Return | Three Year Return | Five Year Return | Annualized Inception to Date* | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X Alternative Income ETF | 4.01% | 3.74% | 5.96% | 6.02% | 2.58% | 2.56% | 4.32% | 4.31% |
| Indxx SuperDividend® Alternatives Index | 4.10% | 4.10% | 6.14% | 6.14% | 2.65% | 2.65% | 4.70% | 4.70% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 11.76% | 11.76% |
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on July 13, 2015.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Indxx SuperDividend® Alternatives Index is designed to track the performance of different Alternative asset classes, with an objective of providing a diversified portfolio of assets with a low volatility and high dividend yield.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
8
Management
Discussion of Fund Performance (unaudited)
Global X Alternative Income ETF
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
9
Management Discussion of Fund Performance (unaudited)
Global X Conscious Companies ETF
Global X Conscious Companies ETF
The Global X Conscious Companies ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Concinnity Conscious Companies Index (“Underlying Index”). The Fund is passively managed and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index looks to provide investors an opportunity to invest in well-managed companies that achieve financial performance in a sustainable and responsible manner as measured by their ability to achieve positive outcomes that are consistent with a multi-stakeholder operating system (“MsOS”), as defined by Concinnity Advisors LP, the provider of the Underlying Index. The MsOS is a corporate governance structure that seeks to account for the multiple stakeholders that are critical for the ongoing success of the business, and incorporate the considerations of these stakeholders into the corporate decision-making and problem-solving process. The Index Provider conducts its analysis based on the following five key stakeholder groups: (1) Customers, (2) Employees, (3) Suppliers, (4) Stock and Debt Holders, and (5) Communities in which the companies operate.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 9.05%, while the Underlying Index increased 8.95%. The Fund had a net asset value of $29.52 per share on November 30, 2022 and ended the reporting period with a net asset value of $31.89 on November 30, 2023.
During the reporting period, the highest returns came from Meta Platforms Inc Class-A and Nvidia Corp., which returned 177.01% and 176.47%, respectively. The worst performers were V.F. Corporation and Walgreens Boots Alliance, Inc., which returned -52.23% and -46.81%, respectively.
The Fund generated positive returns over the reporting period as artificial intelligence and robotics technology enabled additional growth avenues for information technology companies, the Fund’s largest sector exposure. Mega-cap technology companies reported strong earnings growth as a result of cost-saving measures and a resurgence in advertising revenue. Additionally, demand for new weight loss and diabetes drugs supported growth in the healthcare industry. Market volatility was subdued on a relative basis as the slower pace of interest rate hikes from the U.S. Federal Reserve, which generated positive investor sentiment. Resilient consumer spending also supported corporate earnings, particularly in the consumer discretionary sector. During the reporting period, the Fund had the highest exposure by sector to Information Technology at 26.55%, Health Care at 15.86% and Financials at 13.63%.
10
Management Discussion of Fund Performance (unaudited)
Global X Conscious Companies ETF
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||||
| One Year Return | Three Year Return | Five Year Return | Annualized Inception to Date* | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X Conscious Companies ETF | 9.05% | 8.92% | 7.51% | 7.39% | 10.71% | 10.68% | 12.02% | 11.98% |
| Concinnity Conscious Companies Index | 8.95% | 8.95% | 7.59% | 7.59% | 10.94% | 10.94% | 12.36% | 12.36% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 12.85% | 12.85% |
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on July 11, 2016.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Concinnity Conscious Companies Index is designed to provide exposure to companies listed in the U.S. that operate their businesses in a sustainable and responsible manner, as measured by their ability to achieve positive outcomes that are consistent with a multi-stakeholder operating system (“MsOS”), as defined by Concinnity Advisors LP (“Concinnity”), the provider of the Concinnity Conscious Companies Index.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
11
Management Discussion of Fund Performance (unaudited)
Global X Conscious Companies ETF
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
12
Management Discussion of Fund Performance (unaudited)
Global X U.S. Preferred ETF
Global X U.S. Preferred ETF
The Global X U.S. Preferred ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE BofA Diversified Core U.S. Preferred Securities Index (“Underlying Index”). The Fund is passively managed and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to track the broad-based performance of the U.S. preferred securities market. The Underlying Index includes different categories of preferred stock, such as floating, variable and fixed-rate preferreds, cumulative and non-cumulative preferreds, and trust preferreds. Qualifying preferred securities must be listed on a U.S. exchange, denominated in U.S. dollars, and have a minimum amount outstanding of $50 million. Qualifying securities must meet minimum price, liquidity, maturity and other requirements as determined by ICE Data Indices, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 0.51%, while the Underlying Index decreased 0.31%. The Fund had a net asset value of $20.51 per share on November 30, 2022 and ended the reporting period with a net asset value of $19.13 on November 30, 2023.
The Fund experienced modestly negative performance throughout the reporting period as rising interest rates coalesced with defaults in the regional banking sector. The Fund saw outsized negative impact on its returns due to its relatively high allocation to financial institutions. Rising interest rates, driven by the U.S. Federal Reserve’s rate hiking cycle put further downward pressure on preferred share values, particularly in interest-rate sensitive sectors such as utilities. The Fund managed to stage a rebound in towards the end of the reporting period spurred on by tailwinds from falling Consumer Price Index (CPI) revisions, as well as increased speculation surrounding a potential peak in interest rates. This helped reverse many of the earlier losses seen in preferred shares, particularly among financial institutions. The strongest performance during the reporting period was seen among preferred shares that carried floating rate structures, largely due to their ability to regularly reset coupons to match market rates.
| AVERAGE
ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||||
| One
Year Return |
Three
Year Return |
Five
Year Return |
Annualized Inception to Date* | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net
Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X U.S. Preferred ETF | -0.51% | -0.31% | -3.56% | -3.67% | 2.08% | 2.04% | 1.34% | 1.39% |
| ICE BofA Diversified Core U.S. Preferred Securities Index | -0.31% | -0.31% | -3.41% | -3.41% | 2.25% | 2.25% | 1.52% | 1.52% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 12.22% | 12.22% |
13
Management Discussion of Fund Performance (unaudited)
Global X U.S. Preferred ETF
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on September 11, 2017.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The ICE BofA Diversified Core U.S. Preferred Securities Index was formerly known as BofA Merrill Lynch Diversified Core U.S. Preferred Securities Index.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
14
Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Quality Dividend ETF
Global X S&P 500® Quality Dividend ETF
The Global X S&P 500 Quality Dividend ETF (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500 Quality High Dividend Index (“Underlying Index”). The Fund is passively managed and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index measures the performance of S&P 500 stocks that exhibit both high quality and high dividend yield characteristics. Index constituents are equally-weighted, subject to a 25% Global Industry Classification Standard (GICS) Sector weight cap.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund decreased 3.71%, while the Underlying Index decreased 3.46%. The Fund had a net asset value of $33.24 per share on November 30, 2022 and ended the reporting period with a net asset value of $30.97 on November 30, 2023.
During the reporting period, the highest returns came from Broadcom Inc. and NetApp Inc., which returned 60.01% and 56.00%, respectively. The worst performers were Bristol-Myers Squibb Company and WK Kellogg Co., which returned -36.30% and -30.59%, respectively.
The Fund demonstrated negative performance during the reporting period as the Fund’s underweight exposure to information technology stocks caused it to miss out on much of the artificial intelligence (AI)-driven tech rally in the middle of the reporting period. Meanwhile, the Fund’s relative overweight exposure to non-cyclical sectors like consumer staples served to detract from performance over the reporting period, as the market favored cyclical strategies in a better-than-expected economic backdrop. Growing expectations for a “soft landing” for the U.S. economy were spurred by stronger than expected economic data in the latter half of the reporting period, which subsequently raised long-term treasury yields. This rise in yields put further pressure on downtrodden interest-rate sensitive sectors like real estate and utilities, consequently reducing the appeal of dividend-paying equities relative to fixed-income securities. The industrial and materials sectors were positive contributors to Fund returns that rebounded significantly in November, as speculation surrounding a potential peak in interest rates sparked a broad market rally. During the reporting period, the Fund had an average approximate stock exposure by sector of 17.37% in Consumer Staples and 17.17% in the Industrials sector.
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED November 30, 2023 | ||||||||
| One Year Return |
Three Year Return |
Five Year Return |
Annualized Inception to Date* | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X S&P 500 Quality Dividend ETF | -3.71% | -3.74% | 10.31% | 10.35% | 7.99% | 8.02% | 7.25% | 7.27% |
| S&P 500® Quality High Dividend Index | -3.46% | -3.46% | 10.61% | 10.61% | 8.30% | 8.30% | 7.56% | 7.56% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 11.42% | 11.42% |
15
Management Discussion of Fund Performance (unaudited)
Global X S&P 500® Quality Dividend ETF
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on July 13, 2018.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The S&P 500® Quality High Dividend Index measures the performance of S&P 500® stocks that exhibit both high quality and high dividend yield characteristics.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
16
Management Discussion of Fund Performance (unaudited)
Global X Adaptive U.S. Factor ETF
Global X Adaptive U.S. Factor ETF
The Global X Adaptive U.S. Factor ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Adaptive Wealth Strategies® U.S. Factor Index (“Underlying Index”). The Fund is passively managed and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to dynamically allocate across three sub-indices that provide exposure to U.S. equities that exhibit characteristics of one of three primary factors: value, momentum and low volatility. Each factor is represented by a subindex that is derived from the Solactive U.S. Large & Mid Cap Index, which is designed to measure the 1,000 largest companies, by free float market capitalization, that are exchange-listed in the United States.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 9.13%, while the Underlying Index increased 9.52%. The Fund had a net asset value of $32.23 per share on November 30, 2022 and ended the reporting period with a net asset value of $34.37 on November 30, 2023.
During the reporting period, the highest returns came from Western Alliance Bancorp and Super Micro Computer, Inc., which returned 110.10% and 104.16%, respectively. The worst performers were Hawaiian Electric Industries, Inc. and CVB Financial Corp., which returned -66.78% and -53.33%, respectively.
The Fund performed positively during the reporting period as a result of effective factor rotation. The Fund maintained an allocation to the momentum and low volatility factors for the majority of the reporting period. Primarily, the Fund’s exposure to momentum stocks amplified market cycle benefits as macroeconomic concerns decreased, thus increasing returns during the reporting period. The Fund also exhibited a meaningful allocation to equities in the industrials sector, which positively impacted performance as these companies benefitted from trends in onshoring and investments in domestic infrastructure. During the reporting period, the Fund maintained an average approximate sector allocation of 21.81% to Health Care, 13.37% to Financials and 13.24% to Industrials.
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED November 30, 2023 | ||||||||
| One Year Return |
Three Year Return |
Five Year Return |
Annualized Inception to Date* | |||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
| Global X Adaptive U.S. Risk Management ETF | 9.13% | 9.33% | 14.08% | 14.12% | 10.39% | 10.38% | 9.50% | 9.50% |
| Adaptive Wealth Strategies U.S. Factor Index | 9.52% | 9.52% | 14.45% | 14.45% | 10.74% | 10.74% | 9.85% | 9.85% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 12.51% | 12.51% | 11.09% | 11.09% |
17
Management Discussion of Fund Performance (unaudited)
Global X Adaptive U.S. Factor ETF
Growth of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on August 24, 2018.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Adaptive Wealth Strategies U.S. Factor Index employs a reversion to the mean process to dictate which investment theme to own at any given time.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
18
Management Discussion of Fund Performance (unaudited)
Global X Variable Rate Preferred ETF
Global X Variable Rate Preferred ETF
The Global X Variable Rate Preferred ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the ICE U.S. Variable Rate Preferred Securities Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index. Variable rate preferreds typically reset their dividends quarterly based on pre-determined spreads to benchmark rates usually Secured Overnight Financing Rate (SOFR). Consequently, variable rate preferreds carry lower duration risk than their fixed-rate counterparts.
The Underlying Index is designed to track the broad-based performance of the U.S.-listed variable rate preferred securities market. Qualifying preferred securities must be listed on a U.S. exchange, denominated in U.S. dollars, have floating or variable dividends or coupons, and have a minimum amount outstanding of $50 million. Qualifying preferred securities may, however, be issued by non-U.S. companies. Qualifying securities must be issued in $25, $50, $100, or $1000 par/liquidation preference increments, must have a traded market value of greater than $6 million in each of the previous three calendar months, and must have at least one year remaining to maturity, as determined by ICE Data Indices, LLC, the provider of the Underlying Index.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 5.01%, while the Underlying Index increased 5.19%. The Fund had a net asset value of $23.55 per share on November 30, 2022 and ended the reporting period with a net asset value of $23.13 on November 30, 2023.
During the reporting period, the highest returns came from NuStar Energy L.P. and Rithm Capital Corp., which returned 33.52% and 22.27%, respectively. The worst performers were Arbor Realty Trust Inc. and Western Alliance Bancorp Depositary, which returned -18.20% and -17.81%, respectively.
The Fund reported positive returns during the reporting period and outperformed broader preferred share benchmarks due to its variable rate exposure. The Fund also benefited from a decline in credit spreads within low investment grade and below investment grade assets throughout most of the reporting period. This positively impacted the Fund’s allocations to these particular credit segments of the preferred stock market. Resilient economic data, coupled with optimism surrounding a potential peak in interest rates, likely bolstered positive performance for preferred shares going into the end of the reporting period. However, collapses of regional banks during the middle of the reporting period, which the Fund had exposure to, detracted from performance.
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||||
| One Year Return | Three Year Return | Annualized Inception to Date* | ||||
| Net Asset Value |
Market Price |
Net Asset Value |
Market Price |
Net Asset Value |
Market Price | |
Global X Variable Rate Preferred ETF |
5.01% | 4.92% | 0.84% | 0.74% | 3.72% | 3.68% |
| ICE U.S. Variable Rate Preferred Securities Index | 5.19% | 5.19% | 1.02% | 1.02% | 3.93% | 3.93% |
| S&P 500® Index | 13.84% | 13.84% | 9.76% | 9.76% | 13.52% | 13.52% |
19
Management Discussion of Fund Performance (unaudited)
Global X Variable Rate Preferred ETF
Growth
of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on June 22, 2020.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The ICE U.S. Variable Rate Preferred Securities Index is designed to track the broad-based performance of the U.S. variable rate preferred securities market.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
20
Management
Discussion of Fund Performance (unaudited)
Global X Adaptive U.S. Risk Management ETF
Global X Adaptive U.S. Risk Management ETF
Global X Adaptive U.S. Risk Management ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Adaptive Wealth Strategies U.S. Risk Management Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to dynamically allocate between either 100% exposure to the Solactive GBS United States 500 Index TR (“U.S. Equity Position”) or 100% exposure to a portfolio of U.S. Treasuries with 1-3 years remaining to maturity (“U.S. Treasury Position”). The Solactive GBS United States 500 Index TR is a float-adjusted market capitalization weighted index which measures the performance of the equity securities of the 500 largest companies from the United States stock market across all sectors. A float-adjusted market capitalization weighted index weights each index component according to its market capitalization, using the number of shares that are readily available for purchase on the open market, rather than the total number of shares outstanding of an issuer. The Adaptive Wealth Strategies U.S. Risk Management Index seeks to provide exposure to the U.S. Equity Position during periods of normal equity market returns, and seeks to provide exposure to the U.S. Treasury Position prior to and during periods of adverse market conditions, as determined by the quantitative model developed by the Index Provider. The Adaptive Wealth Strategies U.S. Risk Management Index seeks to anticipate periods of adverse market conditions using quantitative signals that have been developed based on historical data.
For the 12-month period ended November 30, 2023 (the “reporting period”), the Fund increased 2.92%, while the Underlying Index increased 3.45%. The Fund had a net asset value of $28.26 per share on November 30, 2022 and ended the reporting period with a net asset value of $28.55 on November 30, 2023.
During the reporting period, the highest returns came from MongoDB, Inc. and Nvidia Corp., which returned 133.73% and 116.60%, respectively. The worst performers were SVB Financial Group and First Republic Bank, which returned -99.85% and -99.48%, respectively.
The Fund was positioned risk-on for the majority of the reporting period. The Fund began the period in a risk-off position, fully investing in short-term U.S. Treasuries. During the middle of the reporting period, the Fund re-allocated to a risk-on position where it remained for the remainder of the reporting period, with 100% exposure to U.S. equities. As a result, the Fund recorded positive returns during the reporting period as softening inflation and a deceleration of interest rate hikes by the U.S. Federal Reserve supported investor sentiment towards the equity market. Corporate earnings largely met market expectations supporting investor confidence in U.S. markets. Performance was negatively impacted by concerns of a potential recession as a prolonged period of elevated rates put pressure on borrowers. During the reporting period, the Fund had an average approximate stock exposure by sector of 22.62% in Information Technology and 11.64% in Health Care.
21
Management
Discussion of Fund Performance (unaudited)
Global X Adaptive U.S. Risk Management ETF
| AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED NOVEMBER 30, 2023 | ||||
| One Year Return |
Annualized Inception to Date* | |||
| Net Asset Value | Market Price | Net Asset Value | Market Price | |
| Global X Adaptive U.S. Risk Management ETF | 2.92% | 3.21% | 6.02% | 6.04% |
| Adaptive Wealth Strategies U.S. Risk Management Index | 3.45% | 3.45% | 6.19% | 7.67% |
| S&P 500® Index | 13.84% | 13.84% | 8.27% | 8.27% |
Growth
of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on January 12, 2021.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The Adaptive Wealth Strategies U.S. Risk Management Index is designed to dynamically allocate between either 100% exposure to the Solactive GBS United States 500 Index TR (“U.S. Equity Position”) or 100% exposure to the Solactive U.S. 1-3 Year Treasury Bond Index (“U.S. Treasury Position”). The Solactive U.S. 1-3 Year Treasury Bond Index is a rules-based, market value weighted index designed to track the performance of USD-denominated bonds issued by the U.S. Treasury with at least 1 year until maturity but less than 3 years until maturity, as of the selection date of the index. The Solactive GBS United States 500 Index TR is a float-adjusted market capitalization weighted index which measures the performance of the equity securities of the 500 largest companies from the United States stock market across all sectors. A float-adjusted market capitalization weighted index weights each index component according to its market capitalization, using the number of shares that are readily available for purchase on the open market, rather than the total number of shares outstanding of an issuer. The Underlying Index seeks to provide exposure to the U.S. Equity Position during periods of normal equity market returns, and seeks to provide exposure
22
Management
Discussion of Fund Performance (unaudited)
Global X Adaptive U.S. Risk Management ETF
to the U.S. Treasury Position prior to and during periods of adverse market conditions, as determined by the quantitative model developed by the Index Provider. The Underlying Index seeks to anticipate periods of adverse market conditions using quantitative signals that have been developed based on historical data.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
23
Management
Discussion of Fund Performance (unaudited)
Global X 1-3 Month T-Bill ETF
Global X 1-3 Month T-Bill ETF
Global X 1-3 Month T-Bill ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive 1-3 Month US T-Bill Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the performance of public obligations of the U.S. Treasury that have a remaining maturity of greater than or equal to 1 month and less than 3 months. To be a part of the eligible universe of the Underlying Index, certain criteria, as defined by Solactive AG, the provider of the Underlying Index, must be met. As of each selection date, the Underlying Index is comprised of Treasury bills issued by the U.S. government, that have a remaining maturity of less than 3 months and at least 1 month. In addition, each security must be zero coupon, be denominated in U.S. dollars and have an amount outstanding of at least $250 million, as determined by the Index Provider on the selection date. A zero coupon bond is a bond that is sold at a discount, does not pay interest, and pays its face value at maturity.
From the inception of the fund through the period ending November 30, 2023 (the “reporting period”), the Fund increased 2.36%, while the Underlying Index increased 2.41%. The Fund had a net asset value of $24.99 per share on June 20, 2023 and ended the reporting period with a net asset value of $25.11 on November 30, 2023.
The Fund recorded positive returns during the reporting period as ultra-short term Treasury bills reflected the U.S. Federal Reserve’s interest rate hikes, raising the average yield to maturity of the
Fund’s underlying holdings throughout the reporting period. The Fund’s short-term investment strategy allowed it to avoid the widespread interest rate volatility that impacted interest rates on the long end of the interest rate curve during the reporting period. Throughout the reporting period, the Fund delivered consistent interest income that largely tracked prevailing short-term interest rates while maintaining a stable net asset value.
| AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2023 | ||
| Cumulative Inception to Date* | ||
| Net Asset Value | Market Price | |
| Global X 1-3 Month T-Bill ETF | 2.36% | 2.44% |
| Solactive 1-3 Month US T-Bill Index | 2.41% | 2.41% |
| ICE BofA 0-3 Month US Treasury Bill Index | 2.39% | 2.39% |
24
Management
Discussion of Fund Performance (unaudited)
Global X 1-3 Month T-Bill ETF
Growth
of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on June 20, 2023.
The Solactive 1-3 Month US T-Bill Index is designed to track the performance of USD-denominated T-Bills (1-3 months) issued by the US Government.
The ICE Bofa 0-3 Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. The index is rebalanced monthly and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond 3 months from the rebalancing date.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
25
Management
Discussion of Fund Performance (unaudited)
Global X U.S. Cash Flow Kings 100 ETF
Global X U.S. Cash Flow Kings 100 ETF
Global X U.S. Cash Flow Kings 100 ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X U.S. Cash Flow Kings 100 Index (“Underlying Index”). The Fund is passively managed, and the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is owned and was developed by Global X Management Company LLC (the “Index Provider”), an affiliate of the Fund and the Fund’s investment adviser. The Underlying Index is administered and calculated by Mirae Asset Global Indices Pvt. Ltd. (the “Index Administrator”), an affiliate of the Index Provider. The Underlying Index is designed to provide exposure to large- and mid-capitalization U.S. equity securities that exhibit high free cash flow yields relative to the eligible universe of companies, as determined by the Index Administrator.
From the inception of the fund through the period ending November 30, 2023 (the “reporting period”), the Fund increased 6.46%, while the Underlying Index increased 6.57%. The Fund had a net asset value of $25.58 per share on July 10, 2023 and ended the reporting period with a net asset value of $27.07 on November 30, 2023.
During the reporting period, the highest returns came from Gap, Inc. and Williams-Sonoma, Inc., which returned 91.57% and 50.32%, respectively. The worst performers were Olaplex Holdings, Inc. and Polaris Inc., which returned -45.77% and -20.18%, respectively.
During the reporting period, the Fund recorded positive returns as corporate earnings met market expectations and a decline in inflationary pressures contributed to improving investor sentiment towards holdings within the Fund. A slower pace of interest rate hikes by the U.S. Federal Reserve also supported market sentiment. Growth was further fueled by strong consumer spending and the labor market remaining resilient throughout the reporting period. During the reporting period, the Fund had an average approximate stock exposure by sector of 25.68% in Energy and 16.09% in Health Care.
| AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED NOVEMBER 30, 2023 | ||
| Cumulative Inception to Date* | ||
| Net Asset Value | Market Price | |
| Global X U.S. Cash Flow Kings 100 ETF | 6.46% | 6.57% |
| Global X U.S. Cash Flow Kings 100 Index | 6.57% | 6.57% |
| S&P 500® Index | 4.25% | 4.25% |
26
Management
Discussion of Fund Performance (unaudited)
Global X U.S. Cash Flow Kings 100 ETF
Growth
of a $10,000 Investment
(At Net Asset Value)
*The Fund commenced investment operations on July 10, 2023.
The Global X U.S. Cash Flow Kings 100 Index is designed to track the performance of large and mid-capitalization U.S. equity securities that exhibit high free cash flow yield.
The S&P 500® Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when sold, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.
The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
See definition of comparative indices on the previous page and above.
27
| Schedule of Investments | November 30, 2023 |
| Global X MLP ETF | |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| MASTER LIMITED PARTNERSHIPS — 89.0% | ||||||||
| Energy — 89.0% | ||||||||
| Cheniere Energy Partners | 2,010,929 | $ | 124,154,756 | |||||
| CrossAmerica Partners | 100 | 2,373 | ||||||
| Delek Logistics Partners | 440,453 | 22,533,576 | ||||||
| Energy Transfer | 22,595,377 | 313,849,784 | ||||||
| Enterprise Products Partners | 7,565,051 | 202,592,066 | ||||||
| Evolve Transition Infrastructure * | 100 | 160 | ||||||
| Genesis Energy (A) | 5,301,311 | 66,584,466 | ||||||
| Green Plains Partners | 100 | 1,259 | ||||||
| Martin Midstream Partners | 100 | 258 | ||||||
| MPLX | 4,894,644 | 178,458,720 | ||||||
| NGL Energy Partners * | 100 | 433 | ||||||
| NuStar Energy | 4,961,113 | 94,459,592 | ||||||
| Plains All American Pipeline | 10,422,018 | 165,501,646 | ||||||
| Summit Midstream Partners * | 100 | 2,070 | ||||||
| USD Partners | 100 | 26 | ||||||
| Western Midstream Partners | 5,270,348 | 157,161,777 | ||||||
| TOTAL MASTER LIMITED PARTNERSHIPS (Cost $761,954,247) | 1,325,302,962 | |||||||
| COMMON STOCK — 15.9% | ||||||||
| Energy — 15.9% | ||||||||
| EnLink Midstream | 10,664,960 | 145,790,004 | ||||||
| Hess Midstream, Cl A | 2,777,980 | 90,395,469 | ||||||
| Phillips 66 | 100 | 12,889 | ||||||
| TOTAL COMMON STOCK (Cost $184,174,038) | 236,198,362 | |||||||
The accompanying notes are an integral part of the financial statements.
28
| Schedule of Investments | November 30, 2023 |
| Global X MLP ETF | |
| Shares | Value | |||||||
| EXCHANGE TRADED FUND — 0.0% | ||||||||
| Global X MLP & Energy Infrastructure ETF (A) | 100 | $ | 4,494 | |||||
| TOTAL EXCHANGE TRADED FUND (Cost $4,426) | 4,494 | |||||||
| TOTAL INVESTMENTS — 104.9% (Cost $946,132,711) | $ | 1,561,505,818 | ||||||
Percentages are based on Net Assets of $1,488,864,109.
| * | Non-income producing security. |
| (A) | Affiliated investment. |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
The following is a summary of the Fund’s transactions with affiliates for the year ended November 30, 2023:
| Value at 11/30/22 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value at 11/30/23 | Income | Capital Gains | |||||||||||||||||||||||
| Genesis Energy | ||||||||||||||||||||||||||||||
| $ | 66,869,171 | $ | 24,981,194 | $ | (35,227,328 | ) | $ | 13,529,474 | $ | (3,568,045 | ) | $ | 66,584,466 | $ | — | $ | — | |||||||||||||
| Global X MLP & Energy Infrastructure ETF | ||||||||||||||||||||||||||||||
| $ | — | $ | 4,426 | $ | — | $ | 68 | $ | — | $ | 4,494 | $ | 60 | $ | — | |||||||||||||||
| Totals: | ||||||||||||||||||||||||||||||
| $ | 66,869,171 | $ | 24,985,620 | $ | (35,227,328 | ) | $ | 13,529,542 | $ | (3,568,045 | ) | $ | 66,588,960 | $ | 60 | $ | — | |||||||||||||
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
29
| Schedule of Investments | November 30, 2023 |
| Global X MLP & Energy Infrastructure ETF | |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 74.2% | ||||||||
| CANADA — 20.5% | ||||||||
| Energy — 20.5% | ||||||||
| Enbridge | 2,603,236 | $ | 90,774,839 | |||||
| Pembina Pipeline (A) | 1,347,553 | 45,048,697 | ||||||
| TC Energy | 1,848,345 | 69,349,905 | ||||||
| TOTAL CANADA | 205,173,441 | |||||||
| UNITED STATES — 53.7% | ||||||||
| Energy — 53.7% | ||||||||
| Antero Midstream | 2,441,498 | 32,520,753 | ||||||
| Archrock | 1,025,795 | 14,863,770 | ||||||
| Cheniere Energy | 506,135 | 92,192,490 | ||||||
| DT Midstream | 702,254 | 40,232,132 | ||||||
| EnLink Midstream | 1,693,032 | 23,143,747 | ||||||
| Equitrans Midstream | 3,125,747 | 29,319,507 | ||||||
| Hess Midstream, Cl A | 403,327 | 13,124,261 | ||||||
| Kinder Morgan | 3,710,366 | 65,191,131 | ||||||
| Kinetik Holdings, Cl A | 121,095 | 4,403,014 | ||||||
| NextDecade * | 928,180 | 4,631,618 | ||||||
| ONEOK | 1,168,784 | 80,470,778 | ||||||
| Targa Resources | 503,590 | 45,549,715 | ||||||
| Williams | 2,457,544 | 90,413,044 | ||||||
| TOTAL UNITED STATES | 536,055,960 | |||||||
| TOTAL COMMON STOCK (Cost $609,379,471) | 741,229,401 | |||||||
The accompanying notes are an integral part of the financial statements.
30
| Schedule of Investments | November 30, 2023 |
| Global X MLP & Energy Infrastructure ETF | |
| Shares | Value | |||||||
| MASTER LIMITED PARTNERSHIPS — 25.7% | ||||||||
| UNITED STATES— 25.7% | ||||||||
| Energy — 25.7% | ||||||||
| Cheniere Energy Partners | 220,012 | $ | 13,583,541 | |||||
| Delek Logistics Partners | 47,981 | 2,454,708 | ||||||
| Energy Transfer | 3,251,863 | 45,168,377 | ||||||
| Enterprise Products Partners | 1,655,639 | 44,338,012 | ||||||
| MPLX | 1,223,794 | 44,619,529 | ||||||
| NuStar Energy | 609,829 | 11,611,144 | ||||||
| Plains All American Pipeline | 2,576,487 | 40,914,614 | ||||||
| Plains GP Holdings, Cl A | 1,385,416 | 22,388,323 | ||||||
| Western Midstream Partners | 1,066,387 | 31,799,660 | ||||||
| TOTAL UNITED STATES | 256,877,908 | |||||||
| TOTAL MASTER LIMITED PARTNERSHIPS (Cost $140,007,467) | 256,877,908 | |||||||
| SHORT-TERM INVESTMENT(B)(C) — 0.3% | ||||||||
| Fidelity Investments Money Market Government Portfolio, Cl Institutional, 5.280% (Cost $3,308,631) | 3,308,631 | 3,308,631 | ||||||
| Face Amount | ||||||||
| REPURCHASE AGREEMENT(B) — 1.1% | ||||||||
| BNP Paribas | ||||||||
| 5.220%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $10,841,621
(collateralized by U.S. Treasury Obligations, ranging in par value $54,124 - $1,275,300, 2.000%, 08/15/25, with a total market
value of $11,046,717) (Cost $10,840,049) | $ | 10,840,049 | 10,840,049 | |||||
| TOTAL INVESTMENTS — 101.3% (Cost $763,535,618) | $ | 1,012,255,989 | ||||||
Percentages are based on Net Assets of $999,208,257.
| * | Non-income producing security. |
The accompanying notes are an integral part of the financial statements.
31
| Schedule of Investments | November 30, 2023 |
| Global X MLP & Energy Infrastructure ETF | |
| (A) | This security or a partial position of this security is on loan at November 30, 2023. The total market value of securities on loan at November 30, 2023 was $13,993,798. |
| (B) | These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2023 was $14,148,680. The total value of non-cash collateral held from securities on loan as of November 30, 2023 was $—. |
| (C) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2023. |
The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments carried at value:
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stock | 741,229,401 | $ | — | $ | — | $ | 741,229,401 | |||||||||
| Master Limited Partnerships | 256,877,908 | — | — | 256,877,908 | ||||||||||||
| Short-Term Investment | 3,308,631 | — | — | 3,308,631 | ||||||||||||
| Repurchase Agreement | — | 10,840,049 | — | 10,840,049 | ||||||||||||
| Total Investments in Securities | $ | 1,001,415,940 | $ | 10,840,049 | $ | — | $ | 1,012,255,989 | ||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
32
| Schedule of Investments | November 30, 2023 | |
| Global X Alternative Income ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| EXCHANGE TRADED FUNDS — 80.6% | ||||||||
| Global X Emerging Markets Bond ETF (A) | 323,447 | $ | 7,019,447 | |||||
| Global X Nasdaq 100® Covered Call ETF (A) (B) | 409,969 | 6,989,971 | ||||||
| Global X SuperDividend® REIT ETF (A) | 334,661 | 6,840,471 | ||||||
| Global X U.S. Preferred ETF (A) | 363,039 | 6,948,567 | ||||||
| TOTAL EXCHANGE TRADED FUNDS (Cost $35,836,242) | 27,798,456 | |||||||
| COMMON STOCK — 11.3% | ||||||||
| Energy — 4.0% | ||||||||
| Hess Midstream, Cl A | 14,261 | 464,053 | ||||||
| Kinder Morgan | 25,708 | 451,689 | ||||||
| Williams | 12,662 | 465,835 | ||||||
| 1,381,577 | ||||||||
| Utilities — 7.3% | ||||||||
| ALLETE | 7,682 | 426,197 | ||||||
| Avangrid | 12,730 | 392,975 | ||||||
| Northwest Natural Holding | 10,712 | 392,274 | ||||||
| Northwestern Energy Group | 8,274 | 416,265 | ||||||
| OGE Energy | 12,080 | 423,404 | ||||||
| Spire | 7,273 | 443,726 | ||||||
| 2,494,841 | ||||||||
| TOTAL COMMON STOCK (Cost $3,690,444) | 3,876,418 | |||||||
| MASTER LIMITED PARTNERSHIPS — 7.9% | ||||||||
| Energy — 6.5% | ||||||||
| Enterprise Products Partners | 15,616 | 418,196 | ||||||
| MPLX | 12,191 | 444,484 | ||||||
The accompanying notes are an integral part of the financial statements.
33
| Schedule of Investments | November 30, 2023 | |
| Global X Alternative Income ETF |
| Shares | Value | |||||||
| MASTER LIMITED PARTNERSHIPS — continued | ||||||||
| Energy — continued | ||||||||
| Plains All American Pipeline | 27,160 | $ | 431,301 | |||||
| Sunoco | 8,925 | 487,841 | ||||||
| USA Compression Partners | 19,206 | 457,295 | ||||||
| 2,239,117 | ||||||||
| Utilities — 1.4% | ||||||||
| Suburban Propane Partners | 28,723 | 492,599 | ||||||
| TOTAL MASTER LIMITED PARTNERSHIPS (Cost $1,367,088) | 2,731,716 | |||||||
| SHORT-TERM INVESTMENT(C)(D) — 1.1% | ||||||||
| Fidelity Investments Money Market Government Portfolio, Cl Institutional, 5.280% (Cost $377,815) | 377,815 | 377,815 | ||||||
| Face Amount | ||||||||
| REPURCHASE AGREEMENT(C) — 3.6% | ||||||||
| BNP Paribas | ||||||||
| 5.220%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $1,238,013 (collateralized by U.S. Treasury Obligations, ranging in par value $6,180 - $145,627, 2.000%, 08/15/25, with a total market value of $1,261,436) (Cost $1,237,833) | $ | 1,237,833 | 1,237,833 | |||||
| TOTAL INVESTMENTS — 104.5% (Cost $42,509,422) | $ | 36,022,238 | ||||||
Percentages are based on Net Assets of $34,471,903.
The accompanying notes are an integral part of the financial statements.
34
| Schedule of Investments | November 30, 2023 | |
| Global X Alternative Income ETF |
| (A) | Affiliated investment. |
| (B) | This security or a partial position of this security is on loan at November 30, 2023. The total market value of securities on loan at November 30, 2023 was $1,582,240. |
| (C) | These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2023 was $1,615,648. The total value of non-cash collateral held from securities on loan as of November 30, 2023 was $—. |
| (D) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2023. |
The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments carried at value:
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Exchange Traded Funds | $ | 27,798,456 | $ | — | $ | — | $ | 27,798,456 | ||||||||
| Common Stock | 3,876,418 | — | — | 3,876,418 | ||||||||||||
| Master Limited | ||||||||||||||||
| Partnerships | 2,731,716 | — | — | 2,731,716 | ||||||||||||
| Short-Term Investment | 377,815 | — | — | 377,815 | ||||||||||||
| Repurchase Agreement | — | 1,237,833 | — | 1,237,833 | ||||||||||||
| Total Investments in Securities | $ | 34,784,405 | $ | 1,237,833 | $ | — | $ | 36,022,238 | ||||||||
The following is a summary of the Fund’s transactions with affiliates for the year ended November 30, 2023:
| Value at 11/30/22 | Purchases at Cost | Proceeds from Sales | Changes in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value at 11/30/23 | Dividend Income | Capital Gains | |||||||||||||||||||||||
| Global X Emerging Markets Bond ETF | ||||||||||||||||||||||||||||||
| $ | 7,746,289 | $ | 1,699,170 | $ | (2,377,562 | ) | $ | 91,832 | $ | (140,282 | ) | $ | 7,019,447 | $ | 365,864 | $ | — | |||||||||||||
| Global X NASDAQ 100 Covered Call ETF | ||||||||||||||||||||||||||||||
| $ | 7,618,510 | $ | 1,720,191 | $ | (3,103,513 | ) | $ | 799,763 | $ | (44,980 | ) | $ | 6,989,971 | $ | 388,204 | $ | 15,007 | |||||||||||||
| Global X SuperDividend® REIT ETF | ||||||||||||||||||||||||||||||
| $ | 7,297,064 | $ | 1,800,387 | $ | (1,633,764 | ) | $ | (610,384 | ) | $ | (12,832 | ) | $ | 6,840,471 | $ | 387,260 | $ | 2,537 | ||||||||||||
| Global X U.S. Preferred ETF | ||||||||||||||||||||||||||||||
| $ | 7,325,307 | $ | 1,770,209 | $ | (1,643,872 | ) | $ | (483,983 | ) | $ | (19,094 | ) | $ | 6,948,567 | $ | 458,719 | $ | — | ||||||||||||
| Totals: | ||||||||||||||||||||||||||||||
| $ | 29,987,170 | $ | 6,989,957 | $ | (8,758,711 | ) | $ | (202,772 | ) | $ | (217,188 | ) | $ | 27,798,456 | $ | 1,600,047 | $ | 17,544 | ||||||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
35
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 99.8% | ||||||||
| CANADA — 0.5% | ||||||||
| Financials — 0.5% | ||||||||
| Toronto-Dominion Bank | 48,005 | $ | 2,927,825 | |||||
| UNITED STATES — 99.3% | ||||||||
| Communication Services — 7.2% | ||||||||
| Alphabet, Cl A * | 121,558 | 16,110,082 | ||||||
| Comcast, Cl A | 62,646 | 2,624,241 | ||||||
| Electronic Arts | 20,940 | 2,889,929 | ||||||
| Interpublic Group | 96,275 | 2,959,493 | ||||||
| Meta Platforms, Cl A * | 15,082 | 4,934,076 | ||||||
| Netflix * | 6,507 | 3,084,123 | ||||||
| Take-Two Interactive Software * | 18,814 | 2,976,375 | ||||||
| T-Mobile US * | 19,079 | 2,870,436 | ||||||
| Verizon Communications | 79,545 | 3,048,960 | ||||||
| 41,497,715 | ||||||||
| Consumer Discretionary — 10.8% | ||||||||
| Amazon.com * | 90,140 | 13,168,552 | ||||||
| AutoNation * | 20,637 | 2,791,567 | ||||||
| BorgWarner | 69,555 | 2,343,308 | ||||||
The accompanying notes are an integral part of the financial statements.
36
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Discretionary — continued | ||||||||
| Dick’s Sporting Goods | 25,148 | $ | 3,271,755 | |||||
| eBay | 65,173 | 2,672,745 | ||||||
| Etsy * | 41,590 | 3,152,938 | ||||||
| Gentex | 88,896 | 2,703,327 | ||||||
| Home Depot | 9,474 | 2,970,004 | ||||||
| Lear | 20,490 | 2,740,537 | ||||||
| Lowe’s | 14,346 | 2,852,415 | ||||||
| Lululemon Athletica * | 6,633 | 2,963,624 | ||||||
| Marriott International, Cl A | 14,134 | 2,864,962 | ||||||
| NIKE, Cl B | 25,536 | 2,815,855 | ||||||
| PulteGroup | 37,500 | 3,315,750 | ||||||
| Starbucks | 28,400 | 2,820,120 | ||||||
| Tesla * | 15,271 | 3,666,262 | ||||||
| Tractor Supply | 13,464 | 2,733,327 | ||||||
| Yum! Brands | 22,271 | 2,796,124 | ||||||
| 62,643,172 | ||||||||
| Consumer Staples — 5.8% | ||||||||
| Church & Dwight | 29,167 | 2,818,407 | ||||||
| Coca-Cola | 48,029 | 2,806,815 | ||||||
| Colgate-Palmolive | 36,669 | 2,888,417 | ||||||
| Costco Wholesale | 4,877 | 2,890,793 | ||||||
| General Mills | 41,967 | 2,671,619 | ||||||
| Hershey | 14,046 | 2,639,524 | ||||||
| Kimberly-Clark | 22,162 | 2,742,104 | ||||||
| Kroger | 61,265 | 2,712,202 | ||||||
| Mondelez International, Cl A | 40,991 | 2,912,820 | ||||||
| PepsiCo | 16,469 | 2,771,568 | ||||||
| Procter & Gamble | 17,924 | 2,751,693 | ||||||
| Target | 24,727 | 3,308,720 | ||||||
| 33,914,682 | ||||||||
| Energy — 3.1% | ||||||||
| Cheniere Energy | 15,908 | 2,897,642 | ||||||
| Chevron | 17,133 | 2,460,299 | ||||||
| ConocoPhillips | 22,263 | 2,572,935 | ||||||
| EOG Resources | 20,548 | 2,528,842 | ||||||
| Hess | 17,225 | 2,421,146 | ||||||
| ONEOK | 40,404 | 2,781,815 | ||||||
The accompanying notes are an integral part of the financial statements.
37
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Energy — continued | ||||||||
| Valero Energy | 20,727 | $ | 2,598,337 | |||||
| 18,261,016 | ||||||||
| Financials — 13.1% | ||||||||
| Aflac | 34,357 | 2,841,667 | ||||||
| American Express | 18,592 | 3,174,956 | ||||||
| Bank of America | 105,459 | 3,215,445 | ||||||
| Bank of New York Mellon | 64,294 | 3,106,686 | ||||||
| Capital One Financial | 30,126 | 3,363,869 | ||||||
| Charles Schwab | 53,914 | 3,306,007 | ||||||
| Citigroup | 68,998 | 3,180,808 | ||||||
| FactSet Research Systems | 6,333 | 2,871,762 | ||||||
| Hartford Financial Services Group | 38,160 | 2,982,586 | ||||||
| JPMorgan Chase | 19,013 | 2,967,549 | ||||||
| Mastercard, Cl A | 6,910 | 2,859,565 | ||||||
| MetLife | 45,121 | 2,871,049 | ||||||
| Moody’s | 8,794 | 3,209,458 | ||||||
| Morgan Stanley | 37,546 | 2,978,900 | ||||||
| Nasdaq | 54,311 | 3,032,726 | ||||||
| PayPal Holdings * | 49,246 | 2,837,062 | ||||||
| PNC Financial Services Group | 24,130 | 3,232,455 | ||||||
| Principal Financial Group | 39,838 | 2,941,240 | ||||||
| Progressive | 17,085 | 2,802,453 | ||||||
| Prudential Financial | 29,694 | 2,903,479 | ||||||
| S&P Global | 7,713 | 3,207,297 | ||||||
| T Rowe Price Group | 27,839 | 2,787,519 | ||||||
| Travelers | 16,999 | 3,070,359 | ||||||
| Truist Financial | 97,474 | 3,132,814 | ||||||
| Visa, Cl A | 11,439 | 2,936,163 | ||||||
| 75,813,874 | ||||||||
| Health Care — 16.3% | ||||||||
| Abbott Laboratories | 28,190 | 2,939,935 | ||||||
| AbbVie | 18,256 | 2,599,472 | ||||||
| Agilent Technologies | 25,426 | 3,249,443 | ||||||
| Amgen | 9,664 | 2,605,801 | ||||||
| Biogen * | 10,600 | 2,481,248 | ||||||
| Boston Scientific * | 52,709 | 2,945,906 | ||||||
| Bristol-Myers Squibb | 47,592 | 2,350,093 | ||||||
The accompanying notes are an integral part of the financial statements.
38
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Health Care — continued | ||||||||
| Centene * | 38,328 | $ | 2,824,007 | |||||
| Cigna Group | 8,774 | 2,306,509 | ||||||
| CVS Health | 38,723 | 2,631,228 | ||||||
| Danaher | 13,661 | 3,050,638 | ||||||
| Edwards Lifesciences * | 37,898 | 2,566,074 | ||||||
| Elevance Health | 5,926 | 2,841,458 | ||||||
| Eli Lilly | 4,495 | 2,656,725 | ||||||
| Gilead Sciences | 34,902 | 2,673,493 | ||||||
| HCA Healthcare | 11,659 | 2,920,346 | ||||||
| Humana | 5,179 | 2,511,090 | ||||||
| Intuitive Surgical * | 9,673 | 3,006,755 | ||||||
| IQVIA Holdings * | 14,390 | 3,080,899 | ||||||
| Johnson & Johnson | 17,672 | 2,733,152 | ||||||
| Laboratory Corp of America Holdings | 13,435 | 2,914,186 | ||||||
| Merck | 25,920 | 2,656,282 | ||||||
| Mettler-Toledo International * | 2,679 | 2,925,280 | ||||||
| Pfizer | 87,807 | 2,675,479 | ||||||
| Quest Diagnostics | 21,736 | 2,982,831 | ||||||
| Regeneron Pharmaceuticals * | 3,327 | 2,740,816 | ||||||
| ResMed | 18,766 | 2,959,961 | ||||||
| Stryker | 10,147 | 3,006,860 | ||||||
| Thermo Fisher Scientific | 5,855 | 2,902,675 | ||||||
| UnitedHealth Group | 5,094 | 2,816,829 | ||||||
| Vertex Pharmaceuticals * | 7,233 | 2,566,341 | ||||||
| Waters * | 10,782 | 3,025,537 | ||||||
| West Pharmaceutical Services | 7,265 | 2,548,271 | ||||||
| Zoetis, Cl A | 15,990 | 2,824,953 | ||||||
| 94,520,573 | ||||||||
| Industrials — 6.8% | ||||||||
| Automatic Data Processing | 11,373 | 2,614,880 | ||||||
| Booz Allen Hamilton Holding, Cl A | 22,303 | 2,790,775 | ||||||
| Caterpillar | 10,765 | 2,699,001 | ||||||
| Cummins | 12,196 | 2,733,855 | ||||||
| Deere | 7,152 | 2,606,260 | ||||||
| Expeditors International of Washington | 23,809 | 2,865,175 | ||||||
| General Dynamics | 11,456 | 2,829,288 | ||||||
| Illinois Tool Works | 12,054 | 2,919,599 | ||||||
| Leidos Holdings | 29,693 | 3,186,653 | ||||||
The accompanying notes are an integral part of the financial statements.
39
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Industrials — continued | ||||||||
| Paychex | 22,821 | $ | 2,783,478 | |||||
| Rockwell Automation | 10,061 | 2,771,202 | ||||||
| Union Pacific | 13,069 | 2,944,054 | ||||||
| United Parcel Service, Cl B | 17,894 | 2,712,909 | ||||||
| WW Grainger | 3,906 | 3,070,858 | ||||||
| 39,527,987 | ||||||||
| Information Technology — 31.5% | ||||||||
| Adobe * | 4,986 | 3,046,496 | ||||||
| Advanced Micro Devices * | 26,433 | 3,202,622 | ||||||
| Akamai Technologies * | 25,756 | 2,975,591 | ||||||
| Analog Devices | 16,287 | 2,986,710 | ||||||
| Apple | 182,618 | 34,688,289 | ||||||
| Applied Materials | 19,913 | 2,982,569 | ||||||
| Arista Networks * | 14,109 | 3,099,888 | ||||||
| Autodesk * | 13,094 | 2,860,122 | ||||||
| Cadence Design Systems * | 11,272 | 3,080,299 | ||||||
| CDW | 13,426 | 2,831,275 | ||||||
| Cisco Systems | 50,961 | 2,465,493 | ||||||
| Cognizant Technology Solutions, Cl A | 41,239 | 2,902,401 | ||||||
| Dell Technologies, Cl C | 40,118 | 3,043,753 | ||||||
| Dropbox, Cl A * | 97,818 | 2,756,511 | ||||||
| F5 * | 18,120 | 3,101,963 | ||||||
| Gartner * | 7,952 | 3,457,848 | ||||||
| HP | 102,664 | 3,012,162 | ||||||
| HubSpot * | 6,184 | 3,054,463 | ||||||
| Intuit | 5,313 | 3,036,167 | ||||||
| Keysight Technologies * | 21,971 | 2,985,639 | ||||||
| KLA | 5,708 | 3,108,691 | ||||||
| Lam Research | 4,434 | 3,174,389 | ||||||
| Littelfuse | 11,990 | 2,791,272 | ||||||
| Microsoft | 91,722 | 34,754,383 | ||||||
| Motorola Solutions | 9,536 | 3,078,888 | ||||||
| NetApp | 36,180 | 3,306,490 | ||||||
| NVIDIA | 23,580 | 11,028,366 | ||||||
| ON Semiconductor * | 31,381 | 2,238,407 | ||||||
| Oracle | 26,018 | 3,023,552 | ||||||
| Salesforce * | 13,145 | 3,311,226 | ||||||
| ServiceNow * | 4,855 | 3,329,268 | ||||||
The accompanying notes are an integral part of the financial statements.
40
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Information Technology — continued | ||||||||
| Synopsys * | 5,734 | $ | 3,114,881 | |||||
| Texas Instruments | 18,181 | 2,776,421 | ||||||
| Trimble * | 55,124 | 2,557,754 | ||||||
| Twilio, Cl A * | 50,108 | 3,240,985 | ||||||
| Workday, Cl A * | 12,650 | 3,424,608 | ||||||
| Zoom Video Communications, Cl A * | 42,999 | 2,916,622 | ||||||
| 182,746,464 | ||||||||
| Materials — 1.5% | ||||||||
| Albemarle | 19,198 | 2,328,142 | ||||||
| Avery Dennison | 15,534 | 3,021,363 | ||||||
| Ecolab | 16,755 | 3,212,436 | ||||||
| 8,561,941 | ||||||||
| Real Estate — 2.2% | ||||||||
| CBRE Group, Cl A * | 40,189 | 3,173,324 | ||||||
| Equinix ‡ | 3,812 | 3,106,818 | ||||||
| Jones Lang LaSalle * | 21,485 | 3,341,347 | ||||||
| ProLogis ‡ | 26,425 | 3,037,025 | ||||||
| 12,658,514 | ||||||||
| Utilities — 1.0% | ||||||||
| American Water Works | 22,821 | 3,008,721 | ||||||
| Exelon | 68,747 | 2,647,447 | ||||||
| 5,656,168 | ||||||||
| TOTAL UNITED STATES | 575,802,106 | |||||||
| TOTAL COMMON STOCK (Cost $525,301,866) | 578,729,931 | |||||||
| TOTAL INVESTMENTS — 99.8% (Cost $525,301,866) | $ | 578,729,931 | ||||||
Percentages are based on Net Assets of $579,740,502.
| * | Non-income producing security. |
| ‡ | Real Estate Investment Trust |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
41
| Schedule of Investments | November 30, 2023 | |
| Global X Conscious Companies ETF |
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
42
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| PREFERRED STOCK — 99.4% | ||||||||
| BERMUDA— 0.8% | ||||||||
| Financials — 0.4% | ||||||||
| Aspen Insurance Holdings, 9.593%, US0003M + 4.060% (A) | 228,410 | $ | 5,899,830 | |||||
| SiriusPoint, 8.000%, H15T5Y + 7.298% (A) | 156,912 | 3,993,411 | ||||||
| 9,893,241 | ||||||||
| Industrials — 0.4% | ||||||||
| Triton International, 8.000% | 112,668 | 2,848,247 | ||||||
| Triton International, 6.875% | 117,465 | 2,679,377 | ||||||
| Triton International, 5.750% | 149,755 | 2,941,188 | ||||||
| 8,468,812 | ||||||||
| TOTAL BERMUDA | 18,362,053 | |||||||
| CANADA— 0.4% | ||||||||
| Financials — 0.2% | ||||||||
| Brookfield Finance, 4.625% | 314,458 | 4,930,701 | ||||||
| Utilities — 0.2% | ||||||||
| Brookfield BRP Holdings Canada, 4.875% | 203,833 | 3,173,680 | ||||||
| TOTAL CANADA | 8,104,381 | |||||||
| NETHERLANDS— 0.7% | ||||||||
| Financials — 0.7% | ||||||||
| AEGON Funding, 5.100% | 774,096 | 16,232,793 | ||||||
| TOTAL NETHERLANDS | 16,232,793 | |||||||
The accompanying notes are an integral part of the financial statements.
43
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| UNITED STATES— 97.5% | ||||||||
| Communication Services — 6.2% | ||||||||
| AT&T, 5.625% | 691,929 | $ | 16,537,103 | |||||
| AT&T, 5.350% | 1,107,431 | 25,227,278 | ||||||
| AT&T, 5.000% | 1,005,554 | 20,171,413 | ||||||
| AT&T, 4.750% | 1,464,857 | 28,125,255 | ||||||
| Qwest, 6.750% | 556,373 | 6,164,613 | ||||||
| Qwest, 6.500% | 821,467 | 8,715,765 | ||||||
| Telephone and Data Systems, 6.625% | 347,309 | 5,449,278 | ||||||
| Telephone and Data Systems, 6.000% | 581,248 | 8,056,097 | ||||||
| United States Cellular, 6.250% | 421,428 | 8,171,489 | ||||||
| United States Cellular, 5.500% | 421,823 | 7,297,538 | ||||||
| United States Cellular, 5.500% | 421,877 | 7,302,691 | ||||||
| 141,218,520 | ||||||||
| Consumer Discretionary — 2.5% | ||||||||
| Brunswick, 6.375% | 180,610 | 4,455,649 | ||||||
| Ford Motor, 6.500% | 504,046 | 11,935,809 | ||||||
| Ford Motor, 6.200% | 629,272 | 15,285,017 | ||||||
| Ford Motor, 6.000% | 671,107 | 15,911,947 | ||||||
| Qurate Retail, 8.000% (B) | 267,570 | 9,062,596 | ||||||
| 56,651,018 | ||||||||
| Energy — 1.8% | ||||||||
| Energy Transfer, 10.364%, US0003M + 4.738% (A) | 363,122 | 9,346,760 | ||||||
| Energy Transfer, 10.156%, US0003M + 4.530% (A) | 378,560 | 9,725,206 | ||||||
| NuStar Energy, 12.551%, US0003M + 6.880% (A) | 135,179 | 3,438,954 | ||||||
| NuStar Energy, 11.315%, TSFR3M + 5.905% (A) | 324,315 | 8,341,382 | ||||||
| NuStar Logistics, 12.390%, TSFR3M + 6.996% (A) | 338,809 | 9,097,022 | ||||||
| 39,949,324 | ||||||||
| Financials — 71.8% | ||||||||
| Affiliated Managers Group, 5.875% | 251,155 | 5,377,229 | ||||||
| Allstate, 8.821%, TSFR3M + 3.427% (A) | 420,265 | 10,720,960 | ||||||
| Allstate, 7.375% | 492,356 | 13,150,829 | ||||||
| Allstate, 5.100% | 963,777 | 21,328,385 | ||||||
| Allstate, 4.750% | 251,146 | 5,253,974 | ||||||
| American Equity Investment Life Holding, 6.625%, H15T5Y + 6.297% (A) | 253,497 | 6,114,348 | ||||||
The accompanying notes are an integral part of the financial statements.
44
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| American Equity Investment Life Holding, 5.950%, H15T5Y + 4.322% (A) | 337,224 | $ | 7,611,146 | |||||
| American Financial Group, 4.500% | 173,743 | 3,146,486 | ||||||
| American International Group, 5.850% | 420,617 | 10,220,993 | ||||||
| Arch Capital Group, 4.550% | 421,391 | 8,263,478 | ||||||
| Argo Group International Holdings, 7.000%, H15T5Y + 6.712% (A) | 130,494 | 3,101,842 | ||||||
| Associated Banc-Corp, 6.625%, H15T5Y + 2.812% (A) | 244,233 | 5,192,394 | ||||||
| Associated Banc-Corp, 5.875% | 77,561 | 1,367,400 | ||||||
| Associated Banc-Corp, 5.625% | 89,268 | 1,540,766 | ||||||
| Athene Holding, 7.750%, H15T5Y + 3.962% (A) | 420,376 | 10,597,679 | ||||||
| Athene Holding, 6.375%, H15T5Y + 5.970% (A) | 503,967 | 12,483,263 | ||||||
| Athene Holding, 6.350%, US0003M + 4.253% (A) | 723,068 | 17,230,710 | ||||||
| Athene Holding, 5.625% | 291,511 | 6,025,532 | ||||||
| Athene Holding, 4.875% | 464,111 | 7,964,145 | ||||||
| Axis Capital Holdings, 5.500% | 462,780 | 9,829,447 | ||||||
| Bank of America, 7.250% | 55,312 | 62,004,752 | ||||||
| Bank of America, 6.450%, US0003M + 1.327% (A) | 748,820 | 18,990,075 | ||||||
| Bank of America, 6.298%, TSFR3M + 0.912% (A) | 219,367 | 4,549,672 | ||||||
| Bank of America, 6.129%, TSFR3M + 0.762% (A) | 298,512 | 6,340,395 | ||||||
| Bank of America, 6.000% (B) | 963,025 | 23,777,087 | ||||||
| Bank of America, 5.991%, TSFR3M + 0.612% (A) | 223,001 | 4,709,781 | ||||||
| Bank of America, 5.875% (B) | 606,693 | 14,524,230 | ||||||
| Bank of America, 5.375% (B) | 985,665 | 21,881,763 | ||||||
| Bank of America, 5.000% | 927,879 | 19,290,604 | ||||||
| Bank of America, 4.750% | 488,746 | 9,672,283 | ||||||
| Bank of America, 4.375% | 765,924 | 14,054,705 | ||||||
| Bank of America, 4.250% | 924,719 | 16,459,998 | ||||||
| Bank of America, 4.125% | 649,139 | 11,295,019 | ||||||
| Bank OZK, 4.625% | 274,774 | 4,176,565 | ||||||
| Brighthouse Financial, 6.750% | 339,008 | 7,458,176 | ||||||
The accompanying notes are an integral part of the financial statements.
45
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Brighthouse Financial, 6.600% | 358,036 | $ | 7,679,872 | |||||
| Brighthouse Financial, 6.250% | 316,220 | 6,722,837 | ||||||
| Brighthouse Financial, 5.375% | 484,249 | 8,580,892 | ||||||
| Brighthouse Financial, 4.625% | 274,684 | 4,123,007 | ||||||
| Capital One Financial, 5.000% | 1,255,979 | 22,783,459 | ||||||
| Capital One Financial, 4.800% | 1,047,693 | 18,491,781 | ||||||
| Capital One Financial, 4.375% | 567,819 | 9,090,782 | ||||||
| Capital One Financial, 4.250% | 355,870 | 5,636,981 | ||||||
| Charles Schwab, 5.950% (B) | 629,130 | 15,703,085 | ||||||
| Charles Schwab, 4.450% (B) | 504,786 | 9,621,221 | ||||||
| Citigroup, Ser J, 9.696%, TSFR3M + 4.302% (A) | 797,446 | 20,574,107 | ||||||
| Citigroup Capital XIII, 12.022%, TSFR3M + 6.632% (A) | 1,877,609 | 54,187,796 | ||||||
| Citizens Financial Group, 5.000% | 379,541 | 7,332,732 | ||||||
| Cullen, 4.450% | 117,183 | 1,983,908 | ||||||
| Enstar Group, 7.000%, US0003M + 4.015% (A) | 336,916 | 8,331,933 | ||||||
| Equitable Holdings, 5.250% | 669,124 | 13,870,941 | ||||||
| Equitable Holdings, 4.300% | 235,941 | 3,777,415 | ||||||
| Fifth Third Bancorp, 6.000% | 156,901 | 3,768,762 | ||||||
| Fifth Third Bancorp, 4.950% | 196,413 | 4,433,041 | ||||||
| First Citizens BancShares, 5.625% | 157,123 | 3,326,294 | ||||||
| First Citizens BancShares, 5.375% | 291,633 | 5,905,568 | ||||||
| First Horizon, 6.500% | 126,127 | 2,648,667 | ||||||
| First Horizon, 4.700% | 133,234 | 1,997,178 | ||||||
| Fulton Financial, 5.125% | 156,949 | 2,508,045 | ||||||
| Goldman Sachs Group, 6.381%, TSFR3M + 1.012% (A) | 629,491 | 13,760,673 | ||||||
| Goldman Sachs Group, 6.301%, TSFR3M + 0.932% (A) | 1,130,413 | 23,987,364 | ||||||
| Hartford Financial Services Group, 6.000% (B) | 290,952 | 7,361,086 | ||||||
| Huntington Bancshares, 6.875%, H15T5Y + 2.704% (A) | 274,395 | 6,579,992 | ||||||
| Huntington Bancshares, 5.700% | 151,988 | 3,064,078 | ||||||
| Huntington Bancshares, 4.500% | 421,747 | 7,464,922 | ||||||
| Jackson Financial, 8.000%, H15T5Y + 3.728% (A) | 462,072 | 11,561,041 | ||||||
| JPMorgan Chase, 6.000% | 1,547,443 | 38,887,243 | ||||||
| JPMorgan Chase, 5.750% | 1,419,254 | 34,388,524 | ||||||
The accompanying notes are an integral part of the financial statements.
46
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| JPMorgan Chase, 4.750% | 754,988 | $ | 15,703,750 | |||||
| JPMorgan Chase, 4.625% | 1,548,294 | 31,538,749 | ||||||
| JPMorgan Chase, 4.550% (B) | 1,255,882 | 25,180,434 | ||||||
| JPMorgan Chase, 4.200% | 1,673,548 | 31,462,702 | ||||||
| Kemper, 5.875%, H15T5Y + 4.140% (A) | 131,748 | 2,528,244 | ||||||
| KeyCorp, 6.200%, H15T5Y + 3.132% (A) | 504,683 | 10,240,018 | ||||||
| KeyCorp, 6.125%, TSFR3M + 4.154% (A) | 420,779 | 9,097,242 | ||||||
| KeyCorp, 5.650% | 358,710 | 6,948,213 | ||||||
| KeyCorp, 5.625% | 379,196 | 7,208,516 | ||||||
| KKR Group Finance IX, 4.625% | 421,732 | 7,574,307 | ||||||
| Lincoln National, 9.000% (B) | 420,124 | 11,007,249 | ||||||
| M&T Bank, 5.625%, CME Term SOFR + 4.020% (A) | 209,327 | 5,118,045 | ||||||
| Merchants Bancorp, 8.250%, H15T5Y + 4.340% (A) | 117,668 | 2,929,933 | ||||||
| MetLife, 6.671%, CME Term SOFR + 1.262% (A) | 504,076 | 11,467,729 | ||||||
| MetLife, 5.625% | 674,793 | 15,999,342 | ||||||
| MetLife, 4.750% | 838,530 | 17,500,121 | ||||||
| Morgan Stanley, Ser E, 7.125% | 722,547 | 18,237,086 | ||||||
| Morgan Stanley, Ser F, 6.875%, US0003M + 3.940% (A) | 712,530 | 18,027,009 | ||||||
| Morgan Stanley, 6.500% (B) | 837,811 | 21,615,524 | ||||||
| Morgan Stanley, 6.375% | 837,887 | 20,896,902 | ||||||
| Morgan Stanley, 6.356%, TSFR3M + 0.962% (A) | 921,748 | 19,642,450 | ||||||
| Morgan Stanley, 5.850% | 838,050 | 19,677,414 | ||||||
| Morgan Stanley, 4.875% | 421,038 | 8,782,853 | ||||||
| Morgan Stanley, 4.250% | 1,089,316 | 19,869,124 | ||||||
| National Rural Utilities Cooperative Finance, 5.500% | 196,523 | 4,620,256 | ||||||
| New York Community Bancorp, 6.375%, US0003M + 3.821% (A) | 433,191 | 10,037,035 | ||||||
| Northern Trust, 4.700% | 337,433 | 7,622,611 | ||||||
| PacWest Bancorp, 7.750%, H15T5Y + 4.820% (A) | 432,054 | 9,047,211 | ||||||
| Prudential Financial, 5.950% (B) | 253,386 | 6,436,004 | ||||||
| Prudential Financial, 5.625% | 474,746 | 11,479,358 | ||||||
| Prudential Financial, 4.125% | 421,231 | 8,125,546 | ||||||
The accompanying notes are an integral part of the financial statements.
47
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Regions Financial, 5.700%, CME Term SOFR + 3.148% (A) | 421,040 | $ | 8,361,854 | |||||
| Regions Financial, 4.450% | 338,053 | 5,500,122 | ||||||
| Reinsurance Group of America, 7.125%, H15T5Y + 3.456% (A) | 587,195 | 15,366,893 | ||||||
| Reinsurance Group of America, 5.750%, US0003M + 4.040% (A) | 336,848 | 8,481,833 | ||||||
| SLM, 7.371%, TSFR3M + 1.962% (A) | 49,178 | 3,340,662 | ||||||
| State Street, 5.900%, US0003M + 3.108% (A) | 629,062 | 15,682,516 | ||||||
| State Street, 5.350%, TSFR3M + 3.971% (A) | 420,585 | 9,841,689 | ||||||
| Stifel Financial, 6.125% | 186,933 | 4,508,824 | ||||||
| Stifel Financial, 4.500% | 241,533 | 4,033,601 | ||||||
| Synchrony Financial, 5.625% | 630,677 | 10,500,772 | ||||||
| Synovus Financial, 9.011%, CME Term SOFR + 3.614% (A) | 156,169 | 3,986,995 | ||||||
| Texas Capital Bancshares, 5.750% | 236,008 | 4,307,146 | ||||||
| Truist Financial, 5.250% (B) | 483,519 | 10,709,946 | ||||||
| Truist Financial, 4.750% | 776,145 | 15,088,259 | ||||||
| US Bancorp, 6.676%, TSFR3M + 1.282% (A) | 12,088 | 9,658,070 | ||||||
| US Bancorp, 6.256%, TSFR3M + 0.862% (A) | 838,807 | 16,558,050 | ||||||
| US Bancorp, 5.500% | 483,427 | 10,591,886 | ||||||
| US Bancorp, 4.500% (B) | 379,675 | 7,206,232 | ||||||
| US Bancorp, 4.000% | 630,728 | 10,665,610 | ||||||
| US Bancorp, 3.750% (B) | 422,192 | 6,822,623 | ||||||
| Valley National Bancorp, 9.234%, US0003M + 3.578% (A) (B) | 79,038 | 1,803,647 | ||||||
| Valley National Bancorp, 6.250%, US0003M + 3.850% (A) | 89,549 | 1,726,505 | ||||||
| Voya Financial, 5.350%, H15T5Y + 3.210% (A) | 253,499 | 6,030,741 | ||||||
| W R Berkley, 4.250% | 196,421 | 3,926,456 | ||||||
| W R Berkley, 4.125% | 235,597 | 4,304,357 | ||||||
| WaFd, 4.875% | 240,939 | 3,435,790 | ||||||
| Wells Fargo, 7.500% | 83,288 | 93,115,984 | ||||||
| Wells Fargo, 6.625%, US0003M + 3.690% (A) | 704,163 | 17,589,992 | ||||||
| Wells Fargo, 5.625% (B) | 579,104 | 13,365,720 | ||||||
| Wells Fargo, 4.750% | 1,683,815 | 32,346,086 | ||||||
| Wells Fargo, 4.700% (B) | 980,821 | 18,969,078 | ||||||
| Wells Fargo, 4.375% | 880,838 | 15,731,767 | ||||||
| Wells Fargo, 4.250% | 1,047,984 | 18,224,442 | ||||||
The accompanying notes are an integral part of the financial statements.
48
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Western Alliance Bancorp, 4.250%, H15T5Y + 3.452% (A) | 240,481 | $ | 3,941,484 | |||||
| Wintrust Financial, 6.875%, H15T5Y + 6.507% (A) | 242,802 | 5,965,645 | ||||||
| Zions Bancorporation, 9.911%, CME Term SOFR + 4.240% (A) | 109,386 | 2,779,498 | ||||||
| 1,635,933,090 | ||||||||
| Industrials — 1.2% | ||||||||
| Chart Industries, 6.750% | 169,097 | 9,181,967 | ||||||
| FTAI Aviation, 8.250%, US0003M + 6.886% (A) | 210 | 5,162 | ||||||
| Pitney Bowes, 6.700% | 359,076 | 6,050,430 | ||||||
| WESCO International, 10.625%, H15T5Y + 10.325% (A) | 452,246 | 12,210,642 | ||||||
| 27,448,201 | ||||||||
| Real Estate — 5.4% | ||||||||
| Brookfield Property Partners, 6.500% | 152,655 | 2,062,369 | ||||||
| Brookfield Property Partners, 5.750% | 225,179 | 2,742,680 | ||||||
| Brookfield Property Preferred, 6.250% | 565,510 | 7,600,454 | ||||||
| Digital Realty Trust, 5.850% ‡ (B) | 164,810 | 3,999,939 | ||||||
| Digital Realty Trust, 5.200% ‡ | 291,596 | 6,368,457 | ||||||
| Diversified Healthcare Trust, 6.250% ‡ | 207,285 | 3,173,533 | ||||||
| Diversified Healthcare Trust, 5.625% ‡ | 274,503 | 4,090,095 | ||||||
| Hudson Pacific Properties, 4.750% ‡ | 334,019 | 4,008,228 | ||||||
| Kimco Realty, 5.250% ‡ | 205,526 | 4,720,932 | ||||||
| Kimco Realty, 5.125% ‡ | 174,881 | 3,938,320 | ||||||
| Public Storage, 5.600% ‡ | 240,940 | 6,001,815 | ||||||
| Public Storage, 5.150% ‡ | 234,459 | 5,498,064 | ||||||
| Public Storage, 5.050% ‡ | 253,614 | 5,934,568 | ||||||
| Public Storage, 4.875% ‡ | 267,224 | 5,838,844 | ||||||
| Public Storage, 4.625% ‡ | 475,398 | 9,921,556 | ||||||
| Public Storage, 4.000% ‡ | 367,404 | 6,734,515 | ||||||
| Public Storage, 4.000% ‡ | 508,295 | 9,342,462 | ||||||
| Public Storage, 3.900% ‡ | 141,715 | 2,458,755 | ||||||
| Public Storage, 3.875% ‡ | 231,970 | 3,966,687 | ||||||
| RLJ Lodging Trust, 1.950% ‡ | 271,768 | 6,503,408 | ||||||
| SITE Centers, 6.375% ‡ | 137,239 | 3,156,497 | ||||||
| SL Green Realty, 6.500% ‡ (B) | 188,546 | 3,467,361 | ||||||
| Vornado Realty Trust, 5.250% ‡ | 246,324 | 3,955,964 | ||||||
| Vornado Realty Trust, 5.250% ‡ | 251,258 | 4,080,430 | ||||||
The accompanying notes are an integral part of the financial statements.
49
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Real Estate — continued | ||||||||
| Vornado Realty Trust, 4.450% ‡ | 241,909 | $ | 3,297,220 | |||||
| 122,863,153 | ||||||||
| Utilities — 8.6% | ||||||||
| CMS Energy, 5.875% | 529,093 | 12,777,596 | ||||||
| CMS Energy, 4.200% | 198,732 | 4,153,499 | ||||||
| DTE Energy, 5.250% | 337,276 | 7,855,158 | ||||||
| DTE Energy, 4.375% | 180,446 | 3,686,512 | ||||||
| Duke Energy, 5.750% | 837,934 | 20,680,211 | ||||||
| Duke Energy, 5.625% | 420,436 | 10,195,573 | ||||||
| Entergy Arkansas, 4.875% | 345,614 | 7,347,754 | ||||||
| Entergy Louisiana, 4.875% | 226,274 | 4,864,891 | ||||||
| Entergy Mississippi, 4.900% (B) | 216,719 | 4,815,496 | ||||||
| Georgia Power, 5.000% | 220,614 | 5,127,069 | ||||||
| NextEra Energy, 6.926% (B) | 836,847 | 30,996,813 | ||||||
| NextEra Energy Capital Holdings, 5.650% (B) | 576,959 | 14,481,671 | ||||||
| SCE Trust IV, 5.375%, TSFR3M + 3.394% (A) | 270,042 | 5,738,393 | ||||||
| Sempra, 5.750% | 635,572 | 15,412,621 | ||||||
| Southern, 5.250% | 378,882 | 9,040,125 | ||||||
| Southern, 4.950% (B) | 838,353 | 18,653,354 | ||||||
| Southern, 4.200% | 629,869 | 12,364,328 | ||||||
| Spire, 5.900% (B) | 205,444 | 4,901,894 | ||||||
| Tennessee Valley Authority, 2.216%, H15T30Y + 0.840% (A) | 171,338 | 3,743,735 | ||||||
| 196,836,693 | ||||||||
| TOTAL UNITED STATES | 2,220,899,999 | |||||||
| TOTAL PREFERRED STOCK (Cost $2,569,968,222) | 2,263,599,226 | |||||||
| SHORT-TERM INVESTMENT(C)(D) — 0.4% | ||||||||
| Fidelity Investments Money Market Government
Portfolio, Cl Institutional, 5.280% (Cost $9,839,349) | 9,839,349 | 9,839,349 | ||||||
The accompanying notes are an integral part of the financial statements.
50
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
| Face Amount | Value | |||||||
| REPURCHASE AGREEMENT(C) — 1.4% | ||||||||
| BNP Paribas 5.220%, dated 11/30/2023, to be repurchased on 12/01/2023, repurchase price $32,241,281 (collateralized by U.S. Treasury Obligations, ranging in par value $160,955 - $3,792,542, 2.000%, 08/15/25, with a total market value of $32,851,198) (Cost $32,236,607) | $ | 32,236,607 | $ | 32,236,607 | ||||
| TOTAL INVESTMENTS — 101.2% (Cost $2,612,044,178) | $ | 2,305,675,182 | ||||||
Percentages are based on Net Assets of $2,277,678,444.
| ‡ | Real Estate Investment Trust |
| (A) | Variable or floating rate security. The rate presented is the rate in effect as of November 30, 2023. Rates are based on published reference rates and spreads and/ or are adjusted periodically based on prevailing interest rates. |
| (B) | This security or a partial position of this security is on loan at November 30, 2023. The total market value of securities on loan at November 30, 2023 was $40,959,809. |
| (C) | These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of November 30, 2023 was $42,075,956. The total value of non-cash collateral held from securities on loan as of November 30, 2023 was $—. |
| (D) | The rate reported on the Schedule of Investments is the 7-day effective yield as of November 30, 2023. |
The accompanying notes are an integral part of the financial statements.
51
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Preferred ETF | |
The following is a summary of the level of inputs used as of November 30, 2023, in valuing the Fund’s investments carried at value:
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Preferred Stock | $ | 2,263,599,226 | $ | — | $ | — | $ | 2,263,599,226 | ||||||||
| Short-Term Investment | 9,839,349 | — | — | 9,839,349 | ||||||||||||
| Repurchase Agreement | — | 32,236,607 | — | 32,236,607 | ||||||||||||
| Total Investments in Securities | $ | 2,273,438,575 | $ | 32,236,607 | $ | — | $ | 2,305,675,182 | ||||||||
Amounts designated as “—“are $0 or have been rounded to $0.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
52
| Schedule of Investments | November 30, 2023 |
Global X S&P 500® Quality Dividend ETF
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 99.5% | ||||||||
| Communication Services — 3.7% | ||||||||
| Comcast, Cl A | 16,319 | $ | 683,603 | |||||
| Interpublic Group | 16,682 | 512,805 | ||||||
| Omnicom Group | 6,987 | 563,362 | ||||||
| 1,759,770 | ||||||||
| Consumer Discretionary — 6.4% | ||||||||
| Best Buy | 8,757 | 621,221 | ||||||
| Darden Restaurants | 4,069 | 636,676 | ||||||
| Garmin | 6,254 | 764,489 | ||||||
| Tapestry | 15,510 | 491,202 | ||||||
| VF | 34,594 | 578,758 | ||||||
| 3,092,346 | ||||||||
| Consumer Staples — 14.9% | ||||||||
| Archer-Daniels-Midland | 9,085 | 669,837 | ||||||
| Bunge Global | 7,039 | 773,375 | ||||||
| Campbell Soup | 14,362 | 577,065 | ||||||
| Coca-Cola | 10,942 | 639,450 | ||||||
| General Mills | 8,044 | 512,081 | ||||||
| Hormel Foods | 16,157 | 494,243 | ||||||
| J M Smucker | 4,308 | 472,717 | ||||||
| Kellanova | 10,348 | 543,684 | ||||||
| Kimberly-Clark | 4,899 | 606,153 | ||||||
The accompanying notes are an integral part of the financial statements.
53
| Schedule of Investments | November 30, 2023 |
Global X S&P 500® Quality Dividend ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Staples — continued | ||||||||
| Kraft Heinz | 17,946 | $ | 630,084 | |||||
| PepsiCo | 3,613 | 608,032 | ||||||
| Procter & Gamble | 4,506 | 691,761 | ||||||
| 7,218,482 | ||||||||
| Energy — 14.7% | ||||||||
| APA | 19,781 | 712,116 | ||||||
| Chevron | 4,134 | 593,642 | ||||||
| Coterra Energy | 26,731 | 701,689 | ||||||
| EOG Resources | 5,669 | 697,684 | ||||||
| Exxon Mobil | 6,135 | 630,310 | ||||||
| Kinder Morgan | 38,827 | 682,190 | ||||||
| Marathon Petroleum | 5,833 | 870,225 | ||||||
| ONEOK | 11,037 | 759,898 | ||||||
| Pioneer Natural Resources | 3,211 | 743,796 | ||||||
| Valero Energy | 5,812 | 728,592 | ||||||
| 7,120,142 | ||||||||
| Financials — 11.2% | ||||||||
| Aflac | 9,554 | 790,211 | ||||||
| BlackRock, Cl A | 963 | 723,435 | ||||||
| CME Group, Cl A | 3,572 | 779,982 | ||||||
| Discover Financial Services | 5,803 | 539,679 | ||||||
| Hartford Financial Services Group | 9,237 | 721,964 | ||||||
| Principal Financial Group | 9,230 | 681,451 | ||||||
| Regions Financial | 35,830 | 597,644 | ||||||
| T Rowe Price Group | 5,779 | 578,651 | ||||||
| 5,413,017 | ||||||||
| Health Care — 9.0% | ||||||||
| AbbVie | 4,755 | 677,064 | ||||||
| Bristol-Myers Squibb | 10,165 | 501,948 | ||||||
| CVS Health | 9,223 | 626,703 | ||||||
| Gilead Sciences | 8,403 | 643,670 | ||||||
| Medtronic | 7,868 | 623,696 | ||||||
| Merck | 5,950 | 609,756 | ||||||
| Viatris | 70,481 | 647,016 | ||||||
| 4,329,853 | ||||||||
| Industrials — 18.3% | ||||||||
| 3M | 6,596 | 653,466 | ||||||
| CH Robinson Worldwide | 7,343 | 602,493 | ||||||
| Fastenal | 12,029 | 721,379 | ||||||
The accompanying notes are an integral part of the financial statements.
54
| Schedule of Investments | November 30, 2023 |
Global X S&P 500® Quality Dividend ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Industrials — continued | ||||||||
| General Dynamics | 3,113 | $ | 768,818 | |||||
| L3Harris Technologies | 3,494 | 666,690 | ||||||
| Lockheed Martin | 1,424 | 637,624 | ||||||
| Norfolk Southern | 3,060 | 667,570 | ||||||
| Paychex | 5,917 | 721,696 | ||||||
| Robert Half | 9,059 | 742,657 | ||||||
| RTX | 6,631 | 540,294 | ||||||
| Snap-On | 2,459 | 675,463 | ||||||
| Stanley Black & Decker | 7,822 | 711,020 | ||||||
| Union Pacific | 3,301 | 743,616 | ||||||
| 8,852,786 | ||||||||
| Information Technology — 7.1% | ||||||||
| Cisco Systems | 13,220 | 639,584 | ||||||
| Corning | 20,192 | 575,270 | ||||||
| Hewlett Packard Enterprise | 41,905 | 708,613 | ||||||
| Juniper Networks | 21,931 | 623,937 | ||||||
| NetApp | 9,469 | 865,372 | ||||||
| 3,412,776 | ||||||||
| Materials — 10.4% | ||||||||
| Amcor | 66,091 | 626,543 | ||||||
| CF Industries Holdings | 9,696 | 728,654 | ||||||
| Eastman Chemical | 8,190 | 686,568 | ||||||
| International Paper | 20,857 | 770,458 | ||||||
| LyondellBasell Industries, Cl A | 7,398 | 703,550 | ||||||
| Mosaic | 18,836 | 676,024 | ||||||
| Packaging Corp of America | 5,039 | 846,602 | ||||||
| 5,038,399 | ||||||||
| Real Estate — 1.2% | ||||||||
| Public Storage ‡ | 2,289 | 592,302 | ||||||
| Utilities — 2.6% | ||||||||
| Consolidated Edison | 7,046 | 634,915 | ||||||
| Exelon | 16,479 | 634,606 | ||||||
| 1,269,521 | ||||||||
| TOTAL COMMON STOCK (Cost $50,676,115) | 48,099,394 | |||||||
| TOTAL INVESTMENTS — 99.5% (Cost $50,676,115) | $ | 48,099,394 | ||||||
Percentages are based on Net Assets of $48,317,862.
The accompanying notes are an integral part of the financial statements.
55
| Schedule of Investments | November 30, 2023 |
Global X S&P 500® Quality Dividend ETF
| ‡ | Real Estate Investment Trust |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
56
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 99.8% | ||||||||
| MEXICO — 0.1% | ||||||||
| Materials — 0.1% | ||||||||
| Southern Copper | 1,419 | $ | 102,069 | |||||
| UNITED KINGDOM — 0.1% | ||||||||
| Energy — 0.1% | ||||||||
| TechnipFMC | 9,932 | 205,791 | ||||||
| UNITED STATES — 99.6% | ||||||||
| Communication Services — 8.7% | ||||||||
| AT&T | 59,358 | 983,562 | ||||||
| Comcast, Cl A | 72,305 | 3,028,856 | ||||||
| Frontier Communications Parent * | 45,086 | 986,933 | ||||||
| IAC * | 18,859 | 902,026 | ||||||
| Meta Platforms, Cl A * | 13,440 | 4,396,896 | ||||||
| Netflix * | 5,546 | 2,628,638 | ||||||
| Nexstar Media Group, Cl A | 5,960 | 845,903 | ||||||
| Paramount Global, Cl B | 70,049 | 1,006,604 | ||||||
| Verizon Communications | 26,913 | 1,031,575 | ||||||
| 15,810,993 | ||||||||
The accompanying notes are an integral part of the financial statements.
57
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Discretionary — 10.7% | ||||||||
| Advance Auto Parts | 16,039 | $ | 814,621 | |||||
| Asbury Automotive Group * | 4,013 | 842,008 | ||||||
| Best Buy | 12,164 | 862,914 | ||||||
| Booking Holdings * | 791 | 2,472,429 | ||||||
| Deckers Outdoor * | 332 | 220,438 | ||||||
| DR Horton | 4,671 | 596,347 | ||||||
| DraftKings, Cl A * | 7,118 | 272,192 | ||||||
| Ford Motor | 72,669 | 745,584 | ||||||
| Garmin | 8,127 | 993,444 | ||||||
| General Motors | 28,967 | 915,357 | ||||||
| Lennar, Cl A | 3,623 | 463,454 | ||||||
| Lithia Motors, Cl A | 3,192 | 852,232 | ||||||
| Macy’s | 74,779 | 1,185,995 | ||||||
| Marriott Vacations Worldwide | 9,100 | 663,390 | ||||||
| Meritage Homes | 8,095 | 1,143,823 | ||||||
| NVR * | 43 | 264,682 | ||||||
| PulteGroup | 4,914 | 434,496 | ||||||
| Royal Caribbean Cruises * | 4,246 | 456,275 | ||||||
| Tapestry | 29,857 | 945,571 | ||||||
| Taylor Morrison Home, Cl A * | 22,708 | 1,024,131 | ||||||
| Tempur Sealy International | 2,609 | 105,195 | ||||||
| TJX | 20,054 | 1,766,958 | ||||||
| Toll Brothers | 13,902 | 1,194,043 | ||||||
| Wynn Resorts | 1,592 | 134,397 | ||||||
| 19,369,976 | ||||||||
| Consumer Staples — 2.2% | ||||||||
| BellRing Brands * | 2,696 | 142,618 | ||||||
| Bunge Global | 8,108 | 890,826 | ||||||
| Celsius Holdings * | 1,971 | 97,584 | ||||||
| Conagra Brands | 31,189 | 882,337 | ||||||
| Coty, Cl A * | 4,918 | 56,065 | ||||||
| elf Beauty * | 1,361 | 160,721 | ||||||
| Kraft Heinz | 26,913 | 944,915 | ||||||
| Tyson Foods, Cl A | 18,195 | 852,254 | ||||||
| 4,027,320 | ||||||||
| Energy — 4.5% | ||||||||
| Antero Midstream | 67,613 | 900,605 | ||||||
The accompanying notes are an integral part of the financial statements.
58
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Energy — continued | ||||||||
| Baker Hughes, Cl A | 14,943 | $ | 504,326 | |||||
| Chesapeake Energy | 9,555 | 767,362 | ||||||
| Chord Energy | 5,008 | 811,997 | ||||||
| Civitas Resources | 10,921 | 750,164 | ||||||
| Coterra Energy | 28,741 | 754,451 | ||||||
| DT Midstream | 15,444 | 884,787 | ||||||
| Helmerich & Payne | 19,292 | 698,949 | ||||||
| Kinder Morgan | 49,820 | 875,338 | ||||||
| ONEOK | 12,442 | 856,632 | ||||||
| Transocean * | 15,012 | 95,476 | ||||||
| Weatherford International * | 2,473 | 224,276 | ||||||
| 8,124,363 | ||||||||
| Financials — 25.0% | ||||||||
| AGNC Investment ‡ | 99,520 | 877,766 | ||||||
| Ally Financial | 33,331 | 973,932 | ||||||
| Apollo Global Management | 8,219 | 756,148 | ||||||
| Arch Capital Group * | 7,059 | 590,768 | ||||||
| Ares Management, Cl A | 2,507 | 281,411 | ||||||
| Arthur J Gallagher | 3,112 | 774,888 | ||||||
| Bank OZK | 23,807 | 996,561 | ||||||
| Berkshire Hathaway, Cl B * | 12,431 | 4,475,160 | ||||||
| Cadence Bank | 40,917 | 1,024,971 | ||||||
| Capital One Financial | 8,902 | 993,997 | ||||||
| Citigroup | 21,101 | 972,756 | ||||||
| Citizens Financial Group | 33,369 | 909,973 | ||||||
| Columbia Banking System | 42,569 | 954,823 | ||||||
| Comerica | 20,316 | 918,689 | ||||||
| Evercore, Cl A | 565 | 83,366 | ||||||
| Fifth Third Bancorp | 34,655 | 1,003,262 | ||||||
| First Horizon | 77,140 | 986,621 | ||||||
| FleetCor Technologies * | 1,171 | 281,625 | ||||||
| FNB | 77,419 | 928,254 | ||||||
| Huntington Bancshares | 84,465 | 951,076 | ||||||
| Invesco | 65,437 | 933,786 | ||||||
| Jefferies Financial Group | 26,154 | 926,898 | ||||||
| KeyCorp | 79,956 | 990,655 | ||||||
| M&T Bank | 7,037 | 901,932 | ||||||
| Mastercard, Cl A | 10,836 | 4,484,262 | ||||||
The accompanying notes are an integral part of the financial statements.
59
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Financials — continued | ||||||||
| MGIC Investment | 53,340 | $ | 938,251 | |||||
| New York Community Bancorp | 81,557 | 767,451 | ||||||
| Old National Bancorp | 58,850 | 876,276 | ||||||
| OneMain Holdings, Cl A | 22,249 | 941,133 | ||||||
| Primerica | 583 | 122,144 | ||||||
| Prosperity Bancshares | 15,898 | 958,808 | ||||||
| Radian Group | 32,945 | 847,016 | ||||||
| Regions Financial | 51,627 | 861,138 | ||||||
| Rithm Capital ‡ | 92,219 | 957,233 | ||||||
| Starwood Property Trust ‡ | 45,180 | 897,727 | ||||||
| Synchrony Financial | 28,559 | 924,169 | ||||||
| Synovus Financial | 31,604 | 973,087 | ||||||
| Tradeweb Markets, Cl A | 1,850 | 179,265 | ||||||
| Truist Financial | 29,713 | 954,976 | ||||||
| United Bankshares | 30,839 | 1,021,079 | ||||||
| Unum Group | 16,683 | 717,369 | ||||||
| Valley National Bancorp | 104,012 | 946,509 | ||||||
| Webster Financial | 21,718 | 974,052 | ||||||
| Wells Fargo | 20,562 | 916,860 | ||||||
| Western Alliance Bancorp | 18,217 | 933,075 | ||||||
| Zions Bancorp | 23,925 | 852,448 | ||||||
| 45,533,646 | ||||||||
| Health Care — 5.3% | ||||||||
| CVS Health | 12,013 | 816,283 | ||||||
| Eli Lilly | 7,006 | 4,140,826 | ||||||
| Exact Sciences * | 2,931 | 187,584 | ||||||
| Intuitive Surgical * | 4,515 | 1,403,443 | ||||||
| Organon | 52,419 | 593,383 | ||||||
| Perrigo | 28,389 | 864,729 | ||||||
| Pfizer | 27,186 | 828,358 | ||||||
| Viatris | 91,134 | 836,610 | ||||||
| 9,671,216 | ||||||||
| Industrials — 13.4% | ||||||||
| AAON | 866 | 54,212 | ||||||
| Allison Transmission Holdings | 1,817 | 97,173 | ||||||
| API Group * | 4,415 | 133,995 | ||||||
| Atkore * | 474 | 61,573 | ||||||
The accompanying notes are an integral part of the financial statements.
60
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Industrials — continued | ||||||||
| Axon Enterprise * | 919 | $ | 211,251 | |||||
| AZEK, Cl A * | 2,295 | 79,155 | ||||||
| Boise Cascade | 9,784 | 1,069,391 | ||||||
| Builders FirstSource * | 2,447 | 328,167 | ||||||
| Caterpillar | 8,025 | 2,012,028 | ||||||
| Clean Harbors * | 639 | 103,301 | ||||||
| Comfort Systems USA | 603 | 116,729 | ||||||
| Copart * | 16,611 | 834,204 | ||||||
| Eaton | 6,067 | 1,381,395 | ||||||
| EMCOR Group | 920 | 195,518 | ||||||
| Esab | 1,106 | 85,328 | ||||||
| FedEx | 4,330 | 1,120,734 | ||||||
| Flowserve | 1,977 | 75,640 | ||||||
| General Electric | 36,304 | 4,421,827 | ||||||
| Ingersoll Rand | 5,331 | 380,793 | ||||||
| Lennox International | 538 | 218,783 | ||||||
| ManpowerGroup | 11,993 | 890,001 | ||||||
| MSC Industrial Direct, Cl A | 8,498 | 827,875 | ||||||
| nVent Electric | 2,430 | 129,397 | ||||||
| Owens Corning | 1,424 | 193,066 | ||||||
| PACCAR | 18,689 | 1,716,024 | ||||||
| Parker-Hannifin | 1,746 | 756,332 | ||||||
| Pentair | 2,688 | 173,483 | ||||||
| RTX | 11,247 | 916,406 | ||||||
| Saia * | 455 | 177,627 | ||||||
| Sensata Technologies Holding | 23,439 | 762,002 | ||||||
| Simpson Manufacturing | 901 | 150,440 | ||||||
| TransDigm Group | 1,018 | 980,202 | ||||||
| Uber Technologies * | 27,387 | 1,544,079 | ||||||
| United Airlines Holdings * | 23,564 | 928,422 | ||||||
| Verisk Analytics, Cl A | 2,177 | 525,593 | ||||||
| Vertiv Holdings, Cl A | 10,539 | 460,133 | ||||||
| XPO * | 2,748 | 237,097 | ||||||
| 24,349,376 | ||||||||
| Information Technology — 21.8% | ||||||||
| Adobe * | 7,639 | 4,667,505 | ||||||
| Applied Materials | 15,277 | 2,288,189 | ||||||
| AppLovin, Cl A * | 2,712 | 101,646 | ||||||
The accompanying notes are an integral part of the financial statements.
61
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Information Technology — continued | ||||||||
| Arista Networks * | 3,292 | $ | 723,285 | |||||
| Arrow Electronics * | 7,460 | 884,458 | ||||||
| Avnet | 18,134 | 847,946 | ||||||
| Axcelis Technologies * | 1,237 | 153,734 | ||||||
| Badger Meter | 482 | 71,032 | ||||||
| Broadcom | 4,802 | 4,445,355 | ||||||
| Cadence Design Systems * | 3,827 | 1,045,804 | ||||||
| Cisco Systems | 62,139 | 3,006,285 | ||||||
| Corning | 30,939 | 881,452 | ||||||
| Dell Technologies, Cl C | 5,503 | 417,513 | ||||||
| Fair Isaac * | 532 | 578,603 | ||||||
| Gen Digital | 48,519 | 1,071,300 | ||||||
| Hewlett Packard Enterprise | 51,195 | 865,707 | ||||||
| Insight Enterprises * | 711 | 107,660 | ||||||
| Intel | 23,960 | 1,071,012 | ||||||
| Juniper Networks | 33,449 | 951,624 | ||||||
| KLA | 2,188 | 1,191,629 | ||||||
| Lam Research | 2,508 | 1,795,527 | ||||||
| Manhattan Associates * | 835 | 186,247 | ||||||
| NVIDIA | 10,094 | 4,720,964 | ||||||
| Onto Innovation * | 955 | 134,665 | ||||||
| Oracle | 30,871 | 3,587,519 | ||||||
| Rambus * | 2,150 | 145,490 | ||||||
| Roper Technologies | 1,599 | 860,662 | ||||||
| Samsara, Cl A * | 2,477 | 68,217 | ||||||
| Super Micro Computer * | 1,570 | 429,348 | ||||||
| Synopsys * | 2,358 | 1,280,936 | ||||||
| TD SYNNEX | 9,204 | 907,883 | ||||||
| Universal Display | 684 | 115,733 | ||||||
| Vontier | 2,906 | 98,019 | ||||||
| 39,702,949 | ||||||||
| Materials — 6.9% | ||||||||
| Albemarle | 5,586 | 677,414 | ||||||
| Commercial Metals | 20,692 | 937,969 | ||||||
| CRH | 10,072 | 632,018 | ||||||
| Dow | 17,051 | 882,389 | ||||||
| DuPont de Nemours | 11,506 | 823,139 | ||||||
| Eastman Chemical | 11,748 | 984,835 | ||||||
The accompanying notes are an integral part of the financial statements.
62
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Factor ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Materials — continued | ||||||||
| Huntsman | 36,324 | $ | 893,571 | |||||
| International Paper | 24,219 | 894,650 | ||||||
| Linde | 7,221 | 2,987,833 | ||||||
| LyondellBasell Industries, Cl A | 9,132 | 868,453 | ||||||
| Mosaic | 23,280 | 835,519 | ||||||
| Reliance Steel & Aluminum | 838 | 230,668 | ||||||
| United States Steel | 26,309 | 944,493 | ||||||
| 12,592,951 | ||||||||
| Real Estate — 1.1% | ||||||||
| Kilroy Realty ‡ | 28,284 | 932,806 | ||||||
| Spirit Realty Capital ‡ | 24,483 | 1,011,148 | ||||||
| 1,943,954 | ||||||||
| TOTAL UNITED STATES | 181,126,744 | |||||||
| TOTAL COMMON STOCK (Cost $166,828,073) | 181,434,604 | |||||||
| TOTAL INVESTMENTS — 99.8% (Cost $166,828,073) | $ | 181,434,604 | ||||||
Percentages are based on Net Assets of $181,838,224.
| * | Non-income producing security. |
| ‡ | Real Estate Investment Trust |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
63
| Schedule of Investments | November 30, 2023 |
Global X Variable Rate Preferred ETF
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| PREFERRED STOCK — 99.4% | ||||||||
| BERMUDA — 2.1% | ||||||||
| Financials — 2.1% | ||||||||
| Aspen Insurance Holdings, 9.593%, US0003M + 4.060% (A) | 101,629 | $ | 2,625,077 | |||||
| SiriusPoint, 8.000%, H15T5Y + 7.298% (A) | 75,923 | 1,932,240 | ||||||
| TOTAL BERMUDA | 4,557,317 | |||||||
| UNITED STATES— 97.3% | ||||||||
| Energy — 8.1% | ||||||||
| Energy Transfer, 10.364%, US0003M + 4.738% (A) | 166,118 | 4,275,877 | ||||||
| Energy Transfer, 10.156%, US0003M + 4.530% (A) | 169,171 | 4,346,003 | ||||||
| NuStar Energy, 12.551%, US0003M + 6.880% (A) | 64,067 | 1,629,865 | ||||||
| NuStar Energy, 11.315%, TSFR3M + 5.905% (A) | 142,728 | 3,670,964 | ||||||
| NuStar Logistics, 12.390%, TSFR3M + 6.996% (A) | 157,483 | 4,228,419 | ||||||
| 18,151,128 | ||||||||
| Financials — 86.7% | ||||||||
| AGNC Investment, 10.767%, CME Term SOFR + 5.373% ‡ (A) | 123,069 | 3,138,259 | ||||||
| AGNC Investment, 7.750%, H15T5Y + 4.390% ‡ (A) | 56,532 | 1,200,740 | ||||||
| AGNC Investment, 6.125%, CME Term SOFR + 4.697% ‡ (A) | 219,883 | 4,740,677 | ||||||
| Allstate, 8.821%, TSFR3M + 3.427% (A) | 191,327 | 4,880,752 | ||||||
| American Equity Investment Life Holding, 6.625%, H15T5Y + 6.297% (A) | 109,629 | 2,644,251 | ||||||
| American Equity Investment Life Holding, 5.950%, H15T5Y + 4.322% (A) | 144,277 | 3,256,332 | ||||||
The accompanying notes are an integral part of the financial statements.
64
| Schedule of Investments | November 30, 2023 |
Global X Variable Rate Preferred ETF
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Annaly Capital Management, 10.631%, CME Term SOFR + 4.993% ‡ (A) | 255,942 | $ | 6,395,991 | |||||
| Annaly Capital Management, 9.828%, CME Term SOFR + 4.172% ‡ (A) | 149,952 | 3,739,803 | ||||||
| Argo Group International Holdings, 7.000%, H15T5Y + 6.712% (A) | 54,441 | 1,294,063 | ||||||
| Associated Banc-Corp, 6.625%, H15T5Y + 2.812% (A) | 113,173 | 2,406,058 | ||||||
| Athene Holding, 7.750%, H15T5Y + 3.962% (A) | 184,152 | 4,642,472 | ||||||
| Athene Holding, 6.375%, H15T5Y + 5.970% (A) | 222,216 | 5,504,290 | ||||||
| Athene Holding, 6.350%, US0003M + 4.253% (A) | 325,334 | 7,752,709 | ||||||
| Bank of America, 6.450%, US0003M + 1.327% (A) | 394,646 | 10,008,222 | ||||||
| Bank of America, 6.298%, TSFR3M + 0.912% (A) | 110,689 | 2,295,690 | ||||||
| Bank of America, 6.129%, TSFR3M + 0.762% (A) | 155,429 | 3,301,312 | ||||||
| Chimera Investment, 7.750%, US0003M + 4.743% ‡ (A) | 96,949 | 1,875,963 | ||||||
| Citigroup, Ser J, 9.696%, TSFR3M + 4.302% (A) | 355,828 | 9,180,362 | ||||||
| Enstar Group, 7.000%, US0003M + 4.015% (A) | 147,626 | 3,650,791 | ||||||
| Goldman Sachs Group, 6.381%, TSFR3M + 1.012% (A) | 273,108 | 5,970,141 | ||||||
| Goldman Sachs Group, 6.301%, TSFR3M + 0.932% (A) | 492,991 | 10,461,269 | ||||||
| Huntington Bancshares, 6.875%, H15T5Y + 2.704% (A) | 125,003 | 2,997,572 | ||||||
| Jackson Financial, 8.000%, H15T5Y + 3.728% (A) | 209,191 | 5,233,959 | ||||||
| Kemper, 5.875%, H15T5Y + 4.140% (A) | 54,182 | 1,039,753 | ||||||
| KeyCorp, 6.200%, H15T5Y + 3.132% (A) | 226,816 | 4,602,097 | ||||||
| KeyCorp, 6.125%, TSFR3M + 4.154% (A) | 184,924 | 3,998,057 | ||||||
| M&T Bank, 5.625%, CME Term SOFR + 4.020% (A) | 95,656 | 2,338,789 | ||||||
The accompanying notes are an integral part of the financial statements.
65
| Schedule of Investments | November 30, 2023 |
Global X Variable Rate Preferred ETF
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Merchants Bancorp, 8.250%, H15T5Y + 4.340% (A) | 52,268 | $ | 1,301,473 | |||||
| MetLife, 6.671%, CME Term SOFR + 1.262% (A) | 224,406 | 5,105,236 | ||||||
| Morgan Stanley, 6.356%, TSFR3M + 0.962% (A) | 420,893 | 8,969,230 | ||||||
| New York Community Bancorp, 6.375%, US0003M + 3.821% (A) | 192,692 | 4,464,674 | ||||||
| PacWest Bancorp, 7.750%, H15T5Y + 4.820% (A) | 189,954 | 3,977,637 | ||||||
| Regions Financial, 5.700%, CME Term SOFR + 3.148% (A) | 194,824 | 3,869,205 | ||||||
| Reinsurance Group of America, 7.125%, H15T5Y + 3.456% (A) | 251,988 | 6,594,526 | ||||||
| Reinsurance Group of America, 5.750%, US0003M + 4.040% (A) | 144,457 | 3,637,427 | ||||||
| Rithm Capital, 7.000%, H15T5Y + 6.223% ‡ (A) | 176,245 | 3,766,356 | ||||||
| Rithm Capital, 6.375%, US0003M + 4.969% ‡ (A) | 147,923 | 3,029,463 | ||||||
| SLM, 7.371%, TSFR3M + 1.962% (A) | 23,598 | 1,603,012 | ||||||
| Synovus Financial, 9.011%, CME Term SOFR + 3.614% (A) | 73,952 | 1,887,995 | ||||||
| Two Harbors Investment, 7.625%, US0003M + 5.352% ‡ (A) | 96,629 | 1,992,490 | ||||||
| Two Harbors Investment, 7.250%, US0003M + 5.011% ‡ (A) | 91,274 | 1,876,593 | ||||||
| US Bancorp, 6.676%, TSFR3M + 1.282% (A) | 5,395 | 4,310,497 | ||||||
| US Bancorp, 6.256%, TSFR3M + 0.862% (A) | 380,860 | 7,518,176 | ||||||
| Valley National Bancorp, 9.234%, US0003M + 3.578% (A) | 37,744 | 861,318 | ||||||
| Valley National Bancorp, 6.250%, US0003M + 3.850% (A) | 44,170 | 851,598 | ||||||
| Voya Financial, 5.350%, H15T5Y + 3.210% (A) | 111,798 | 2,659,674 | ||||||
| Western Alliance Bancorp, 4.250%, H15T5Y + 3.452% (A) | 111,182 | 1,822,273 | ||||||
| Wintrust Financial, 6.875%, H15T5Y + 6.507% (A) | 109,975 | 2,702,086 | ||||||
The accompanying notes are an integral part of the financial statements.
66
| Schedule of Investments | November 30, 2023 |
Global X Variable Rate Preferred ETF
| Shares | Value | |||||||
| PREFERRED STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Zions Bancorporation, 9.911%, CME Term SOFR + 4.240% (A) | 51,878 | $ | 1,318,220 | |||||
| 192,669,533 | ||||||||
| Industrials — 2.5% | ||||||||
| WESCO International, 10.625%, H15T5Y + 10.325% (A) | 204,013 | 5,508,351 | ||||||
| TOTAL UNITED STATES | 216,329,012 | |||||||
| TOTAL PREFERRED STOCK (Cost $223,871,603) | 220,886,329 | |||||||
| TOTAL INVESTMENTS — 99.4% (Cost $223,871,603) | $ | 220,886,329 | ||||||
Percentages are based on Net Assets of $222,312,863.
| ‡ | Real Estate Investment Trust |
| (A) | Variable or floating rate security. The rate presented is the rate in effect as of November 30, 2023. Rates are based on published reference rates and spreads and/or are adjusted periodically based on prevailing interest rates. |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
67
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 99.7% | ||||||||
| BRAZIL — 0.2% | ||||||||
| Consumer Discretionary — 0.2% | ||||||||
| MercadoLibre * | 107 | $ | 173,389 | |||||
| CHINA — 0.1% | ||||||||
| Consumer Discretionary — 0.1% | ||||||||
| Yum China Holdings | 990 | 42,748 | ||||||
| ISRAEL — 0.0% | ||||||||
| Consumer Discretionary — 0.0% | ||||||||
| Mobileye Global, Cl A * | 231 | 9,483 | ||||||
| MEXICO — 0.0% | ||||||||
| Materials — 0.0% | ||||||||
| Southern Copper | 216 | 15,537 | ||||||
| SOUTH KOREA — 0.0% | ||||||||
| Consumer Discretionary — 0.0% | ||||||||
| Coupang, Cl A * | 2,677 | 40,905 | ||||||
The accompanying notes are an integral part of the financial statements.
68
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| UNITED STATES — 99.4% | ||||||||
| Communication Services — 8.7% | ||||||||
| Alphabet, Cl A * | 14,504 | $ | 1,922,215 | |||||
| Alphabet, Cl C * | 12,600 | 1,687,392 | ||||||
| AT&T | 17,421 | 288,666 | ||||||
| Charter Communications, Cl A * | 243 | 97,232 | ||||||
| Comcast, Cl A | 9,950 | 416,806 | ||||||
| Electronic Arts | 659 | 90,949 | ||||||
| Endeavor Group Holdings, Cl A | 211 | 5,129 | ||||||
| Fox, Cl A | 623 | 18,403 | ||||||
| Fox, Cl B | 334 | 9,238 | ||||||
| Live Nation Entertainment * | 359 | 30,235 | ||||||
| Meta Platforms, Cl A * | 5,374 | 1,758,104 | ||||||
| Netflix * | 1,057 | 500,986 | ||||||
| Omnicom Group | 479 | 38,622 | ||||||
| Pinterest, Cl A * | 1,419 | 48,345 | ||||||
| ROBLOX, Cl A * | 1,136 | 44,656 | ||||||
| Sirius XM Holdings | 1,666 | 7,797 | ||||||
| Snap, Cl A * | 2,503 | 34,617 | ||||||
| Spotify Technology * | 329 | 60,901 | ||||||
| Take-Two Interactive Software * | 408 | 64,546 | ||||||
| T-Mobile US * | 1,258 | 189,266 | ||||||
| Trade Desk, Cl A * | 1,074 | 75,674 | ||||||
| Verizon Communications | 10,251 | 392,921 | ||||||
| Walt Disney * | 4,459 | 413,305 | ||||||
| Warner Bros Discovery * | 5,458 | 57,036 | ||||||
| Warner Music Group, Cl A | 319 | 10,562 | ||||||
| 8,263,603 | ||||||||
| Consumer Discretionary — 10.3% | ||||||||
| Airbnb, Cl A * | 1,017 | 128,488 | ||||||
| Amazon.com * | 21,973 | 3,210,036 | ||||||
| Aptiv * | 689 | 57,077 | ||||||
| AutoZone * | 43 | 112,227 | ||||||
| Best Buy | 477 | 33,838 | ||||||
| Booking Holdings * | 85 | 265,684 | ||||||
| Carnival * | 2,448 | 36,867 | ||||||
| Chipotle Mexican Grill, Cl A * | 66 | 145,348 | ||||||
| Darden Restaurants | 296 | 46,315 | ||||||
| DoorDash, Cl A * | 643 | 60,429 | ||||||
The accompanying notes are an integral part of the financial statements.
69
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Discretionary — continued | ||||||||
| DR Horton | 746 | $ | 95,242 | |||||
| DraftKings, Cl A * | 1,042 | 39,846 | ||||||
| eBay | 1,305 | 53,518 | ||||||
| Expedia Group * | 348 | 47,391 | ||||||
| Ford Motor | 9,543 | 97,911 | ||||||
| Garmin | 373 | 45,595 | ||||||
| General Motors | 3,368 | 106,429 | ||||||
| Genuine Parts | 337 | 44,747 | ||||||
| Hilton Worldwide Holdings | 632 | 105,873 | ||||||
| Home Depot | 2,452 | 768,677 | ||||||
| Las Vegas Sands | 799 | 36,850 | ||||||
| Lennar, Cl A | 603 | 77,136 | ||||||
| Lennar, Cl B | 30 | 3,442 | ||||||
| Lowe’s | 1,426 | 283,532 | ||||||
| Lucid Group * | 2,164 | 9,132 | ||||||
| Lululemon Athletica * | 270 | 120,636 | ||||||
| Marriott International, Cl A | 633 | 128,309 | ||||||
| McDonald’s | 1,776 | 500,548 | ||||||
| MGM Resorts International | 685 | 27,016 | ||||||
| NIKE, Cl B | 2,972 | 327,722 | ||||||
| NVR * | 7 | 43,088 | ||||||
| O’Reilly Automotive * | 144 | 141,463 | ||||||
| Pool | 92 | 31,953 | ||||||
| PulteGroup | 535 | 47,305 | ||||||
| Rivian Automotive, Cl A * | 1,657 | 27,771 | ||||||
| Ross Stores | 810 | 105,608 | ||||||
| Royal Caribbean Cruises * | 541 | 58,136 | ||||||
| Starbucks | 2,739 | 271,983 | ||||||
| Tesla * | 6,710 | 1,610,937 | ||||||
| TJX | 2,802 | 246,884 | ||||||
| Tractor Supply | 268 | 54,407 | ||||||
| Ulta Beauty * | 118 | 50,267 | ||||||
| Yum! Brands | 681 | 85,499 | ||||||
| 9,791,162 | ||||||||
| Consumer Staples — 6.1% | ||||||||
| Albertsons, Cl A | 1,030 | 22,423 | ||||||
| Altria Group | 4,327 | 181,907 | ||||||
| Archer-Daniels-Midland | 1,297 | 95,628 | ||||||
The accompanying notes are an integral part of the financial statements.
70
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Staples — continued | ||||||||
| Brown-Forman, Cl A | 126 | $ | 7,589 | |||||
| Brown-Forman, Cl B | 748 | 43,937 | ||||||
| Bunge Global | 364 | 39,993 | ||||||
| Campbell Soup | 474 | 19,045 | ||||||
| Church & Dwight | 597 | 57,688 | ||||||
| Clorox | 303 | 43,435 | ||||||
| Coca-Cola | 9,492 | 554,712 | ||||||
| Colgate-Palmolive | 2,012 | 158,485 | ||||||
| Conagra Brands | 1,172 | 33,156 | ||||||
| Constellation Brands, Cl A | 382 | 91,867 | ||||||
| Costco Wholesale | 1,078 | 638,974 | ||||||
| Dollar General | 534 | 70,018 | ||||||
| Dollar Tree * | 509 | 62,907 | ||||||
| Estee Lauder, Cl A | 524 | 66,910 | ||||||
| General Mills | 1,420 | 90,397 | ||||||
| Hershey | 358 | 67,275 | ||||||
| Hormel Foods | 716 | 21,902 | ||||||
| J M Smucker | 245 | 26,884 | ||||||
| Kellanova | 638 | 33,521 | ||||||
| Kenvue | 4,221 | 86,277 | ||||||
| Keurig Dr Pepper | 2,207 | 69,675 | ||||||
| Kimberly-Clark | 821 | 101,582 | ||||||
| Kraft Heinz | 1,923 | 67,517 | ||||||
| Kroger | 1,726 | 76,410 | ||||||
| McCormick | 617 | 40,000 | ||||||
| Mondelez International, Cl A | 3,309 | 235,138 | ||||||
| Monster Beverage * | 1,239 | 68,331 | ||||||
| PepsiCo | 3,357 | 564,950 | ||||||
| Philip Morris International | 3,783 | 353,181 | ||||||
| Procter & Gamble | 5,749 | 882,586 | ||||||
| Sysco | 1,233 | 88,986 | ||||||
| Target | 1,117 | 149,466 | ||||||
| Tyson Foods, Cl A | 692 | 32,413 | ||||||
| Walgreens Boots Alliance | 1,749 | 34,875 | ||||||
| Walmart | 3,465 | 539,466 | ||||||
| 5,819,506 | ||||||||
| Energy — 4.1% | ||||||||
| Baker Hughes, Cl A | 2,465 | 83,194 | ||||||
The accompanying notes are an integral part of the financial statements.
71
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Energy — continued | ||||||||
| Cheniere Energy | 585 | $ | 106,558 | |||||
| Chevron | 4,238 | 608,577 | ||||||
| ConocoPhillips | 2,949 | 340,816 | ||||||
| Coterra Energy | 1,825 | 47,906 | ||||||
| Devon Energy | 1,554 | 69,883 | ||||||
| Diamondback Energy | 414 | 63,926 | ||||||
| EOG Resources | 1,414 | 174,021 | ||||||
| EQT | 1,005 | 40,160 | ||||||
| Exxon Mobil | 9,866 | 1,013,633 | ||||||
| Halliburton | 2,190 | 81,096 | ||||||
| Hess | 673 | 94,597 | ||||||
| Kinder Morgan | 4,773 | 83,862 | ||||||
| Marathon Oil | 1,513 | 38,476 | ||||||
| Marathon Petroleum | 970 | 144,714 | ||||||
| Occidental Petroleum | 1,696 | 100,318 | ||||||
| ONEOK | 1,412 | 97,216 | ||||||
| Phillips 66 | 1,078 | 138,943 | ||||||
| Pioneer Natural Resources | 566 | 131,108 | ||||||
| Schlumberger | 3,453 | 179,694 | ||||||
| Targa Resources | 545 | 49,295 | ||||||
| Valero Energy | 857 | 107,433 | ||||||
| Williams | 2,957 | 108,788 | ||||||
| 3,904,214 | ||||||||
| Financials — 12.7% | ||||||||
| Aflac | 1,304 | 107,854 | ||||||
| Allstate | 637 | 87,823 | ||||||
| American Express | 1,431 | 244,372 | ||||||
| American International Group | 1,726 | 113,588 | ||||||
| Ameriprise Financial | 251 | 88,731 | ||||||
| Aon, Cl A | 493 | 161,946 | ||||||
| Apollo Global Management | 985 | 90,620 | ||||||
| Arch Capital Group * | 871 | 72,894 | ||||||
| Ares Management, Cl A | 362 | 40,634 | ||||||
| Arthur J Gallagher | 517 | 128,733 | ||||||
| Bank of America | 16,904 | 515,403 | ||||||
| Bank of New York Mellon | 1,837 | 88,764 | ||||||
| Berkshire Hathaway, Cl B * | 3,155 | 1,135,800 | ||||||
| BlackRock, Cl A | 359 | 269,692 | ||||||
The accompanying notes are an integral part of the financial statements.
72
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Financials — continued | ||||||||
| Blackstone | 1,702 | $ | 191,254 | |||||
| Block, Cl A * | 1,332 | 84,489 | ||||||
| Blue Owl Capital, Cl A | 1,093 | 14,734 | ||||||
| Brown & Brown | 581 | 43,424 | ||||||
| Capital One Financial | 918 | 102,504 | ||||||
| Cboe Global Markets | 258 | 47,005 | ||||||
| Charles Schwab | 3,347 | 205,238 | ||||||
| Chubb | 1,000 | 229,430 | ||||||
| Cincinnati Financial | 379 | 38,957 | ||||||
| Citigroup | 4,585 | 211,368 | ||||||
| Citizens Financial Group | 1,191 | 32,479 | ||||||
| CME Group, Cl A | 872 | 190,410 | ||||||
| Coinbase Global, Cl A * | 381 | 47,518 | ||||||
| Discover Financial Services | 610 | 56,730 | ||||||
| Everest Group | 81 | 33,255 | ||||||
| FactSet Research Systems | 92 | 41,718 | ||||||
| Fidelity National Information Services | 1,438 | 84,324 | ||||||
| Fifth Third Bancorp | 1,663 | 48,144 | ||||||
| First Citizens BancShares, Cl A | 24 | 35,229 | ||||||
| Fiserv * | 1,474 | 192,519 | ||||||
| FleetCor Technologies * | 178 | 42,809 | ||||||
| Franklin Resources | 711 | 17,633 | ||||||
| Global Payments | 635 | 73,939 | ||||||
| Goldman Sachs Group | 804 | 274,598 | ||||||
| Hartford Financial Services Group | 743 | 58,073 | ||||||
| Huntington Bancshares | 3,531 | 39,759 | ||||||
| Interactive Brokers Group, Cl A | 254 | 19,771 | ||||||
| Intercontinental Exchange | 1,344 | 153,001 | ||||||
| JPMorgan Chase | 7,079 | 1,104,890 | ||||||
| KKR | 1,572 | 119,220 | ||||||
| Loews | 451 | 31,701 | ||||||
| LPL Financial Holdings | 188 | 41,792 | ||||||
| M&T Bank | 403 | 51,653 | ||||||
| Markel Group * | 32 | 46,051 | ||||||
| Marsh & McLennan | 1,205 | 240,301 | ||||||
| Mastercard, Cl A | 2,045 | 846,282 | ||||||
| MetLife | 1,536 | 97,736 | ||||||
| Moody’s | 384 | 140,145 | ||||||
| Morgan Stanley | 3,144 | 249,445 | ||||||
The accompanying notes are an integral part of the financial statements.
73
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Financials — continued | ||||||||
| MSCI, Cl A | 191 | $ | 99,482 | |||||
| Nasdaq | 841 | 46,961 | ||||||
| Northern Trust | 512 | 40,576 | ||||||
| PayPal Holdings * | 2,662 | 153,358 | ||||||
| PNC Financial Services Group | 967 | 129,539 | ||||||
| Principal Financial Group | 595 | 43,929 | ||||||
| Progressive | 1,421 | 233,087 | ||||||
| Prudential Financial | 889 | 86,926 | ||||||
| Raymond James Financial | 460 | 48,369 | ||||||
| Regions Financial | 2,302 | 38,397 | ||||||
| Rocket, Cl A * | 358 | 3,344 | ||||||
| S&P Global | 779 | 323,932 | ||||||
| State Street | 775 | 56,436 | ||||||
| Synchrony Financial | 1,024 | 33,137 | ||||||
| T Rowe Price Group | 541 | 54,170 | ||||||
| Tradeweb Markets, Cl A | 283 | 27,423 | ||||||
| Travelers | 561 | 101,328 | ||||||
| Truist Financial | 3,232 | 103,876 | ||||||
| US Bancorp | 3,592 | 136,927 | ||||||
| Visa, Cl A | 3,948 | 1,013,373 | ||||||
| W R Berkley | 500 | 36,275 | ||||||
| Wells Fargo | 8,868 | 395,424 | ||||||
| Willis Towers Watson | 259 | 63,792 | ||||||
| 11,996,443 | ||||||||
| Health Care — 12.7% | ||||||||
| Abbott Laboratories | 4,221 | 440,208 | ||||||
| AbbVie | 4,302 | 612,562 | ||||||
| Agilent Technologies | 717 | 91,633 | ||||||
| Align Technology * | 178 | 38,056 | ||||||
| Alnylam Pharmaceuticals * | 304 | 51,148 | ||||||
| Amgen | 1,299 | 350,262 | ||||||
| Avantor * | 1,608 | 34,057 | ||||||
| Baxter International | 1,238 | 44,667 | ||||||
| Becton Dickinson | 703 | 166,035 | ||||||
| Biogen * | 350 | 81,928 | ||||||
| BioMarin Pharmaceutical * | 453 | 41,259 | ||||||
| Bio-Rad Laboratories, Cl A * | 51 | 15,551 | ||||||
| Boston Scientific * | 3,538 | 197,739 | ||||||
The accompanying notes are an integral part of the financial statements.
74
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Health Care — continued | ||||||||
| Bristol-Myers Squibb | 5,120 | $ | 252,826 | |||||
| Cardinal Health | 612 | 65,533 | ||||||
| Cencora | 409 | 83,178 | ||||||
| Centene * | 1,332 | 98,142 | ||||||
| Cigna Group | 712 | 187,171 | ||||||
| Cooper | 119 | 40,094 | ||||||
| CVS Health | 3,107 | 211,121 | ||||||
| Danaher | 1,607 | 358,859 | ||||||
| Dexcom * | 940 | 108,589 | ||||||
| Edwards Lifesciences * | 1,466 | 99,263 | ||||||
| Elevance Health | 577 | 276,666 | ||||||
| Eli Lilly | 2,062 | 1,218,725 | ||||||
| GE HealthCare Technologies | 891 | 60,998 | ||||||
| Gilead Sciences | 3,019 | 231,255 | ||||||
| HCA Healthcare | 504 | 126,242 | ||||||
| Hologic * | 600 | 42,780 | ||||||
| Humana | 303 | 146,913 | ||||||
| IDEXX Laboratories * | 202 | 94,096 | ||||||
| Illumina * | 387 | 39,455 | ||||||
| Incyte * | 460 | 24,996 | ||||||
| Insulet * | 173 | 32,713 | ||||||
| Intuitive Surgical * | 851 | 264,525 | ||||||
| IQVIA Holdings * | 439 | 93,990 | ||||||
| Johnson & Johnson | 5,876 | 908,782 | ||||||
| Laboratory Corp of America Holdings | 218 | 47,286 | ||||||
| McKesson | 329 | 154,814 | ||||||
| Medtronic | 3,242 | 256,993 | ||||||
| Merck | 6,190 | 634,351 | ||||||
| Mettler-Toledo International * | 52 | 56,780 | ||||||
| Moderna * | 807 | 62,704 | ||||||
| Molina Healthcare * | 139 | 50,813 | ||||||
| Pfizer | 13,769 | 419,541 | ||||||
| Quest Diagnostics | 275 | 37,738 | ||||||
| Regeneron Pharmaceuticals * | 252 | 207,600 | ||||||
| ResMed | 354 | 55,836 | ||||||
| Revvity | 309 | 27,470 | ||||||
| Royalty Pharma, Cl A | 930 | 25,175 | ||||||
| Seagen * | 337 | 71,852 | ||||||
| STERIS PLC | 242 | 48,627 | ||||||
The accompanying notes are an integral part of the financial statements.
75
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Health Care — continued | ||||||||
| Stryker | 769 | $ | 227,878 | |||||
| Thermo Fisher Scientific | 940 | 466,014 | ||||||
| UnitedHealth Group | 2,264 | 1,251,924 | ||||||
| Veeva Systems, Cl A * | 353 | 61,531 | ||||||
| Vertex Pharmaceuticals * | 627 | 222,466 | ||||||
| Viatris | 2,957 | 27,145 | ||||||
| Waters * | 142 | 39,847 | ||||||
| West Pharmaceutical Services | 182 | 63,838 | ||||||
| Zimmer Biomet Holdings | 512 | 59,551 | ||||||
| Zoetis, Cl A | 1,118 | 197,517 | ||||||
| 12,007,308 | ||||||||
| Industrials — 8.4% | ||||||||
| 3M | 1,336 | 132,358 | ||||||
| AMETEK | 561 | 87,084 | ||||||
| Automatic Data Processing | 1,006 | 231,300 | ||||||
| Axon Enterprise * | 172 | 39,538 | ||||||
| Boeing * | 1,358 | 314,554 | ||||||
| Booz Allen Hamilton Holding, Cl A | 316 | 39,541 | ||||||
| Broadridge Financial Solutions | 287 | 55,626 | ||||||
| Builders FirstSource * | 301 | 40,367 | ||||||
| Carlisle | 120 | 33,649 | ||||||
| Carrier Global | 2,027 | 105,323 | ||||||
| Caterpillar | 1,256 | 314,904 | ||||||
| Cintas | 212 | 117,289 | ||||||
| Copart * | 2,060 | 103,453 | ||||||
| CSX | 4,857 | 156,881 | ||||||
| Cummins | 345 | 77,335 | ||||||
| Deere | 657 | 239,417 | ||||||
| Delta Air Lines | 1,567 | 57,869 | ||||||
| Dover | 341 | 48,136 | ||||||
| Eaton | 961 | 218,810 | ||||||
| Emerson Electric | 1,383 | 122,949 | ||||||
| Equifax | 298 | 64,878 | ||||||
| Expeditors International of Washington | 360 | 43,322 | ||||||
| Fastenal | 1,387 | 83,178 | ||||||
| FedEx | 561 | 145,204 | ||||||
| Ferguson | 469 | 80,358 | ||||||
| Fortive | 864 | 59,599 | ||||||
The accompanying notes are an integral part of the financial statements.
76
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Industrials — continued | ||||||||
| General Dynamics | 550 | $ | 135,833 | |||||
| General Electric | 2,637 | 321,187 | ||||||
| HEICO | 104 | 17,787 | ||||||
| HEICO, Cl A | 187 | 25,696 | ||||||
| Honeywell International | 1,622 | 317,782 | ||||||
| Howmet Aerospace | 1,000 | 52,600 | ||||||
| Hubbell, Cl B | 129 | 38,700 | ||||||
| IDEX | 188 | 37,916 | ||||||
| Illinois Tool Works | 734 | 177,782 | ||||||
| Ingersoll Rand | 985 | 70,359 | ||||||
| Jacobs Solutions | 308 | 39,171 | ||||||
| JB Hunt Transport Services | 204 | 37,795 | ||||||
| Johnson Controls International | 1,658 | 87,542 | ||||||
| L3Harris Technologies | 458 | 87,391 | ||||||
| Lennox International | 77 | 31,313 | ||||||
| Lockheed Martin | 618 | 276,722 | ||||||
| Nordson | 124 | 29,182 | ||||||
| Norfolk Southern | 554 | 120,861 | ||||||
| Northrop Grumman | 367 | 174,384 | ||||||
| Old Dominion Freight Line | 234 | 91,040 | ||||||
| Otis Worldwide | 1,006 | 86,305 | ||||||
| PACCAR | 1,254 | 115,142 | ||||||
| Parker-Hannifin | 310 | 134,286 | ||||||
| Paychex | 781 | 95,259 | ||||||
| Paycom Software | 125 | 22,707 | ||||||
| Quanta Services | 350 | 65,909 | ||||||
| Republic Services, Cl A | 505 | 81,729 | ||||||
| Rockwell Automation | 280 | 77,123 | ||||||
| Rollins | 767 | 31,248 | ||||||
| RTX | 3,560 | 290,069 | ||||||
| Southwest Airlines | 1,457 | 37,255 | ||||||
| SS&C Technologies Holdings | 539 | 30,324 | ||||||
| Stanley Black & Decker | 372 | 33,815 | ||||||
| Trane Technologies | 554 | 124,877 | ||||||
| TransDigm Group | 124 | 119,396 | ||||||
| TransUnion | 475 | 27,892 | ||||||
| Uber Technologies * | 4,750 | 267,805 | ||||||
| Union Pacific | 1,487 | 334,976 | ||||||
| United Airlines Holdings * | 803 | 31,638 | ||||||
The accompanying notes are an integral part of the financial statements.
77
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Industrials — continued | ||||||||
| United Parcel Service, Cl B | 1,765 | $ | 267,592 | |||||
| United Rentals | 169 | 80,447 | ||||||
| Verisk Analytics, Cl A | 351 | 84,742 | ||||||
| Waste Management | 985 | 168,425 | ||||||
| Westinghouse Air Brake Technologies | 434 | 50,587 | ||||||
| WW Grainger | 97 | 76,260 | ||||||
| Xylem | 581 | 61,081 | ||||||
| 7,980,854 | ||||||||
| Information Technology — 29.5% | ||||||||
| Accenture, Cl A | 1,620 | 539,687 | ||||||
| Adobe * | 1,108 | 676,999 | ||||||
| Advanced Micro Devices * | 3,901 | 472,645 | ||||||
| Akamai Technologies * | 365 | 42,168 | ||||||
| Amdocs | 295 | 24,712 | ||||||
| Amphenol, Cl A | 1,432 | 130,298 | ||||||
| Analog Devices | 1,224 | 224,457 | ||||||
| ANSYS * | 213 | 62,486 | ||||||
| Apple | 36,168 | 6,870,112 | ||||||
| Applied Materials | 2,042 | 305,851 | ||||||
| Arista Networks * | 575 | 126,333 | ||||||
| Aspen Technology * | 70 | 13,178 | ||||||
| Atlassian, Cl A * | 369 | 70,461 | ||||||
| Autodesk * | 521 | 113,802 | ||||||
| Bentley Systems, Cl B | 507 | 26,394 | ||||||
| Broadcom | 985 | 911,844 | ||||||
| Cadence Design Systems * | 655 | 178,992 | ||||||
| CDW | 328 | 69,169 | ||||||
| Cisco Systems | 9,946 | 481,187 | ||||||
| Cloudflare, Cl A * | 692 | 53,388 | ||||||
| Cognizant Technology Solutions, Cl A | 1,236 | 86,990 | ||||||
| Corning | 1,880 | 53,561 | ||||||
| Crowdstrike Holdings, Cl A * | 532 | 126,079 | ||||||
| Datadog, Cl A * | 697 | 81,249 | ||||||
| Dell Technologies, Cl C | 604 | 45,825 | ||||||
| Enphase Energy * | 327 | 33,034 | ||||||
| EPAM Systems * | 136 | 35,114 | ||||||
| Fair Isaac * | 59 | 64,168 | ||||||
| First Solar * | 250 | 39,445 | ||||||
The accompanying notes are an integral part of the financial statements.
78
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Information Technology — continued | ||||||||
| Fortinet * | 1,647 | $ | 86,566 | |||||
| Gartner * | 189 | 82,185 | ||||||
| GLOBALFOUNDRIES * | 197 | 10,577 | ||||||
| Hewlett Packard Enterprise | 3,150 | 53,266 | ||||||
| HP | 2,400 | 70,416 | ||||||
| HubSpot * | 114 | 56,308 | ||||||
| Intel | 10,171 | 454,644 | ||||||
| International Business Machines | 2,215 | 351,210 | ||||||
| Intuit | 664 | 379,449 | ||||||
| Jabil | 308 | 35,519 | ||||||
| Keysight Technologies * | 433 | 58,840 | ||||||
| KLA | 332 | 180,814 | ||||||
| Lam Research | 325 | 232,674 | ||||||
| Marvell Technology | 2,080 | 115,918 | ||||||
| Microchip Technology | 1,300 | 108,472 | ||||||
| Micron Technology | 2,645 | 201,337 | ||||||
| Microsoft | 17,904 | 6,784,005 | ||||||
| MongoDB, Cl A * | 168 | 69,844 | ||||||
| Monolithic Power Systems | 111 | 60,908 | ||||||
| Motorola Solutions | 405 | 130,762 | ||||||
| NetApp | 522 | 47,706 | ||||||
| NVIDIA | 5,793 | 2,709,386 | ||||||
| Okta, Cl A * | 372 | 24,943 | ||||||
| ON Semiconductor * | 1,048 | 74,754 | ||||||
| Oracle | 3,793 | 440,785 | ||||||
| Palantir Technologies, Cl A * | 4,437 | 88,962 | ||||||
| Palo Alto Networks * | 729 | 215,121 | ||||||
| PTC * | 287 | 45,162 | ||||||
| QUALCOMM | 2,712 | 349,984 | ||||||
| Roper Technologies | 259 | 139,407 | ||||||
| Salesforce * | 2,294 | 577,859 | ||||||
| Seagate Technology Holdings | 472 | 37,335 | ||||||
| ServiceNow * | 498 | 341,498 | ||||||
| Skyworks Solutions | 389 | 37,706 | ||||||
| Snowflake, Cl A * | 665 | 124,807 | ||||||
| Splunk * | 372 | 56,373 | ||||||
| Synopsys * | 366 | 198,822 | ||||||
| TE Connectivity | 763 | 99,953 | ||||||
| Teledyne Technologies * | 112 | 45,132 | ||||||
The accompanying notes are an integral part of the financial statements.
79
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Information Technology — continued | ||||||||
| Teradyne | 380 | $ | 35,047 | |||||
| Texas Instruments | 2,205 | 336,726 | ||||||
| Trimble * | 612 | 28,397 | ||||||
| Tyler Technologies * | 100 | 40,884 | ||||||
| VeriSign * | 223 | 47,321 | ||||||
| Western Digital * | 784 | 37,875 | ||||||
| Workday, Cl A * | 499 | 135,089 | ||||||
| Zebra Technologies, Cl A * | 125 | 29,622 | ||||||
| Zoom Video Communications, Cl A * | 624 | 42,326 | ||||||
| Zscaler * | 216 | 42,666 | ||||||
| 27,914,990 | ||||||||
| Materials — 2.3% | ||||||||
| Air Products & Chemicals | 533 | 144,203 | ||||||
| Albemarle | 288 | 34,926 | ||||||
| Amcor | 3,556 | 33,711 | ||||||
| Avery Dennison | 197 | 38,317 | ||||||
| Ball | 759 | 41,965 | ||||||
| Celanese, Cl A | 268 | 37,161 | ||||||
| CF Industries Holdings | 474 | 35,621 | ||||||
| Corteva | 1,729 | 78,151 | ||||||
| CRH | 1,679 | 105,357 | ||||||
| Dow | 1,719 | 88,958 | ||||||
| DuPont de Nemours | 1,022 | 73,114 | ||||||
| Ecolab | 614 | 117,722 | ||||||
| Freeport-McMoRan | 3,469 | 129,463 | ||||||
| International Flavors & Fragrances | 625 | 47,113 | ||||||
| Linde | 1,194 | 494,041 | ||||||
| LyondellBasell Industries, Cl A | 623 | 59,247 | ||||||
| Martin Marietta Materials | 148 | 68,759 | ||||||
| Mosaic | 814 | 29,215 | ||||||
| Newmont | 1,937 | 77,848 | ||||||
| Nucor | 611 | 103,852 | ||||||
| PPG Industries | 574 | 81,502 | ||||||
| Sherwin-Williams | 576 | 160,589 | ||||||
| Steel Dynamics | 380 | 45,269 | ||||||
| Vulcan Materials | 323 | 68,980 | ||||||
| Westlake | 82 | 10,528 | ||||||
| 2,205,612 | ||||||||
The accompanying notes are an integral part of the financial statements.
80
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Real Estate — 2.3% | ||||||||
| Alexandria Real Estate Equities ‡ | 418 | $ | 45,729 | |||||
| American Tower ‡ | 1,132 | 236,339 | ||||||
| AvalonBay Communities ‡ | 346 | 59,837 | ||||||
| Camden Property Trust ‡ | 263 | 23,738 | ||||||
| CBRE Group, Cl A * | 754 | 59,536 | ||||||
| CoStar Group * | 987 | 81,960 | ||||||
| Crown Castle ‡ | 1,049 | 123,027 | ||||||
| Digital Realty Trust ‡ | 735 | 102,003 | ||||||
| Equinix ‡ | 228 | 185,822 | ||||||
| Equity Residential ‡ | 912 | 51,838 | ||||||
| Essex Property Trust ‡ | 154 | 32,873 | ||||||
| Extra Space Storage ‡ | 512 | 66,647 | ||||||
| Healthpeak Properties ‡ | 1,354 | 23,451 | ||||||
| Invitation Homes ‡ | 1,399 | 46,671 | ||||||
| Iron Mountain ‡ | 708 | 45,418 | ||||||
| Mid-America Apartment Communities ‡ | 286 | 35,601 | ||||||
| NET Lease Office Properties ‡ * | 71 | 1,161 | ||||||
| ProLogis ‡ | 2,247 | 258,248 | ||||||
| Public Storage ‡ | 383 | 99,105 | ||||||
| Realty Income ‡ | 1,723 | 92,973 | ||||||
| SBA Communications, Cl A ‡ | 262 | 64,704 | ||||||
| Simon Property Group ‡ | 786 | 98,164 | ||||||
| Sun Communities ‡ | 303 | 39,190 | ||||||
| UDR ‡ | 752 | 25,117 | ||||||
| Ventas ‡ | 983 | 45,061 | ||||||
| VICI Properties, Cl A ‡ | 2,468 | 73,769 | ||||||
| Welltower ‡ | 1,261 | 112,355 | ||||||
| Weyerhaeuser ‡ | 1,784 | 55,928 | ||||||
| WP Carey ‡ | 519 | 32,303 | ||||||
| 2,218,568 | ||||||||
| Utilities — 2.3% | ||||||||
| Alliant Energy | 620 | 31,353 | ||||||
| Ameren | 640 | 49,658 | ||||||
| American Electric Power | 1,253 | 99,676 | ||||||
| American Water Works | 472 | 62,229 | ||||||
| Atmos Energy | 362 | 41,199 | ||||||
| Avangrid | 193 | 5,958 | ||||||
| CenterPoint Energy | 1,548 | 43,762 | ||||||
The accompanying notes are an integral part of the financial statements.
81
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Utilities — continued | ||||||||
| CMS Energy | 713 | $ | 40,470 | |||||
| Consolidated Edison | 843 | 75,963 | ||||||
| Constellation Energy | 787 | 95,259 | ||||||
| Dominion Energy | 2,032 | 92,131 | ||||||
| DTE Energy | 504 | 52,471 | ||||||
| Duke Energy | 1,870 | 172,564 | ||||||
| Edison International | 935 | 62,636 | ||||||
| Entergy | 518 | 52,530 | ||||||
| Evergy | 562 | 28,684 | ||||||
| Eversource Energy | 854 | 50,736 | ||||||
| Exelon | 2,414 | 92,963 | ||||||
| FirstEnergy | 1,331 | 49,167 | ||||||
| NextEra Energy | 4,930 | 288,454 | ||||||
| PG&E * | 5,961 | 102,350 | ||||||
| PPL | 1,808 | 47,225 | ||||||
| Public Service Enterprise Group | 1,217 | 75,977 | ||||||
| Sempra | 1,531 | 111,564 | ||||||
| Southern | 2,638 | 187,245 | ||||||
| WEC Energy Group | 767 | 64,137 | ||||||
| Xcel Energy | 1,340 | 81,526 | ||||||
| 2,157,887 | ||||||||
| TOTAL UNITED STATES | 94,260,147 | |||||||
| TOTAL COMMON STOCK (Cost $92,979,988) | 94,542,209 | |||||||
| EXCHANGE TRADED FUND — 0.2% | ||||||||
| Vanguard S&P 500 ETF | 395 | 165,663 | ||||||
| TOTAL EXCHANGE TRADED FUND (Cost $164,226) | 165,663 | |||||||
| TOTAL INVESTMENTS — 99.9% (Cost $93,144,214) | $ | 94,707,872 | ||||||
Percentages are based on Net Assets of $94,793,042.
| * | Non-income producing security. |
| ‡ | Real Estate Investment Trust |
The accompanying notes are an integral part of the financial statements.
82
| Schedule of Investments | November 30, 2023 |
Global X Adaptive U.S. Risk Management ETF
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
83
| Schedule of Investments | November 30, 2023 |
| Global X U.S. 1-3 Month T-Bill ETF | |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Face Amount | Value | |||||||
| U.S. TREASURY OBLIGATIONS — 103.2% | ||||||||
| U.S. Cash Management Bill 5.380%, 01/18/24(A) | $ | 8,790,000 | $ | 8,728,397 | ||||
| U.S. Treasury Bills | ||||||||
| 13.890%, 12/21/23(A) | 3,470,000 | 3,459,852 | ||||||
| 12.533%, 12/12/23(A) | 2,245,000 | 2,241,385 | ||||||
| 11.753%, 12/26/23(A) | 4,210,000 | 4,194,569 | ||||||
| 5.407%, 12/07/23(A) | 2,290,000 | 2,287,987 | ||||||
| 5.404%, 02/13/24(A) | 2,000,000 | 1,978,427 | ||||||
| 5.394%, 01/25/24(A) | 7,725,000 | 7,662,712 | ||||||
| 5.391%, 12/28/23(A) | 5,430,000 | 5,408,481 | ||||||
| 5.384%, 12/19/23(A) | 5,040,000 | 5,026,706 | ||||||
| 5.377%, 12/05/23(A) | 3,655,000 | 3,652,859 | ||||||
| 5.360%, 02/06/24(A) | 1,090,000 | 1,079,352 | ||||||
| 5.352%, 01/23/24(A) | 7,150,000 | 7,094,605 | ||||||
| 5.344%, 01/11/24(A) | 9,145,000 | 9,090,047 | ||||||
| 5.339%, 01/02/24(A) | 6,785,000 | 6,753,155 | ||||||
| 5.328%, 01/09/24(A) | 3,960,000 | 3,937,367 | ||||||
| 5.204%, 01/04/24(A) | 4,196,000 | 4,175,115 | ||||||
| 5.192%, 01/16/24(A) | 4,405,000 | 4,375,350 | ||||||
| 5.063%, 02/27/24(A) | 2,250,000 | 2,221,221 | ||||||
| 4.843%, 02/22/24(A) | 1,950,000 | 1,926,431 | ||||||
| 4.047%, 02/20/24(A) | 750,000 | 741,162 | ||||||
| 3.009%, 02/29/24(A) | 7,300,000 | 7,204,461 | ||||||
| 2.572%, 02/08/24(A) | 350,000 | 346,488 | ||||||
| 1.883%, 01/30/24(A) | 5,675,000 | 5,625,213 | ||||||
| 1.452%, 02/01/24(A) | 7,100,000 | 7,035,771 | ||||||
| 0.120%, 02/15/24(A) | 5,300,000 | 5,241,426 | ||||||
| 0.000%, 03/12/24(B) | 2,500,000 | 2,462,848 | ||||||
The accompanying notes are an integral part of the financial statements.
84
| Schedule of Investments | November 30, 2023 | |
| Global X U.S. 1-3 Month T-Bill ETF | ||
| Face Amount | Value | |||||||
| U.S. TREASURY OBLIGATIONS — continued | ||||||||
| 0.000%, 03/26/24(B) | $ | 2,500,000 | $ | 2,457,688 | ||||
| TOTAL U.S. TREASURY OBLIGATIONS (Cost $116,406,530) | 116,409,075 | |||||||
| TOTAL INVESTMENTS — 103.2% (Cost $116,406,530) | $ | 116,409,075 | ||||||
Percentages are based on Net Assets of $112,759,714.
| (A) | Interest rate represents the security’s effective yield at the time of purchase. |
| (B) | There is currently no stated interest rate. |
As of November 30, 2023, all of the Fund’s investments were considered Level 2, in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
85
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Cash Flow Kings 100 ETF | |
Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Total investments do not include derivatives such as options, futures contracts, forward contracts, and swap contracts, if applicable.
| Shares | Value | |||||||
| COMMON STOCK — 99.7% | ||||||||
| UNITED STATES — 99.7% | ||||||||
| Communication Services — 3.2% | ||||||||
| Fox, Cl A | 1,008 | $ | 29,776 | |||||
| Liberty Media -Liberty SiriusXM * | 1,346 | 36,329 | ||||||
| Live Nation Entertainment * | 392 | 33,014 | ||||||
| Nexstar Media Group, Cl A | 163 | 23,135 | ||||||
| 122,254 | ||||||||
| Consumer Discretionary — 18.2% | ||||||||
| Best Buy | 572 | 40,578 | ||||||
| Boyd Gaming | 248 | 14,644 | ||||||
| Carter’s | 109 | 7,433 | ||||||
| Crocs * | 208 | 21,967 | ||||||
| Dick’s Sporting Goods | 219 | 28,492 | ||||||
| DR Horton | 644 | 82,219 | ||||||
| eBay | 1,176 | 48,228 | ||||||
| Expedia Group * | 489 | 66,592 | ||||||
| Gap | 1,716 | 34,440 | ||||||
| H&R Block | 422 | 19,167 | ||||||
| Leggett & Platt | 331 | 7,570 | ||||||
| Lennar, Cl A | 653 | 83,532 | ||||||
| Nordstrom | 1,244 | 19,431 | ||||||
The accompanying notes are an integral part of the financial statements.
86
| Schedule of Investments | November 30, 2023 | |
| Global X U.S. Cash Flow Kings 100 ETF | ||
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Consumer Discretionary — continued | ||||||||
| NVR * | 6 | $ | 36,932 | |||||
| Polaris | 121 | 9,979 | ||||||
| PulteGroup | 570 | 50,399 | ||||||
| Steven Madden | 204 | 7,736 | ||||||
| Tapestry | 568 | 17,988 | ||||||
| Thor Industries | 140 | 13,870 | ||||||
| Toll Brothers | 528 | 45,350 | ||||||
| Williams-Sonoma | 168 | 31,507 | ||||||
| 688,054 | ||||||||
| Consumer Staples — 5.9% | ||||||||
| Altria Group | 1,719 | 72,267 | ||||||
| Archer-Daniels-Midland | 941 | 69,380 | ||||||
| Kroger | 1,613 | 71,407 | ||||||
| Olaplex Holdings * | 1,912 | 4,168 | ||||||
| Seaboard | 2 | 7,030 | ||||||
| 224,252 | ||||||||
| Energy — 23.4% | ||||||||
| Antero Resources * | 322 | 7,609 | ||||||
| APA | 361 | 12,996 | ||||||
| Cheniere Energy | 451 | 82,150 | ||||||
| Chesapeake Energy | 178 | 14,295 | ||||||
| Chevron | 445 | 63,905 | ||||||
| Chord Energy | 73 | 11,836 | ||||||
| ConocoPhillips | 599 | 69,226 | ||||||
| Coterra Energy | 1,088 | 28,560 | ||||||
| Diamondback Energy | 227 | 35,051 | ||||||
| EOG Resources | 551 | 67,812 | ||||||
| EQT | 571 | 22,817 | ||||||
| Exxon Mobil | 632 | 64,932 | ||||||
| HF Sinclair | 319 | 16,741 | ||||||
| Marathon Oil | 910 | 23,141 | ||||||
| Marathon Petroleum | 479 | 71,462 | ||||||
| Matador Resources | 106 | 6,135 | ||||||
| Murphy Oil | 149 | 6,373 | ||||||
| Occidental Petroleum | 1,117 | 66,071 | ||||||
| Ovintiv | 293 | 12,992 | ||||||
| Phillips 66 | 576 | 74,241 | ||||||
The accompanying notes are an integral part of the financial statements.
87
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Cash Flow Kings 100 ETF | |
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Energy — continued | ||||||||
| Pioneer Natural Resources | 193 | $ | 44,706 | |||||
| Range Resources | 333 | 10,822 | ||||||
| Southwestern Energy * | 1,345 | 8,864 | ||||||
| Valero Energy | 515 | 64,560 | ||||||
| 887,297 | ||||||||
| Health Care — 17.4% | ||||||||
| AbbVie | 492 | 70,056 | ||||||
| Bristol-Myers Squibb | 1,272 | 62,811 | ||||||
| Cardinal Health | 600 | 64,248 | ||||||
| Cencora | 350 | 71,179 | ||||||
| CVS Health | 1,054 | 71,619 | ||||||
| DaVita * | 308 | 31,250 | ||||||
| Gilead Sciences | 990 | 75,834 | ||||||
| McKesson | 180 | 84,701 | ||||||
| Pfizer | 2,195 | 66,882 | ||||||
| United Therapeutics * | 68 | 16,320 | ||||||
| Viatris | 4,671 | 42,880 | ||||||
| 657,780 | ||||||||
| Industrials — 7.1% | ||||||||
| Acuity Brands | 79 | 14,162 | ||||||
| Allison Transmission Holdings | 225 | 12,033 | ||||||
| Builders FirstSource * | 536 | 71,883 | ||||||
| CH Robinson Worldwide | 435 | 35,692 | ||||||
| Concentrix | 144 | 13,535 | ||||||
| Expeditors International of Washington | 339 | 40,795 | ||||||
| Fortune Brands Innovations | 275 | 18,818 | ||||||
| Genpact | 323 | 10,969 | ||||||
| Landstar System | 69 | 11,913 | ||||||
| MSC Industrial Direct, Cl A | 139 | 13,541 | ||||||
| Robert Half | 204 | 16,724 | ||||||
| TriNet Group * | 85 | 9,854 | ||||||
| 269,919 | ||||||||
| Information Technology — 9.8% | ||||||||
| Cisco Systems | 1,333 | 64,491 | ||||||
| Dell Technologies, Cl C | 1,079 | 81,864 | ||||||
| Dropbox, Cl A * | 720 | 20,290 | ||||||
The accompanying notes are an integral part of the financial statements.
88
| Schedule of Investments | November 30, 2023 | |
| Global X U.S. Cash Flow Kings 100 ETF | ||
| Shares | Value | |||||||
| COMMON STOCK — continued | ||||||||
| Information Technology — continued | ||||||||
| DXC Technology * | 1,216 | $ | 28,126 | |||||
| F5 * | 86 | 14,722 | ||||||
| HP | 2,366 | 69,418 | ||||||
| NetApp | 307 | 28,057 | ||||||
| Skyworks Solutions | 322 | 31,211 | ||||||
| Synaptics * | 82 | 8,302 | ||||||
| Zoom Video Communications, Cl A * | 363 | 24,622 | ||||||
| 371,103 | ||||||||
| Materials — 14.1% | ||||||||
| CF Industries Holdings | 747 | 56,137 | ||||||
| Cleveland-Cliffs * | 1,680 | 28,829 | ||||||
| Dow | 1,388 | 71,829 | ||||||
| LyondellBasell Industries, Cl A | 718 | 68,282 | ||||||
| Mosaic | 1,010 | 36,249 | ||||||
| Nucor | 480 | 81,585 | ||||||
| Olin | 434 | 20,459 | ||||||
| Reliance Steel & Aluminum | 148 | 40,738 | ||||||
| Scotts Miracle-Gro, Cl A | 183 | 10,186 | ||||||
| Steel Dynamics | 683 | 81,366 | ||||||
| Westlake | 304 | 39,030 | ||||||
| 534,690 | ||||||||
| Real Estate — 0.6% | ||||||||
| EPR Properties ‡ | 233 | 10,396 | ||||||
| Kilroy Realty ‡ | 371 | 12,236 | ||||||
| 22,632 | ||||||||
| TOTAL UNITED STATES | 3,777,981 | |||||||
| TOTAL COMMON STOCK (Cost $3,668,969) | 3,777,981 | |||||||
| TOTAL INVESTMENTS — 99.7% (Cost $3,668,969) | $ | 3,777,981 | ||||||
Percentages are based on Net Assets of $3,790,170.
| * | Non-income producing security. |
| ‡ | Real Estate Investment Trust |
As of November 30, 2023, all of the Fund’s investments were considered Level 1, in
The accompanying notes are an integral part of the financial statements.
89
| Schedule of Investments | November 30, 2023 |
| Global X U.S. Cash Flow Kings 100 ETF | |
accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
See “Glossary” for abbreviations.
The accompanying notes are an integral part of the financial statements.
90
| Schedule of Investments | November 30, 2023 |
| Glossary (abbreviations used in preceding Schedule of Investments): | |
Fund Abbreviations
Cl — Class
CME — Chicago Mercantile Exchange
ETF — Exchange-Traded Fund
H15T5Y — U.S. Treasury Yield Curve Rate T Note Constant Maturity 5 Year
REIT — Real Estate Investment Trust
TSFR3M — Term Secured Overnight Financing Rate 3-Month
Ser — Series
SOFR — Secured Overnight Financing Rate
US0003M — ICE LIBOR USD 3 Month
USD — U.S. Dollar
91
Statements of Assets and Liabilities
November 30, 2023
| Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | Global X Alternative Income ETF | Global X Conscious Companies ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Cost of Investments | $ | 909,931,125 | $ | 752,695,569 | $ | 5,435,347 | $ | 525,301,866 | ||||||||
| Cost of Repurchase Agreement | — | 10,840,049 | 1,237,833 | — | ||||||||||||
| Cost of Affiliated Investments | 36,201,586 | — | 35,836,242 | — | ||||||||||||
| Investments, at Value | $ | 1,494,916,858 | $ | 1,001,415,940 | * | $ | 6,985,949 | * | $ | 578,729,931 | ||||||
| Repurchase Agreement, at Value | — | 10,840,049 | 1,237,833 | — | ||||||||||||
| Affiliated Investments, at Value | 66,588,960 | — | 27,798,456 | — | ||||||||||||
| Cash | 1,854,701 | 1,095,924 | 68,511 | 368,702 | ||||||||||||
| Receivable for Investment Securities Sold | 45,030,987 | 60,561,000 | 376,505 | — | ||||||||||||
| Prepaid Expenses | 25,965 | — | — | — | ||||||||||||
| Dividend, Interest, and Securities Lending Income Receivable | 105 | 1,222,192 | 11,442 | 837,318 | ||||||||||||
| Reclaim Receivable | — | 252,171 | — | — | ||||||||||||
| Due from Broker | 23,704 | 10,605 | — | — | ||||||||||||
| Total Assets | 1,608,441,280 | 1,075,397,881 | 36,478,696 | 579,935,951 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Obligation to Return Securities Lending Collateral | — | 14,148,680 | 1,615,648 | — | ||||||||||||
| Payable for Investment Securities Purchased | 45,618,165 | 61,620,592 | 380,637 | — | ||||||||||||
| Current Tax Liability | 5,966,805 | — | — | — | ||||||||||||
| Payable due to Investment Adviser | 541,268 | 356,996 | 3,981 | 195,391 | ||||||||||||
| Custodian Fees Payable | 2,051 | 308 | 2 | 58 | ||||||||||||
| Franchise Tax Payable | 10,703 | — | — | — | ||||||||||||
| Due to Broker | 93,270 | 63,048 | 6,525 | — | ||||||||||||
| Deferred Tax Liability | 67,344,909 | — | — | — | ||||||||||||
| Total Liabilities | 119,577,171 | 76,189,624 | 2,006,793 | 195,449 | ||||||||||||
| Net Assets | $ | 1,488,864,109 | $ | 999,208,257 | $ | 34,471,903 | $ | 579,740,502 | ||||||||
| Net Assets Consist of: | ||||||||||||||||
| Paid-in Capital | $ | 1,394,906,312 | $ | 945,288,613 | $ | 43,272,673 | $ | 575,573,769 | ||||||||
| Total Distributable Earnings (Accumulated Losses) | 93,957,797 | 53,919,644 | (8,800,770 | ) | 4,166,733 | |||||||||||
| Net Assets | $ | 1,488,864,109 | $ | 999,208,257 | $ | 34,471,903 | $ | 579,740,502 | ||||||||
| Outstanding Shares
of Beneficial Interest (unlimited authorization — no par value) | 32,308,637 | 22,207,506 | 3,120,000 | 18,180,000 | ||||||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $46.08 | $44.99 | $11.05 | $31.89 | ||||||||||||
| * Includes market value of securities on loan. | $ | — | $ | 13,993,798 | $ | 1,582,240 | $ | — | ||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
92
Statements of Assets and Liabilities
November 30, 2023
| Global X U.S. Preferred ETF | Global X S&P 500® Quality Dividend ETF | Global X Adaptive U.S. Factor ETF | Global X Variable Rate Preferred ETF | |||||||||||||
| Assets: | ||||||||||||||||
| Cost of Investments | $ | 2,579,807,571 | $ | 50,676,115 | $ | 166,828,073 | $ | 223,871,603 | ||||||||
| Cost of Repurchase Agreement | 32,236,607 | — | — | — | ||||||||||||
| Investments, at Value | $ | 2,273,438,575 | * | $ | 48,099,394 | $ | 181,434,604 | $ | 220,886,329 | |||||||
| Repurchase Agreement, at Value | 32,236,607 | — | — | — | ||||||||||||
| Cash | 519,780 | 36,016 | 109,630 | 438,539 | ||||||||||||
| Dividend, Interest, and Securities Lending Income Receivable | 17,269,648 | 189,477 | 363,780 | 1,186,385 | ||||||||||||
| Receivable for Capital Shares Sold | 15,464,522 | — | — | — | ||||||||||||
| Receivable for Investment Securities Sold | — | — | 4,080,203 | 1,381,136 | ||||||||||||
| Reclaim Receivable | — | 933 | 2,648 | — | ||||||||||||
| Due from Broker | 4,725 | — | — | — | ||||||||||||
| Total Assets | 2,338,933,857 | 48,325,820 | 185,990,865 | 223,892,389 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Obligation to Return Securities Lending Collateral | 42,075,956 | — | — | — | ||||||||||||
| Payable for Investment Securities Purchased | 18,763,429 | — | — | 148,378 | ||||||||||||
| Payable due to Investment Adviser | 407,818 | 7,696 | 40,100 | 45,231 | ||||||||||||
| Payable for Capital Shares Redeemed | — | — | 4,112,541 | 1,383,966 | ||||||||||||
| Custodian Fees Payable | 8,210 | 12 | — | 1,951 | ||||||||||||
| Due to Broker | — | 250 | — | — | ||||||||||||
| Total Liabilities | 61,255,413 | 7,958 | 4,152,641 | 1,579,526 | ||||||||||||
| Net Assets | $ | 2,277,678,444 | $ | 48,317,862 | $ | 181,838,224 | $ | 222,312,863 | ||||||||
| Net Assets Consist of: | ||||||||||||||||
| Paid-in Capital | $ | 2,941,314,191 | $ | 57,786,079 | $ | 197,556,448 | $ | 255,607,250 | ||||||||
| Total Accumulated Losses | (663,635,747 | ) | (9,468,217 | ) | (15,718,224 | ) | (33,294,387 | ) | ||||||||
| Net Assets | $ | 2,277,678,444 | $ | 48,317,862 | $ | 181,838,224 | $ | 222,312,863 | ||||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization — no par value) | 119,090,000 | 1,560,002 | 5,290,002 | 9,610,000 | ||||||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $19.13 | $30.97 | $34.37 | $23.13 | ||||||||||||
| *Includes Market Value of Securities on Loan | $ | 40,959,809 | $ | — | $ | — | $ | — | ||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
93
Statements of Assets and Liabilities
November 30, 2023
| Global X Adaptive U.S. Risk Management ETF | Global X 1-3 Month T-Bill ETF | Global X U.S. Cash Flow Kings 100 ETF | ||||||||||
| Assets: | ||||||||||||
| Cost of Investments | $ | 93,144,214 | $ | 116,406,530 | $ | 3,668,969 | ||||||
| Investments, at Value | $ | 94,707,872 | $ | 116,409,075 | $ | 3,777,981 | ||||||
| Cash | 1,420 | 15,251 | 2,324 | |||||||||
| Dividend, Interest, and Securities Lending Income Receivable | 112,993 | — | 10,623 | |||||||||
| Reclaim Receivable | 244 | — | — | |||||||||
| Receivable for Capital Shares Sold | — | 1,506,838 | — | |||||||||
| Receivable for Investment Securities Sold | — | 17,772,574 | — | |||||||||
| Total Assets | 94,822,529 | 135,703,738 | 3,790,928 | |||||||||
| Liabilities: | ||||||||||||
| Payable due to Investment Adviser | 29,487 | 6,218 | 758 | |||||||||
| Payable for Investment Securities Purchased | — | 22,937,806 | — | |||||||||
| Total Liabilities | 29,487 | 22,944,024 | 758 | |||||||||
| Net Assets | $ | 94,793,042 | $ | 112,759,714 | $ | 3,790,170 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 105,059,444 | $ | 112,417,296 | $ | 3,689,025 | ||||||
| Total Distributable Earnings (Accumulated Losses) | (10,266,402 | ) | 342,418 | 101,145 | ||||||||
| Net Assets | $ | 94,793,042 | $ | 112,759,714 | $ | 3,790,170 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization — no par value) | 3,320,000 | 4,490,000 | 140,000 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $28.55 | $25.11 | $27.07 | |||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
94
For the year ended November 30, 2023
| Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | Global X Alternative Income ETF | Global X Conscious Companies ETF | |||||||||||||
| Investment Income: | ||||||||||||||||
| Distributions from Master Limited Partnerships | $ | 107,397,006 | $ | — | $ | — | $ | — | ||||||||
| Less: Return of Capital Distributions | (107,397,006 | ) | — | — | — | |||||||||||
| Dividend Income | 3,766,274 | 25,779,111 | 152,445 | 10,603,148 | ||||||||||||
| Dividend Income, from Affiliated Investments | 60 | — | 1,600,047 | — | ||||||||||||
| Interest Income | 380,799 | 52,835 | 3,376 | 29,849 | ||||||||||||
| Security Lending Income | — | 92,618 | 8,510 | — | ||||||||||||
| Less: Foreign Taxes Withheld | — | (2,027,605 | ) | — | (19,857 | ) | ||||||||||
| Total Investment Income | 4,147,133 | 23,896,959 | 1,764,378 | 10,613,140 | ||||||||||||
| Expenses: | ||||||||||||||||
| Supervision and Administration Fees(1) | 6,180,576 | 4,384,924 | 184,088 | 2,680,496 | ||||||||||||
| Custodian Fees(2) | 60,024 | 15,350 | 210 | 57 | ||||||||||||
| Net Expenses | 6,240,600 | 4,400,274 | 184,298 | 2,680,553 | ||||||||||||
| Net Investment Income (Loss), Before Taxes | (2,093,467 | ) | 19,496,685 | 1,580,080 | 7,932,587 | |||||||||||
| Tax Benefit/(Expense) | 454,553 | — | — | — | ||||||||||||
| Net Investment Income (Loss), Net of Taxes | (1,638,914 | ) | 19,496,685 | 1,580,080 | 7,932,587 | |||||||||||
| Net Realized Gain (Loss) on: | ||||||||||||||||
| Investments(3) | 155,918,883 | 89,548,885 | 459,116 | 7,310,769 | ||||||||||||
| Affiliated Investments | (3,568,045 | ) | — | (217,188 | ) | — | ||||||||||
| Foreign Currency Transactions | — | (5,165 | ) | — | — | |||||||||||
| Tax Benefit/(Expense) | (33,079,807 | ) | — | — | — | |||||||||||
| Capital Gain Distribution from Affiliated Investments | — | — | 17,544 | — | ||||||||||||
| Payment from Adviser(4) | — | — | 134,224 | — | ||||||||||||
| Net Realized Gain (Loss) | 119,271,031 | 89,543,720 | 393,696 | 7,310,769 | ||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
| Investments | 97,131,527 | (29,594,737 | ) | (387,410 | ) | 37,219,381 | ||||||||||
| Affiliated Investments | 13,529,542 | — | (202,772 | ) | — | |||||||||||
| Tax Benefit/(Expense) | (24,027,743 | ) | — | — | — | |||||||||||
| Net Change in Unrealized Appreciation (Depreciation) | 86,633,326 | (29,594,737 | ) | (590,182 | ) | 37,219,381 | ||||||||||
| Net Realized and Unrealized Gain (Loss) | 205,904,357 | 59,948,983 | (196,486 | ) | 44,530,150 | |||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 204,265,443 | $ | 79,445,668 | $ | 1,383,594 | $ | 52,462,737 | ||||||||
| (1) | The Supervision and Administration fees includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
| (2) | See Note 2 in the Notes to Financial Statements. |
| (3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
| (4) | See Note 3 in the Notes to Financial Statements. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
95
Statements of Operations
For the year ended November 30, 2023
| Global X U.S. Preferred ETF | Global X S&P 500® Quality Dividend ETF | Global X Adaptive U.S. Factor ETF | Global X Variable Rate Preferred ETF | |||||||||||||
| Investment Income: | ||||||||||||||||
| Dividend Income | $ | 146,928,136 | $ | 2,044,155 | $ | 3,729,566 | $ | 17,745,048 | ||||||||
| Interest Income | 515,120 | 1,468 | — | 64,397 | ||||||||||||
| Security Lending Income | 772,193 | — | — | — | ||||||||||||
| Less: Foreign Taxes Withheld | (45,058 | ) | (902 | ) | (2,666 | ) | — | |||||||||
| Total Investment Income | 148,170,391 | 2,044,721 | 3,726,900 | 17,809,445 | ||||||||||||
| Expenses: | ||||||||||||||||
| Supervision and Administration Fees(1) | 5,155,048 | 121,808 | 464,100 | 613,083 | ||||||||||||
| Custodian Fees(2) | 49,530 | 928 | 6,764 | 8,105 | ||||||||||||
| Total Expenses | 5,204,578 | 122,736 | 470,864 | 621,188 | ||||||||||||
| Net Investment Income | 142,965,813 | 1,921,985 | 3,256,036 | 17,188,257 | ||||||||||||
| Net Realized Gain (Loss) on: | ||||||||||||||||
| Investments(3) | (247,896,463 | ) | 2,146,424 | 9,554,707 | (17,014,142 | ) | ||||||||||
| Net Realized Gain (Loss) | (247,896,463 | ) | 2,146,424 | 9,554,707 | (17,014,142 | ) | ||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
| Investments | 88,345,353 | (5,404,794 | ) | (628,064 | ) | 9,691,065 | ||||||||||
| Net Change in Unrealized Appreciation (Depreciation) | 88,345,353 | (5,404,794 | ) | (628,064 | ) | 9,691,065 | ||||||||||
| Net Realized and Unrealized Gain (Loss) | (159,551,110 | ) | (3,258,370 | ) | 8,926,643 | (7,323,077 | ) | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (16,585,297 | ) | $ | (1,336,385 | ) | $ | 12,182,679 | $ | 9,865,180 | ||||||
| (1) | The Supervision and Administration fees includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
| (2) | See Note 2 in the Notes to Financial Statements. |
| (3) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
96
Statements of Operations
For the year/period ended November 30, 2023
| Global X Adaptive U.S. Risk Management ETF | Global X 1-3 Month T-Bill ETF(1) | Global X U.S. Cash Flow Kings 100 ETF(2) | ||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 1,049,164 | $ | — | $ | 30,844 | ||||||
| Interest Income | 556,052 | 1,617,313 | 56 | |||||||||
| Less: Foreign Taxes Withheld | 242 | — | (135 | ) | ||||||||
| Total Investment Income | 1,605,458 | 1,617,313 | 30,765 | |||||||||
| Expenses: | ||||||||||||
| Supervision and Administration Fees(3) | 301,537 | 20,830 | 2,892 | |||||||||
| Custodian Fees(4) | 9,461 | 7,087 | — | |||||||||
| Total Expenses | 310,998 | 27,917 | 2,892 | |||||||||
| Net Investment Income | 1,294,460 | 1,589,396 | 27,873 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments(5) | 3,748,699 | (5,740 | ) | 54,126 | ||||||||
| Net Realized Gain (Loss) | 3,748,699 | (5,740 | ) | 54,126 | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | (3,267,026 | ) | 2,545 | 109,012 | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) | (3,267,026 | ) | 2,545 | 109,012 | ||||||||
| Net Realized and Unrealized Gain (Loss) | 481,673 | (3,195 | ) | 163,138 | ||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 1,776,133 | $ | 1,586,201 | $ | 191,011 | ||||||
| (1) | The Fund commenced operations on June 20, 2023. |
| (2) | The Fund commenced operations on July 10, 2023. |
| (3) | The Supervision and Administration fees includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.) |
| (4) | See Note 2 in the Notes to Financial Statements. |
| (5) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
97
Statements of Changes in Net Assets
| Global X MLP ETF | Global X MLP & Energy Infrastructure ETF | |||||||||||||||
| Year Ended November 30, 2023 | Year Ended November 30, 2022 | Year Ended November 30, 2023 | Year Ended November 30, 2022 | |||||||||||||
| Operations: | ||||||||||||||||
| Net Investment Income (Loss) | $ | (1,638,914 | ) | $ | (340,029 | ) | $ | 19,496,685 | $ | 17,261,565 | ||||||
| Net Realized Gain (Loss) | 119,271,031 | 100,398,974 | 89,543,720 | 41,652,165 | ||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) | 86,633,326 | 265,733,843 | (29,594,737 | ) | 182,187,058 | |||||||||||
| Net Increase in Net Assets Resulting from Operations | 204,265,443 | 365,792,788 | 79,445,668 | 241,100,788 | ||||||||||||
| Distributions: | (106,518,075 | ) | (90,450,291 | ) | (47,511,225 | ) | (32,598,692 | ) | ||||||||
| Return of Capital: | — | — | (7,533,664 | ) | (17,688,775 | ) | ||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 147,213,966 | 492,823,248 | 128,027,131 | 280,463,476 | ||||||||||||
| Redeemed | (134,375,997 | ) | (382,822,455 | ) | (243,219,768 | ) | (119,368,893 | ) | ||||||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | 12,837,969 | 110,000,793 | (115,192,637 | ) | 161,094,583 | |||||||||||
| Total Increase (Decrease) in Net Assets | 110,585,337 | 385,343,290 | (90,791,858 | ) | 351,907,904 | |||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Year | 1,378,278,772 | 992,935,482 | 1,090,000,115 | 738,092,211 | ||||||||||||
| End of Year | $ | 1,488,864,109 | $ | 1,378,278,772 | $ | 999,208,257 | $ | 1,090,000,115 | ||||||||
| Share Transactions: | ||||||||||||||||
| Issued | 3,430,000 | 12,070,000 | 3,100,000 | 6,950,000 | ||||||||||||
| Redeemed | (3,180,000 | ) | (9,570,000 | ) | (5,970,000 | ) | (3,030,000 | ) | ||||||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | 250,000 | 2,500,000 | (2,870,000 | ) | 3,920,000 | |||||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
98
Statements of Changes in Net Assets
| Global X Alternative Income ETF | Global X Conscious Companies ETF | |||||||||||||||
| Year Ended November 30, 2023 | Year Ended November 30, 2022 | Year Ended November 30, 2023 | Year Ended November 30, 2022 | |||||||||||||
| Operations: | ||||||||||||||||
| Net Investment Income | $ | 1,580,080 | $ | 1,835,738 | $ | 7,932,587 | $ | 6,934,885 | ||||||||
| Net Realized Gain (Loss) | 393,696 | 834,115 | 7,310,769 | 941,166 | ||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) | (590,182 | ) | (5,206,398 | ) | 37,219,381 | (69,340,214 | ) | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | 1,383,594 | (2,536,545 | ) | 52,462,737 | (61,464,163 | ) | ||||||||||
| Distributions: | (2,657,760 | ) | (2,282,880 | ) | (6,163,099 | ) | (7,480,197 | ) | ||||||||
| Return of Capital: | — | (390,992 | ) | — | — | |||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 6,918,197 | 10,836,559 | 46,353,658 | 168,852,369 | ||||||||||||
| Redeemed | (8,388,501 | ) | (4,330,515 | ) | (186,645,529 | ) | (80,939,741 | ) | ||||||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (1,470,304 | ) | 6,506,044 | (140,291,871 | ) | 87,912,628 | ||||||||||
| Total Increase (Decrease) in Net Assets | (2,744,470 | ) | 1,295,627 | (93,992,233 | ) | 18,968,268 | ||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Year | 37,216,373 | 35,920,746 | 673,732,735 | 654,764,467 | ||||||||||||
| End of Year | $ | 34,471,903 | $ | 37,216,373 | $ | 579,740,502 | $ | 673,732,735 | ||||||||
| Share Transactions: | ||||||||||||||||
| Issued | 610,000 | 890,000 | 1,580,000 | 5,560,000 | ||||||||||||
| Redeemed | (750,000 | ) | (360,000 | ) | (6,220,000 | ) | (2,600,000 | ) | ||||||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (140,000 | ) | 530,000 | (4,640,000 | ) | 2,960,000 | ||||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
99
Statements of Changes in Net Assets
| Global X U.S. Preferred ETF | Global X
S&P 500® Quality Dividend ETF | |||||||||||||||
| Year Ended November 30, 2023 | Year Ended November 30, 2022 | Year Ended November 30, 2023 | Year Ended November 30, 2022 | |||||||||||||
| Operations: | ||||||||||||||||
| Net Investment Income | $ | 142,965,813 | $ | 121,824,169 | $ | 1,921,985 | $ | 1,524,648 | ||||||||
| Net Realized Gain (Loss) | (247,896,463 | ) | (109,993,262 | ) | 2,146,424 | (2,148,867 | ) | |||||||||
| Net Change in Unrealized Appreciation (Depreciation) | 88,345,353 | (365,525,726 | ) | (5,404,794 | ) | 2,598,502 | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (16,585,297 | ) | (353,694,819 | ) | (1,336,385 | ) | 1,974,283 | |||||||||
| Distributions: | (144,784,500 | ) | (128,023,270 | ) | (1,991,843 | ) | (1,339,222 | ) | ||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 413,172,813 | 973,349,002 | 40,923,453 | 81,220,596 | ||||||||||||
| Redeemed | (188,585,867 | ) | (735,191,810 | ) | (50,433,467 | ) | (30,314,988 | ) | ||||||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | 224,586,946 | 238,157,192 | (9,510,014 | ) | 50,905,608 | |||||||||||
| Total Increase (Decrease) in Net Assets | 63,217,149 | (243,560,897 | ) | (12,838,242 | ) | 51,540,669 | ||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Year | 2,214,461,295 | 2,458,022,192 | 61,156,104 | 9,615,435 | ||||||||||||
| End of Year | $ | 2,277,678,444 | $ | 2,214,461,295 | $ | 48,317,862 | $ | 61,156,104 | ||||||||
| Share Transactions: | ||||||||||||||||
| Issued | 21,090,000 | 43,900,000 | 1,270,000 | 2,510,000 | ||||||||||||
| Redeemed | (9,980,000 | ) | (33,430,000 | ) | (1,550,000 | ) | (980,000 | ) | ||||||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | 11,110,000 | 10,470,000 | (280,000 | ) | 1,530,000 | |||||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
100
Statements of Changes in Net Assets
| Global X Adaptive U.S. Factor ETF | Global X Variable Rate Preferred ETF | |||||||||||||||
| Year Ended November 30, 2023 | Year Ended November 30, 2022 | Year Ended November 30, 2023 | Year Ended November 30, 2022 | |||||||||||||
| Operations: | ||||||||||||||||
| Net Investment Income | $ | 3,256,036 | $ | 3,448,177 | $ | 17,188,257 | $ | 10,961,676 | ||||||||
| Net Realized Gain (Loss) | 9,554,707 | 8,344,020 | (17,014,142 | ) | (11,913,764 | ) | ||||||||||
| Net Change in Unrealized Appreciation (Depreciation) | (628,064 | ) | 6,336,154 | 9,691,065 | (10,345,581 | ) | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | 12,182,679 | 18,128,351 | 9,865,180 | (11,297,669 | ) | |||||||||||
| Distributions: | (3,511,163 | ) | (3,989,881 | ) | (16,361,150 | ) | (10,414,818 | ) | ||||||||
| Return of Capital: | (453,852 | ) | (204,893 | ) | — | (515,682 | ) | |||||||||
| Capital Share Transactions: | ||||||||||||||||
| Issued | 276,386,515 | 45,617,766 | 45,621,449 | 285,890,415 | ||||||||||||
| Redeemed | (281,299,409 | ) | (53,025,393 | ) | (102,201,448 | ) | (67,490,783 | ) | ||||||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (4,912,894 | ) | (7,407,627 | ) | (56,579,999 | ) | 218,399,632 | |||||||||
| Total Increase (Decrease) in Net Assets | 3,304,770 | 6,525,950 | (63,075,969 | ) | 196,171,463 | |||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of Year | 178,533,454 | 172,007,504 | 285,388,832 | 89,217,369 | ||||||||||||
| End of Year | $ | 181,838,224 | $ | 178,533,454 | $ | 222,312,863 | $ | 285,388,832 | ||||||||
| Share Transactions: | ||||||||||||||||
| Issued | 8,580,000 | 1,490,000 | 1,990,000 | 11,570,000 | ||||||||||||
| Redeemed | (8,830,000 | ) | (1,710,000 | ) | (4,500,000 | ) | (2,720,000 | ) | ||||||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (250,000 | ) | (220,000 | ) | (2,510,000 | ) | 8,850,000 | |||||||||
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
101
Statements of Changes in Net Assets
| Global X Adaptive U.S. Risk Management ETF | Global X 1-3 Month T-Bill ETF | |||||||||||
| Year Ended November 30, 2023 | Year Ended November 30, 2022 | Period Ended November 30, 2023(1) | ||||||||||
| Operations: | ||||||||||||
| Net Investment Income | $ | 1,294,460 | $ | 1,224,335 | $ | 1,589,396 | ||||||
| Net Realized Gain (Loss) | 3,748,699 | (18,387,366 | ) | (5,740 | ) | |||||||
| Net Change in Unrealized Appreciation (Depreciation) | (3,267,026 | ) | 6,274,011 | 2,545 | ||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | 1,776,133 | (10,889,020 | ) | 1,586,201 | ||||||||
| Distributions: | (1,310,795 | ) | (1,002,824 | ) | (1,251,315 | ) | ||||||
| Capital Share Transactions: | ||||||||||||
| Issued | 28,468,281 | 24,618,907 | 155,811,245 | |||||||||
| Redeemed | (548,364 | ) | (50,893,766 | ) | (43,386,417 | ) | ||||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | 27,919,917 | (26,274,859 | ) | 112,424,828 | ||||||||
| Total Increase (Decrease) in Net Assets | 28,385,255 | (38,166,703 | ) | 112,759,714 | ||||||||
| Net Assets: | ||||||||||||
| Beginning of Year/Period | 66,407,787 | 104,574,490 | — | |||||||||
| End of Year/Period | $ | 94,793,042 | $ | 66,407,787 | $ | 112,759,714 | ||||||
| Share Transactions: | ||||||||||||
| Issued | 990,000 | 860,000 | 6,220,000 | |||||||||
| Redeemed | (20,000 | ) | (2,010,000 | ) | (1,730,000 | ) | ||||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | 970,000 | (1,150,000 | ) | 4,490,000 | ||||||||
| (1) | The Fund commenced operations on June 20, 2023. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
102
Statements of Changes in Net Assets
| Global X U.S. Cash Flow Kings 100 ETF | ||||
| Period Ended November 30, 2023(1) | ||||
| Operations: | ||||
| Net Investment Income | $ | 27,873 | ||
| Net Realized Gain (Loss) | 54,126 | |||
| Net Change in Unrealized Appreciation (Depreciation) | 109,012 | |||
| Net Increase in Net Assets Resulting from Operations | 191,011 | |||
| Distributions: | (17,340 | ) | ||
| Capital Share Transactions: | ||||
| Issued | 4,144,105 | |||
| Redeemed | (527,606 | ) | ||
| Increase in Net Assets from Capital Share Transactions | 3,616,499 | |||
| Total Increase in Net Assets | 3,790,170 | |||
| Net Assets: | ||||
| Beginning of Period | — | |||
| End of Period | $ | 3,790,170 | ||
| Share Transactions: | ||||
| Issued | 160,000 | |||
| Redeemed | (20,000 | ) | ||
| Net Increase in Shares Outstanding from Share Transactions | 140,000 | |||
| (1) | The Fund commenced operations on July 10, 2023. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
103
Page intentionally left blank.
104
| Selected
Per Share Data & Ratios For a Share Outstanding Throughout the Period |
| Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
| Global X MLP ETF | ||||||||||||||||||||||||||||
| 2023 | 42.99 | (0.07 | ) | 6.48 | 6.41 | (3.32 | ) | — | — | |||||||||||||||||||
| 2022 | 33.59 | (0.02 | ) | 12.44 | 12.42 | (3.02 | ) | — | — | |||||||||||||||||||
| 2021 | 26.73 | (0.06 | ) | 9.97 | 9.91 | — | — | (3.05 | ) | |||||||||||||||||||
| 2020(1) | 43.92 | (0.26 | ) | (13.13 | ) | (13.39 | ) | — | — | (3.80 | ) | |||||||||||||||||
| 2019(1) | 51.24 | (0.24 | ) | (2.76 | ) | (3.00 | ) | — | — | (4.32 | ) | |||||||||||||||||
| Global X MLP & Energy Infrastructure ETF | ||||||||||||||||||||||||||||
| 2023 | 43.47 | 0.83 | 3.02 | 3.85 | (2.01 | ) | — | (0.32 | ) | |||||||||||||||||||
| 2022 | 34.89 | 0.75 | 9.98 | 10.73 | (1.39 | ) | — | (0.76 | ) | |||||||||||||||||||
| 2021 | 26.59 | 0.42 | 9.97 | 10.39 | (1.05 | ) | — | (1.04 | ) | |||||||||||||||||||
| 2020(2) | 33.45 | 0.71 | (5.33 | ) | (4.62 | ) | (1.95 | ) | — | (0.29 | ) | |||||||||||||||||
| 2019(2) | 36.39 | 1.14 | (1.89 | ) | (0.75 | ) | (2.01 | ) | — | (0.18 | ) | |||||||||||||||||
| Global X Alternative Income ETF | ||||||||||||||||||||||||||||
| 2023 | 11.42 | 0.48 | (0.04 | ) | 0.44 | (0.81 | ) | — | — | |||||||||||||||||||
| 2022 | 13.16 | 0.61 | (1.45 | ) | (0.84 | ) | (0.77 | ) | — | (0.13 | ) | |||||||||||||||||
| 2021 | 11.51 | 0.49 | 2.05 | 2.54 | (0.62 | ) | — | (0.27 | ) | |||||||||||||||||||
| 2020 | 14.74 | 0.66 | (2.64 | ) | (1.98 | ) | (0.98 | ) | (0.15 | ) | (0.12 | ) | ||||||||||||||||
| 2019 | 14.52 | 0.94 | 0.44 | 1.38 | (1.07 | ) | (0.09 | ) | — | |||||||||||||||||||
| * | Per share data calculated using average shares method. |
| ** | 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. |
| *** | Supplemental ratio, presented for the purpose of additional analysis. |
| †† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
| ‡ | The Before Net Deferred Tax Expense/(Benefit) expense ratios for the periods ending November 30, 2019, 2020, 2021, 2022 and 2023 was 0.46%, 0.45%, 0.45%, 0.45%, and 0.45%. |
| ‡‡ | Includes amount of tax benefit or expense associated with expenses. Including amount of tax benefit or expense associated for all components of the Statement of Operations, for the periods ending November 30, 2022 and 2023, the impact would be 2.29% and 4.16%. |
| # | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| ^ | Effective September 28, 2021, the fund’s fees were permanently lowered to 0.50%. |
| @ | Effective for the fiscal year ended November 30, 2022, the Fund began presenting acquired fund fees borne by the Adviser as part of its unitary fee agreement (See Note 3 in Notes to Financial Statements) as a realized gain on the Statement of Operations as compared to a contra-expense as in prior fiscal years. If such amounts had been presented as a realized gain in the year ended November 30, 2021 (first year of this agreement), the ratio of Expenses to Average Net Assets would have been 0.70%. |
| (1) | Per share amounts have been adjusted for a 1 for 6 reverse stock split on April 28, 2020 (See Note 9 in the Notes to Financial Statements). |
| (2) | Per share amounts have been adjusted for a 1 for 3 reverse share split on April 28, 2020. (See Note 9 in Notes to Financial Statements.) |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
105
Financial Highlights
| Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets, End of Period ($) (000) | Ratio of Expenses to Average Net Assets, Net of Tax Expense/ (Benefit) (%) | Tax Expense /(Benefit) (%)*** | Ratio of Net Investment Income (Loss) to Average Net Assets, Net of Tax Expense/ (Benefit) (%) | Portfolio Turnover (%)†† | |||||||||||||||||||||||
| (3.32 | ) | 46.08 | 15.79 | 1,488,864 | 0.42 | ‡ | (0.03 | )‡‡ | (0.15 | ) | 42.36 | |||||||||||||||||||
| (3.02 | ) | 42.99 | 37.69 | 1,378,279 | 0.44 | ‡ | (0.01 | )‡‡ | (0.04 | ) | 47.13 | |||||||||||||||||||
| (3.05 | ) | 33.59 | 37.49 | 992,935 | 0.43 | ‡ | (0.02 | ) | (0.19 | ) | 33.79 | |||||||||||||||||||
| (3.80 | ) | 26.73 | (30.51 | ) | 687,577 | 0.46 | ‡ | 0.46 | (0.85 | ) | 33.78 | |||||||||||||||||||
| (4.32 | ) | 43.92 | (6.54 | ) | 947,045 | 0.46 | ‡ | — | (0.46 | ) | 55.65 | |||||||||||||||||||
| (2.33 | ) | 44.99 | 9.42 | 999,208 | 0.45 | — | 2.00 | 24.32 | ||||||||||||||||||||||
| (2.15 | ) | 43.47 | 31.26 | 1,090,000 | 0.45 | — | 1.85 | 23.48 | ||||||||||||||||||||||
| (2.09 | ) | 34.89 | 39.64 | 738,092 | 0.45 | — | 1.25 | 16.88 | ||||||||||||||||||||||
| (2.24 | ) | 26.59 | (13.34 | ) | 538,344 | 0.45 | — | 2.66 | 35.86 | |||||||||||||||||||||
| (2.19 | ) | 33.45 | (2.34 | ) | 612,300 | 0.45 | — | 3.03 | 36.57 | |||||||||||||||||||||
| (0.81 | ) | 11.05 | 4.01 | 34,472 | 0.50 | — | 4.29 | 14.38 | ||||||||||||||||||||||
| (0.90 | ) | 11.42 | (6.64 | ) | 37,216 | 0.50 | # | — | 5.03 | 18.10 | ||||||||||||||||||||
| (0.89 | ) | 13.16 | 22.52 | 35,921 | 0.63 | #@^ | — | 3.77 | 86.85 | |||||||||||||||||||||
| (1.25 | ) | 11.51 | (13.13 | ) | 19,573 | 0.75 | # | — | 5.61 | 52.78 | ||||||||||||||||||||
| (1.16 | ) | 14.74 | 9.89 | 28,012 | 0.75 | # | — | 6.39 | 18.16 | |||||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
106
Financial Highlights
| Selected Per Share Data & Ratios For a Share Outstanding Throughout the Period |
| Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
| Global X Conscious Companies ETF | ||||||||||||||||||||||||||||
| 2023 | 29.52 | 0.38 | 2.27 | 2.65 | (0.28 | ) | — | — | ||||||||||||||||||||
| 2022 | 32.97 | 0.31 | (3.40 | ) | (3.09 | ) | (0.36 | ) | — | — | ||||||||||||||||||
| 2021 | 26.46 | 0.31 | 6.49 | 6.80 | (0.29 | ) | — | — | ||||||||||||||||||||
| 2020 | 23.10 | 0.33 | 3.32 | 3.65 | (0.27 | ) | (0.02 | ) | — | |||||||||||||||||||
| 2019 | 20.55 | 0.37 | 2.68 | 3.05 | (0.50 | ) | — | — | ||||||||||||||||||||
| Global X U.S. Preferred ETF | ||||||||||||||||||||||||||||
| 2023 | 20.51 | 1.24 | (1.36 | ) | (0.12 | ) | (1.26 | ) | — | — | ||||||||||||||||||
| 2022 | 25.21 | 1.23 | (4.64 | ) | (3.41 | ) | (1.29 | ) | — | — | ||||||||||||||||||
| 2021 | 25.36 | 1.28 | (0.12 | ) | 1.16 | (1.31 | ) | — | — | |||||||||||||||||||
| 2020 | 24.79 | 1.33 | 0.58 | 1.91 | (1.34 | ) | — | — | ||||||||||||||||||||
| 2019 | 22.97 | 1.36 | 1.83 | 3.19 | (1.37 | ) | — | — | ||||||||||||||||||||
| Global X S&P 500® Quality Dividend ETF | ||||||||||||||||||||||||||||
| 2023 | 33.24 | 0.99 | (2.23 | ) | (1.24 | ) | (1.03 | ) | — | — | ||||||||||||||||||
| 2022 | 31.02 | 1.03 | 2.10 | 3.13 | (0.91 | ) | — | — | ||||||||||||||||||||
| 2021 | 25.20 | 0.78 | 5.84 | 6.62 | (0.80 | ) | — | — | ||||||||||||||||||||
| 2020 | 26.51 | 0.75 | (1.24 | ) | (0.49 | ) | (0.82 | ) | — | — | *** | |||||||||||||||||
| 2019 | 24.60 | 0.75 | 1.89 | 2.64 | (0.73 | ) | — | — | ||||||||||||||||||||
| * | Per share data calculated using average shares method. |
| ** | 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. |
| *** | Amount is less than $0.005. |
| †† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
| ‡ | Effective April 1, 2019, the Fund’s fees were permanently lowered to 0.20%. Prior to April 1, 2019, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.31% for the year ended November 30, 2019. |
| ^^ | Effective April 1, 2020, until April 1, 2021, the ratio of Expenses to Average Net Assets included the effect of a waiver. If these offsets were excluded, the ratio would have been 0.23%. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
107
Financial Highlights
| Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets, End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
| (0.28 | ) | 31.89 | 9.05 | 579,741 | 0.43 | 1.27 | 27.74 | |||||||||||||||||||
| (0.36 | ) | 29.52 | (9.45 | ) | 673,733 | 0.43 | 1.06 | 31.92 | ||||||||||||||||||
| (0.29 | ) | 32.97 | 25.84 | 654,764 | 0.43 | 1.00 | 22.92 | |||||||||||||||||||
| (0.29 | ) | 26.46 | 16.01 | 403,499 | 0.43 | 1.45 | 48.73 | |||||||||||||||||||
| (0.50 | ) | 23.10 | 15.35 | 85,459 | 0.43 | 1.73 | 34.97 | |||||||||||||||||||
| (1.26 | ) | 19.13 | (0.51 | ) | 2,277,678 | 0.23 | 6.38 | 36.65 | ||||||||||||||||||
| (1.29 | ) | 20.51 | (13.82 | ) | 2,214,461 | 0.23 | 5.51 | 33.20 | ||||||||||||||||||
| (1.31 | ) | 25.21 | 4.61 | 2,458,022 | 0.23 | ^^ | 4.99 | 47.89 | ||||||||||||||||||
| (1.34 | ) | 25.36 | 8.13 | 868,550 | 0.23 | ^^ | 5.49 | 39.14 | ||||||||||||||||||
| (1.37 | ) | 24.79 | 14.25 | 585,150 | 0.24 | 5.57 | 32.93 | |||||||||||||||||||
| (1.03 | ) | 30.97 | (3.71 | ) | 48,318 | 0.20 | 3.16 | 78.89 | ||||||||||||||||||
| (0.91 | ) | 33.24 | 10.25 | 61,156 | 0.20 | 3.24 | 78.73 | |||||||||||||||||||
| (0.80 | ) | 31.02 | 26.45 | 9,615 | 0.20 | 2.60 | 70.66 | |||||||||||||||||||
| (0.82 | ) | 25.20 | (1.47 | ) | 6,300 | 0.20 | 3.27 | 93.40 | ||||||||||||||||||
| (0.73 | ) | 26.51 | 11.01 | 9,278 | 0.28 | ‡ | 2.99 | 49.18 | ||||||||||||||||||
The accompanying notes are an integral part of the financial statements.
108
Financial Highlights
| Selected Per Share Data & Ratios For a Share Outstanding Throughout the Period |
| Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
| Global X Adaptive U.S. Factor ETF | ||||||||||||||||||||||||||||
| 2023 | 32.23 | 0.59 | 2.28 | 2.87 | (0.65 | ) | — | (0.08 | ) | |||||||||||||||||||
| 2022 | 29.86 | 0.62 | 2.50 | 3.12 | (0.71 | ) | — | (0.04 | ) | |||||||||||||||||||
| 2021 | 24.91 | 0.61 | 5.09 | 5.70 | (0.70 | ) | — | (0.05 | ) | |||||||||||||||||||
| 2020 | 25.79 | 0.63 | (0.67 | ) | (0.04 | ) | (0.70 | ) | (0.05 | ) | (0.09 | ) | ||||||||||||||||
| 2019 | 24.39 | 0.89 | 1.53 | 2.42 | (1.02 | ) | — | *** | — | |||||||||||||||||||
| Global X Variable Rate Preferred ETF | ||||||||||||||||||||||||||||
| 2023 | 23.55 | 1.60 | (0.49 | ) | 1.11 | (1.53 | ) | — | — | |||||||||||||||||||
| 2022 | 27.28 | 1.45 | (3.70 | ) | (2.25 | ) | (1.39 | ) | (0.02 | ) | (0.07 | ) | ||||||||||||||||
| 2021 | 26.97 | 1.40 | 0.37 | 1.77 | (1.29 | ) | (0.02 | ) | (0.15 | ) | ||||||||||||||||||
| 2020(1) | 24.85 | 0.61 | 2.00 | 2.61 | (0.49 | ) | — | — | ||||||||||||||||||||
| Global X Adaptive U.S. Risk Management ETF | ||||||||||||||||||||||||||||
| 2023 | 28.26 | 0.47 | 0.34 | 0.81 | (0.52 | ) | — | — | ||||||||||||||||||||
| 2022 | 29.88 | 0.40 | (1.71 | ) | (1.31 | ) | (0.31 | ) | — | — | ||||||||||||||||||
| 2021(2) | 24.95 | 0.25 | 4.77 | 5.02 | (0.09 | ) | — | — | ||||||||||||||||||||
| * | Per share data calculated using average shares method. |
| ** | 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. |
| *** | Amount is less than $0.005. |
| † | Annualized. |
| †† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
| (1) | The Fund commenced operations on June 22, 2020. |
| (2) | The Fund commenced operations on January 12, 2021. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
109
Financial Highlights
| Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets, End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
| (0.73 | ) | 34.37 | 9.13 | 181,838 | 0.27 | 1.89 | 234.57 | |||||||||||||||||||
| (0.75 | ) | 32.23 | 10.61 | 178,533 | 0.27 | 2.03 | 115.74 | |||||||||||||||||||
| (0.75 | ) | 29.86 | 23.01 | 172,008 | 0.27 | 2.09 | 96.21 | |||||||||||||||||||
| (0.84 | ) | 24.91 | 0.14 | 144,484 | 0.27 | 2.78 | 159.91 | |||||||||||||||||||
| (1.02 | ) | 25.79 | 10.27 | 189,564 | 0.27 | 3.63 | 112.43 | |||||||||||||||||||
| (1.53 | ) | 23.13 | 5.01 | 222,313 | 0.25 | 7.01 | 81.87 | |||||||||||||||||||
| (1.48 | ) | 23.55 | (8.40 | ) | 285,389 | 0.25 | 5.93 | 74.41 | ||||||||||||||||||
| (1.46 | ) | 27.28 | 6.60 | 89,217 | 0.25 | 5.01 | 26.17 | |||||||||||||||||||
| (0.49 | ) | 26.97 | 10.59 | 1,349 | 0.25 | † | 5.38 | † | 10.96 | |||||||||||||||||
| (0.52 | ) | 28.55 | 2.92 | 94,793 | 0.40 | 1.67 | 574.56 | |||||||||||||||||||
| (0.31 | ) | 28.26 | (4.28 | ) | 66,408 | 0.39 | 1.49 | 1481.94 | ||||||||||||||||||
| (0.09 | ) | 29.88 | 20.13 | 104,574 | 0.39 | † | 1.01 | † | 30.10 | |||||||||||||||||
The accompanying notes are an integral part of the financial statements.
110
Financial Highlights
| Selected Per Share Data & Ratios
For a Share Outstanding Throughout the Period |
| Net Asset Value, Beginning of Period ($) | Net Investment Income ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Return of Capital ($) | ||||||||||||||||||||||
| Global X 1-3 Month T-Bill ETF | ||||||||||||||||||||||||||||
| 2023(1) | 24.99 | 0.60 | (0.02 | ) | 0.58 | (0.46 | ) | — | — | |||||||||||||||||||
| Global X U.S. Cash Flow Kings 100 ETF | ||||||||||||||||||||||||||||
| 2023(2) | 25.58 | 0.25 | 1.40 | 1.65 | (0.16 | ) | — | — | ||||||||||||||||||||
| * | Per share data calculated using average shares method. |
| ** | 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 periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
| (1) | The Fund commenced operations on June 20, 2023. |
| (2) | The Fund commenced operations on July 10, 2023. |
Amounts designated as “—” are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
111
Financial Highlights
|
| Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets, End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Net Investment Income to Average Net Assets (%) | Portfolio Turnover (%)†† | ||||||||||||||||||||
| (0.46 | ) | 25.11 | 2.36 | 112,760 | 0.09 | † | 5.34 | † | 0.00 | |||||||||||||||||
| (0.16 | ) | 27.07 | 6.46 | 3,790 | 0.25 | † | 2.41 | † | 14.76 | |||||||||||||||||
The accompanying notes are an integral part of the financial statements.
112
November 30, 2023
1. ORGANIZATION
The Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, (the “1940 Act”) as an open-end management investment company. As of November 30, 2023, the Trust had one hundred and thirteen portfolios, one hundred and nine of which were operational. The financial statements herein and the related notes pertain to the Global X MLP ETF, Global X MLP & Energy Infrastructure ETF, Global X Alternative Income ETF (formerly, Global X SuperDividend® Alternatives ETF), Global X Conscious Companies ETF, Global X U.S. Preferred ETF, Global X S&P 500® Quality Dividend ETF, Global X Adaptive U.S. Factor ETF, Global X Variable Rate Preferred ETF, Global X Adaptive U.S. Risk Management ETF, Global X 1-3 Month T-Bill ETF and Global X U.S. Cash Flow Kings 100 ETF (each a “Fund” and collectively, the “Funds”). Each Fund, other than the Global X Alternative Income ETF, Global X Conscious Companies ETF and Global X U.S. Preferred ETF, has elected non-diversified status under the 1940 Act.
The Global X 1-3 Month T-Bill ETF commenced operations on June 20, 2023.
The Global X U.S. Cash Flow Kings 100 ETF commenced operations on July 10, 2023.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds:
USE OF ESTIMATES – The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.
RETURN OF CAPITAL ESTIMATES – Distributions received by the Funds from underlying master limited partnership (“MLP”) and real estate investment trust (“REIT”) investments generally are comprised of income and return of capital. The Funds record investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on historical information available from the MLPs, REITs and other industry sources. These estimates may subsequently be revised based on information received from the MLPs and REITs after their tax reporting periods are concluded.
113
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
MLPs – Certain Funds may invest in MLPs. MLPs are publicly-traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity-level taxation. To qualify as an MLP, and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include natural resource-based activities, such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners, the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly-traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.
Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.
SECURITY VALUATION - Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market (“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 Eastern Standard Time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices, which approximates fair value (absent both bid and asked prices on such exchange, the bid price may be used).
114
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. The prices for foreign securities are reported in local currencies and converted to U.S. dollars using currencies exchange rates as of the reporting date. The exchange rates used by the Trust for valuation are captured as of the New York or London close each day.
Securities for which market prices are not “readily available” are valued in accordance with fair value procedures (the “Fair Value Procedures”) established by Global X Management Company LLC, the Funds’ investment adviser (the “Adviser”), and approved by the Board of Trustees (the “Board”) of the Trust. Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated the Adviser as the “valuation designee” to determine the fair value of securities and other instruments for which no readily available market quotations are available. The Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) of the Adviser. Some of the more common reasons that may necessitate that a security be valued using the Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, each Fund may fair value a security if an event that may materially affect the value of a Fund’s security that traded outside of the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that each Fund calculates its net asset value (“NAV”). A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If the Adviser becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate their NAVs, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of November 30, 2023, there were no securities priced using the Fair Value Procedures.
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 will be valued at their market value. Prices for most securities held by the Funds are provided
115
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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 upon the sale of 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:
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;
Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments and fair value of investments for which the Funds have the ability to fully redeem tranches at NAV as of the measurement date or within the near term, and short-term investments valued at amortized cost); and
Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments, and fair value of investments for which the Funds do not have the ability to fully redeem tranches at NAV 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 details of the investment classification, reference the Schedule of Investments.
The unobservable inputs used to determine fair value of Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.
116
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
DUE TO/FROM BROKERS – Due to/from brokers includes cash and collateral balances with the Funds’ clearing brokers or counterparties as of November 30, 2023. The Funds continuously monitor the credit standing of each broker or counterparty with whom they conduct business. In the event a broker or counterparty is unable to fulfill its obligations, the Funds would be subject to counterparty credit risk.
REPURCHASE AGREEMENTS – Securities pledged as collateral for repurchase agreements by BNP Paribas are held by Brown Brothers Harriman & Co. (“BBH”) or the Bank of New York Mellon (“BNY Mellon”), as appropriate, in their roles as Custodian to respective Funds (each, a “Custodian” and together, the “Custodians”) and are designated as being held on each Fund’s behalf by the Custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest.
It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the counterparty to a repurchase agreement defaults on its obligations, and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral. For financial statement purposes, the Funds record the securities lending collateral (included in repurchase agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities.
Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under an MRA with collateral held and/or posted to the counterparty, and create one single net payment due to or from the Funds.
FEDERAL INCOME TAXES – It is each Fund’s intention, except for Global X MLP ETF, to qualify, or to continue to qualify, as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Code. Accordingly, no provisions for Federal income taxes have been made in the financial statements, except for Global X MLP ETF as described below.
The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax positions in the current period; however, Management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on
117
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), and on-going analysis of and changes to tax laws and regulations, and interpretations thereof. If a Fund has foreign tax filings that have not been made, the tax years that remain subject to examination may date back to the inception of the Fund.
As of and during the reporting period ended November 30, 2023, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense on the Statements of Operations. During the reporting period, the Funds did not incur any interest or penalties. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.
Global X MLP ETF is taxed as a C-corporation for Federal income tax purposes and as such is obligated to pay Federal and applicable state corporate income tax. Currently, the Federal income tax rate for a corporation is 21%. This differs from most investment companies, which elect to be treated as “regulated investment companies” under Subchapter M of the Code in order to avoid paying entity level income taxes. Under current law, Global X MLP ETF is not eligible to elect treatment as a regulated investment company due to its investments primarily in MLPs invested in energy assets. As a result, Global X MLP ETF will be obligated to pay applicable Federal and state corporate income taxes on its taxable income as opposed to most other investment companies, which are not so obligated. Global X MLP ETF expects that a portion of the distributions that are received from MLPs may be treated as a tax-deferred return of capital, thus reducing Global X MLP ETF’s current tax liability. However, the amount of taxes currently paid by Global X MLP ETF will vary depending on the amount of income and gains derived from investments and/or sales of MLP interests and such taxes have the potential to reduce an investor’s return from an investment in Global X MLP ETF.
SECURITY TRANSACTIONS AND INVESTMENT INCOME – Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date. Amortization of premiums and accretion of discounts is included in interest income.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION – The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized
118
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statements of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS – The Funds distribute their net investment income on a pro rata basis. Any net investment income and net realized capital gains are distributed at least annually. All distributions are recorded on the ex-dividend date.
Cash distributions from MLPs to Global X MLP ETF that exceed the Global X MLP ETF’s allocable share of such MLP’s net taxable income are considered tax-deferred return of capital that will reduce Global X MLP ETF’s adjusted tax basis in the equity securities of the MLP. These reductions in Global X MLP ETF’s adjusted tax basis in MLP equity securities will increase the amount of gain (or decrease the amount of loss) recognized by Global X MLP ETF on a subsequent sale of the securities. Global X MLP ETF will accrue deferred income taxes for any future tax liability associated with (i) that portion of MLP distributions considered to be a tax-deferred return of capital as well as (ii) capital appreciation of its investments. Upon the sale of an MLP security, Global X MLP ETF may be liable for previously deferred taxes. Global X MLP ETF will rely to some extent on information provided by the MLPs, which may not necessarily be timely, to estimate deferred tax liability for purposes of financial statement reporting and determining Global X MLP ETF’s NAV. From time to time, the Adviser will modify the estimates or assumptions related to Global X MLP ETF’s deferred tax liabilities as new information becomes available. Global X MLP ETF will generally compute deferred income taxes based on the Federal income tax rate applicable to corporations and an estimated rate attributable to state taxes.
INVESTMENTS IN REITs – With respect to the Funds, dividend income is recorded based on the income included in distributions received from REIT investments using published REIT reclassifications, including some management estimates when actual amounts are not available. Distributions received in excess of these estimated amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year end, and may differ from the estimated amounts.
119
Notes to Financial Statements (Continued)
November 30, 2023
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Global X Alternative Income ETF’s dividend income includes reclassifications of prior year and current year dividend income to return of capital/realized gain to align those income amounts to the character of those distributions. Those reclassifications exceeded current year dividend income resulting in a negative dividend income for the current fiscal year.
CASH OVERDRAFT CHARGES – Per the terms of an agreement with BBH, if a Fund for which BBH is Custodian has a cash overdraft on a given day, it will be assessed an overdraft charge equal to the applicable BBH Base Rate plus 2.00%. Per the terms of an agreement with BNY Mellon, if a Fund for which BNY Mellon is Custodian has a cash overdraft, it will be charged interest at a rate then charged by BNY Mellon to its institutional custody clients in the relevant currency. Cash overdraft charges are included in custodian fees on the Statements of Operations.
CREATION UNITS – The Funds issue and redeem their shares (“Shares”) on a continuous basis at NAV and only in large blocks of 10,000 Shares, referred to as “Creation Units”. Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an Authorized Participant on the same day.
An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to the Fund’s Custodian, on the date of such redemption, regardless of the number of Creation Units redeemed that day. If a Creation Unit is purchased or redeemed for cash, an additional variable fee may be charged. The following table discloses the Creation Unit breakdown:
| Creation Unit Shares | Creation Fee | Value at November 30, 2023 | Redemption Fee | |||||||||||
| Global X MLP ETF | 10,000 | $ | 100 | $ | 460,800 | $ | 100 | |||||||
| Global X MLP & Energy Infrastructure ETF | 10,000 | 250 | 449,900 | 250 | ||||||||||
| Global X Alternative Income ETF | 10,000 | 250 | 110,500 | 250 | ||||||||||
| Global X Conscious Companies ETF | 10,000 | 600 | 318,900 | 600 | ||||||||||
| Global X U.S. Preferred ETF | 10,000 | 650 | 191,300 | 650 | ||||||||||
| Global X S&P 500® Quality Dividend ETF | 10,000 | 300 | 309,700 | 300 | ||||||||||
| Global X Adaptive U.S. Factor ETF | 10,000 | 600 | 343,700 | 600 | ||||||||||
| Global X Variable Rate Preferred ETF | 10,000 | 250 | 231,300 | 250 | ||||||||||
| Global X Adaptive U.S. Risk Management ETF | 10,000 | 1,300 | 285,500 | 1,300 | ||||||||||
| Global X 1-3 Month T-Bill ETF | 10,000 | 250 | 251,100 | 250 | ||||||||||
| Global X U.S. Cash Flow Kings 100 ETF | 10,000 | 250 | 270,700 | 250 | ||||||||||
120
Notes to Financial Statements (Continued)
November 30, 2023
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS
On July 2, 2018, the Adviser consummated a transaction pursuant to which it became an indirect, wholly-owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae”). In this manner, the Adviser is ultimately controlled by Mirae.
The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate distribution agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate investment advisory agreement), under what is essentially an “all-in” fee structure.
For the Adviser’s services to the Funds, under a supervision and administration agreement (the “Supervision and Administration Agreement”), each Fund pays a monthly fee to the Adviser at the annual rate below (stated as a percentage of the average daily net assets of the respective Fund) (“Supervision and Administration Fee”). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions, certain custodian fees, acquired fund fees and expenses (except for the Global X Alternative Income ETF, Global X U.S. Preferred ETF, Global X Variable Rate Preferred ETF and Global X Adaptive U.S. Risk Management ETF with respect to investments in affiliated investment companies), and other transaction expenses, interest expenses and extraordinary expenses (such as litigation and indemnification expenses).
The Supervision and Administration Agreement for the Global X Alternative Income ETF, Global X U.S. Preferred ETF, Global X Variable Rate Preferred ETF and Global X Adaptive U.S. Risk Management ETF provides that the Adviser also bears the costs for acquired fund fees and expenses generated by investments by the Fund in affiliated investment companies. For the year ended November 30, 2023, the Adviser paid acquired fund fees and expenses of $134,225 and made such reimbursement payments to the Global X Alternative Income ETF on a monthly basis.
121
Notes to Financial Statements (Continued)
November 30, 2023
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS (continued)
The following table discloses the supervision and administration fees payable pursuant to the Supervision and Administration Agreement:
| Supervision and Administration Fee | ||
| Global X MLP ETF | 0.45% | |
| Global X MLP & Energy Infrastructure ETF | 0.45% | |
| Global X Alternative Income ETF | 0.50% | |
| Global X Conscious Companies ETF | 0.43% | |
| Global X U.S. Preferred ETF | 0.23% | |
| Global X S&P 500® Quality Dividend ETF | 0.20% | |
| Global X Adaptive U.S. Factor ETF | 0.27% | |
| Global X Variable Rate Preferred ETF | 0.25% | |
| Global X Adaptive U.S. Risk Management ETF | 0.39% | |
| Global X 1-3 Month T-Bill ETF | 0.07% | |
| Global X U.S. Cash Flow Kings 100 ETF | 0.25% |
SEI Investments Global Funds Services (“SEIGFS”) serves as sub-administrator to the Funds. As sub-administrator, SEIGFS provides the Funds with required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, SEIGFS receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser.
SEI Investments Distribution Co. (“SIDCO”) serves as the Funds’ underwriter and distributor of Creation Units pursuant to a distribution agreement (the “Distribution Agreement”). SIDCO has no obligation to sell any specific quantity of Shares.
SIDCO bears the following costs and expenses relating to the distribution of Shares: (1) the costs of processing and maintaining records of creations of Creation Units; (2) all costs of maintaining the records required of a registered broker/dealer; (3) the expenses of maintaining its registration or qualification as a dealer or broker under Federal or state laws; (4) filing fees; and (5) all other expenses incurred in connection with the distribution services as contemplated
122
Notes to Financial Statements (Continued)
November 30, 2023
3. RELATED PARTY AND SERVICE PROVIDER TRANSACTIONS (continued)
in the Distribution Agreement. SIDCO receives no fee from the Funds for its distribution services under the Distribution Agreement; rather, the Adviser compensates SIDCO for certain expenses, out-of-pocket costs, and transaction fees.
For all Funds other than the Global X 1-3 Month T-Bill ETF and Global X U.S. Cash Flow Kings 100 ETF, BBH serves as the Custodian and transfer agent of the Funds’ assets. As Custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Funds; (2) collect and receive all income and other payments and distributions on account of the Funds’ portfolio investments; (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Funds concerning the Funds’ operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As transfer agent, BBH has agreed to (1) issue and redeem Shares of each Fund; (2) make dividend and other distributions to shareholders of each Fund; (3) respond to correspondence by shareholders and others relating to its duties; (4) maintain shareholder accounts; and (5) make periodic reports to the Funds. As compensation for these services, BBH receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.
BNY Mellon serves as custodian and transfer agent to the Trust on behalf of the Global X 1-3 Month T-Bill ETF and Global X U.S. Cash Flow Kings 100 ETF. As custodian, BNY Mellon may appoint domestic and foreign sub-custodians and use depositories from time to time to hold securities and other instruments purchased by the Trust in foreign countries and to hold cash and currencies for the Trust on behalf of the Funds. Under its transfer agency agreement with the Trust, BNY Mellon has undertaken with the Trust to provide the following services with respect to the Funds for which it serves as Transfer Agent: (i) perform and facilitate the performance of purchases and redemptions of Creation Units, (ii) prepare and transmit by means of Depository Trust Company’s (“DTC”) book-entry system payments for dividends and distributions on or with respect to the Shares declared by the Trust on behalf of the Funds, as applicable, (iii) prepare and deliver reports, information and documents as specified in the transfer agency agreement, (iv) perform the customary services of a transfer agent and dividend disbursing agent, and (v) render certain other miscellaneous services as specified in the transfer agency agreement or as otherwise agreed upon.
4. INVESTMENT TRANSACTIONS
For the period ended November 30, 2023, the purchases and sales of investments in securities, excluding in-kind transactions, long-term U.S. Government, and short-term securities were:
123
Notes to Financial Statements (Continued)
November 30, 2023
4. INVESTMENT TRANSACTIONS (continued)
| Purchases | Sales and Maturities | |||||||
| Global X MLP ETF | $ | 592,792,023 | $ | 840,182,075 | ||||
| Global X MLP & Energy Infrastructure ETF | 237,479,386 | 333,412,707 | ||||||
| Global X Alternative Income ETF | 5,280,556 | 6,854,368 | ||||||
| Global X Conscious Companies ETF | 176,726,802 | 174,107,066 | ||||||
| Global X U.S. Preferred ETF | 824,005,685 | 821,408,620 | ||||||
| Global X S&P 500® Quality Dividend ETF | 48,125,508 | 48,367,032 | ||||||
| Global X Adaptive U.S. Factor ETF | 407,648,873 | 405,484,455 | ||||||
| Global X Variable Rate Preferred ETF | 202,894,176 | 200,420,674 | ||||||
| Global X Adaptive U.S. Risk Management ETF | 449,514,690 | 444,925,268 | ||||||
| Global X 1-3 Month T-Bill ETF | 139,458,163 | 89,884,482 | ||||||
| Global X U.S. Cash Flow Kings 100 ETF | 513,751 | 468,821 | ||||||
For the period ended November 30, 2023, in-kind transactions associated with creations and redemptions were:
| 2023 | Purchases | Sales | Realized Gain/(Loss) | |||||||||
| Global X MLP ETF | $ | 149,809,369 | $ | — | $ | — | ||||||
| Global X MLP & Energy Infrastructure ETF | 127,022,791 | 176,551,338 | 45,109,823 | |||||||||
| Global X Alternative Income ETF | 6,784,502 | 7,608,611 | 313,933 | |||||||||
| Global X Conscious Companies ETF | 46,071,427 | 186,777,986 | 39,365,653 | |||||||||
| Global X U.S. Preferred ETF | 404,361,219 | 186,610,058 | 4,327,024 | |||||||||
| Global X S&P 500® Quality Dividend ETF | 40,977,005 | 50,388,136 | 4,370,894 | |||||||||
| Global X Adaptive U.S. Factor ETF | 274,266,880 | 281,649,066 | 30,236,463 | |||||||||
| Global X Variable Rate Preferred ETF | 43,303,204 | 101,693,085 | 2,619,560 | |||||||||
| Global X Adaptive U.S. Risk Management ETF | 23,789,286 | 540,937 | 16,034 | |||||||||
| Global X 1-3 Month T-Bill ETF | 148,171,847 | 43,370,624 | (7,532 | ) | ||||||||
| Global X U.S. Cash Flow Kings 100 ETF | 4,095,467 | 525,521 | 72,526 | |||||||||
During the period ended November 30, 2023, there were no purchases or sales of long-term U.S. Government securities by the Funds.
5. TAX INFORMATION
Global X MLP ETF recognizes interest and penalties, if any, related to unrecognized tax benefits within the income tax expense line in the accompanying Statement of Operations. Accrued interest and penalties, if any, are included within the related tax liability line in the Statement of Assets and Liabilities. For the year ended November 30, 2023, Global X MLP ETF did not incur any interest or penalties.
Since Global X MLP ETF will be subject to taxation on its taxable income, the NAV of Global X MLP ETF shares will also be reduced by the accrual of any current and deferred tax liabilities.
124
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
Global X MLP ETF’s income tax expense/(benefit) consists of the following for the year ended November 30, 2023:
| Current MLP | Deferred MLP | Total MLP | ||||||||||
| Federal | $ | 5,260,531 | $ | 46,658,187 | $ | 51,918,718 | ||||||
| State | 706,274 | 4,028,005 | 4,734,279 | |||||||||
| Valuation allowance | — | — | — | |||||||||
| Total tax expense (benefit) | $ | 5,966,805 | $ | 50,686,192 | $ | 56,652,997 | ||||||
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and tax purposes.
Components of the Global X MLP ETF’s deferred tax assets and liabilities are as follows for the year ended November 30, 2023:
| MLP | ||||
| Deferred tax assets: | ||||
| State Net Operating Loss Carryforward | $106,254 | |||
| Capital Loss Carryforward | 26,901,843 | |||
| Other | 1,206,052 | |||
| Less Variation Allowance | — | |||
| Deferred tax liabilities: | ||||
| Net unrealized gain on investment securities | (60,186,881 | ) | ||
| Book vs tax partnership income to be recognized | (35,372,177 | ) | ||
| Net Deferred Tax Asset/(Liability) | $(67,344,909 | ) | ||
Global X MLP ETF reviews the recoverability of its deferred tax assets based upon the weight of available evidence. When assessing the recoverability of its deferred tax assets, significant weight is given to the effects of potential future realized and unrealized gains on investments and the period over which these deferred tax assets can be realized. Currently, any capital losses that may be generated by the Global X MLP ETF are eligible to be carried back up to three years and can be carried forward for five years to offset capital gains recognized by Global X MLP ETF in those years.
Global X MLP ETF has estimated capital loss carryforwards for Federal income tax purposes as follows:
| Year Ended | Amount | Expiration | ||||||||||
| Global X MLP ETF | 11/30/2020 | $ | 84,959,470 | 11/30/2025 | ||||||||
| 11/30/2021 | 37,432,903 | 11/30/2026 | ||||||||||
Based upon Global X MLP ETF’s assessment, it has been determined that it is more likely than not that Global X MLP ETF’s deferred tax assets will be realized through future taxable income of the appropriate character. Accordingly, no valuation allowance has been established for Global X MLP ETF’s deferred tax assets. Global X MLP ETF will
125
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
continue to assess the need for a valuation allowance in the future. Significant increases or declines in the fair value of its portfolio of investments may change Global X MLP ETF’s assessment of the recoverability of these assets and may result in the recording or removal of a valuation allowance against all or a portion of the Global X MLP ETF’s gross deferred tax assets.
Total income tax expense/benefit (current and deferred) during the year ended November 30, 2023, differs from the amount computed by applying the Federal statutory income tax rate of 21% for Global X MLP ETF to net investment and realized and unrealized gain/ (losses) on investment before taxes as follows: For the year ended November 30, 2023:
| MLP | ||||||||
| Income tax (benefit) at statutory rate | $ | 54,792,872 | 21.00 | % | ||||
| State income taxes (net of federal benefit) | 2,557,001 | 0.98 | % | |||||
| Permanent differences, net | (253,327 | ) | -0.10 | % | ||||
| Effect of state tax rate change | (443,549 | ) | -0.17 | % | ||||
| Net income tax expense/(benefit) | $ | 56,652,997 | 21.71 | % | ||||
Global X MLP ETF recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed Global X MLP ETF’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on U.S. tax returns and state tax returns filed since the inception of Global X MLP ETF. No U.S. Federal or state income tax returns are currently under examination. The tax years ended November 30, 2022, 2021, and 2020 remain subject to examination by tax authorities in the United States. Due to the nature of Global X MLP ETF’s investments, Global X MLP ETF may be required to file income tax returns in several states. Global X MLP ETF is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
State franchise taxes are separate and distinct from state income taxes. State franchise taxes are imposed on a corporation for the right to conduct business in the state and typically are based off the net worth or capital apportioned to a state. Due to the nature of Global X MLP ETF’s investments, Global X MLP ETF may be required to file franchise state tax returns in several states.
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
126
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise. The permanent differences primarily consist of REIT adjustments, reclassification of distributions, investments in publically traded partnerships, PFIC gain reclassifications, and preferred stock adjustments. The permanent differences that are credited or charged to paid-in capital and distributable earnings are primarily related to redemptions in kind and return of capital distributions.
These differences have been reclassified to/from the following accounts during the fiscal year ended November 30, 2023:
| Global X Funds | Paid-in Capital | Total Distributable Earnings (Accumulated Losses) | ||
| Global X MLP & Energy Infrastructure ETF | $26,970,599 | $(26,970,599) | ||
| Global X Alternative Income ETF | (538,569) | 538,569 | ||
| Global X Conscious Companies ETF | 38,366,553 | (38,366,553) | ||
| Global X U.S. Preferred ETF | 7,475,831 | (7,475,831) | ||
| Global X S&P 500® Quality Dividend ETF | 4,289,697 | (4,289,697) | ||
| Global X Adaptive U.S. Factor ETF | 29,840,428 | (29,840,428) | ||
| Global X Variable Rate Preferred ETF | 2,687,875 | (2,687,875) | ||
| Global X Adaptive U.S. Risk Management ETF | (3,752,630) | 3,752,630 | ||
| Global X 1-3 Month T-Bill ETF | (7,532) | 7,532 | ||
| Global X U.S. Cash Flow Kings 100 ETF | 72,526 | (72,526) |
The tax character of dividends and distributions declared during the years or periods ended November 30, 2023 and November 30, 2022 were as follows:
| Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
| Global X MLP ETF | ||||||||||||||||
| 2023 | $ | 106,518,075 | $ | – | $ | – | $ | 106,518,075 | ||||||||
| 2022 | 90,450,291 | – | – | 90,450,291 | ||||||||||||
| Global X MLP & Energy Infrastructure ETF | ||||||||||||||||
| 2023 | $ | 47,511,225 | $ | – | $ | 7,533,664 | $ | 55,044,889 | ||||||||
| 2022 | 32,598,692 | – | 17,688,775 | 50,287,467 | ||||||||||||
| Global X Alternative Income ETF | ||||||||||||||||
| 2023 | $ | 2,657,760 | $ | – | $ | – | $ | 2,657,760 | ||||||||
| 2022 | 2,282,880 | – | 390,992 | 2,673,872 | ||||||||||||
| Global X Conscious Companies ETF | ||||||||||||||||
| 2023 | $ | 6,163,099 | $ | – | $ | – | $ | 6,163,099 | ||||||||
| 2022 | 7,480,197 | – | – | 7,480,197 | ||||||||||||
| Global X U.S. Preferred ETF | ||||||||||||||||
| 2023 | $ | 144,784,500 | $ | – | $ | – | $ | 144,784,500 | ||||||||
| 2022 | 128,023,270 | – | – | 128,023,270 | ||||||||||||
127
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
| Global X Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
| Global X S&P 500® Quality Dividend ETF | ||||||||||||||||
| 2023 | $ | 1,991,843 | $ | – | $ | – | $ | 1,991,843 | ||||||||
| 2022 | 1,339,222 | – | – | 1,339,222 | ||||||||||||
| Global X Adaptive U.S. Factor ETF | ||||||||||||||||
| 2023 | $ | 3,511,163 | $ | – | $ | 453,852 | $ | 3,965,015 | ||||||||
| 2022 | 3,989,881 | – | 204,893 | 4,194,774 | ||||||||||||
| Global X Variable Rate Preferred ETF | ||||||||||||||||
| 2023 | $ | 16,361,150 | $ | – | $ | – | $ | 16,361,150 | ||||||||
| 2022 | 10,395,351 | 19,467 | 515,682 | 10,930,500 | ||||||||||||
| Global X Adaptive U.S. Risk Management ETF | ||||||||||||||||
| 2023 | $ | 1,310,795 | $ | – | $ | – | $ | 1,310,795 | ||||||||
| 2022 | 997,056 | 5,768 | – | 1,002,824 | ||||||||||||
| Global X 1-3 Month T-Bill ETF | ||||||||||||||||
| 2023 | $ | 1,251,315 | $ | – | $ | – | $ | 1,251,315 | ||||||||
| Global X U.S. Cash Flow Kings 100 ETF | ||||||||||||||||
| 2023 | $ | 17,340 | $ | – | $ | – | $ | 17,340 | ||||||||
As of November 30, 2023, the components of tax basis distributable earnings (accumulated losses) were as follows:
| Global X Funds | |||||||||
| Global X MLP & Energy Infrastructure ETF | Global X Alternative Income ETF |
||||||||
| Undistributed Ordinary Income | $ | – | $ | 126,128 | |||||
| Capital Loss Carryforwards | (137,747,647 | ) | (1,722,291 | ) | |||||
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | 191,667,293 | (7,204,615 | ) | ||||||
| Other Temporary Differences | (2 | ) | 8 | ||||||
| Total Distributable Earnings (Accumulated Losses) | $ | 53,919,644 | $ | (8,800,770 | ) | ||||
| Global X Funds | |||||||||||||
| Global X Conscious Companies ETF | Global X U.S. Preferred ETF | Global X S&P 500® Quality Dividend ETF |
|||||||||||
| Undistributed Ordinary Income | $ | 3,909,246 | $ | 1,494,254 | $ | 135,793 | |||||||
| Capital Loss Carryforwards | (50,640,701 | ) | (318,462,730 | ) | (6,922,184 | ) | |||||||
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | 50,898,190 | (346,668,054 | ) | (2,681,825 | ) | ||||||||
| Other Temporary Differences | (2 | ) | 783 | (1 | ) | ||||||||
| Total Distributable Earnings (Accumulated Losses) | $ | 4,166,733 | $ | (663,635,747 | ) | $ | (9,468,217 | ) | |||||
128
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
| Global X Funds | |||||||||||||
| Global X Adaptive U.S. Factor ETF | Global X Variable Rate Preferred ETF | Global X Adaptive U.S. Risk Management ETF |
|||||||||||
| Undistributed Ordinary Income | $ | – | $ | 1,015,498 | $ | 656,698 | |||||||
| Capital Loss Carryforwards | (29,417,493 | ) | (27,455,624 | ) | (12,486,755 | ) | |||||||
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | 13,699,270 | (7,921,537 | ) | 1,563,657 | |||||||||
| Other Temporary Differences | (1 | ) | 1,067,276 | (2 | ) | ||||||||
| Total Accumulated Losses | $ | (15,718,224 | ) | $ | (33,294,387 | ) | $ | (10,266,402 | ) | ||||
| Global X Funds | |||||||||
| Global X 1-3 Month T-Bill ETF | Global X U.S. Cash Flow Kings 100 ETF |
||||||||
| Undistributed Ordinary Income | $ | 339,872 | $ | 10,563 | |||||
| Capital Loss Carryforwards | – | (5,640 | ) | ||||||
| Unrealized Appreciation on Investments and Foreign Currency | 2,545 | 96,221 | |||||||
| Other Temporary Differences | 1 | 1 | |||||||
| Total Distributable Earnings | $ | 342,418 | $ | 101,145 | |||||
For taxable years beginning after December 22, 2010, a registered investment company is permitted to carry forward net capital losses to offset capital gains realized in later years, and the losses carried forward retain their original character as either long-term or short-term losses. Losses carried forward under these provisions are as follows:
| Short-Term Loss | Long-Term Loss | Total | ||||||||||
| Global X MLP & Energy Infrastructure ETF | $ | 26,150,257 | $ | 111,597,390 | $ | 137,747,647 | ||||||
| Global X Alternative Income ETF | 281,145 | 1,441,146 | 1,722,291 | |||||||||
| Global X Conscious Companies ETF | 14,636,796 | 36,003,905 | 50,640,701 | |||||||||
| Global X U.S. Preferred ETF | 112,031,596 | 206,431,134 | 318,462,730 | |||||||||
| Global X S&P 500® Quality Dividend ETF | 5,745,817 | 1,176,367 | 6,922,184 | |||||||||
| Global X Adaptive U.S. Factor ETF | 27,165,433 | 2,252,060 | 29,417,493 | |||||||||
| Global X Variable Rate Preferred ETF | 17,462,374 | 9,993,250 | 27,455,624 | |||||||||
| Global X Adaptive U.S. Risk Management ETF | 12,352,177 | 134,578 | 12,486,755 | |||||||||
| Global X U.S. Cash Flow Kings 100 ETF | 5,640 | – | 5,640 | |||||||||
129
Notes
to Financial Statements (Continued)
November 30, 2023
5. TAX INFORMATION (continued)
During the year ended November 30, 2023, the following Fund utilized capital loss carryforwards to offset capital gains amounting to:
| Short-Term Loss | Long-Term Loss | Total | ||||||||||
| Global X MLP & Energy Infrastructure ETF | $ | 4,043,802 | $ | 17,423,085 | $ | 21,466,887 | ||||||
| Global X Adaptive U.S. Risk Management ETF | 6,970,587 | 901 | 6,971,488 | |||||||||
The Federal tax cost basis of investments and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at November 30, 2023 were as follows:
| Global X Funds | Federal Tax Cost | Aggregated Gross Unrealized Appreciation | Aggregated Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| Global X MLP ETF | $1,126,697,269 | $434,811,094 | $(2,545 | ) | $434,808,549 | |||||||||||
| Global X MLP & Energy Infrastructure ETF | 820,588,696 | 274,834,273 | (83,166,980 | ) | 191,667,293 | |||||||||||
| Global X Alternative Income ETF | 43,226,853 | 1,581,255 | (8,785,870 | ) | (7,204,615) | |||||||||||
| Global X Conscious Companies ETF | 527,831,741 | 76,957,250 | (26,059,060 | ) | 50,898,190 | |||||||||||
| Global X U.S. Preferred ETF | 2,652,343,236 | 9,514,162 | (356,182,216 | ) | (346,668,054) | |||||||||||
| Global X S&P 500® Quality Dividend ETF | 50,781,219 | 1,475,423 | (4,157,248 | ) | (2,681,825) | |||||||||||
| Global X Adaptive U.S. Factor ETF | 167,735,334 | 15,650,255 | (1,950,985 | ) | 13,699,270 | |||||||||||
| Global X Variable Rate Preferred ETF | 228,807,866 | 2,925,949 | (10,847,486 | ) | (7,921,537) | |||||||||||
| Global X Adaptive U.S. Risk Management ETF | 93,144,215 | 2,256,113 | (692,456 | ) | 1,563,657 | |||||||||||
| Global X 1-3 Month T-Bill ETF | 116,406,530 | 4,522 | (1,977 | ) | 2,545 | |||||||||||
| Global X U.S. Cash Flow Kings 100 ETF | 3,681,760 | 205,041 | (108,820 | ) | 96,221 | |||||||||||
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is due to differences in the timing of recognition of gains and losses on investments for tax and book purposes. The Funds’ net unrealized appreciation difference is attributable primarily to wash sales, mark-to-market treatment of passive foreign investment companies and adjustments in preferred stock and partnerships.
6. CONCENTRATION OF RISKS
The Funds may invest in securities in a particular asset class. Securities and other assets held in each Fund’s portfolio may underperform in comparison to the general securities markets, a particular securities market or other asset classes.
130
Notes
to Financial Statements (Continued)
November 30, 2023
6. CONCENTRATION OF RISKS (continued)
The Funds, except for Global X U.S. Preferred ETF and Global X Variable Rate Preferred ETF, use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of an underlying index in approximately the same proportions as in the underlying index. A representative sampling strategy is an indexing strategy that involves investing in a representative sample of securities (including indirect investments through underlying ETFs) that collectively has an investment profile similar to an underlying index in terms of key risk factors, performance attributes and other characteristics. Each Fund may utilize a representative sampling strategy with respect to its underlying index when a replication strategy might be detrimental to its shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow its underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to a Fund but not its underlying index). The Global X U.S. Preferred ETF and Global X Variable Rate Preferred ETF use a representative sampling strategy.
The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.
Certain Funds may have investments in financial instruments that utilize the London Interbank Offered Rate (“LIBOR”) as the reference or benchmark rate for variable interest rate calculations. LIBOR was intended to measure the rate generally at which banks can lend and borrow from one another in the relevant currency on an unsecured basis. The UK Financial Conduct Authority (“FCA”), the regulator that oversees LIBOR, announced that the majority of LIBOR rates would cease to be published or would no longer be representative on January 1, 2022. The publication of most LIBOR rates ceased at the end of 2021, and the remaining USD LIBOR rates ceased to be published after June 2023. There remains uncertainty and risks relating to the continuing LIBOR transition and its effects on the Funds and the instruments in which the Funds invest. There can be no assurance that the composition or characteristics of any alternative reference rates (“ARRs”) or financial instruments in which the Funds invest that utilize ARRs will be similar to or produce the same value or economic equivalence as LIBOR or that these instruments will have the same volume or liquidity. Additionally, there remains uncertainty and risks relating to certain “legacy” USD LIBOR instruments that were issued or entered into before December 31, 2021 and the process by which a replacement interest rate will be identified and implemented into these instruments when USD LIBOR is ultimately discontinued. On December 16, 2022, the Federal Reserve Board adopted regulations implementing the Adjustable Interest Rate Act. The regulations provide a statutory fallback mechanism to replace LIBOR, by identifying benchmark rates based on the Secured Overnight Financing Rate (“SOFR”) that replaced LIBOR in certain financial contracts after June 30, 2023.
131
Notes
to Financial Statements (Continued)
November 30, 2023
6. CONCENTRATION OF RISKS (continued)
These regulations apply only to contracts governed by U.S. law, among other limitations. The Funds may have instruments linked to other interbank offered rates that may also cease to be published in the future. The effects of such uncertainty and risks in “legacy” USD LIBOR instruments held by the Funds could result in losses to the Funds.
Economic conditions, such as volatile currency exchange rates and interest rates, political events, military action and other conditions may, without prior warning, lead to foreign government intervention (including intervention by the U.S. Government with respect to foreign governments, economic sectors, foreign companies and related securities and interests) and the imposition of capital controls (i.e., government measures designed to limit the flow of foreign capital in and out of the domestic economy) and/or sanctions, which may also include retaliatory actions of one government against another government, such as the seizure of assets. Capital controls and/or sanctions include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. Capital controls and/or sanctions may also impact the ability of a Fund to buy, sell or otherwise transfer securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and price for Shares of a Fund, and cause a Fund to decline in value. Please refer to each Fund’s prospectus and statement of additional information (“SAI”) for a more complete description of risks.
7. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend portfolio securities having a market value up to one-third of its total assets. Security loans made pursuant to a securities lending agreements with BBH and BNY Mellon are initially required to be secured by collateral equal to at least 102% of the value of domestic equity securities and American Depositary Receipts (“ADRs”) and 105% of the value of foreign equity securities (other than ADRs). Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements, short-term investments or U.S. Treasury obligations and is recognized in the Schedules of Investments and Statements of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statements of Assets and Liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan.
Securities pledged as collateral for repurchase agreements held in Global X MLP & Energy Infrastructure ETF, Global X Alternative Income ETF and Global X U.S. Preferred ETF are held by BNY Mellon and are designated as being held on the Fund’s behalf under a book-entry system. The Funds monitor the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. It is the Funds’ policy to only enter into repurchase agreements with banks
132
Notes
to Financial Statements (Continued)
November 30, 2023
7. LOANS OF PORTFOLIO SECURITIES (continued)
and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event the other party to a repurchase agreement defaults on its obligations and the Fund is prevented from exercising its rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (including in repurchase agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability- on the Statement of Assets and Liabilities.
Cash collateral received in connection with securities lending is invested in repurchase agreements and short-term investments by the lending agent. The Funds do not have effective control of the non-cash collateral and therefore it is not disclosed in the Fund’s
Schedule of Investments.
Securities lending transactions are entered into by the Funds under the Securities Lending Agreement, which permits a Fund, under certain circumstances such as an event of default, to offset amounts payable by the Fund to the same counterparty against amounts receivable from the counterparty to create a net payment due to or from the Fund.
The following is a summary of securities lending agreements held by the Funds, with cash collateral of overnight maturities and non-cash collateral, which would be subject to offset as of November 30, 2023.
| Gross Amount of Recognized Assets (Value of Securities on Loan) | Value of Cash Collateral Received(1) | Value of Non-Cash Collateral Received(1) | Net Amount | |||||||||||||
| Global X MLP & Energy Infrastructure ETF | $ | 13,993,798 | $ | 13,993,798 | $ | — | $ | — | ||||||||
| Global X Alternative Income ETF | 1,582,240 | 1,582,240 | — | — | ||||||||||||
| Global X U.S. Preferred ETF | 40,959,809 | 40,959,809 | — | — | ||||||||||||
(1) Collateral and non-cash collateral received in excess of market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Statements of Assets and Liabilities.
The value of loaned securities and related collateral outstanding at November 30, 2023 are shown in the Schedules of Investments. The value of the collateral held may be temporarily less than that required under the lending contract. As of November 30, 2023, the cash collateral was invested in repurchase agreements and the non-cash collateral consisted of U.S. Treasury Bills, Notes, Bonds and U.S. Treasury Inflation Indexed Bonds with the following maturities:
133
Notes
to Financial Statements (Continued)
November 30, 2023
7. LOANS OF PORTFOLIO SECURITIES (continued)
| Overnight and Continuous | <30 Days | Between 30 & 90 Days | >90 Days | Total | ||||||||||
| Global X MLP & Energy Infrastructure ETF | ||||||||||||||
| Repurchase Agreements | $ | 10,840,049 | $— | $— | $— | $ | 10,840,049 | |||||||
| Total | $ | 10,840,049 | $— | $— | $— | $ | 10,840,049 | |||||||
| Global X Alternative Income ETF | ||||||||||||||
| Repurchase Agreements | $ | 1,237,833 | $— | $— | $— | $ | 1,237,833 | |||||||
| Total | $ | 1,237,833 | $— | $— | $— | $ | 1,237,833 | |||||||
| Global X U.S. Preferred ETF | ||||||||||||||
| Repurchase Agreements | $ | 32,236,607 | $— | $— | $— | $ | 32,236,607 | |||||||
| Total | $ | 32,236,607 | $— | $— | $— | $ | 32,236,607 | |||||||
8. CONTRACTUAL OBLIGATION
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these contracts is unknown. However, the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
Pursuant to the Trust’s organizational documents, the Trustees of the Trust (the “Trustees”) and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.
9. REVERSE SHARE SPLIT
Effective April 28, 2020, the Global X MLP ETF executed a 1-for-6 reverse share split for shareholders of record after the close of markets on April 27, 2020. The effect of this transaction for the Fund was to divide the number of outstanding Shares of the Fund by six, resulting in a corresponding increase in the NAV per Share. The capital share activity presented in the Statement of Changes in Net Assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended, have been given retroactive effect to reflect this reverse share split. There were no changes in net assets, results of operations or total return as a result of this transaction.
Effective April 28, 2020, the Global X MLP & Energy Infrastructure ETF executed a 1-for-3 reverse share split for shareholders of record after the close of markets on April 27, 2020.
134
Notes
to Financial Statements (Concluded)
November 30, 2023
9. REVERSE SHARE SPLIT (continued)
The effect of this transaction for the Fund was to divide the number of outstanding Shares of the Fund by three, resulting in a corresponding increase in the NAV per Share. The capital share activity presented in the Statement of Changes in Net Assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended, have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.
10. SUBSEQUENT EVENTS
The Funds have been evaluated by management regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional adjustments were required to the financial statements.
135
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Global X Funds and Shareholders of each of the Funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (eleven of the funds constituting Global X Funds, hereafter collectively referred to as the “Funds”) as of November 30, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of November 30, 2023, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
| Global X U.S. Preferred ETF (1) | Global X Adaptive U.S. Factor ETF (1) |
| Global X Alternative Income ETF (1) | Global X Variable Rate Preferred ETF (2) |
| Global X Conscious Companies ETF (1) | Global X Adaptive U.S. Risk Management ETF (3) |
| Global X MLP & Energy Infrastructure ETF (1) | Global X 1-3 Month T-Bill ETF (4) |
| Global X MLP ETF (1) | Global X U.S. Cash Flow Kings 100 ETF (5) |
| Global X S&P 500® Quality Dividend ETF (1) |
136
Report of Independent Registered Public Accounting Firm
| 1. | Statements of operations for the year ended November 30, 2023, statements of changes in net assets for each of the two years in the period ended November 30, 2023 and the financial highlights for each of the five years in the period ended November 30, 2023. |
| 2. | Statement of operations for the year ended November 30, 2023, statement of changes in net assets for each of the two years in the period ended November 30, 2023 and the financial highlights for each of the three years in the period ended November 30, 2023 and for the period June 22, 2020 (commencement of operations) through November 30, 2020. |
| 3. | Statement of operations for the year ended November 30, 2023, statement of changes in net assets for each of the two years in the period ended November 30, 2023 and the financial highlights for each of the two years in the period ended November 30, 2023 and for the period January 12, 2021 (commencement of operations) through November 30, 2021. |
| 4. | Statements of operations and of changes in net assets and the financial highlights for the period June 20, 2023 (commencement of operations) through November 30, 2023. |
| 5. | Statements of operations and of changes in net assets and the financial highlights for the period July 10, 2023 (commencement of operations) through November 30, 2023. |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2023, by correspondence with the custodians, transfer agent, and brokers; when replies were not received from
137
Report of Independent Registered Public Accounting Firm
brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 7, 2024
We have served as the auditor of one or more investment companies in Global X Funds since 2016.
138
Disclosure of Fund Expenses (Unaudited)
ETFs (such as the Funds) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, brokerage fees, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of the shareholder’s investment in a Fund.
Operating expenses such as these are deducted from a Fund’s gross income and directly reduce your final investment returns. These expenses are expressed as a percentage of the Fund’s average net assets; this percentage is known as the Fund’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period from June 1, 2023 to November 30, 2023.
The table on the next page illustrates the Funds’ costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in a Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
139
Disclosure of Fund Expenses (Unaudited) (Continued)
| Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
| Global X MLP ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,151.80 | 0.42 | % | $ | 2.27 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.96 | 0.42 | 2.13 | ||||||||||||
| Global X MLP & Energy Infrastructure ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,199.80 | 0.45 | % | $ | 2.48 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.81 | 0.45 | 2.28 | ||||||||||||
| Global X Alternative Income ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,033.60 | 0.50 | % | $ | 2.55 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.56 | 0.50 | 2.54 | ||||||||||||
| Global X Conscious Companies ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,087.90 | 0.43 | % | $ | 2.25 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.91 | 0.43 | 2.18 | ||||||||||||
| Global X U.S. Preferred ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,026.30 | 0.23 | % | $ | 1.17 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.92 | 0.23 | 1.17 | ||||||||||||
| Global X S&P 500® Quality Dividend ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,055.90 | 0.20 | % | $ | 1.03 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,024.07 | 0.20 | 1.01 | ||||||||||||
| Global X Adaptive U.S. Factor ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,177.10 | 0.28 | % | $ | 1.53 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.66 | 0.28 | 1.42 | ||||||||||||
| Global X Variable Rate Preferred ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,082.10 | 0.25 | % | $ | 1.30 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.82 | 0.25 | 1.27 | ||||||||||||
| Global X Adaptive U.S. Risk Management ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,034.50 | 0.39 | % | $ | 1.99 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.11 | 0.39 | 1.98 | ||||||||||||
140
Disclosure of Fund Expenses (Unaudited) (Concluded)
| Beginning Account Value 6/1/2023 | Ending Account Value 11/30/2023 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
| Global X 1-3 Month T-Bill ETF* | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,023.60 | 0.09 | %(2) | $ | 0.42 | (3) | |||||||
| Hypothetical 5% Return | 1,000.00 | 1,024.60 | 0.09 | 0.48 | ||||||||||||
| Global X U.S. Cash Flow Kings 100 ETF** | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,064.60 | 0.25 | % | $ | 1.01 | (4) | |||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.82 | 0.25 | 1.27 | ||||||||||||
| * | The Fund commenced operations on 6/20/2023. |
| ** | The Fund commenced operations on 7/10/2023. |
| (1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
| (2) | Includes fees charged by the Fund’s custodian that were reimbursed by the custodian to the Fund subsequent to the reporting period. Excluding these fees, the ratio to average net assets would have been would have been 0.07%. |
| (3) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 163/365 (to reflect the period from inception to date. |
| (4) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 143/365 (to reflect the period from inception to date. |
141
Approval of Investment Advisory Agreement(unaudited)
Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), requires that the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not “interested persons” of the ETF, as defined in the 1940 Act (“Independent Trustees”), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each ETF’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.
At Board meetings of the Global X Funds (the “Trust”) held on February 24, 2023 and May 19, 2023 (the “New Fund Board Meetings”), the Board of Trustees (the “Board”) (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved (i) the initial Investment Advisory Agreement (“New Investment Advisory Agreement”) for the Global X U.S. Cash Flow Kings 100 ETF and the Global X 1-3 Month T-Bill ETF, respectively (each a “New Fund,” and referred to collectively as the “New Funds”) and (ii) the initial Supervision and Administration Agreement between the Trust (“New Supervision and Administration Agreement”), on behalf of the New Funds, and Global X Management Company LLC, the Trust’s investment adviser (“Global X Management”). The New Investment Advisory Agreement and New Supervision and Administration Agreement are referred to collectively as the “New Fund Agreements.”
At a Board meeting of the Trust held on November 16, 2023, called for such purpose, the Board (including the Trust’s Independent Trustees, voting separately) considered and unanimously approved the continuation of (i) the Investment Advisory Agreement (“Renewal Investment Advisory Agreement”) for each Fund included in this Annual Report (each, a “Renewal Fund” and referred to collectively as the “Renewal Funds”); and (ii) the Supervision and Administration Agreement between the Trust (“Renewal Supervision and Administration Agreement”), on behalf of each Renewal Fund, and Global X Management. The Renewal Investment Advisory Agreement and the Renewal Supervision and Administration Agreement are referred to herein as the “Renewal Agreements.”
In advance of the November 16, 2023 Board meeting, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management in connection with the Board’s consideration of the Renewal Agreements, and received and reviewed written responses from Global X Management, as well as supporting materials relating to those requests for information. Subsequent to the receipt of that information, the Independent Trustees requested additional information regarding certain changes in senior management of Global X Management, which was provided to them in advance of the November 16, 2023 Board meeting.
At the November 16, 2023 Board meeting, the Board approved the Renewal Agreements, for the period ending February 29, 2024, in order to ensure continuity of management of the Renewal Funds. However, the Independent Trustees also determined to postpone a vote on the renewal of the Renewal Agreements for a full annual period in order to provide the Independent Trustees with the opportunity to further consider certain changes in Global X
142
Approval of Investment Advisory Agreement(unaudited) (Continued)
Management’s senior leadership, which occurred approximately contemporaneously with the Board’s consideration of the Renewal Agreements, and in order to permit Global X Management to confirm certain information provided in advance of the November 16, 2023 Board meeting. Global X Management subsequently provided additional information to the Board in advance of a second meeting called for the purpose of considering the extension of the Renewal Agreements for a full year. At a Board meeting of the Trust held on December 21, 2023, the Trust’s Board, which was comprised entirely of Independent Trustees, unanimously approved the continuation of the Renewal Agreements for an aggregate one-year period ending November 30, 2024.
In the course of their consideration of the New Fund Agreements and Renewal Agreements, the Trust’s Independent Trustees were advised by their independent legal counsel and, in addition to meetings with management of Global X Management, the Independent Trustees met separately in executive sessions with their counsel.
NEW FUND AGREEMENTS
In determining to approve the New Fund Agreements for the New Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
-
the terms of the New Fund Agreements and the range of services proposed to be provided to the New Funds in accordance with the New Fund Agreements;
-
Global X Management’s key personnel and the portfolio managers who would provide investment advisory, supervision and administrative services to the New Funds;
-
Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of the New Funds and the composition of the New Funds’ assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by the New 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, and the periodic updating of the registration statements, prospectuses, statements of additional information, and other reports and documents for the New Funds that are required to be filed by the Trust with the U.S. Securities and Exchange Commission (“SEC”) and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the New Funds by shareholders and new investors;
143
Approval of Investment Advisory Agreement(unaudited) (Continued)
-
the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that are proposed to be provided by Global X Management or made available to the New Funds; and
-
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, at the New Fund Board Meetings, that it was satisfied with the nature, extent and quality of the services proposed to be provided to the New Funds by Global X Management.
Performance
The Board determined that, because the New Funds had not yet begun investment operations as of the dates of the New Fund Board Meetings, meaningful data relating to the investment performance of the New Funds was not available and, therefore, could not be a factor in approving the New Fund Agreements.
Cost of Services and Profitability
With respect to this factor, the Board considered:
-
Global X Management’s expected costs to provide investment management, supervision and administrative and related services to each New Fund;
-
the management fee (including the proposed investment advisory fee) (“Management Fee”) that was proposed to be borne by each New Fund under the respective New Fund Agreement for the various investment advisory, supervisory and administrative services that the New Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the New Funds); and
-
the expected profitability to Global X Management, if any, from all of the services proposed to be provided to the New Funds by Global X Management and all aspects of the relationship between Global X Management and the New Funds.
Based on these considerations, the Board concluded that the proposed Management Fee to be paid by each New Fund to Global X Management, in light of the nature, extent and quality of the services to be provided, was reasonable and in the best interests of the New Fund’s shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
144
Approval of Investment Advisory Agreement(unaudited) (Continued)
-
comparative information with respect to the proposed Management Fee to be paid to Global X Management by each New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for each New Fund, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs, and/or other similar registered funds. The Board considered Global X Management’s detailed explanation of the proposed fee structures of any New Fund that was above the average or median for the New Fund’s peer group;
-
the structure of the proposed unitary Management Fee (which includes as one component the proposed investment advisory fee for the New Funds) and the expected total expense ratios for the New Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the New Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratios (i.e., the total fees) of the New Funds and that the proposed Management Fee for each New Fund was set at a competitive level to make the New Fund viable in the marketplace; and
-
that, under the proposed unified Management Fee structure, Global X Management would be responsible for most ordinary expenses of the New Funds, including the costs of various third-party services required by the New Funds, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that each New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that the services to be received and the fees to be charged under the applicable New Fund Agreements were reasonable on a comparative basis.
Economies of Scale
With respect to this factor, the Board considered:
-
the extent to which economies of scale would be realized as the New Funds grow and whether the proposed unitary Management Fees for the New Funds reflected these economies of scale;
-
the significant investment of time, personnel and other resources that Global X Management intends to make in the New Funds in order to seek to assure that the New Funds are attractive to investors; and
-
that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for each New Fund and its shareholders.
145
Approval of Investment Advisory Agreement(unaudited) (Continued)
Based on these considerations, the Board concluded, at the New Fund Board Meetings, that the proposed unitary Management Fees for the New Funds appropriately addressed economies of scale.
Other Benefits
In considering each New Fund Agreement, in addition to the factors discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with the New Funds. As a result, the Board concluded that, in the case of each New Fund, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the applicable New Fund Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in their consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the New Fund Agreements were fair and reasonable and in the best interest of the New Funds.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
RENEWAL AGREEMENTS
In determining to approve the continuation of the Renewal Agreements for the Renewal Funds, the Board considered a variety of factors, including the factors discussed in greater detail below.
Nature, Extent and Quality of Services
With respect to this factor, the Board considered:
-
the terms of the Renewal Agreements and the range of services that would continue to be provided to each Renewal Fund in accordance with the Renewal Agreements;
-
Global X Management’s key personnel and the portfolio managers who would continue to provide investment advisory, supervision and administrative services to each Renewal Fund;
-
Global X Management’s responsibilities under the Renewal Agreements, among other things, to: (i) manage the investment operations of the Renewal Funds and the composition of the Renewal Funds’ assets, including the purchase, retention and disposition of their holdings, (ii) provide quarterly reports to the Trust’s officers and the Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights relating to securities and assets held by the Renewal Funds, (iv) select broker-dealers to execute portfolio transactions for the
146
Approval of Investment Advisory Agreement(unaudited) (Continued)
Renewal Funds when necessary, (v) assist in the preparation and filing of reports and proxy statements (if any) to the shareholders of the Renewal Funds, and the periodic updating of the registration statement, prospectuses, statements of additional information, and other reports and documents for the Renewal Funds that are required to be filed by the Trust with the SEC and other regulatory and governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including Creation Units) of the Renewal Funds by shareholders and new investors;
-
the nature, extent and quality of all of the services (including advisory, administrative and compliance services) that have been provided by Global X Management or made available to the Renewal Funds; and
-
the quality of Global X Management’s resources and personnel that would continue to be made available to the Renewal Funds, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.
Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Renewal Funds by Global X Management.
Performance
The Board considered the performance of each Renewal Fund. They examined the performance of the Renewal Funds for the one-year, three-year, five-year and since-inception periods, as applicable. Also, the Board considered the total return and investments performance of the Renewal Funds relative to (i) the performance of unaffiliated comparable ETFs and/or other registered funds, which performance information is publicly available from such registered funds, as well as other third party sources; and (ii) the performance of pertinent indexes. The Board considered instances of under-performance and over-performance with respect to the competitor funds. The Board also considered the Renewal Funds’ tracking against their underlying indexes in absolute terms.
Based on these considerations and comparisons, the Board concluded that the investment performance of the Renewal Funds did not adversely affect the Board’s approval of the continuance of the Renewal Agreements.
Cost of Services and Profitability
The Board considered Global X Management’s cost to provide investment management, supervision and administrative and related services to the Renewal Funds. In this regard, the Board considered the management fee (“Management Fee”) that has been borne or is expected to be borne by the Renewal Funds under the Renewal Agreements for the various investment advisory, supervisory and administrative services that the Renewal Funds require under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by the Renewal Funds).
147
Approval of Investment Advisory Agreement(unaudited) (Continued)
In addition, the Board considered expected profitability to Global X Management, as applicable, from all services provided or expected to be provided to the Renewal Funds and all aspects of Global X Management’s relationship with the Renewal Funds. In connection with these considerations, Global X Management provided the Board with financial information regarding its operations and the services provided to the Renewal Funds and discussed with the Board its current and expected, as applicable, profitability with respect to the Renewal Funds.
Based on these considerations, the Board concluded that the Management Fee rate paid by the Renewal Funds to Global X Management, in light of the nature, extent and quality of the services provided, was reasonable and in the best interests of the Renewal Funds’ shareholders.
Comparison of Fees and Services
With respect to this factor, the Board considered:
-
comparative information with respect to the Management Fee paid to Global X Management by the Renewal Funds. In connection with this consideration, Global X Management provided the Board with comparative expense data for the Renewal Funds, including fees and expenses paid by unaffiliated similar specialized and/or focused ETFs and/or other comparable registered funds. The Board considered the Global X Management’s detailed explanation of the fee structures of any Renewal Fund that was above the average or median for its peer group;
-
the structure of the unitary Management Fee (which includes as one component the investment advisory fee for the Renewal Funds) and the current total expense ratios for the Renewal Funds. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for the Renewal Funds was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of the Renewal Funds and that the proposed Management Fees for the Renewal Funds were set at a competitive levels to make the Renewal Funds viable in the marketplace; and
-
that, under the unified Management Fee structure, Global X Management is responsible for most ordinary expenses of the Renewal Funds, including the costs of various third-party services required by the Renewal Funds, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that the Renewal Funds would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.
Based on these considerations, the Board concluded that the services received and the fees charged under the Renewal Agreements were reasonable on a comparative basis.
Economies of Scale
148
Approval of Investment Advisory Agreement(unaudited) (Concluded)
With respect to this factor, the Board considered:
-
the extent to which economies of scale would be realized as the Renewal Funds grow and whether the unitary Management Fee for the Renewal Funds reflected these economies of scale;
-
the significant investment of time, personnel and other resources that Global X Management has made and intends to continue to make in the Renewal Funds in order to seek to assure that the Renewal Funds are attractive to investors; and
-
that the unitary Management Fee would provide a high level of certainty as to the total level of expenses for the Renewal Funds and their shareholders.
Based on these considerations, the Board concluded that the unitary Management Fee for the Renewal Funds appropriately addressed economies of scale.
Other Benefits
In considering the Renewal Agreements, in addition to the factors above, the Board considered any other benefits realized by Global X Management as a result of its relationships with the Renewal Funds and concluded that, in the exercise of the Board’s business judgement, all information the Board considered supported approval of the continuation of the Renewal Agreements.
Conclusion
After full consideration of the factors above, as well as other factors that were instructive in its consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded, in the exercise of its business judgement, that the Renewal Agreements were fair and reasonable and in the best interest of each Renewal Fund.
In reaching this decision, the Board did not assign relative weights to the factors above nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have assigned different weights to the various factors.
149
Supplemental Information (UNAUDITED)
NAV is the price per Share at which the Funds issue and redeem Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds’ are listed for trading, as of the time that a Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of a Fund will fluctuate with changes in the market value of the Fund’s holdings. The Market Price of a Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Funds’ website at www.globalxetfs.com.
150
Trustees and Officers of the Trust (UNAUDITED)
The Trustees and officers are identified in the table below, which provides information as to their principal business occupations held during the last five years and certain other information. Each Trustee serves until his or her death, resignation or removal and replacement. 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 address for all Trustees and officers is c/o Global X Funds®, 605 3rd Avenue, 43rd Floor, New York, New York 10158. The following chart lists Trustees and Officers as of December 15, 2023.
| Name (Year of Birth) |
Position(s) Held with Trust |
Principal Occupation(s) During the Past 5 Years |
Number
of Funds in Trust Overseen by Trustee4 |
Other Directorships Held by Trustees |
| Independent Trustees1,2 | ||||
| Charles A. Baker (1953) |
Trustee (since 07/2018) | Chief Executive Officer of Investment Innovations LLC (investment consulting) (since 2013); Managing Director of NYSE Euronext (2003 to 2012). | 113 funds (109 of which were operational) | Trustee of OSI ETF Trust (2016-2022). |
| Susan M. Ciccarone (1973) |
Trustee (since 09/2019) | Partner, Further Global Capital Management (private equity) (since 2017); formerly Chief Operating (2014-2016) and Chief Financial Officer (2012-2016), Emerging Global Advisors, LLC (ETF issuer). | 113 funds (109 of which were operational) | Director of E78 Partners (since 2022); Director of ProSight Global, Inc. (since 2021); Director of Casa Holdco LP, parent of Celink (since 2018); Chairman, Payment Alliance International, Inc. 2019-2021). |
| Clifford J. Weber (1963) |
Trustee (since 07/2018) | Owner, Financial Products Consulting Group LLC (consulting services to financial institutions) (since 2015); Formerly, Executive Vice President of Global Index and Exchange-Traded Products, NYSE Market, Inc., a subsidiary of Intercontinental Exchange (ETF/ETP listing exchange) (2013- 2015). | 113 funds (109 of which were operational) | Chairman and Trustee of Clayton Street Trust (since 2016); Chairman and Trustee of Janus Detroit Street Trust (since 2016); Trustee of Clough Global Equity Fund (since 2017); Trustee of Clough Global Dividend and Income Fund (since 2017); Trustee of Clough Global Opportunities Fund (since 2017); Chairman (2017-2023) and Trustee (2015- 2023) of Clough Funds Trust; and Chairman and Trustee of Elevation ETF Trust (2016-2018). |
151
Trustees and Officers of the Trust (UNAUDITED)
| Name, Address (Year of Birth) |
Position(s) Held with Trust |
Principal Occupation(s) During the Past 5 Years |
Number of Funds in Trust Overseen by Trustee |
Other Directorships Held by Trustees |
| Interested Trustee/Officers1 | ||||
| Thomas Park (1978) |
President (since 11/2023) | Chief Executive Officer, GXMC (since 11/2023); Co-Chief Executive Officer Mirae Asset Global Investments (USA) (since 12/2022); President of Mirae Asset Global Investments (USA) (1/2020- 12/2022); and Executive Managing Director of Mirae Asset Global Investments (USA) (2011- 2022). | N/A | N/A |
| Alex Ashby (1986) |
Chief Operating Officer (since 11/2023) | Head of Product Development, GXMC (since 2019); Vice President, Director of Product Development (2015 - 2018). | N/A | N/A |
| Susan Lively (1981) |
Secretary (since 09/2020) | General Counsel, GXMC (since 9/2020); Senior Corporate Counsel at Franklin Templeton (previously, Managing Director and Associate General Counsel at Legg Mason & Co., LLC) (2014-2020). | N/A | N/A |
| Eric
Griffith3 (1969) |
Assistant Secretary (since 02/2020) | Counsel, SEI Investments (since 10/2019); Vice President and Assistant General Counsel, JPMorgan Chase & Co. (2012-2018). | N/A | N/A |
| Joe Costello (1974) |
Chief Compliance Officer (since 09/2016) | Chief Compliance Officer, GXMC since 09/2016). | N/A | N/A |
| Ronnie Riven (1984) |
Chief Financial Officer (since 11/2023); Treasurer and Principal Accounting Officer (since 12/2020) | Head of Finance & Business Management, GXMC (since 01/2022); Treasurer, GXMC (since 02/2022); Director of Finance, GXMC (08/2018-12/2021); Director of Accounting and Finance at Barclays Center (2016-2018). | N/A | N/A |
| Eric Olsen3 (1970) |
Assistant Treasurer (since 05/2021) | Director of Accounting, SEI Investment Manager Services (March 2021 to present); Deputy Head of Fund Operations, Traditional Assets, Aberdeen Standard Investments (2013-2021). | N/A | N/A |
| 1 | Each Trustee serves until his or her successor is duly elected or appointed and qualified. |
| 2 | Luis Berruga served as an Interested Trustee of the Trust until December 15, 2023, and as President of the Trust until November 21, 2023. John Belanger served as Chief Operating Officer of the Trust and as Chief Financial Officer of the Trust until November 28, 2023. |
| 3 | These officers of the Trust also serve as officers of one or more funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor. |
| 4 | As of November 30, 2023. |
152
Notice to Shareholders (UNAUDITED)
For shareholders that do not have an November 30, 2023 tax year end, this notice is for informational purposes only. For shareholders with an November 30, 2023 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended November 30, 2023, the Funds have designated the following items with regard to distributions paid during the year.
| Return of Capital | Long-Term Capital Gain Distributions |
Ordinary Income Distributions |
Total Distributions |
Qualifying for Corporate Dividends Received Deduction(1) |
Qualifying Dividend Income(2) | ||||||
| Global X MLP ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 0.00% | 0.00% | ||||||
| Global X MLP & Energy Infrastructure ETF | |||||||||||
| 15.86% | 0.00% | 84.14% | 100.00% | 16.68% | 45.50% | ||||||
| Global X Alternative Income ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 1.36% | 1.36% | ||||||
| Global X Conscious Companies ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
| Global X U.S. Preferred ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 70.07% | 71.00% | ||||||
| Global X S&P 500® Quality Dividend ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 93.70% | 98.75% | ||||||
| Global X Adaptive U.S. Factor ETF | |||||||||||
| 11.45% | 0.00% | 88.55% | 100.00% | 87.17% | 89.67% | ||||||
| Global X Variable Rate Preferred ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 70.22% | 71.07% | ||||||
| Global X Adaptive U.S. Risk Management ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 56.65% | 54.21% | ||||||
| Global X 1-3 Month T-Bill ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 0.00% | 0.00% | ||||||
| Global X U.S. Cash Flow Kings 100 ETF | |||||||||||
| 0.00% | 0.00% | 100.00% | 100.00% | 100.00% | 94.09% | ||||||
(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 its 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.
153
Notice to Shareholders (UNAUDITED)
| U.S. Government Interest(3) |
Interest Related Dividends(4) |
Short Term Capital Gain Dividends (5) |
Qualifying Business Income(6) |
Foreign Tax Credit | |||||
| Global X MLP ETF | |||||||||
| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
| Global X MLP & Energy Infrastructure ETF | |||||||||
| 0.00% | 0.15% | 0.00% | 0.00% | 0.00% | |||||
| Global X Alternative Income ETF | |||||||||
| 0.00% | 0.22% | 0.00% | 0.00% | 0.00% | |||||
| Global X Conscious Companies ETF | |||||||||
| 0.00% | 0.21% | 0.00% | 0.00% | 0.00% | |||||
| Global X U.S. Preferred ETF | |||||||||
| 0.00% | 1.12% | 0.00% | 0.00% | 0.00% | |||||
| Global X S&P 500® Quality Dividend ETF | |||||||||
| 0.00% | 0.07% | 0.00% | 0.00% | 0.00% | |||||
| Global X Adaptive U.S. Factor ETF | |||||||||
| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
| Global X Variable Rate Preferred ETF | |||||||||
| 0.00% | 0.60% | 0.00% | 0.00% | 0.00% | |||||
| Global X Adaptive U.S. Risk Management ETF | |||||||||
| 34.04% | 45.31% | 0.00% | 0.00% | 0.00% | |||||
| Global X 1-3 Month T-Bill ETF | |||||||||
| 100.00% | 99.86% | 0.00% | 0.00% | 0.00% | |||||
| Global X U.S. Cash Flow Kings 100 ETF | |||||||||
| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |||||
(3) “U.S. Government Interest” represents the amount of interest that was derived from U.S. Government Obligations and distributed during the fiscal year. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.
(4) The percentage in this column represents the amount of “Qualifying Interest Income” as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors.
(5) The percentage of this column represents the amount of “Short Term Capital Gain Dividend” and is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors.
(6) The percentage of this column represents that amount of ordinary dividend income that qualified for 20% Business Income Deduction.
The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2023. Complete information will be computed and reported in conjunction with your 2023 Form 1099-DIV.
154
Notes
155
Notes
156
605 3rd Avenue, 43rd Floor
New York, NY 10158
1-888-493-8631
www.globalxetfs.com
Investment Adviser and Administrator:
Global X Management Company LLC
605 3rd Avenue, 43rd Floor
New York, NY 10158
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Sub-Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
Counsel for Global X Funds
and the Independent Trustees:
Stradley Ronon Stevens & Young, LLP
2000 K Street, N.W.
Suite 700
Washington, DC 20006
Custodians and Transfer
Agents:
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
Independent Registered Public
Accounting Firm:
PricewaterhouseCoopers LLP
Two Commerce Square
Suite 1800
2001 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Funds described.
GLX-AR-006-1100
(b) Not applicable.
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, controller 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 experts are Charles A. Baker and Susan M. Ciccarone and each is independent as defined in Form N-CSR Item 3(a)(2).
Item 4. Principal Accountant Fees and Services.
Fees billed by PricewaterhouseCoopers LLP (“PwC”) relate to the registrant.
PwC billed the registrant aggregate fees for services rendered to the registrant for the last two fiscal years as follows:
| 2023 | 2022 | ||||||
| All fees and services to the Trust that were pre- approved |
All fees and services to service affiliates that were pre- approved |
All other fees and services to service affiliates that did not require pre- approval |
All fees and services to the Trust that were pre- approved |
All fees and services to service affiliates that were pre- approved |
All other fees and services to service affiliates that did not require pre- approval | ||
| (a) |
Audit Fees |
$1,235,693 | $0 | $0 | $1,148,958 | $0 | $0 |
| (b) |
Audit-Related Fees |
$0 | $0 | $0 | $0 | $0 | $0 |
| (c) |
Tax Fees(1) |
$392,972 | $0 | $0 | $406,447 | $0 | $0 |
| (d) |
All Other Fees |
$0 | $0 | $0 | $0 | $0 | $0 |
Notes:
| (1) | Tax Compliance and excise distribution services. |
(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 (PwC):
| 2023 | 2022 | |
|
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 PwC for the last two fiscal years were $392,972 and $406,447, 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.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants.
The registrant has a separately-designated standing Audit Committee, which is composed of the registrant's Independent Trustees, Charles A. Baker, Susan M. Ciccarone and Clifford J. Weber.
Item 6. Investments.
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.
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.
Item 9. Purchases of Equity Securities by Closed-End Management Investment 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 to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19. Exhibits.
(a)(1) Code of Ethics attached hereto.
(a)(2) Not applicable.
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) | Global X Funds | ||
| By (Signature and Title) | /s/ Thomas Park | ||
| Thomas Park | |||
| President |
Date: February 8, 2024
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/ Thomas Park | ||
| Thomas Park | |||
| President |
Date: February 8, 2024
| By (Signature and Title) | /s/ Ronnie Riven | ||
| Ronnie Riven | |||
| Chief Financial Officer |
Date: February 8, 2024