N-CSR 1 internatl-ncsr.htm ANNUAL REPORT



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)

Luis Berruga
Global X Management Company LLC
605 Lexington Ave, 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: October 31, 2020

Date of reporting period: October 31, 2020









Item 1.    Reports to Stockholders.

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 MSCI China Energy ETF (ticker: CHIE)
Global X MSCI China Materials ETF (ticker: CHIM)
Global X MSCI China Industrials ETF (ticker: CHII)
Global X MSCI China Consumer Discretionary ETF (ticker: CHIQ)
Global X MSCI China Consumer Staples ETF (ticker: CHIS)
Global X MSCI China Health Care ETF (ticker: CHIH)
Global X MSCI China Financials ETF (ticker: CHIX)
Global X MSCI China Information Technology ETF (ticker: CHIK)
Global X MSCI China Communication Services ETF (ticker: CHIC)
Global X MSCI China Utilities ETF (ticker: CHIU)
Global X MSCI China Real Estate ETF (ticker: CHIR)
Global X MSCI China Large-Cap 50 ETF (ticker: CHIL)
Global X MSCI Greece ETF (ticker: GREK)
Global X MSCI Norway ETF (ticker: NORW)
Global X DAX Germany ETF (ticker: DAX)
Global X MSCI Portugal ETF (ticker: PGAL)
Global X MSCI Colombia ETF (ticker: GXG)
Global X MSCI Argentina ETF (ticker: ARGT)
Global X MSCI Pakistan ETF (ticker: PAK)
Global X MSCI Nigeria ETF (ticker: NGE)
Global X MSCI Next Emerging & Frontier ETF (ticker: EMFM)
Global X FTSE Nordic Region ETF (ticker: GXF)
Global X FTSE Southeast Asia ETF (ticker: ASEA)
 


Annual Report

October 31, 2020

Beginning on January 1, 2021, 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), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary.
You may elect to receive all future Fund shareholder reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of Fund shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.




 
 
 
Table of Contents
 


Management Discussion of Fund Performance
1
Schedules of Investments
 
Global X MSCI China Energy ETF
70
Global X MSCI China Materials ETF
72
Global X MSCI China Industrials ETF
76
Global X MSCI China Consumer Discretionary ETF
81
Global X MSCI China Consumer Staples ETF
85
Global X MSCI China Health Care ETF
88
Global X MSCI China Financials ETF
92
Global X MSCI China Information Technology ETF
97
Global X MSCI China Communication Services ETF
101
Global X MSCI China Utilities ETF
104
Global X MSCI China Real Estate ETF
106
Global X MSCI China Large-Cap 50 ETF
109
Global X MSCI Greece ETF
112
Global X MSCI Norway ETF
116
Global X DAX Germany ETF
121
Global X MSCI Portugal ETF
124
Global X MSCI Colombia ETF
128
Global X MSCI Argentina ETF
132
Global X MSCI Pakistan ETF
136
Global X MSCI Nigeria ETF
139
Global X MSCI Next Emerging & Frontier ETF
141
Global X FTSE Nordic Region ETF
155
Global X FTSE Southeast Asia ETF
159
Statements of Assets and Liabilities
163
Statements of Operations
169
Statements of Changes in Net Assets
175
Financial Highlights
187
Notes to Financial Statements
201
Report of Independent Registered Public Accounting Firm
228
Disclosure of Fund Expenses
230
Liquidity Risk Management Program
234
Supplemental Information
235
Trustees and Officers of the Trust
236
Notice to Shareholders
238


Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “SEC” or “Commission”) for the first and third quarters of each fiscal year  as an exhibit to its reports on Form N-PORT. The Funds’ 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 MSCI China Energy ETF


Global X MSCI China Energy ETF
The Global X MSCI China Energy ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Energy IMI Plus 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Energy sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Energy sector and generally includes companies whose businesses involve: oil, gas, consumable fuels, alternative energy and electricity production and distribution, and energy equipment and services.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 22.05%, while the Underlying Index decreased 21.33%. The Fund had a net asset value of $10.43 per share on October 31, 2019 and ended the reporting period with a net asset value of $7.79 per share on October 31, 2020.
During the reporting period, the highest returns came from COSCO SHIPPING Energy Transportation and Shaanxi Coal Industry, which returned 17.56% and 14.65%, respectively. The worst performers were China LNG Group and Honghua Group, which returned -68.56% and -59.14%, respectively.
During the reporting period, China imposed strict lockdown measures to combat the COVID-19 pandemic, bringing many industries to a standstill. As economic activities experienced a 10% quarter-over-quarter contraction in the first quarter of 2020, demand for energy decreased significantly. Electricity demand dropped quickly in the first quarter of 2020 due to a decline in power demand but recovered completely by June, resulting in a demand recovery for electricity plant fuels. Continued expectations for lower oil prices also hurt certain Energy firms in the oil & gas segment. As a net importer of oil, China’s demand for oil gas has seen a strong recovery in the second half of 2020, with lower oil prices and China’s economic recovery from COVID-19 lockdowns resulting in a pick-up in domestic oil demand. As a result, China imported almost 13% of total global oil supplies from April to September. Although China remains a net importer of gas, the country continues is producing more liquified natural gas, potentially helping to offset some of the longer-term reliance on foreign oil producers.



1

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Energy ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Energy ETF
-22.05%
-20.56%
-8.77%
-8.12%
-4.21%
-3.92%
-3.47%
-3.33%
Hybrid Solactive China Energy Total Return Index/ MSCI China Energy IMI Plus 10/50 Index**
-21.33%
-21.33%
-7.94%
-7.94%
-3.37%
-3.37%
-2.65%
-2.65%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.60%
3.60%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 15, 2009.
** Reflects performance of Solactive China Energy Total Return Index through December 5, 2018 and MSCI China Energy IMI Plus 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.



2

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Energy 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





3

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Materials ETF


Global X MSCI China Materials ETF
The Global X MSCI China Materials ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Materials 10/50 Index (“Underlying Index”).  The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Materials sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Materials sector and generally includes companies whose businesses involve: chemicals, metals and mining, and forestry and paper products.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 29.88%, while the Underlying Index increased 30.96%. The Fund had a net asset value of $14.50 per share on October 31, 2019 and ended the reporting period with a net asset value of $18.18 per share on October 31, 2020.
During the reporting period, the highest returns came from Ganfeng Lithium and Inner Mongolia Junzheng Energy & Chemical Group, which returned 194.24% and 183.61%, respectively. The worst performers were China Zhongwang Holdings and Beijing SJ Environmental Protection and New Material, which returned -54.71% and -40.27%, respectively.
During the reporting period, COVID-19 pandemic caused unprecedented damage to the global economy, leading to widespread business closures, while disrupting factory production, global supply chains, and consumer demand. Significant disruptions in supply chains and a collapse of international trade had a severe impact on China’s Materials sector in the early months of the pandemic. Although industrial output suffered a severe contraction in the first quarter of 2020, it ultimately managed to rebound. Growth in exports and automobile and retail sales in China during the latter half of the year contributed significantly to the recovery of the Materials sector. China’s building materials segment also contributed, with its value-added output improving during the first three quarters of 2020. Despite the global slowdown, imports of unwrought copper and iron ore were strong as of October 2020.


4

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Materials ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Materials ETF
29.88%
32.10%
-2.00%
-1.84%
10.36%
10.61%
-2.40%
-2.36%
Hybrid Solactive China Materials Total Return Index/ MSCI China Materials 10/50 Index**
30.96%
30.96%
-1.19%
-1.19%
9.30%
9.30%
-2.04%
-2.04%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.18%
3.18%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on January 12, 2010.
** Reflects performance of Solactive China Materials Total Return Index through December 5, 2018 and MSCI China Materials 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.


5

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Materials 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





6

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Industrials ETF


Global X MSCI China Industrials ETF
The Global X MSCI China Industrials ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Industrials 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Industrials sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Industrials sector and generally includes companies whose businesses involve: construction and materials, electronic and electrical equipment, industrial engineering, industrial transportation, and support services, and trading companies, shipbuilding and aerospace.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 5.57%, while the Underlying Index increased 6.41%. The Fund had a net asset value of $12.92 per share on October 31, 2019 and ended the reporting period with a net asset value of $13.43 per share on October 31, 2020.
During the reporting period, the highest returns came from Contemporary Amperex Technology and Shenzhen Inovance Technology, which returned 278.28% and 171.55%, respectively. The worst performers were BEST, Inc and CITIC, which returned -55.23% and -42.87%, respectively.
During the reporting period, strict lockdowns imposed by China’s government to combat the COVID-19 pandemic temporarily paralyzed major swathes of the economy. As a result, the economy contracted 10% quarter-over-quarter in the first quarter of 2020. Worldwide lockdowns and the plummeting of international trade had a significant negative impact on China’s Industrials sector, resulting in a contraction in the first quarter of 2020. However, it improved gradually in the following months and recorded modest growth as lockdowns eased, workers returned to their jobs, and global trade recovered. Manufacturing output contributed significantly to this recovery. A rise in consumer confidence and a gradual recovery in retail sales, automobile sales, and exports further strengthened the recovery. As the economy recovered, industrial giants saw profit growth for the fourth straight month in August. While the automobiles and electronics industries recorded significant recoveries in profits, profit declines in the mining and raw materials industries continued to persist with weak global demand.


7

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Industrials ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Industrials ETF
5.57%
6.97%
-3.50%
-3.56%
0.85%
0.41%
0.21%
0.11%
Hybrid Solactive China Industrials Total Return Index/ MSCI China Industrials 10/50 Index**
6.41%
6.41%
-4.05%
-4.05%
0.40%
0.40%
0.70%
0.70%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.81%
3.81%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on November 30, 2009.
** Reflects performance of Solactive China Industrials Total Return Index through December 5, 2018 and MSCI China Industrials 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.


8

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Industrials 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





9

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Consumer Discretionary ETF


Global X MSCI China Consumer Discretionary ETF
The Global X MSCI China Consumer Discretionary ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Consumer Discretionary 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the consumer discretionary sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the consumer staples sector and generally includes companies whose businesses involve: general retail, diversified consumer services, food production and retail, beverages, household goods, leisure goods, personal goods, automobiles, auto components and distributors, tobacco, media, and travel and leisure.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 67.98%, while the Underlying Index increased 69.02%. The Fund had a net asset value of $17.68 per share on October 31, 2019 and ended the reporting period with a net asset value of $29.45 per share on October 31, 2020.
During the reporting period, the highest returns came from NIO Inc and BYD Company, which returned 2,008.96% and 322.54%, respectively. The worst performers were Luckin Coffee Inc and China First Capital Group, which returned -94.54% and -90.30%, respectively.
Years of wage growth and urbanization have substantially increased the consumption habits of millions of Chinese citizens. Improving the consumption component is vital, as maintaining higher economic growth primarily on exports and investment has become more difficult for China amid rising trade tensions and reduced labor competitiveness. The government had taken a series of measures to adjust the growth model of the Chinese economy from an export-led economy to a consumption-oriented one. Promoting consumer-focused areas like e-commerce, automobiles, education, and tourism, have helped achieve these goals. However, such efforts suffered a major blow during the reporting period when the economy came to a halt due to strict lockdown measures imposed to contain the COVID-19 pandemic. The economy contracted 10% quarter-over-quarter in the first quarter of 2020, recording the first contraction since 1992. It gained momentum in the second and third quarters and grew 11.7% and 2.7% quarter-over-quarter, respectively, as lockdown measures were effective at containing the virus and allowed workers to return to their jobs. Retail sales, since plummeting early in the year, continued to recover gradually alongside rising consumer confidence.


10

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Consumer Discretionary ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Consumer Discretionary ETF
67.98%
69.29%
20.85%
20.94%
19.01%
19.13%
7.55%
7.57%
Hybrid Solactive China Consumer Total Return Index/MSCI China Consumer Discretionary 10/50 Index**
69.02%
69.02%
21.66%
21.66%
19.82%
19.82%
8.20%
8.20%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.81%
3.81%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on November 30, 2009.
** Reflects performance of Solactive China Total Return Index through December 5, 2018 and MSCI China Consumer Discretionary 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. High short term performance of the fund is unusual and investors should not expect such performance to be repeated. 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 MSCI China Consumer Discretionary 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices  above.





12

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Consumer Staples ETF


Global X MSCI China Consumer Staples ETF
The Global X MSCI China Consumer Staples ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Consumer Staples 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the consumer staples sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the consumer staples sector and generally includes companies whose businesses involve: personal products, packaged foods and meat, brewers, agriculture products, hypermarkets and supermarkets, and, distillers & vintners.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 42.48%, while the Underlying Index increased 42.76%. The Fund had a net asset value of $21.08 per share on October 31, 2019 and ended the reporting period with a net asset value of $29.04 per share on October 31, 2020.
During the reporting period, the highest returns came from Shanxi Xinghuacun Fen Wine Factory and Tongwei, which returned 167.33% and 156.96%, respectively. The worst performers were Wen’s Foodstuff Group and Tech-bank Food, which returned -38.36% and -22.56%, respectively.
China’s economy is in a transition phase as wages continue to rise and the middle class expands. This transformation has led to a substantial increase in domestic demand for basic consumer goods, which in turn has contributed to the expansion of the Consumer Staples sector. The momentum in consumer expenditure has been a key component in supporting economic growth in China. Amid the economic slowdown due to the COVID-19 pandemic and trade conflicts with the U.S., China has depended heavily on domestic consumption to stabilize the economy during a weak environment. Further supporting consumption in China has been the country’s aggressive curbs to the spread of COVID-19. Early and aggressive lockdowns allowed workers to return to their jobs faster, avoiding lost wages and contributing to consumption growth. For example, despite the pandemic, industrial output rose 6.9% in October from a year earlier and consumer confidence increased to 120.50 points in September from 116.40 points in August, showing signs of strengthening consumerism.


13

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Consumer Staples ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Consumer Staples ETF
42.48%
41.96%
44.68%
45.02%
MSCI China Consumer Staples 10/50 Index
42.76%
42.76%
45.37%
45.37%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. High short term performance of the fund is unusual and investors should not expect such performance to be repeated. 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.


14

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Consumer Staples ETF


The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





15

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Health Care ETF


Global X MSCI China Health Care ETF
The Global X MSCI China Health Care ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Health Care 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the healthcare sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the healthcare sector and generally includes companies whose businesses involve: Biotechnology, Health Care Equipment & Supplies, Health Care Providers & Services, Health Care Technology, Life Sciences Tools & Services, and Pharmaceuticals.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 34.62%, while the Underlying Index increased 35.77%. The Fund had a net asset value of $17.70 per share on October 31, 2019 and ended the reporting period with a net asset value of $23.68 per share on October 31, 2020.
During the reporting period, the highest returns came from Chongqing Zhifei Biological Products and Alibaba Health Information Technology, which returned 247.26% and 158.74%, respectively. The worst performers were 3SBio, Inc and China Resources Pharmaceutical Group, which returned -50.29% and -44.64%, respectively.
An aging population, alongside trends in rising wages and living standards, and broader access to health care have been key to the modernization of China’s Health Care sector. These secular trends combined with the sheer size of China’s population have created substantial growth opportunities for private companies in the Health Care space. Beyond just China’s domestic health care market, China plays an important role in the global healthcare industry. Chinese firms manufacture about 40% of active pharmaceutical ingredients used worldwide and export a significant volume of medical supplies all over the world. The government of China, with a key focus on the healthcare industry, has announced a number of reforms to strengthen the healthcare system in the country. The China Healthcare Report 2020 outlines major investments in research and development (R&D) as well as innovation and rapid growth of the biopharmaceutical industry. These efforts are expected to continue to grow the sector’s strong momentum.


16

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Health Care ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Health Care ETF
34.62%
36.65%
27.74%
28.13%
MSCI China Healh Care 10/50 Index
35.77%
35.77%
28.68%
28.68%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. High short term performance of the fund is unusual and investors should not expect such performance to be repeated. 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.


17

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Health Care ETF


The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





18

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Financials ETF


Global X MSCI China Financials ETF
The Global X MSCI China Financials ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Financials 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Financials sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Financials sector and generally includes companies whose businesses involve: banking; insurance, real estate, and financial services.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 7.24%, while the Underlying Index decreased 5.94%. The Fund had a net asset value of $15.83 per share on October 31, 2019 and ended the reporting period with a net asset value of $14.25 per share on October 31, 2020.
During the reporting period, the highest returns came from East Money Information and CSC Financial, which returned 97.79% and 97.40%, respectively. The worst performers were China Ding Yi Feng Holdings and Anxin Trust, which returned -94.32% and -55.25%, respectively.
The COVID-19 pandemic has caused widespread economic issues, which have impacted Financials around the world. China’s Financials sector has not been immune as lockdowns and reduced economic activity locally and around the world, have put pressure on debtors in China. Beijing made decisive and proactive efforts to contain the spread on the virus and stabilize the economy. Yet the pandemic has still negatively impacted banks’ asset quality. Smaller banks are experiencing a deterioration in asset quality and a sharp rise in credit risks, while large state-owned commercial banks are generally in better shape, as they have sufficient capital buffers. Small and medium-sized banks are more vulnerable, as these institutions account for a much larger share of the loans to small and medium enterprises (SMEs). Joint stock banks, urban commercial banks, and rural commercial banks comprise 70% of SME loans, while large commercial banks account for only 30% of SME loans. The pandemic has mostly affected SME borrowers, with a quick deterioration in the quality of their loans. The industry-wide non-performing loan (NPL) ratio for banks accelerated to over 2% in the first quarter of 2020. Despite these recent challenges, China has continued to open its Financials sector to a more global audience and the banking sector has significantly increased its focus on digital transformation to remain competitive and increase profitability.


19

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Financials ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Financials ETF
-7.24%
-5.23%
-3.48%
-3.23%
2.69%
2.94%
1.86%
1.94%
Hybrid Solactive China Financials Total Return Index/MSCI China Financials 10/50 Index**
-5.94%
-5.94%
-2.72%
-2.72%
3.53%
3.53%
2.48%
2.48%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.69%
3.69%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 10, 2009.
** Reflects performance of Solactive China Financials Total Return Index through December 5, 2018 and MSCI China Financials 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


20

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Financials 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





21

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Information Technology ETF


Global X MSCI China Information Technology ETF
The Global X MSCI China Information Technology ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Information Technology 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to track the performance of the Information Technology sector in China as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Information Technology sector and generally includes companies whose businesses involve: communications equipment, electronic equipment, instruments & components, IT Services, semiconductors & semiconductor equipment, software, and, technology hardware, storage & peripherals.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 57.01%, while the Underlying Index increased 58.09%. The Fund had a net asset value of $17.92 per share on October 31, 2019 and ended the reporting period with a net asset value of $27.78 per share on October 31, 2020.
During the reporting period, the highest returns came from LONGi Green Energy Technology and Xinyi Solar Holdings, which returned 252.48% and 228.92%, respectively. The worst performers were GCL System Integration Technology and China Railway Signal & Communication Corp, which returned -42.51% and -41.43%, respectively.
During the reporting period, China’s technology giants saw their businesses thrive despite the COVID-19 pandemic. Strict lockdowns forced people to rely more on digital services rather than physical, in-person experiences. The government encouraged domestic consumption in the low-mobility environment by promoting the use of digital technologies such as e-commerce, cloud computing, 5G, and gaming. Industrial output of information transmission, software and IT service industry grew in the first six months of 2020. Beyond the pandemic, increased support for the domestic technology industry has led to numerous projects to implement digitalization across the economy. New infrastructure developments, such as the construction of 5G towers, is expected to provide further support for the sector’s growth.


22

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Information Technology ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Information Technology ETF
57.01%
59.41%
39.66%
40.08%
MSCI China Information Technology 10/50 Index
58.09%
58.09%
40.42%
40.42%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. High short term performance of the fund is unusual and investors should not expect such performance to be repeated. 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.


23

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Information Technology 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





24

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Communication Services ETF


Global X MSCI China Communication Services ETF
The Global X MSCI China Communication Services ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Communication Services 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the communication services sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the communication services sector and generally includes companies whose businesses involve: Diversified Telecommunication Services, Entertainment, Interactive Media & Services, Media, Software, and, Wireless Telecommunication Services.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 18.61%, while the Underlying Index increased 19.49%. The Fund had a net asset value of $22.18 per share on October 31, 2019 and ended the reporting period with a net asset value of $26.13 per share on October 31, 2020.
During the reporting period, the highest returns came from Mango Excellent Media Co. Ltd. Class A and China Literature Ltd, which returned 188.24% and 108.03%, respectively. The worst performers were Momo Inc Sponsored ADR Class A and China Unicom (Hong Kong) Limited, which returned -53.77% and -35.82%, respectively.
Rapid urbanization and the emerging middle class have driven the surge in demand for communications services in China. China’s communications industry saw steady growth in the first half of this year, despite the impact of the COVID-19 pandemic, given that more people become increasingly reliant on digital and virtual platforms to stay connected from home during the COVID-19 pandemic. The combined revenue of the sector rose 3.2% year-over-year, reaching 692.7 billion yuan in the first half of 2020. Revenue from the data and internet business saw stable growth, and the number of fixed broadband internet users increased steadily, signaling prospects of an advancing digital economy. China is home to the world’s largest telecommunications market with about 1.6 billion subscribers. China’s aim to become a pioneer in 5G technology has so far been successful domestically, despite western governments’ reservation towards using Chinese 5G technology.


25

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Communication Services ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Communication Services ETF
18.61%
20.24%
-2.61%
-2.86%
5.24%
5.45%
6.42%
6.43%
Hybrid Solactive China Technology Index/NASDAX OMX China Technology Index/MSCI China Communication Services 10/50 Index **
19.49%
19.49%
-1.97%
-1.97%
6.19%
6.19%
7.26%
7.26%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.65%
3.65%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 8, 2009.
** Reflects performance of Solactive China Technology Index through December 13, 2011, NASDAQ OMX China Technology Index through December 5, 2018 and the MSCI China Communication Services 10/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not


26

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Communication Services ETF


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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.




27

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Utilities ETF


Global X MSCI China Utilities ETF
The Global X MSCI China Utilities ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Utilities 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Utilities sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Utilities sector and generally includes companies whose businesses involve: independent power and renewable electricity producers, gas utilities, and, water utilities.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 10.92%, while the Underlying Index decreased 10.18%. The Fund had a net asset value of $15.81 per share on October 31, 2019 and ended the reporting period with a net asset value of $13.70 per share on October 31, 2020.
During the reporting period, the highest returns came from China Longyuan Power Group and SDIC Power Holdings, which returned 30.00% and 19.57%, respectively. The worst performers were Towngas China and Beijing Enterprises Holdings, which returned -37.95% and -33.53%, respectively.
During the reporting period, strict lockdowns imposed by China’s government to combat the COVID-19 pandemic hindered economic activities across the country. Worldwide lockdowns also triggered a collapse in international trade, which in turn led to a sharp fall in electricity demand by manufacturers and businesses in China. Industrial activities account for more than 65% of national power demand. However, during China’s lockdown period, residential electricity demand and electricity demand from the telecom and internet sectors recorded a significant increase, mildly offsetting the lost industrial demand. As the economy recovered gradually in the second quarter of 2020, demand for power rose 3.9% quarter-over-quarter. One bright spot in the Energy sector is renewable energy production, which rose to 33% of total electric power in September from 23% in January, while the share of coal power generation fell to 60% in September 2020 from 69% in January.


28

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Utilities ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Utilities ETF
-10.92%
-11.09%
-2.86%
-2.60%
MSCI China Utilities 10/50 Index
-10.18%
-10.18%
-2.08%
-2.08%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


29

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Utilities 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





30

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Real Estate ETF


Global X MSCI China Real Estate ETF
The Global X MSCI China Real Estate ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Real Estate 10/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to measure the equity performance of the investable universe of companies in the Real Estate sector of the Chinese economy, as defined by MSCI, Inc., the provider of the Underlying Index. It is comprised of securities of companies that have their main business operations in the Real Estate sector and generally includes companies whose businesses involve: Real Estate Development, Diversified Real Estate Activities, and, Real Estate Management & Development.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 2.55%, while the Underlying Index decreased 2.08%. The Fund had a net asset value of $17.23 per share on October 31, 2019 and ended the reporting period with a net asset value of $16.18 per share on October 31, 2020.
During the reporting period, the highest returns came from KWG Group Holdings and Longfor Group Holdings, which returned 81.88% and 36.10%, respectively. The worst performers were Sino-Ocean Group Holding and Poly Property Services, which returned -45.68% and -36.05%, respectively.
The COVID-19 pandemic had a significant negative impact on China’s real estate sector in the first quarter of 2020, with every core performance metric plunging into negative territory across both realty and construction. The housing segment suffered in particularly, with a sharp fall in sales volumes; even house and rental prices experienced a decline. Big cities suffered major challenges as well; residential mass market sales by square meterage in Beijing plummeted and transaction volumes also slumped during the first quarter in 2020. However, the sector managed to bounce back, owing to cheaper credit and incremental policy easing. Property sales by floor area grew gradually in August, September and October 2020 as the economy began to find even footing. Property investment also expanded sharply in September and October 2020. The regulators, however, remain concerned about high property prices in China amid cheaper credit to support the coronavirus-stricken economy. Regulators have taken a series of measures to control property prices and cut the availability of mortgage loans to spur household spending instead of repaying debt to stimulate the economy.


31

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Real Estate ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Real Estate ETF
-2.55%
-2.59%
6.94%
6.57%
MSCI China Real Estate 10/50 Index
-2.08%
-2.08%
7.62%
7.62%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. High short term performance of the fund is unusual and investors should not expect such performance to be repeated. 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.


32

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Real Estate 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





33

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Large-Cap 50 ETF


Global X MSCI China Large-Cap 50 ETF
The Global X MSCI China Large-Cap 50 ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Top 50 Select Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad China equity universe, while including the 50 largest constituents, as defined by MSCI, Inc., the provider of the Underlying Index. The broad China equity universe includes securities that are classified in China according to the MSCI Global Investable Market Index Methodology, together with companies that are headquartered or listed in China and carry out the majority of their operations in China.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 30.23%, while the Underlying Index increased 30.71%. The Fund had a net asset value of $27.60 per share on October 31, 2019 and ended the reporting period with a net asset value of $35.40 per share on October 31, 2020.
During the reporting period, the highest returns came from Meituan and JD.com ADR, which returned 211.03% and 161.70%, respectively. The worst performers were CNOOC and Geely Automobile Holdings, which returned -35.01% and -31.46%, respectively.
China suffered a major economic downturn in the first quarter of 2020 as strict lockdown measures to control the spread of the COVID-19 pandemic disrupted economic activities, including industrial operations and consumption. The economy recorded its first contraction since 1992, when it suffered a 10% contraction quarter-over-quarter in the first quarter of 2020. The export-led economy suffered further due to global lockdowns and major disruptions to international trade. However, the government initiated a series of measures to get the economy back on track. These included increased policy support, on both fiscal and monetary fronts. While the government took measures to stimulate the economy and spur consumption with increased expenditure, the People’s Bank of China (PBoC) laid out a number of monetary-easing measures, including cuts in lending rates and banks’ reserve requirement ratios (RRR). The economy responded and grew 11.7% and 2.7% quarter-over-quarter in the second and third quarters of 2020, respectively. As consumer confidence improved from 116.40 points in August to 120.50 points in September, retail sales also improved during August and September. In addition, exports saw a gradual growth, while industrial output increased in October 2020. Large firms in China immensely benefitted from the stimulus measures and the quick economic revival, while many other countries lagged behind as they struggled to contain the virus.


34

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Large-Cap 50 ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI China Large-Cap 50 ETF
30.23%
31.02%
21.59%
21.69%
MSCI China Top 50 Select Index
30.71%
30.71%
22.02%
22.02%
MSCI Emerging Markets Index
8.25%
8.25%
9.03%
9.03%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2018.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.
There are no assurances that the Fund will meet its stated objectives.


35

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI China Large-Cap 50 ETF


The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





36

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Greece ETF


Global X MSCI Greece ETF
The Global X MSCI Greece ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Greece Select 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Greece equity universe, as defined by MSCI, Inc., the provider of the Underlying Index.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 39.39%, while the Underlying Index decreased 39.11%. The Fund had a net asset value of $9.97 per share on October 31, 2019 and ended the reporting period with a net asset value of $17.68 per share on October 31, 2020, following a 1:3 reverse share split on April 28, 2020.
During the reporting period, the highest returns came from Terna Energy S.A. and Public Power Corporation S.A., which returned 69.68% and 58.10%, respectively. The worst performers were GasLog Ltd and GasLog Partners LP, which returned -80.65% and -80.20%, respectively.
The Greek government acted swiftly in the early stages of the COVID-19 pandemic and imposed a strict lockdown in March that largely contained the spread of the first wave of the virus in Europe. Economic contraction, however, was inevitable. Growth came to a halt when the economy contracted -0.5% and -15.2% year-over-year in the first and second quarters, respectively. Lockdown measures had a negative impact on business activity, and global travel restrictions adversely affected the tourism-dependent economy. Tourism revenue in the peak months of July and August plummeted over -75% in comparison to 2019’s figures. This year’s services exports, which include receipts from tourism, contracted -48.3% in the second quarter. Industrial production also took a substantial hit in the early stages of the pandemic, but began to show signs of recovery in the third quarter of 2020. The Greek government announced a tax relief package and additional stimulus in September to boost jobs and the economy. The European Economic Recovery Plan, agreed on by European Union leaders, is also likely to bolster economic growth in the future.


37

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Greece ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Greece ETF
-39.39%
-38.11%
-11.94%
-11.59%
-8.78%
-8.69%
-8.82%
-8.70%
Hybrid MSCI All Greece Select 25/50 Index/ FTSE/ATHEX Custom Capped Index**
-39.11%
-39.11%
-11.51%
-11.51%
-8.05%
-8.05%
-7.99%
-7.99%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
4.08%
4.08%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on December 7, 2011.
** Reflects performance of the FTSE/ATHEX Custom Capped Index through February 29, 2016 and MSCI All Greece Select 25/50 Index, thereafter. The inception of the MSCI All Greece Select 25/50 Index (“New Index”) was on December 23, 2015. Effective on or around March 1, 2016, the Fund began to track the New Index. The change was due to the planned migration to the New Index, potentially allowing for broader exposure to the local market.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.


38

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Greece 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





39

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Norway ETF


Global X MSCI Norway ETF
The Global X MSCI Norway ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Norway IMI 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The  Underlying  Index  is  designed  to represent  the  performance  of  the  broad  Norway  equity  universe,  as  defined  by  MSCI, Inc., the provider of the Underlying Index. The Underlying Index may include large-, mid- or small-capitalization companies.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 16.32%, while the Underlying Index decreased 16.13%. The Fund had a net asset value of $11.69 per share on October 31, 2019 and ended the reporting period with a net asset value of $9.59 per share on October 31, 2020.
During the reporting period, the highest returns came from NEL ASA and Europris ASA, which returned 119.02% and 100.50%, respectively. The worst performers were Norwegian Air Shuttle ASA and Borr Drilling Limited, which returned -98.70% and -90.85%, respectively.
Norway’s economy, like many other economies, plunged into recession in the first half of 2020 as a result of the COVID-19 pandemic. The lockdown measures taken to combat the pandemic brought many industries to a standstill. As a result, economic growth plummeted -1.7% and -5.1% quarter over quarter in the first and second quarters of 2020, respectively. Unemployment rose from a pre-pandemic level of 3.7% in February to 6.7% by the end of October. The Norwegian government’s quarterly public spending exceeded its overall income for the first time in 25 years in the second quarter of 2020. This was mainly due to a sharp fall in tax revenue and the low price of crude oil. Private consumption tumbled -4.3% and -10.8% in the first and second quarters, respectively, mainly due to a contraction in household spending on the food, transport and recreation sectors. Despite its severe economic decline, Norway is facing a milder recession than most of Europe, as early and swift government measures helped control the spread of the virus.


40

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Norway ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Norway ETF
-16.32%
-15.79%
-7.02%
-7.06%
1.52%
1.57%
-0.97%
-0.95%
Hybrid MSCI Norway IMI 25/50 Index/FTSE Norway 30 Index**
-16.13%
-16.13%
-6.75%
-6.75%
1.80%
1.80%
-0.42%
-0.42%
MSCI EAFE Index
-6.86%
-6.86%
-1.24%
-1.24%
2.85%
2.85%
3.48%
3.48%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on November 9, 2010.
**Reflects performance of the FTSE Norway 30 Index through July 14, 2014 and the MSCI Norway IMI 25/50 Index thereafter.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


41

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Norway 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





42

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X DAX Germany ETF


Global X DAX Germany ETF
The Global X DAX Germany ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the DAX® Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index tracks the segment of the largest and most actively traded companies - known as blue chips - on the German equities market. The Underlying Index contains the shares of among the 30 largest German companies in terms of liquidity and free-float market capitalization admitted to the Frankfurt Stock Exchange in the Prime Standard segment. Liquidity is defined as book order volume, which is the sum of the daily turnover over the prior 12-month period. The Prime Standard segment is a market segment of the Frankfurt Stock Exchange which includes companies with higher transparency and reporting standards than those of the General Standard, which is the minimum reporting standard currently required by European Union regulation. The 30 stocks contained in the Index generally represent about 80% of the market capitalization listed in Germany.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased by 6.53%, while the Underlying Index decreased by 6.22%. The Fund had a net asset value of $27.28 per share on October 31, 2019 and ended the reporting period with a net asset value of $25.21 per share on October 31, 2020.
During the reporting period, the highest returns came from Infineon Technologies AG and Deutsche Post AG, which returned 45.43% and 28.86% respectively. The worst performers were Wirecard AG and Bayer AG, which returned -98.83% and -36.67%, respectively.
The COVID-19 pandemic has led Germany into recession, and the economy is expected to experience the largest slump since World War II. The economy contracted -2.2%  and -10.1% quarter on quarter in the first quarter and the second quarter of 2020, respectively, recording the largest declines since quarterly gross domestic product calculations for Germany were first recorded in 1970. As a leading exporter of manufactured goods, Germany was affected severely by disruptions to international trade caused by the COVID-19 health crisis. Exports and imports of goods and services as well as household expenditure and capital formation in machinery and equipment recorded large slumps. The government, however, raised its expenditure during the crisis to support the economy. Gross domestic product recoved and grew 8.2% quarter-over-quarter in the third quarter of 2020.


43

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X DAX Germany ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
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 DAX Germany ETF*
-6.53%
-5.53%
-4.80%
-4.71%
1.68%
2.02%
2.10%
2.28%
DAX® Index
-6.22%
-6.22%
-4.35%
-4.35%
2.35%
2.35%
2.91%
2.91%
MSCI EAFE Index
-6.86%
-6.86%
-1.24%
-1.24%
2.85%
2.85%
2.76%
2.76%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on October 22, 2014. The financial statements include the financial information of the Predecessor Funds through December 21, 2018 (See Note 1 in Notes to Financial Statements).
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


44

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X DAX Germany 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above and on previous page.





45

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Portugal ETF


Global X MSCI Portugal ETF
The Global X MSCI Portugal ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Portugal Plus 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Portugal equity universe, while including a minimum number of constituents, as defined by MSCI, Inc., the provider of the Underlying Index.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 18.37%, while the Underlying Index decreased 18.33%. The Fund had a net asset value of $10.71 per share on October 31, 2019 and ended the reporting period with a net asset value of $8.50 per share on October 31, 2020.
During the reporting period, the highest returns came from Banco Espirito Santo SA and EDP Renovaveis SA, which returned 300.00% and 67.99%, respectively. The worst performers were Banco Comercial Portugues SA and Ramada Investimentos e Industria, SA, which returned -61.22% and -50.15%, respectively.
Portugal was one of the most affected countries on the European continent to be hit by the COVID-19 pandemic because of its heavy reliance on exports and tourism, both of which tumbled during the pandemic. Domestic demand tumbled by -10.60% and exports plunged -36.10%, while imports slumped by -28.10% in the second quarter of 2020. To tackle the crisis, the government announced a €3 billion package to provide loans to companies and other measures, such as easing layoff legislation and suspending mortgage payments, to help firms and families. As a result, domestic demand, exports and imports all showed signs of a recovery in third quarter of 2020, although gross domestic product shrank 5.80% year-on-year extending the recession for the third straight quarter. These broad economic challenges led to the Fund’s negative performance during the reporting period.


46

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Portugal ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Portugal ETF
-18.37%
-18.61%
-8.04%
-8.22%
-0.49%
-0.44%
-4.63%
-4.69%
Hybrid FTSE Portugal 20 Index/MSCI All Portugal Plus 25/50 Index**
-18.33%
-18.33%
-8.02%
-8.02%
-0.54%
-0.54%
-4.52%
-4.52%
MSCI EAFE Index
-6.86%
-6.86%
-1.24%
-1.24%
2.85%
2.85%
2.10%
2.10%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on November 12, 2013.
** Hybrid index performance reflects the performance of the FTSE Portugal 20 Index through December 5, 2016, and the MSCI All Portugal Plus 25/50 Index thereafter.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not


47

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Portugal ETF


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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above and on previous page.





48

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Colombia ETF


Global X MSCI Colombia ETF
The Global X MSCI Colombia ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Colombia Select 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Colombia equity universe, as defined by MSCI, Inc., the provider of the Underlying Index.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 36.91%, while the Underlying Index decreased 37.08%. The Fund had a net asset value of $9.54 per share on October 31, 2019 and ended the reporting period with a net asset value of $23.26 per share on October 31, 2020, following a 1:4 reverse share split on April 28, 2020.
During the reporting period, the highest returns came from GRUPO ENERGIA BOGOTA S.A. E.S.P and Interconexion Electrica SA ESP, which returned 2.65% and -3.22%, respectively. The worst performers were Avianca Holdings SA Pfd and Grupo de Inversiones Suramericana SA Pfd, which returned -96.93% and -51.15%, respectively.
Colombia’s gross domestic product grew 1.1% year-over-year in the first quarter of 2020, but the economy contracted on a quarter-over-quarter basis from the fourth quarter of 2019. The economy showed signs of a slowdown in the first quarter of 2020 when the construction, entertainment and recreation, and mining sectors contracted -9.2%, -3.2% and -3.0% year-over-year, respectively, despite 6.8% and 2.6% year-over-year growth in agricultural and real estate activities, respectively. As the pandemic led to a deterioration in economic activities around the world, Colombia’s second-quarter gross domestic product plummeted -15.7% year-over-year. Government lockdown measures led to the shutdown of businesses and a significant increase in unemployment. While private consumption plummeted -15.9% year-over-year, fixed investment contracted significantly by -32.2% year-over-year. Construction and manufacturing activities further contracted -31.7% and -25.4%, respectively, during the second quarter of 2020. The government responded promptly and announced a fiscal package to stimulate the economy. The government also announced further assistance by providing special lines of credit and loan guarantees for firms severely affected by the pandemic. In addition, the central bank slashed the intervention rate by 2.5% between March and September, its lowest historical level. The central bank also introduced a range of measures to increase liquidity to buffer the economic downturn. Despite these efforts to stimulate economic growth, the challenging backdrop led to negative performance during the reporting period for Colombian equities.


49

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Colombia ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Colombia ETF
-36.91%
-36.88%
-12.45%
-12.67%
-5.53%
-5.56%
0.21%
0.14%
Hybrid MSCI All Colombia  Select 25/50 Index/MSCI All Colombia Capped Index/FTSE Colombia 20 Index**
-37.08%
-37.08%
-12.19%
-12.19%
-5.15%
-5.15%
0.98%
0.98%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
8.92%
8.92%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on February 5, 2009.
**Reflects performance of the FTSE Colombia 20 Index through July 14, 2014, the MSCI All Colombia Capped Index through August 30, 2016 and the MSCI All Colombia Select 25/50 Index, thereafter. The inception of the MSCI All Colombia Select 25/50 Index (“New Index”) was on July 15, 2016. Effective on or around August 31, 2016, the Fund began to track the New Index. This change was due to the planned migration to the New Index, potentially improving the trading characteristics of the Fund.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost.


50

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Colombia ETF


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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.



51

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Argentina ETF


Global X MSCI Argentina ETF
The Global X MSCI Argentina ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Argentina 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Argentina equity universe, while including a minimum number of constituents, as defined by MSCI, Inc., the provider of the Underlying Index. The broad Argentina equity universe includes securities that are classified in Argentina according to the MSCI Global Investable Market Index Methodology, together with companies that are headquartered or listed in Argentina and carry out the majority of their operations in Argentina.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 8.61%, while the Underlying Index increased 9.03%. The Fund had a net asset value of $21.83 per share on October 31, 2019 and ended the reporting period with a net asset value of $23.64 per share on October 31, 2020.
During the reporting period, the highest returns came from MercadoLibre, Inc. and Globant SA, which returned 132.79% and 93.66%, respectively. The worst performers were Phoenix Global Resources plc and YPF SA Sponsored ADR Class D, which returned -67.55% and -65.60%, respectively.
Argentina experienced its most severe economic contraction in 16 years, and the country entered a third year of recession, with the economy shrinking -4.6% and -19.8% year-over-year in the first and second quarters, respectively. As the country’s longstanding economic crisis deepened, the unemployment rate rose to 13.1% and the poverty rate expanded to 40.9% in the second quarter of 2020, a significant increase from 35.5% in the second half of 2019. Domestic demand plummeted -8.2% and -23.1% year-over-year in the first and second quarters, respectively, driven by lockdown measures as a result of the COVID-19 pandemic and low consumer confidence. Private consumption tumbled -6.3% and -22.3% year-over-year in the first and second quarters, respectively, amid elevated economic uncertainty. Fixed investment also fell a sharp -18.3% and -38.4% year-over-year over the first and second quarters, due to business closures and a contraction in investment in construction and machinery equipment. However, the Argentine government managed to restructure USD $65 billion worth of foreign debt in September. This created crucial fiscal breathing space with foreign creditors, despite the bumpy fiscal road ahead. In addition, the existing negative sentiment heading into 2020 meant that the economic challenges this year were less shocking to the market, already somewhat being priced-in. Therefore despite the aforementioned economic challenges, equity prices still increased over the reporting period.


52

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Argentina ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Argentina ETF
8.61%
8.05%
-8.77%
-8.87%
4.46%
4.27%
-1.47%
-1.52%
Hybrid FTSE Argentina 20 Index/MSCI All Argentina 25/50 Index**
9.03%
9.03%
-9.10%
-9.10%
4.65%
4.65%
-0.90%
-0.90%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
2.39%
2.39%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on March 2, 2011.
**Reflects performance of the FTSE Argentina 20 Index through August 14, 2014 and the MSCI All Argentina 25/50 Index (“New Index”) thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


53

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Argentina 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.




54

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Pakistan ETF


Global X MSCI Pakistan ETF
The Global X MSCI Pakistan ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Pakistan Select 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Pakistan equity universe, while including a minimum number of constituents, as defined by MSCI, Inc., the provider of the Underlying Index. The broad Pakistan equity universe includes securities that are classified in Pakistan according to the MSCI Global Investable Market Index Methodology, together with companies that are headquartered or listed in Pakistan and carry out the majority of their operations in Pakistan.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 6.99%, while the Underlying Index increased 8.64%. The Fund had a net asset value of $6.58 per share on October 31, 2019 and ended the reporting period with a net asset value of $27.40 per share on October 31, 2020, following a 1:4 reverse share split on April 28, 2020.
During the reporting period, the highest returns came from Maple Leaf Cement Factory Ltd and Honda Atlas Cars (Pakistan) Ltd, which returned 153.04% and 130.10% respectively. The worst performers were Pakistan Petroleum Limited and Oil & Gas Development Co. Ltd, which returned -29.25% and -25.05%, respectively.
Pakistan entered 2020 coming off a relatively slow growth rate of 1.9% in 2019, due to monetary and fiscal tightening implemented to control the country’s high current account and fiscal deficits. In the second quarter of 2020, a series of actions were taken to curtail the spread of the COVID-19 pandemic, including partial lockdowns, restrictions on air travel, and the closure of non-essential businesses. Although these restrictions were gradually removed, disruptions to domestic demand and supply were inevitable, as households reduced consumption and businesses were unable to operate. Surging food inflation, rising energy prices, and a weaker rupee caused consumer price inflation (CPI) to rise from an average of 6.8% in fiscal year 2019 to an average of 10.7% in fiscal year 2020. The central bank’s policy rate was subsequently lowered to 7% in June from 13.25% in March to help stimulate growth. The central bank also implemented multiple measures to provide liquidity support to firms. While total exports contracted -7.5% amid weak global demand, imports were down -19.3%. This helped narrow the current account deficit from 4.8% of gross domestic product in fiscal year 2019 to 1.1% of gross domestic product in fiscal year 2020. Despite the global economic slowdown, remittances continued to increase and recorded over $2 billion for the fourth consecutive month as of September 2020.


55

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Pakistan ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Pakistan ETF*
6.99%
6.07%
-15.14%
-15.56%
-9.07%
-9.61%
-9.48%
-9.83%
MSCI All Pakistan Select 25/50 Index
8.64%
8.64%
-14.05%
-14.05%
-7.48%
-7.48%
-7.78%
-7.78%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.42%
3.42%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on April 22, 2015.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


56

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Pakistan 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





57

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Nigeria ETF


Global X MSCI Nigeria ETF
The Global X MSCI Nigeria ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Nigeria Select 25/50 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to represent the performance of the broad Nigeria equity universe, while including a minimum number of constituents, as defined by MSCI, Inc., the provider of the Underlying Index.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 17.25%, while the Underlying Index increased 19.96%. The Fund had a net asset value of $12.23 per share on October 31, 2019 and ended the reporting period with a net asset value of $14.25 per share on October 31, 2020.
During the reporting period, the highest returns came from Flour Mills Nigeria Plc and FCMB Group Plc, which returned 100.10% and 98.54%, respectively. The worst performers were Unilever Nigeria PLC and Oando PLC, which returned -51.18% and -32.83%, respectively.
Nigeria managed to largely avoid the global economic slowdown that was felt by many countries around the world in the first quarter of 2020. The economy grew by 1.9% year-over-year in the first quarter of 2020, supported by growth in both oil and non-oil segments. The domestic oil industry recorded a real growth rate of 5.1% year-over-year, while the non-oil portions of the economy reported a real growth rate of 1.6% in the first quarter of 2020. The Information Technology, Financials and agricultural industries were major contributors to growth. Nigeria felt the impact of the pandemic in the second quarter of 2020 when its economy contracted 6.1% year-over-year. In the second quarter, both the oil and non-oil segments experienced sizeable contractions of -6.6% and -6.1% year-over-year, respectively. Extremely low oil prices globally and a fall in average daily oil production - due to low domestic and international demand - were especially challenging, as the country depends mainly on oil sales for government revenue and foreign exchange.


58

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Nigeria ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Nigeria ETF
17.25%
-9.50%
-8.87%
-15.16%
-11.36%
-15.42%
-14.84%
-17.24%
Hybrid MSCI All Nigeria Select 25/50Index/Solactive Nigeria Index**
19.96%
19.96%
-6.15%
-6.15%
-8.93%
-8.93%
-12.79%
-12.79%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.42%
3.42%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on April 2, 2013.
**Reflects performance of the Solactive Nigeria Index through August 14, 2014 and the MSCI All Nigeria Select 25/50 Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


59

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Nigeria 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





60

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Next Emerging & Frontier ETF


Global X MSCI Next Emerging & Frontier ETF
The Global X MSCI Next Emerging & Frontier ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Select Emerging and Frontier Markets Access Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to reflect equity performance of next emerging markets and frontier markets companies, as defined by MSCI, Inc., the provider of the Underlying Index. Next Emerging markets are defined as emerging market countries, excluding the BRICs (Brazil, Russia, India and China) and excluding the most developed tier of emerging markets (South Korea and Taiwan). Frontier markets are those emerging market countries that generally have smaller economies or less developed capital markets.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 15.85%, while the Underlying Index decreased 15.16%. The Fund had a net asset value of $20.09 per share on October 31, 2019 and ended the reporting period with a net asset value of $16.46 per share on October 31, 2020.
During the reporting period, the highest returns came from Hoa Phat Group JSC and Dino Polska S.A., which returned 71.54% and 52.50%, respectively. The worst performers were Redefine Properties and Alpha Bank AE, which returned -76.95% and   -71.04%, respectively.
The COVID-19 pandemic during the reporting period brought the global economy to a standstill, as lockdown measures adopted to slow the spread of the coronavirus brought several businesses to a grinding halt. Like their developed market peers, many emerging and frontier markets suffered. External forces, like disrupted supply chains, collapsing international trade, and weakened global demand, played major roles. But internal challenges impacted developing economies as well, including feeble domestic demand, shuttered industrial output, and overrun public health care systems. As a result, many firms in these markets came under pressure. The volume of merchandise trade shrank 14.3% quarter-over-quarter in the second quarter of 2020. The types of goods exported have been an important determinant of growth during the pandemic. Countries with a large share of technology-related exports have seen a quicker rebound in exports, while those relying heavily on energy or metals exports have endured lower prices and demand. Economic activities in the developed world also significantly influence low- and middle-income countries. Obtaining additional financing can be difficult for these countries, especially if investors are convinced debt levels are no longer sustainable. As a result, fiscal stimulus as a percentage of gross domestic product in these economies has been significantly smaller compared to advanced economies. However, the International


61

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Next Emerging & Frontier ETF


Monetary Fund, the World Bank, and other multilateral institutions have stepped in to provide emergency financing, and has strengthened access to financing for emerging markets.
 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
One Year Return
Three Year Return
Five Year Return
Annualized Inception to Date*
 
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Net Asset Value
Market Price
Global X MSCI Next Emerging & Frontier ETF
-15.85%
-16.02%
-8.13%
-8.07%
-0.27%
0.00%
-3.63%
-3.63%
Hybrid Solactive Next Emerging & Frontier Index/ MSCI Select Emerging and Frontier Markets Access Index**
-15.16%
-15.16%
-7.44%
-7.44%
0.46%
0.46%
-2.94%
-2.94%
MSCI Emerging Markets Index
8.25%
8.25%
1.94%
1.94%
7.92%
7.92%
3.61%
3.61%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on November 6, 2013.
** Reflects performance of the Solactive Next Emerging & Frontier Index through January 15, 2019 and the MSCI Select Emerging and Frontier Markets Access Index thereafter.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.


62

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X MSCI Next Emerging & Frontier ETF


The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





63

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Nordic Region ETF


Global X FTSE Nordic Region ETF
The Global X FTSE Nordic Region ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Nordic 30 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index is designed to reflect the equity market performance of companies in Sweden, Denmark, Norway and Finland, as defined by FTSE International Limited (“FTSE”), the provider of the Underlying Index (“Index Provider”). The starting universe of the Underlying Index is the FTSE All-World Index - Nordic Region. The Underlying Index tracks the equity performance of among the 30 largest and most liquid companies in Sweden, Denmark, Norway and Finland. The Fund’s investment objective and Underlying Index may be changed without shareholder approval.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund increased 13.70%, while the Underlying Index increased 13.74%. The Fund had a net asset value of $20.69 per share on October 31, 2019 and ended the reporting period with a net asset value of $23.37 per share on October 31, 2020.
During the reporting period, the highest returns came from Vestas Wind Systems A/S and Orsted, which returned 111.88% and 83.51%, respectively. The worst performers were Equinor ASA and DNB ASA, which returned -27.77% and -26.02%, respectively.
The outbreak of the COVID-19 pandemic had a negative effect on Nordic countries broadly as their economies contended with continued fallout from the health crisis. Yet at the same time, increases in government spending and their largely services-based economies that could continue remotely during lockdown orders helped protect the economies versus others in Europe. Norway’s economy showed signs of a recovery following a 1.5% cut in interest rates. Denmark suffered a -7.4% decline in gross domestic product during the second quarter compared to the first quarter of 2020. The Finnish economy showed unexpected resilience and recorded only a -4.5% quarter-over- quarter contraction in the second quarter, which was one of the smallest declines in the euro area. Sweden’s gross domestic product contracted by -8.3% quarter-over-quarter in the second quarter, which was the worst contraction in the Nordic region during the reporting period. Sweden had among the laxest policies implemented to contain the virus. Although Swedish domestic economy showed some resilience, Swedish exports were negatively affected. In addition, Swedish households’ real disposable income decreased by 7.7% quarter-over-quarter during the second quarter of 2020. Despite weakness in Sweden, the relative strength of Nordic economies amid the pandemic led to positive equity returns over the reporting period.


64

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Nordic Region ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
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 FTSE Nordic Region ETF
13.70%
13.76%
2.69%
2.69%
4.39%
4.48%
7.20%
7.21%
FTSE Nordic 30 Index
13.74%
13.74%
3.62%
3.62%
4.88%
4.88%
7.39%
7.39%
MSCI EAFE Index
-6.86%
-6.86%
-1.24%
-1.24%
2.85%
2.85%
4.93%
4.93%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on August 17, 2009.
The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements (if applicable), returns would have been lower.


65

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Nordic Region 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.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices on the previous page.





66

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Southeast Asia ETF


Global X FTSE Southeast Asia ETF
The Global X FTSE Southeast Asia ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE ASEAN 40 Index (“Underlying Index”). The Fund is passively managed, which means the investment adviser does not attempt to take defensive positions in declining markets. The Fund generally seeks to fully replicate the Underlying Index.
The Underlying Index tracks the equity performance of the 40 largest and most liquid companies in five of the Association of Southeast Asian Nations (“ASEAN”) nations: Singapore, Malaysia, Indonesia, Thailand and the Philippines, as defined by MSCI, Inc., the provider of the Underlying Index.
For the 12-month period ended October 31, 2020 (the “reporting period”), the Fund decreased 24.82%, while the Underlying Index decreased 24.37%. The Fund had a net asset value of $15.95 per share on October 31, 2019 and ended the reporting period with a net asset value of $11.66 per share on October 31, 2020.
During the reporting period, the highest returns came from Wilmar International Limited and Sime Darby Plantation Bhd, which returned 11.00% and -0.66%, respectively. The worst performers were PTT Global Chemical Plc NVDR and Kasikornbank Public Co. Ltd. NVDR, which returned -48.28% and -44.40%, respectively.
Southeast Asian economies experienced a steep economic contraction during the reporting period as the COVID-19 pandemic weighed on the region’s services sector and hampered export demand. Indonesia’s economy was hit by external and domestic demand shocks. Thailand’s economy suffered amid a drought in tourism, exports, and domestic activity. Thailand also experienced a contraction in household spending and fixed investment during the first half of 2020. The Philippines also entered into a recession as a result of the pandemic. The Philippine economy contracted in the third quarter as sharp declines in industry, services, household consumption, exports and gross capital formation presented headwinds. Similarly, Singapore’s economy suffered significantly during the first half of 2020 due to a collapse of economic activities. The construction and services sectors suffered the biggest decline in 2020. However, Singapore’s economy expanded 7.9% in the third quarter on a quarter-on-quarter basis, mainly due to a phased re-opening of the economy. The difficult economic situation for a previously fast-growing region hurt equity prices significantly during the reporting period.


67

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Southeast Asia ETF


 
AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2020
 
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 FTSE Southeast Asia ETF
-24.82%
-24.46%
-7.11%
-7.05%
0.76%
0.94%
0.07%
0.08%
FTSE/ASEAN 40 Index
-24.37%
-24.37%
-6.49%
-6.49%
1.47%
1.47%
0.70%
0.70%
MSCI Emerging Markets Index
8.25%
8.25%
1.91%
1.94%
7.92%
7.92%
2.43%
2.43%


Growth of a $10,000 Investment
(At Net Asset Value)


*Fund commenced operations on February 16, 2011.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, it may be worth less than its original cost. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike the Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.
Performance figures for the periods shown may reflect contractual fee waivers and/or expense reimbursements. In the absence of fee 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.


68

 
 
 
Management Discussion of Fund Performance (unaudited)
Global X FTSE Southeast Asia ETF

The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
See definition of comparative indices above.





69

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Energy ETF
 

Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.

   
Shares
   
Value
 
COMMON STOCK — 100.0%
           
CHINA— 100.0%
           
Energy — 100.0%
           
China Merchants Energy Shipping, Cl A
   
72,900
   
$
63,034
 
China Oilfield Services, Cl H 
   
95,386
     
57,319
 
China Petroleum & Chemical, Cl A *
   
5,950
     
3,465
 
China Petroleum & Chemical, Cl H
   
335,897
     
130,377
 
China Shenhua Energy, Cl A 
   
1,500
     
3,730
 
China Shenhua Energy, Cl H 
   
92,830
     
160,406
 
China Suntien Green Energy, Cl H
   
247,200
     
57,378
 
CNOOC 
   
134,785
     
122,360
 
COSCO SHIPPING Energy Transportation, Cl A
   
31,600
     
31,051
 
COSCO SHIPPING Energy Transportation, Cl H
   
90,400
     
35,555
 
Guanghui Energy, Cl A * 
   
147,250
     
63,331
 
Inner Mongolia Yitai Coal, Cl B
   
108,594
     
67,980
 
Offshore Oil Engineering, Cl A
   
84,975
     
53,678
 
PetroChina, Cl A 
   
5,100
     
3,100
 
PetroChina, Cl H 
   
435,863
     
121,965
 
Shaanxi Coal Industry, Cl A 
   
65,136
     
85,113
 
Shanxi Lu’an Environmental Energy Development, Cl A
   
65,765
     
57,748
 
Shanxi Meijin Energy, Cl A * 
   
65,100
     
57,942
 
Shanxi Xishan Coal & Electricity Power, Cl A
   
97,753
     
67,590
 
Sinopec Kantons Holdings 
   
154,900
     
55,929
 
Wison Engineering Services 
   
585,700
     
58,911
 
Yantai Jereh Oilfield Services Group, Cl A
   
14,000
     
55,885
 
Yanzhou Coal Mining, Cl A 
   
46,664
     
62,788
 
Yanzhou Coal Mining, Cl H 
   
111,025
     
80,604
 

The accompanying notes are an integral part of the financial statements.
70

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Energy ETF
 


           
Value
 
COMMON STOCK — continued
               
TOTAL COMMON STOCK
               
(Cost $2,099,372) 
         
$
1,557,239
 
TOTAL INVESTMENTS — 100.0%
               
(Cost $2,099,372) 
         
$
1,557,239
 


Percentages are based on Net Assets of $1,557,608.
*
Non-income producing security.

Cl — Class
As of October 31, 2020, 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.
For the year ended October 31, 2020, there were no transfers in or out of Level 3.






The accompanying notes are an integral part of the financial statements.
71

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Materials ETF
 

Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.

   
Shares
   
Value
 
COMMON STOCK — 100.0%
           
CHINA— 95.6%
           
Materials — 95.6%
           
Aluminum Corp of China, Cl A *
   
34,100
   
$
14,615
 
Aluminum Corp of China, Cl H *
   
159,239
     
34,703
 
Angang Steel, Cl A 
   
19,610
     
7,731
 
Anhui Conch Cement, Cl A 
   
500
     
3,796
 
Anhui Conch Cement, Cl H 
   
22,920
     
142,902
 
Baoshan Iron & Steel, Cl A 
   
41,700
     
33,254
 
BBMG, Cl A 
   
23,600
     
10,608
 
Beijing Oriental Yuhong Waterproof Technology, Cl A
   
5,550
     
30,724
 
China Hongqiao Group 
   
67,300
     
48,599
 
China Jushi, Cl A 
   
9,400
     
19,583
 
China Lumena New Materials *(A)(B)(C)
   
48
     
 
China Molybdenum, Cl A 
   
41,600
     
24,539
 
China Molybdenum, Cl H 
   
128,754
     
46,655
 
China National Building Material, Cl H
   
125,400
     
143,756
 
China Northern Rare Earth Group High-Tech, Cl A
   
9,600
     
14,437
 
China Resources Cement Holdings
   
87,500
     
114,187
 
Ganfeng Lithium, Cl A 
   
2,900
     
26,340
 
GEM, Cl A 
   
15,400
     
11,039
 
Guangdong HEC Technology Holding, Cl A
   
9,600
     
8,158
 
Guangdong Hongda Blasting, Cl A
   
2,052
     
14,605
 
Guocheng Mining, Cl A * 
   
1,300
     
2,048
 
Hengli Petrochemical, Cl A 
   
13,320
     
38,391
 
Hengyi Petrochemical, Cl A 
   
9,800
     
16,860
 
Hesteel, Cl A 
   
32,400
     
9,967
 
Huaxin Cement, Cl A 
   
3,500
     
12,638
 
Hunan Valin Steel, Cl A 
   
18,100
     
13,731
 

The accompanying notes are an integral part of the financial statements.
72

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Materials ETF
 

   
Shares
   
Value
 
COMMON STOCK — continued
               
Materials — continued
               
Inner Mongolia BaoTou Steel Union, Cl A
   
111,600
   
$
18,999
 
Inner Mongolia Junzheng Energy & Chemical Industry Group, Cl A
   
21,600
     
22,677
 
Jiangsu Shagang, Cl A 
   
6,000
     
11,604
 
Jiangsu Yangnong Chemical, Cl A
   
900
     
12,513
 
Jiangxi Copper, Cl A 
   
5,900
     
13,040
 
Jiangxi Copper, Cl H 
   
44,991
     
53,491
 
Jinduicheng Molybdenum, Cl A
   
9,200
     
7,790
 
Lee & Man Paper Manufacturing
   
51,900
     
39,152
 
Lomon Billions Group, Cl A 
   
4,700
     
17,365
 
Maanshan Iron & Steel, Cl A 
   
21,100
     
8,130
 
Pangang Group Vanadium Titanium & Resources, Cl A *
   
28,600
     
8,499
 
Real Gold Mining *(A)(B)(C) 
   
97,864
     
 
Rongsheng Petro Chemical, Cl A
   
13,200
     
37,572
 
Sansteel Minguang Fujian, Cl A
   
8,100
     
7,959
 
Shandong Gold Mining, Cl A 
   
8,120
     
28,836
 
Shandong Hualu Hengsheng Chemical, Cl A
   
4,500
     
18,998
 
Shandong Nanshan Aluminum, Cl A
   
34,900
     
12,248
 
Shandong Sinocera Functional Material, Cl A
   
2,843
     
17,407
 
Shandong Sun Paper Industry JSC, Cl A
   
7,900
     
16,410
 
Shanghai Putailai New Energy Technology, Cl A
   
1,147
     
19,090
 
Shanxi Taigang Stainless Steel, Cl A
   
18,100
     
9,461
 
Sinopec Shanghai Petrochemical, Cl A
   
18,000
     
8,897
 
Sinopec Shanghai Petrochemical, Cl H
   
141,550
     
26,102
 
Tangshan Jidong Cement, Cl A 
   
3,800
     
8,507
 
Tianqi Lithium, Cl A 
   
4,250
     
12,567
 
Tongkun Group, Cl A 
   
5,700
     
12,879
 
Tongling Nonferrous Metals Group, Cl A
   
32,900
     
10,662
 
Transfar Zhilian, Cl A 
   
10,500
     
8,499
 
Wanhua Chemical Group, Cl A
   
6,700
     
78,534
 
Weihai Guangwei Composites, Cl A
   
1,400
     
13,813
 
Xiamen Tungsten, Cl A 
   
4,700
     
9,419
 

The accompanying notes are an integral part of the financial statements.
73

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Materials ETF
 

   
Shares
   
Value
 
COMMON STOCK — continued
               
Materials — continued
               
Yintai Gold, Cl A 
   
7,420
   
$
11,059
 
Yunnan Energy New Material, Cl A
   
2,200
     
32,788
 
Zhaojin Mining Industry 
   
39,984
     
51,302
 
Zhejiang Huayou Cobalt, Cl A *
   
2,830
     
16,812
 
Zhejiang Juhua, Cl A 
   
8,700
     
8,666
 
Zhejiang Longsheng Group, Cl A
   
8,400
     
16,671
 
Zhongjin Gold, Cl A 
   
13,500
     
18,749
 
Zijin Mining Group, Cl A 
   
31,700
     
33,091
 
Zijin Mining Group, Cl H 
   
184,459
     
133,441
 
TOTAL CHINA 
           
1,737,565
 
HONG KONG— 4.4%
               
Materials — 4.4%
               
Nine Dragons Paper Holdings 
   
60,270
     
80,051
 
TOTAL COMMON STOCK
               
(Cost $1,733,306) 
           
1,817,616
 
TOTAL INVESTMENTS — 100.0%
               
(Cost $1,733,306) 
         
$
1,817,616
 


Percentages are based on Net Assets of $1,817,929.
*
Non-income producing security.
(A)
Level 3 security in accordance with fair value hierarchy.
(B)
Security considered illiquid (Unaudited). The total value of such securities as of October 31, 2020 was $0 and represented 0.0% of Net Assets.
(C)
Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such securities as of October 31, 2020, was $0 and represents 0.0% of net assets.

Cl — Class
The following is a summary of the level of inputs used as of October 31, 2020, in valuing the Fund’s investments carried at value:
Investments in Securities
 
Level 1
   
Level 2
   
Level 3(1)
   
Total
 
Common Stock
 
$
1,817,616
   
$
   
$
   
$
1,817,616
 
Total Investments in Securities
 
$
1,817,616
   
$
   
$
   
$
1,817,616
 




The accompanying notes are an integral part of the financial statements.
74

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Materials ETF
 

(1) A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments at the beginning and/or end of the period in relation to Net Assets. Management has concluded that Level 3 investments are not material in relation to Net Assets.
For the year ended October 31, 2020, there were no transfers in or out of Level 3.
Amounts designated as “—“ are $0 or have been rounded to $0.








The accompanying notes are an integral part of the financial statements.
75

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Industrials ETF
 

Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments.

   
Shares
   
Value
 
COMMON STOCK — 99.9%
           
CHINA— 98.8%
           
Industrials — 98.8%
           
51job ADR * 
   
448
   
$
31,405
 
AECC Aero-Engine Control, Cl A
   
1,200
     
3,200
 
AECC Aviation Power, Cl A 
   
2,300
     
12,551
 
Air China, Cl A 
   
6,200
     
6,287
 
Air China, Cl H 
   
30,800
     
19,859
 
A-Living Services, Cl H 
   
7,150
     
29,965
 
AVIC Aircraft, Cl A 
   
2,900
     
10,485
 
AVIC Electromechanical Systems, Cl A
   
3,700
     
5,840
 
AVIC Shenyang Aircraft, Cl A 
   
1,100
     
8,514
 
AviChina Industry & Technology, Cl H
   
42,090
     
21,656
 
AVICOPTER, Cl A 
   
600
     
4,486
 
Beijing Capital International Airport, Cl H
   
30,431
     
18,561
 
Beijing New Building Materials, Cl A
   
1,700
     
8,771
 
Beijing Originwater Technology, Cl A
   
3,300
     
3,824
 
Beijing-Shanghai High Speed Railway, Cl A
   
2,300
     
1,917
 
BEST ADR * 
   
3,371
     
8,663
 
Bohai Leasing, Cl A * 
   
6,100
     
2,314
 
Centre Testing International Group, Cl A
   
800
     
3,205
 
China Aerospace Times Electronics, Cl A
   
2,800
     
2,764
 
China Avionics Systems, Cl A 
   
1,400
     
3,360
 
China Communications Construction, Cl A
   
4,300
     
4,746
 
China Communications Construction, Cl H
   
73,543
     
38,408
 
China Communications Services, Cl H
   
39,900
     
23,153
 
China Conch Venture Holdings
   
26,860
     
119,322
 
China Eastern Airlines, Cl A 
   
9,600
     
6,580
 
China Eastern Airlines, Cl H 
   
31,000
     
12,312
 
China Everbright Environment Group
   
61,250
     
30,804
 

The accompanying notes are an integral part of the financial statements.
76

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Industrials ETF
 

   
Shares
   
Value
 
COMMON STOCK — continued
               
Industrials — continued
               
China Gezhouba Group, Cl A 
   
4,600
   
$
4,774
 
China Lesso Group Holdings 
   
18,000
     
29,061
 
China Meheco, Cl A 
   
1,100
     
2,474
 
China Merchants Holdings International
   
23,031
     
24,413
 
China National Chemical Engineering, Cl A
   
5,100
     
4,029
 
China Railway Construction, Cl A
   
11,800
     
14,679
 
China Railway Construction, Cl H
   
33,301
     
22,502
 
China Railway Group, Cl A 
   
20,600
     
16,520
 
China Railway Group, Cl H 
   
62,998
     
28,920
 
China Shipbuilding Industry, Cl A *
   
23,000
     
14,289
 
China Southern Airlines, Cl A *
   
9,600
     
7,899
 
China Southern Airlines, Cl H *
   
28,700
     
14,989
 
China Spacesat, Cl A 
   
1,200
     
5,622
 
China State Construction Engineering, Cl A
   
41,900
     
31,974
 
China State Construction International Holdings
   
34,010
     
23,507
 
CITIC 
   
96,100
     
68,529
 
Contemporary Amperex Technology, Cl A
   
2,326
     
85,857
 
COSCO SHIPPING Development, Cl A
   
7,200
     
2,247
 
COSCO SHIPPING Holdings, Cl A *
   
8,800
     
8,595
 
COSCO SHIPPING Holdings, Cl H *
   
43,132
     
27,532
 
COSCO SHIPPING Ports 
   
29,530
     
17,250
 
Country Garden Services Holdings
   
22,300
     
139,899
 
CRRC, Cl A 
   
24,600
     
19,801
 
CRRC, Cl H 
   
72,653
     
28,106
 
Daqin Railway, Cl A 
   
15,300
     
14,646
 
Dongfang Electric, Cl A 
   
2,700
     
4,274
 
Eve Energy, Cl A 
   
1,900
     
15,103
 
Fangda Carbon New Material, Cl A *
   
3,763
     
3,523
 
Fosun International 
   
42,300
     
50,946
 
Gotion High-Tech, Cl A * 
   
1,200
     
4,724
 
Greentown Service Group 
   
24,400
     
26,713
 
Guangzhou Baiyun International Airport, Cl A
   
2,100
     
3,936
 

The accompanying notes are an integral part of the financial statements.
77

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Industrials ETF
 

   
Shares
   
Value
 
COMMON STOCK — continued
               
Industrials — continued
               
Hainan Airlines Holding, Cl A *
   
14,600
   
$
3,380
 
Haitian International Holdings 
   
10,726
     
26,556
 
Hefei Meiya Optoelectronic Technology, Cl A
   
700
     
4,418
 
Hongfa Technology, Cl A 
   
800
     
6,141
 
Inner Mongolia First Machinery Group, Cl A
   
1,800
     
2,916
 
Jiangsu Expressway, Cl H 
   
20,619
     
20,606
 
Jiangsu Hengli Hydraulic, Cl A
   
1,332
     
15,050
 
Jiangsu Zhongtian Technology, Cl A
   
3,200
     
5,271
 
Juneyao Airlines, Cl A 
   
1,700
     
2,716
 
Metallurgical Corp of China, Cl A
   
18,400
     
7,117
 
Nanyang Topsec Technologies Group, Cl A *
   
1,100
     
3,458
 
NARI Technology, Cl A 
   
4,700
     
14,571
 
Power Construction Corp of China, Cl A
   
14,400
     
8,258
 
Sany Heavy Industry, Cl A 
   
8,500
     
32,940
 
SF Holding, Cl A 
   
2,900
     
35,859
 
Shanghai Construction Group, Cl A
   
9,200
     
4,177
 
Shanghai Electric Group, Cl A *
   
8,400
     
6,197
 
Shanghai Electric Group, Cl H *
   
44,971
     
12,758
 
Shanghai Industrial Holdings 
   
7,239
     
9,652
 
Shanghai International Airport, Cl A
   
1,000
     
9,871
 
Shanghai International Port Group, Cl A
   
8,800
     
5,493
 
Shanghai M&G Stationery, Cl A
   
900
     
10,806
 
Shanghai Tunnel Engineering, Cl A
   
3,100
     
2,583
 
Shenzhen Airport, Cl A 
   
2,100
     
2,503
 
Shenzhen Expressway, Cl H 
   
12,000
     
10,677
 
Shenzhen Inovance Technology, Cl A
   
1,700
     
16,309
 
Shenzhen International Holdings
   
17,906
     
27,800
 
Siasun Robot & Automation, Cl A *
   
1,600
     
3,195
 
Sinopec Engineering Group, Cl H
   
23,800
     
9,238
 
Sinotrans, Cl A 
   
4,600
     
2,803
 
Sinotruk Hong Kong 
   
11,500
     
29,303
 
Spring Airlines, Cl A 
   
900
     
5,728
 
STO Express, Cl A 
   
1,400
     
2,946
 

The accompanying notes are an integral part of the financial statements.
78

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Industrials ETF
 


   
Shares
   
Value
 
COMMON STOCK — continued
               
Industrials — continued
               
Sunwoda Electronic, Cl A 
   
1,600
   
$
6,662
 
Suzhou Gold Mantis Construction Decoration, Cl A
   
2,600
     
3,828
 
TBEA, Cl A 
   
3,700
     
4,536
 
Weichai Power, Cl A 
   
6,200
     
14,009
 
Weichai Power, Cl H 
   
32,096
     
60,592
 
XCMG Construction Machinery, Cl A
   
8,100
     
6,484
 
Xiamen C & D, Cl A 
   
2,800
     
3,496
 
Xinjiang Goldwind Science & Technology, Cl A
   
3,547
     
6,134
 
Xinjiang Goldwind Science & Technology, Cl H
   
12,571
     
16,535
 
Yunda Holding, Cl A 
   
2,340
     
6,748
 
Zhejiang Chint Electrics, Cl A *
   
2,200
     
9,633
 
Zhejiang Dingli Machinery, Cl A
   
490
     
6,660
 
Zhejiang Expressway, Cl H 
   
24,140
     
16,436
 
Zhejiang Sanhua Intelligent Controls, Cl A
   
3,640
     
13,291
 
Zhejiang Weixing New Building Materials, Cl A
   
1,600
     
4,468
 
Zhengzhou Yutong Bus, Cl A 
   
2,300
     
5,496
 
Zhuzhou CRRC Times Electric, Cl H
   
9,123
     
27,999
 
Zoomlion Heavy Industry Science and Technology
   
22,200
     
19,552
 
Zoomlion Heavy Industry Science and Technology, Cl A
   
6,600
     
7,294
 
ZTO Express Cayman ADR * 
   
6,203
     
179,763
 
TOTAL CHINA 
           
1,991,197
 
SINGAPORE— 1.1%
               
Industrials — 1.1%
               
BOC Aviation 
   
3,520
     
21,719
 
TOTAL COMMON STOCK
               
(Cost $2,244,139) 
           
2,012,916
 
TOTAL INVESTMENTS — 99.9%
               
(Cost $2,244,139) 
         
$
2,012,916
 




The accompanying notes are an integral part of the financial statements.
79

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Industrials ETF
 

Percentages are based on Net Assets of $2,014,151.
*
Non-income producing security.

ADR — American Depositary Receipt
Cl — Class
As of October 31, 2020, 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.
For the year ended October 31, 2020, there were no transfers in or out of Level 3.






The accompanying notes are an integral part of the financial statements.
80

 
 
 
Schedule of Investments
 
October 31, 2020
 
Global X MSCI China Consumer Discretionary ETF
 

Sector Weightings (Unaudited)†:
† Sector weightings percentages are based on the total market value of investments. Repurchase agreements purchased from cash collateral received for securities lending activity are included in total investments. Please see Note 2 and 7 in Notes to Financial Statements for more detailed information.

   
Shares
   
Value
 
COMMON STOCK — 100.0%
           
CHINA— 100.0%
           
Consumer Discretionary — 100.0%
           
Alibaba Group Holding ADR * 
   
111,216
   
$
33,886,403
 
ANTA Sports Products 
   
1,112,696
     
12,239,175
 
BAIC BluePark New Energy Technology, Cl A *
   
243,800
     
241,752
 
BAIC Motor, Cl H 
   
2,440,900
     
900,207
 
Baozun ADR * (A) 
   
81,845
     
2,994,709
 
Bosideng International Holdings
   
4,525,400
     
1,978,260
 
Brilliance China Automotive Holdings
   
4,393,400
     
3,790,124
 
BTG Hotels Group, Cl A 
   
81,000
     
209,508
 
BYD, Cl A 
   
158,094
     
3,773,008