Global X ETFs - The Scientific Don’t just be smart....

Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022

1 (888) GX-FUND-1GLOBALXFUNDS.COM@GLOBALXFUNDS

The Scientific Beta Report

All data as of 6/30/2016 TickerGross Expense

Ratio

Net Expense

Ratio1Since Fund Inception 1 Year

Annualized Since Fund

Inception

Global X Scientific Beta US ETF

SCIU 0.35% 0.19%

NAV 3.67% 5.19% 3.22%

Market Price 3.79% 5.31% 3.33%

SBUXRHMN Index 4.09% 5.58% 3.59%

Global X Scientific Beta Europe ETF

SCID 0.38% —

NAV -10.05% -7.37% -8.92%

Market Price -9.00% -6.87% -7.98%

SBRXRHMN Index -9.70% -7.09% -8.58%

Global X Scientific Beta Asia ex-Japan ETF

SCIX 0.38% —

NAV -7.42% -0.25% -6.57%

Market Price -6.46% 0.66% -5.72%

SBAXRHMN Index -8.50% 0.00% -7.51%

Global X Scientific Beta Japan ETF

SCIJ 0.38% —

NAV 2.68% 1.74% 2.36%

Market Price 2.95% 2.10% 2.60%

SBJURHMN Index 2.93% 1.96% 2.57%

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Indices are unmanaged and do not include the effect of fees, expenses, or sales charges. One cannot invest

directly in an index. For performance data current to the most recent month end, please call 1-888-gxfund-1 or visit our website at www.globalxfunds.com.

1 Pursuant to an Expense Limitation Agreement, the Adviser has agreed to reimburse or waive fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund will not exceed 0.19% of the Fund’s average daily net assets per year until at least March 1, 2017. Total Annual Fund Operating Expenses apply after Fee Waiver and/or Expense Reimbursement

Don’t just be smart. Be Scientific.

OVERVIEW

The Global X Scientific Beta ETFs are a family of funds that provide core equity expo-sure to U.S. and international markets. The ETFs may be considered viable alternatives to actively managed funds as they seek to outperform market capitalization weighted indexes by following a methodology rooted in academic research, while preserving the lower costs and transparency of an ETF

SCIUUnited States

SCIDEurope

SCIXAsia ex-Japan

SCIJJapan



Total 17.82%

Apple Inc. 2.88%

Microsoft Corporation 2.21%

Exxon Mobil Corporation 2.14%

Johnson & Johnson 1.83%

General Electric Company 1.59%

Amazon.com Inc. 1.52%

Berkshire Hathaway Inc. 1.49%

AT&T Inc. 1.46%

Facebook Inc. 1.45%

Verizon Communications Inc. 1.25%

Holdings subject to change.

1 Since inception of SCIU ETF, 5/12/15.2 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.

SCIU TOP 10 HOLDINGSSource: Global X Funds and S&P. As of 6/30/16.

S&P 500 INDEX TOP 10 HOLDINGSSource: Global X Funds and S&P. As of 6/30/16.

SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2016Source: Bloomberg, June 2016

Global X Scientific Beta US ETF S&P 500 Index SciBeta United States Multi-Beta Multi-Strategy ERC

-15%

-10%

-5%

0%

5%

May 15 Jul 15 Oct 15 Mar 16Jan 16 Jun 16

3.67%

4.09%

2.52%

VOLATILITYSource: Bloomberg, June 2016

15.96% 13.73% 12.69%

17.19%

Global X Scientific Beta US ETF S&P 500 Index

Q2 2016 1 Year

HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and S&P.

43% Overlap by weight between SCIU and S&P 500

401 Number of overlapping holdings

88% Holdings in SCIU

also in S&P 500

79% Holdings in S&P 500 also in SCIU

57% Active share

S&P 500Index

Global XScientific Beta

US ETF

43%

ONE YEAR AND MOST RECENT QUARTER RETURNSSource: ERI Scientific Beta and Bloomberg, June 2016

Value LowVolatility

DiversifiedIndex²

SCIU S&P500

3.99% 4.12% 3.40%

5.17%

3.31% 2.60%

11.70%

4.39% 4.20% 3.49%

2.46% 2.91%

5.19% 3.99%

Momentum Size

Q2 2016 1 Year

0%

20%

40%

60%

80%

100%

SCIU HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2016

18.76%

25.43%

27.40%

28.40%

18.50%

25.31%

28.62%

27.57%

18.49%

25.16%

28.77%

27.57%

20.32%

24.00%

29.99%

25.68%

Q2 2015 Q3 2015 Q1 2016 Q2 2016Q4 2015

17.70%

26.34%

27.67%

28.29% Momentum

Value

Size

Low Volatility

InformationTechnology

HealthCare

EnergyTelecomServices

IndustrialsConsumerStaples

ConsumerDiscretionary

MaterialsFinancialsUtilities

-3.35% -3.23%

0.07%

7.40%

-0.98% -0.44%

0.18% 2.26%

7.42%

-9.48%

SCIU SECTOR OVERWEIGHT/UNDERWEIGHT VS. S&P 500 Source: Global X Funds, Bloomberg and S&P.

Total 8.32%

Newmont Mining Corp. 1.28%

American Water Works Co. Inc. 1.05%

Annaly Capital Management Inc. 0.94%

Realty Income Corp. 0.79%

Quest Diagnostics Inc. 0.73%

The Clorox Company 0.73%

Markel Corp. 0.71%

Arch Capital Group Ltd. 0.70%

Amdocs Ltd. 0.69%

Tyson Foods Inc. 0.69%


PERFORMANCE AND ATTRIBUTION RISK AND DIVERSIFICATION

US ETF Q2 2016 GLOBAL X SCIENTIFIC BETA SCIU



Total 18.44%

Nestle SA 3.15%

Novartis AG 2.76%

Roche Holding AG 2.36%

HSBC Holdings PLC 1.58%

British American Tobacco PLC 1.54%

TOTAL SA 1.53%

Royal Dutch Shell PLC 1.50%

BP PLC 1.40%

GlaxoSmithKline PLC 1.34%

Anheuser-Busch InBev SA/NV 1.28%


SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2016 Source: Bloomberg, June 2016

-24%

-28%

-20%

-16%

-12%

-8%

-4%

0%

4%

8%

May 15 Jun 15 Oct 15 Jan 16 Jun 16Mar 16

-10.05%

-9.70%

-14.30%

Global X Scientific Beta Europe ETF STOXX Europe 600 Index

SciBeta Extended Developed Europe Multi-Beta Multi-Strategy ERC

21.64%

30.37% 29.95%

22.97%

Q2 2016 1 Year

Global X Scientific Beta Europe ETF

STOXX Europe 600 Index


HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and S&P.

41% Overlap by weight between SCID and STOXX Europe 600 Index

519 # of overlapping holdings

95% Holdings in SCID also in benchmark

86% Holdings in Benchmark also in SCID

58% Active share

STOXX Europe 600

Index

Global X Scientific Beta

Europe ETF

41%


-6.56%

-13.50%

-3.62%

-2.11%

-6.33% -5.40%

-1.80% -2.73%

-8.40%

-5.16%

-2.85%

-5.10%

-7.37%

-10.66%

Q2 2016 1 Year

STOXX Europe600 IndexSCID

DiversifiedIndex2Low VolatilityMid CapHigh MomentumValue

0%

20%

40%

60%

80%

100%

34.39%

17.58%

28.28%

19.76%

33.88%

17.68%

28.55%

19.88%

25.19%

17.35%

38.38%

19.08%

28.54%

18.33%

33.84%

19.29%

SCID HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2016

Q4 2015 Q1 2016 Q2 2016Q3 2015 Q2 2015

23.40%

18.34%

39.19%

19.08% Momentum

Value

Size

Low Volatility

HealthCare

ConsumerStaples

EnergyTelecomServices



UtilitiesMaterialsIndustrialsFinancials

7.99% 5.64%

1.22% 0.97% 0.06%

-1.06% -0.62% -2.09%

-5.02% -6.98%

SCID SECTOR OVERWEIGHT/UNDERWEIGHT VS. STOXX EUROPE 600 INDEXSource: Global X Funds, Bloomberg and STOXX.

Total 7.03%

Swiss Prime Site AG 0.93%

Hiscox Ltd. 0.78%

PSP Swiss Property AG 0.76%

Flughafen Zuerich AG 0.69%

Endesa SA 0.68%

UCB SA 0.67%

Cofinimmo SA 0.65%

ICA Gruppen AB 0.64%

Sofina SA 0.61%

Direct Line Insurance Group PLC 0.61%


1 Since inception of SCID ETF, 5/12/15.2 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.

GLOBAL X SCIENTIFIC BETA

SCID TOP 10 HOLDINGSSource: Global X Funds and STOXX.

STOXX EUROPE 600 INDEX TOP 10 HOLDINGSSource: Global X Funds and STOXX.


SCIDEurope ETF Q2 2016



Total 36.33%

Commonwealth Bank of Australia 6.66%

Westpac Banking Corp. 5.14%

AIA Group Ltd. 5.07%

Australia & New Zealand Banking Group 3.69%

National Australia Bank Ltd. 3.52%

BHP Billiton Ltd. 3.14%

CSL Ltd. 2.72%

Wesfarmers Ltd. 2.37%

CK Hutchison Holdings Ltd. 2.07%

Hong Kong Exchanges and Clearing Ltd. 1.95%



MSCI Pacific ex-Japan Index2

SciBeta Developed Asia-Pacificex-Japan Multi-Beta Multi-Strategy ERC

-40%

-30%

-20%

-10%

0%

10%

May 15 Aug 15 Oct 15 Jan 16 Jun 16Mar 16

-8.50%

-11.30%


-7.42%

14.92%

18.55%

12.29%

20.92%



MSCI Pacific ex-Japan Index

Q2 2016 1 Year

37% Overlap by weight between SCIX and MSCI Pacific ex-Japan Index

125 # of overlapping holdings

69% Holdings in SCIX also in benchmark

81% Holdings in Benchmark also in SCIX

62% Active share

MSCI Pacific ex-Japan

Index

Global X Scientific Beta Asia ex-Japan

ETF

37%

HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and iShares.


1.54% 0.81%

1.90% 1.17%

-3.26%

0.10%

1.78% 2.45%

-0.97%

1.59% 0.65%

0.85%

-0.25%

-6.75%

Q2 2016 1 Year

Value LowVolatility

DiversifiedIndex²

SCIX MSCI Pacific ex-Japan Index

Momentum Size

0%

20%

40%

60%

80%

100%

SCIX HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2016

Q4 2015 Q2 2016Q1 2016Q3 2015 Q2 2015

27.26%

19.48%

26.76%

26.50%

27.36%

19.62%

25.73%

27.29%

24.96%

22.49%

27.09%

25.46%

25.89%

21.25%

26.48%

26.38%

25.16%

22.75%

27.91%

24.18% Momentum

Value

Size

Low Volatility

FinancialsMaterialsEnergyTelecomServices

ConsumerStaples

HealthCare


IndustrialsConsumerDiscretionary

Utilities

SCIX SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI PACIFIC EX-JAPAN INDEXSource: Global X Funds, Bloomberg and MSCI.

7.38% 7.12% 3.50% 2.95%

0.91%

-0.16%

0.35%

-0.50% -1.13%

-20.81%

Total 15.79%

Yue Yuen Industrial Holdings Ltd. 2.60%

PCCW Ltd. 1.73%

MTR Corp Ltd. 1.57%

Venture Corp Ltd. 1.57%

Infratil Ltd. 1.56%

Fortune Real Estate Investment Trust 1.47%

Mighty River Power Ltd. 1.39%

Contact Energy Ltd. 1.33%

Power Assets Holdings Ltd. 1.29%

Link Real Estate Investment Trust 1.29%


1 Since inception of SCIX ETF, 5/12/15.2 MSCI Daily Net Total Return Asia Pacific ex-Japan USD Index 3 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.

SCIX TOP 10 HOLDINGSSource: Global X Funds and MSCI.

MSCI PACIFIC EX-JAPAN INDEX TOP 10 HOLDINGSSource: Global X Funds and MSCI.



Asia Ex-Japan ETF Q2 2016 SCIX



Total 19.53%

Toyota Motor Corp. 4.83%

KDDI Corp. 2.10%

Mitsubishi UFJ Financial Group 2.08%

SoftBank Group Corp. 1.99%

Japan Tobacco, Inc. 1.61%

Honda Motor Co Ltd. 1.50%

NTT DOCOMO, Inc. 1.42%

Sumitomo Mitsui Financial Group 1.41%

Sony Corp. 1.35%

Mizuho Financial Group, Inc. 1.25%



Global X Scientific Beta Japan ETF MSCI Japan Index2 SciBeta Japan Multi-Beta Multi-Strategy ERC

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

May 15 Jul 15 Oct 15 Jan 16 Jun 16Mar 16

2.68%

2.93%

-9.59%

Global X Scientific Beta Japan ETF MSCI Japan Index


22.64% 23.61%

20.57%

25.24%

Q2 2016 1 Year

43% Overlap by weight between SCIJ and MSCI Japan Index239 # of overlapping holdings 89% Holdings in SCIJ also in benchmark75% Holdings in benchmark also in SCIJ56% Active share

MSCI JapanIndex

Global X Scientific Beta Japan ETF

43%

HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and MSCI.

0.44%

-4.76%

5.91% 4.03%

6.83%

4.36%

10.26%

5.05%

2.11% 3.24%

1.01%

3.50% 1.74%

-8.94%

Q2 2016 1 Year

Value Low

VolatilityDiversified

Index3 SCIJ MSCI Japan

IndexMomentum Size


0%

20%

40%

60%

80%

100%

SCIJ HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2016

19.25% 19.80%

21.80% 20.65%

34.16% 38.63%

24.79% 20.93%

19.80%

20.65%

38.63%

20.93%

18.59%

20.94%

39.34%

21.13%

Q2 2015 Q3 2015 Q1 2016 Q2 2016Q4 2015

17.54%

19.38%

42.61%

20.47% Momentum

Value

Size

Low Volatility

TelecomServices


FinancialsInformationTechnology

EnergyHealthCare

MaterialsConsumerStaples

UtilitiesIndustrials

-5.43% -4.96% -3.97%

0.53% 2.46% 1.64% 0.94%

2.48% 2.80% 3.25%

SCIJ SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI JAPAN INDEXSource: Global X Funds, Bloomberg and MSCI.

Total 10.23%

NH Foods Ltd. 1.35%

Yamada Denki Co Ltd. 1.15%

Mitsubishi Tanabe Pharma Corp. 1.13%

Kajima Corp. 1.11%

Obayashi Corp. 1.02%

Nagoya Railroad Co Ltd. 1.01%

Sumitomo Osaka Cement Co Ltd. 0.91%

Otsuka Holdings Co Ltd. 0.88%

Kyowa Hakko Kirin Co Ltd. 0.84%

Toho Gas Co Ltd. 0.83%


1 Since inception of SCIJ ETF, 5/12/15.2 MSCI Daily Net Total Return Japan USD Index3 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.

SCIJ TOP 10 HOLDINGSSource: Global X Funds and MSCI. As of 6/30/16

MSCI JAPAN INDEX TOP 10 HOLDINGSSource: Global X Funds and MSCI. As of 6/30/16



Japan ETF Q2 2016 SCIJ



Definitions:

The objective of the Scientific Beta Multi-Beta Multi-Strategy Equal Risk Contribution Indexes (USA, Japan, Extended Developed Europe, Asia ex-Japan) is to represent the performance of large and medium capitalization companies from their respective regions while outperforming the capitalization-weighted reference index for that region, with a limited amount of relative risk against that reference.

The S&P 500 is an index of 500 stocks chosen by factors such as market size, liquidity and industry grouping. The Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe.

The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The MSCI Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed Markets (DM) countries in the Pacific region (excluding Japan). With 150 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 318 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.

Active Share is the percentage of holdings in a portfolio that do not overlap with the benchmark index.

Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing. Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. The Funds are non-diversified. For the Scientific Beta Japan ETF, the Japanese economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on Japanese securities. In addition, Japan is subject to the risk of natural disasters, such as earthquakes, volcanoes, typhoons and tsunamis, which could negatively affect the Fund. Diversification may not protect against market risk. There is no assurance the goals of the strategy discussed will be met. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The market price is the Mid-Point between the Bid and Ask price as of the close of exchange. EDHEC Risk Institute Asia Ltd. indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by EDHEC Risk Institute Asia Ltd. nor does this company make any representations regarding the advisability of investing in the Global X Funds. Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Global X Management Company, LLC.


Date post:	14-Aug-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Global X ETFs - The Scientific Don’t just be smart....

Documents