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Global X Funds – ‘N-CSR/A’ for 10/31/14

On:  Monday, 1/26/15, at 4:00pm ET   ·   Effective:  1/26/15   ·   For:  10/31/14   ·   Accession #:  1144204-15-3774   ·   File #:  811-22209

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 1/26/15  Global X Funds                    N-CSR/A    10/31/14    4:8.6M                                   Vintage/FAFormer Global X MSCI Norway ETFGlobal X | JPMorgan Efficiente Index ETF EFFEGlobal X | JPMorgan US Sector Rotator Index ETF SCTOGlobal X Brazil Consumer ETF BRAQGlobal X Brazil Financials ETF BRAFGlobal X Brazil Mid Cap ETF BRAZGlobal X Central Asia & Mongolia Index ETF AZIAGlobal X Copper Miners ETF COPXGlobal X Fertilizers/Potash ETF SOILGlobal X FTSE Andean 40 ETF ANDGlobal X FTSE Southeast Asia ETF ASEAGlobal X Gold Explorers ETF GOEXGlobal X Guru Index ETF GURUGlobal X Guru International Index ETF GURIGlobal X Guru Small Cap Index ETF GURXGlobal X Junior Miners ETF JUNRGlobal X Lithium & Battery Tech ETF LITGlobal X MSCI Argentina ETF ARGTGlobal X MSCI China Communication Services ETF CHICGlobal X MSCI China Consumer Discretionary ETF CHIQGlobal X MSCI China Energy ETF CHIEGlobal X MSCI China Financials ETF CHIXGlobal X MSCI China Industrials ETF CHIIGlobal X MSCI China Materials ETF CHIMGlobal X MSCI Colombia ETF GXGGlobal X MSCI Greece ETF GREKGlobal X MSCI Next Emerging & Frontier ETF EMFMGlobal X MSCI Nigeria ETF NGEGlobal X MSCI Norway ETF NORWGlobal X MSCI Portugal ETF PGALGlobal X Permanent ETF PERMGlobal X Silver Miners ETF SILGlobal X Social Media ETF SOCLGlobal X SuperDividend ETF SDIVGlobal X SuperDividend U.S. ETF DIVGlobal X SuperIncome Preferred ETF SPFFGlobal X Uranium ETF URA

Amendment to Certified Annual Shareholder Report of a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR/A     Amendment to Certified Annual Shareholder Report    HTML   3.03M 
                          of a Management Investment Company                     
 4: EX-99.906CERT  Miscellaneous Exhibit                            HTML      7K 
 3: EX-99.CERT  Miscellaneous Exhibit                               HTML     13K 
 2: EX-99.CODE ETH  Code of Ethics                                  HTML     10K 


N-CSR/A   —   Amendment to Certified Annual Shareholder Report of a Management Investment Company
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
"Management Discussion of Fund Performance (unaudited)
"Global X Silver Miners ETF
"Global X Gold Explorers ETF
"Global X Copper Miners ETF
"Global X Uranium ETF
"Global X Lithium ETF
"Global X Fertilizers/Potash ETF
"Global X Junior Miners ETF
"Statements of Assets and Liabilities
"Statements of Operations
"Statements of Changes in Net Assets
"Financial Highlights
"Notes to Financial Statements
"Report of Independent Registered Public Accounting Firm
"Disclosure of Fund Expenses (unaudited)
"Supplemental Information (unaudited)
"Trustees and Officers of the Trust (unaudited)
"Notice to Shareholders (unaudited)
"Global X China Consumer ETF
"Global X China Energy ETF
"Global X China Financials ETF
"Global X China Industrials ETF
"Global X China Materials ETF
"Global X NASDAQ China Technology ETF
"Global X Southeast Asia ETF
"Global X FTSE Andean 40 ETF
"Global X MSCI Colombia ETF
"Global X Brazil Mid Cap ETF
"Global X Brazil Consumer ETF
"Global X Brazil Financials ETF
"Global X MSCI Argentina ETF
"Global X FTSE Greece 20 ETF
"Global X MSCI Norway ETF
"Global X FTSE Nordic Region ETF
"Global X Central Asia & Mongolia Index ETF
"Global X MSCI Nigeria ETF
"Global X Next Emerging & Frontier ETF
"Global X FTSE Portugal 20 ETF
"Global X SuperDividend(R) ETF
"Global X SuperDividend(R) U.S. ETF
"Global X Social Media Index ETF
"Global X | JPMorgan Efficiente Index ETF
"Global X | JPMorgan US Sector Rotator Index ETF
"Global X Permanent ETF
"Global X Guru(TM) Index ETF
"Global X Guru(TM) International Index ETF
"Global X Guru(TM) Small Cap Index ETF
"Global X SuperIncome(TM) Preferred ETF
"Approval of Investment Advisory Agreement (unaudited)

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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)

________

 

 

623 Fifth Avenue, 15th Floor

New York, NY 10022

(Address of principal executive offices) (Zip code)

 

Bruno del Ama

Global X Management Company LLC

623 Fifth Avenue, 15th Floor

New York, NY 10022

(Name and address of agent for service)

With a copy to:

 

Daphne Tippens Chisolm, Esq.

Global X Management Company LLC

623 Fifth Ave, 15th floor

New York, NY 10022

Eric S. Purple, Esq.

K&L Gates LLP

1601 K Street, NW

Washington, DC 20006

 

Registrant’s telephone number, including area code: (212) 644-6440

 

Date of fiscal year end: October 31, 2014

 

Date of reporting period: October 31, 2014

 

 
 

 

Explanatory Note: This Form N-CSR/A is filed in order to amend the Registrant’s Annual Report for Global X MSCI Argentina ETF, Global X MSCI Norway ETF and Global X MSCI Nigeria ETF dated October 31, 2014 and filed on January 9, 2015 (the “Report”). The Report is amended solely to correct the Management Discussion of Fund Performance (unaudited) for Global X MSCI Argentina ETF, Global X MSCI Norway ETF and Global X MSCI Nigeria ETF.

 

Other than the aforementioned revision, no other information or disclosures contained in the Report are amended by this Form N-CSR/A.

 

 
 

 

Item 1.Reports to Stockholders.

 

 

 

 

 

 

 

Global X Silver Miners ETF (ticker: SIL)

Global X Gold Explorers ETF (ticker: GLDX)

Global X Copper Miners ETF (ticker: COPX)

Global X Uranium ETF (ticker: URA)

Global X Lithium ETF (ticker: LIT)

Global X Fertilizers/Potash ETF (ticker: SOIL)

Global X Junior Miners ETF (ticker: JUNR)

 

Annual Report

 

October 31, 2014

 

 

 
 

   

 

 

Table of Contents

 

 

 

Management Discussion of Fund Performance (unaudited) 1
   
Schedules of Investments  
   
Global X Silver Miners ETF 8
   
Global X Gold Explorers ETF 10
   
Global X Copper Miners ETF 12
   
Global X Uranium ETF 15
   
Global X Lithium ETF 18
   
Global X Fertilizers/Potash ETF 21
   
Global X Junior Miners ETF 24
   
Statements of Assets and Liabilities 29
   
Statements of Operations 31
   
Statements of Changes in Net Assets 33
   
Financial Highlights 37
   
Notes to Financial Statements 39
   
Report of Independent Registered Public Accounting Firm 53
   
Disclosure of Fund Expenses (unaudited) 54
   
Supplemental Information (unaudited) 56
   
Trustees and Officers of the Trust (unaudited) 57
   
Notice to Shareholders (unaudited) 60

  

The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-GXFund-1; and (ii) on the Commission’s website at http://www.sec.gov.

 

 
 

  

 

 

 Management Discussion of Fund Performance (unaudited) 
Global X Silver Miners ETF

 

 Global X Silver Miners ETF

 

The Global X Silver Miners ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the silver mining industry. It is comprised of selected companies globally that are actively engaged in some aspect of the silver mining industry, such as silver mining, refining, or exploration. The Fund is the first ETF globally focused exclusively on the silver mining sector.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 31.85%, while the Index decreased 31.54%. The Fund had a net asset value of $12.88 per share on October 31, 2013 and ended the reporting period with a net asset value of $8.72 on October 31, 2014.

 

During the reporting period, the highest returns came from Golden Minerals and MAG Silver, which returned 49.35% and 5.96%, respectively. The worst performers were Aurcana and Coeur d'Alene Mines, which returned -85.72% and -69.70%, respectively.

  

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Silver Miners ETF   (31.85)%   (32.29)%   (27.89)%   (28.25)%   (10.09)%   (10.21)%
Solactive Global Silver Miners Index   (31.54)%   (31.54)%   (27.43)%   (27.43)%   (9.52)%   (9.52)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   14.58%   14.58%

 

Growth of a $10,000 Investment

(at Net Asset Value)

  

 

*Fund commenced operations on April 19, 2010.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

1
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Gold Explorers ETF

 

Global X Gold Explorers ETF

 

The Global X Gold Explorers ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Gold Explorers Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to track the performance of the largest and most liquid listed companies that are active in the exploration for gold.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 28.49%, while the Index decreased 29.25%. The Fund had a net asset value of $13.48 per share on October 31, 2013 and ended the reporting period with a net asset value of $9.64 on October 31, 2014.

 

During the reporting period, the highest returns came from International Pretium Resources and Papillon Resources, which returned 39.34% and 26.87%, respectively. The worst performers were Gold Canyon Resources and Sabina Gold & Silver, which returned -63.71% and -59.74%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Gold Explorers ETF   (28.49)%   (30.71)%   (42.06)%   (42.37)%   (36.06)%   (36.27)%
Solactive Global Gold Explorers Index   (29.25)%   (29.25)%   (41.51)%   (41.51)%   (35.74)%   (35.74)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.40%   16.40%

 

Growth of a $10,000 Investment

(at Net Asset Value)

  

 

*Fund commenced operations on November 3, 2010.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

2
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Copper Miners ETF

 

Global X Copper Miners ETF

 

The Global X Copper Miners ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Copper Miners Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the copper mining industry. It is comprised of selected companies globally that are actively engaged in some aspect of the copper mining industry, such as copper mining, refining, or exploration.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 14.49%, while the Index decreased 14.85%. The Fund had a net asset value of $9.80 per share on October 31, 2013 and ended the reporting period with a net asset value of $8.32 on October 31, 2014.

 

During the reporting period, the highest returns came from Grupo Mexico and Copper Mountain Mining, which returned 9.98% and 7.02%, respectively. The worst performers were Northern Dynasty Minerals and Taseko Mines, which returned -53.78% and -46.12%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Copper Miners ETF   (14.49)%   (14.17)%   (14.63)%   (14.47)%   (9.14)%   (9.18)%
Solactive Global Copper Miners Index   (14.85)%   (14.85)%   (14.88)%   (14.88)%   (9.12)%   (9.12)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   14.58%   14.58%

 

Growth of a $10,000 Investment

(at Net Asset Value)

  

 

*Fund commenced operations on April 19, 2010.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

3
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Uranium ETF

 

Global X Uranium ETF

 

The Global X Uranium ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Uranium Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the uranium mining industry. It is comprised of selected companies globally that are primarily engaged in some aspect of the uranium mining industry, such as mining, refining, exploration, and manufacturing of equipment for the uranium industry. The Fund is the nation’s first ETF focused exclusively on the uranium industry.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 19.18%, while the Index decreased 17.81%. The Fund had a net asset value of $14.47 per share on October 31, 2013 and ended the reporting period with a net asset value of $11.63 on October 31, 2014.

 

During the reporting period, the highest returns came from Mega Uranium and Syrah Resources, which returned 101.77% and 80.18%, respectively. The worst performers were Centrus Energy and Silex Systems, which returned -92.95% and -77.57%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Uranium ETF   (19.18)%   (21.06)%   (26.71)%   (26.96)%   (29.98)%   (30.18)%
Solactive Global Uranium Index   (17.81)%   (17.81)%   (27.32)%   (27.32)%   (30.24)%   (30.24)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.85%   15.85%

 

Growth of a $10,000 Investment

(at Net Asset Value)

  

 

*Fund commenced operations on November 4, 2010.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

4
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Lithium ETF

 

Global X Lithium ETF

 

The Global X Lithium ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the largest and most liquid listed companies that are active in the exploration and/or mining of Lithium or the production of Lithium batteries. The Fund is the first ETF globally focused exclusively on the lithium sector.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 6.97%, while the Index decreased 4.44%. The Fund had a net asset value of $12.94 per share on October 31, 2013 and ended the reporting period with a net asset value of $12.00 on October 31, 2014.

 

During the reporting period, the highest returns came from FDG Electric Vehicles and Reed Resources, which returned 48.61% and 29.26%, respectively. The worst performers were RB Energy and Avalon Rare Minerals, which returned -98.83% and -72.80%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Lithium ETF   (6.97)%   (7.16)%   (8.08)%   (7.69)%   (4.93)%   (4.87)%
Solactive Global Lithium Index   (4.44)%   (4.44)%   (7.36)%   (7.36)%   (4.01)%   (4.01)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   17.86%   17.86%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

*Fund commenced operations on July 22, 2010.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

5
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Fertilizers/Potash ETF

 

Global X Fertilizers/Potash ETF

 

The Global X Fertilizers/Potash ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Fertilizers/Potash Total Return Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of the largest and most liquid listed companies globally that are active in some aspect of the fertilizer industry. The Fund is the nation’s first ETF focused exclusively on the fertilizers industry.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 5.79%, while the Index decreased 5.63%. The Fund had a net asset value of $11.73 per share on October 31, 2013 and ended the reporting period with a net asset value of $10.87 on October 31, 2014.

 

During the reporting period, the highest returns came from Euro Future and Bagfas Bandirma Gubre Fabrik, which returned 73.48% and 23.68%, respectively. The worst performers were China BlueChemical and Uralkali, which returned -42.42% and -32.56%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Fertilizers/Potash ETF   (5.79)%   (5.89)%   (7.09)%   (7.13)%   (8.06)%   (8.13)%
Solactive Global Fertilizers/Potash Total Return Index   (5.63)%   (5.63)%   (6.93)%   (6.93)%   (7.79)%   (7.79)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.58%   15.58%

 

Growth of a $10,000 Investment

(at Net Asset Value)

  

 

*Fund commenced operations on May 25, 2011.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

  

6
 

 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Junior Miners ETF

 

Global X Junior Miners ETF

 

The Global X Junior Miners ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Junior Miners Index (“Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to track the market performance of small-capitalization mining companies globally, as defined by Solactive AG.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 29.36%, while the Index decreased 28.82%. The Fund had a net asset value of $16.62 per share on October 31, 2013 and ended the reporting period with a net asset value of $11.74 on October 31, 2014.

 

During the reporting period, the highest returns came from Century Aluminum and Aquila Resources, which returned 237.33% and 48.31%, respectively. The worst performers were MMX Mineracao e Metalicos and African Minerals, which returned -92.54% and -91.99%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE PERIOD ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Junior Miners ETF   (29.36)%   (29.78)%   (26.73)%   (26.82)%   (28.16)%   (28.33)%
Hybrid Solactive Global Junior Miners & S&P/TSX Venture 30 Index**   (28.82)%   (28.82)%   (27.10)%   (27.10)%   (28.40)%   (28.40)%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.38%   16.38%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

*Fund commenced operations on March 16, 2011.

**Annualized Inception to Date return reflects performance of S&P/TSX Venture 30 Index through September 6, 2012 and Solactive Global Junior Miners Index thereafter. The inception of the Solactive Global Junior Miners Index was on August 31, 2012.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

7
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Silver Miners 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.1%          
CANADA— 57.6%          
Basic Materials — 57.6%          
Alexco Resource *   1,279,243   $614,037 
Aurcana *   1,289,328    360,227 
AuRico Gold   2,786,687    8,945,265 
Bear Creek Mining * (A)   1,668,638    1,894,414 
Endeavour Silver *   2,238,894    6,806,238 
First Majestic Silver * (A)   132,000    676,713 
Fortuna Silver Mines * (A)   2,482,991    8,588,997 
MAG Silver *   1,117,566    6,750,099 
Pan American Silver   903,050    8,335,151 
Primero Mining * (A)   2,137,501    7,299,107 
Scorpio Mining *   4,235,360    713,751 
Silver Standard Resources * (A)   1,713,378    7,487,462 
Silver Wheaton   1,326,680    23,044,432 
Silvercorp Metals (A)   3,750,191    4,500,229 
SilverCrest Mines * (A)   2,462,755    3,101,789 
Tahoe Resources * (A)   539,957    9,353,284 
TOTAL CANADA        98,471,195 
MEXICO— 14.8%          
Basic Materials — 14.8%          
Fresnillo   1,147,039    12,799,727 
Industrias Penoles   554,286    12,538,640 
TOTAL MEXICO        25,338,367 
PERU— 3.5%          
Basic Materials — 3.5%          
Hochschild Mining *   3,747,323    5,932,192 
UNITED KINGDOM— 5.9%          
Basic Materials — 5.9%          
Polymetal International   1,227,648    10,114,849 
UNITED STATES— 17.3%          
Basic Materials — 17.3%          
Coeur d'Alene Mines *   1,992,814    7,373,412 
First Majestic Silver *   1,196,092    6,135,952 

 

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

 

8
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Silver Miners ETF

 

   Shares/Face
Amount(1)
   Value 
COMMON STOCK — continued          
Basic Materials — continued          
Great Panther Silver * (A)   2,970,900   $2,079,630 
Hecla Mining (A)   3,986,409    8,690,371 
McEwen Mining * (A)   4,326,907    5,365,365 
TOTAL UNITED STATES        29,644,730 
TOTAL COMMON STOCK          
(Cost $323,578,750)        169,501,333 
           
REPURCHASE AGREEMENTS — 6.8%          
           
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$10,000,067 (collateralized by U.S. Treasury Obligations, ranging in par
value $43,125-$1,106,913, 0.250%-4.875%, 11/15/14-05/15/22 with a total
market value of $10,144,057)(B)
   10,000,000    10,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,557,796 (collateralized by U.S. Treasury Notes, par value $1,628,195,
1.125%, 12/31/19 with a total market value of $1,582,529)(B)
   1,557,783    1,557,783 
TOTAL REPURCHASE AGREEMENTS          
(Cost $11,557,783)        11,557,783 
           
TIME DEPOSITS — 2.3%          
           
Brown Brothers Harriman          
0.030%, 11/03/14   3,854,793    3,854,793 
0.091%, 11/03/14, GBP   5    8 
TOTAL TIME DEPOSITS          
(Cost $3,854,801)        3,854,801 
           
TOTAL INVESTMENTS — 108.2%          
(Cost $338,991,334)       $184,913,917 

 

Percentages are based on Net Assets of $170,965,001.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $9,973,544.
(B)These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $11,557,783.

 

GBP — British Pound Sterling

  

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $169,501,333   $   $   $169,501,333 
Repurchase Agreements       11,557,783        11,557,783 
Time Deposits       3,854,801        3,854,801 
Total Investments in Securities  $169,501,333   $15,412,584   $   $184,913,917 

  

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

  

9
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Gold Explorers 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 7 in the Notes to Financial Statements for more detailed information.

 

 

   Shares/Face
Amount
   Value 
COMMON STOCK — 99.5%          
AUSTRALIA— 3.6%          
Basic Materials — 3.6%          
Gryphon Minerals *   13,240,434   $1,000,895 
CANADA— 95.9%          
Basic Materials — 95.9%          
Asanko Gold * (A)   921,607    1,389,624 
Atac Resources *   2,086,343    888,239 
B2Gold *   956,672    1,595,231 
Chesapeake Gold *   696,126    1,358,355 
Continental Gold * (A)   635,162    1,064,753 
Exeter Resource *   2,985,298    1,716,546 
Gold Canyon Resources * (A) (B)   7,658,908    1,052,934 
Guyana Goldfields * (A)   833,125    1,699,577 
International Tower Hill Mines *   3,139,724    1,098,903 
Kaminak Gold, Cl A *   2,443,188    1,321,872 
Lydian International, Cl A * (A)   1,953,460    952,950 
Newstrike Capital *   2,458,899    2,071,892 
Novagold Resources *   646,458    1,596,751 
Paramount Gold and Silver * (A)   2,382,421    1,596,222 
Pretium Resources * (A)   298,570    1,366,465 
Rubicon Minerals * (A)   166,895    140,627 
Rubicon Minerals ^ *   1,333,401    1,136,058 
Sabina Gold & Silver * (A)   2,922,488    959,085 
Seabridge Gold *   263,525    1,686,560 
Torex Gold Resources *   1,758,989    1,872,178 
TOTAL CANADA        26,564,822 
TOTAL COMMON STOCK          
(Cost $59,096,782)        27,565,717 
           
REPURCHASE AGREEMENT — 13.9%          
           
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$3,861,478 (collateralized by U.S. Treasury Notes, par value $4,035,983,
1.125%, 12/31/19 with a total market value of $3,922,786)(C)
          
(Cost $3,861,446)  $3,861,446    3,861,446 

 

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

 

10
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Gold Explorers ETF

  

   Face Amount(1)   Value 
TIME DEPOSITS — 0.4%        
          
Brown Brothers Harriman          
0.030%, 11/03/14   124,179   $124,179 
0.005%, 11/03/14, HKD   2     
TOTAL TIME DEPOSITS          
(Cost $124,179)        124,179 
TOTAL INVESTMENTS — 113.8%          
(Cost $63,082,407)       $31,551,342 

 

Percentages are based on Net Assets of $27,714,015.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $2,993,071.
(B)Affiliated investment (see Note 3).
(C)These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $3,861,446.
^Traded on U.S. Stock Exchange.

 

Amounts designated as “—“ are $0 or have been rounded to $0.

 

Cl — Class

HKD — Hong Kong Dollar

  

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $27,565,717   $   $   $27,565,717 
Repurchase Agreement       3,861,446        3,861,446 
Time Deposits       124,179        124,179 
Total Investments in Securities  $27,565,717   $3,985,625   $   $31,551,342 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

  

11
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Copper Miners 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.8%          
AUSTRALIA— 16.4%          
Basic Materials — 16.4%          
Cudeco * (A)   497,035   $605,096 
OZ Minerals   369,749    1,257,783 
PanAust   836,777    1,257,747 
Sandfire Resources   265,246    1,307,974 
TOTAL AUSTRALIA        4,428,600 
CANADA— 39.4%          
Basic Materials — 39.4%          
Capstone Mining *   699,597    1,309,282 
Copper Mountain Mining ^ *   12,300    22,509 
Copper Mountain Mining *   402,388    745,923 
First Quantum Minerals   78,447    1,182,845 
HudBay Minerals, Cl B   177,529    1,358,885 
Imperial Metals * (A)   143,469    1,212,701 
Lundin Mining *   293,022    1,307,287 
Taseko Mines *   699,071    922,774 
Teck Resources, Cl B (A)   81,654    1,289,865 
Turquoise Hill Resources *   390,852    1,309,354 
TOTAL CANADA        10,661,425 
CHINA— 5.0%          
Basic Materials — 5.0%          
Jiangxi Copper, Cl H   768,714    1,365,906 
MEXICO— 5.0%          
Basic Materials — 5.0%          
Grupo Mexico, Cl B   392,914    1,350,716 
PERU— 5.0%          
Basic Materials — 5.0%          
Southern Copper   46,664    1,342,990 
POLAND— 4.8%          
Basic Materials — 4.8%          
KGHM Polska Miedz   33,499    1,294,094 

 

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

 

12
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Copper Miners ETF

 

   Shares/Face
Amount(1)
   Value 
COMMON STOCK — continued          
SWITZERLAND— 4.7%          
Basic Materials — 4.7%          
Glencore   247,770   $1,268,064 
TURKEY— 1.1%          
Basic Materials — 1.1%          
Park Elektrik Uretim Madencilik Sanayi ve Ticaret   174,431    314,262 
UNITED KINGDOM— 13.9%          
Basic Materials — 13.9%          
Antofagasta   116,543    1,309,818 
KAZ Minerals   315,387    1,161,522 
Vedanta Resources   99,327    1,306,223 
TOTAL UNITED KINGDOM        3,777,563 
UNITED STATES— 4.5%          
Basic Materials — 4.5%          
Freeport-McMoRan Copper & Gold   42,977    1,224,844 
TOTAL COMMON STOCK          
(Cost $37,529,085)        27,028,464 
           
REPURCHASE AGREEMENT — 5.1%          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,367,072 (collateralized by U.S. Treasury Notes, par value $1,428,852,
1.125%, 12/31/19 with a total market value of $1,388,777)(B)
          
(Cost $1,367,061)   1,367,061    1,367,061 
TIME DEPOSITS — 0.1%          
Brown Brothers Harriman          
0.030%, 11/03/14   21,868    21,868 
1.799%, 11/03/14, AUD   21    18 
0.337%, 11/03/14, CAD   1    1 
0.005%, 11/03/14, HKD   1     
TOTAL TIME DEPOSITS          
(Cost $21,887)        21,887 
           
TOTAL INVESTMENTS — 105.0%          
(Cost $38,918,033)       $28,417,412 

 

Percentages are based on Net Assets of $27,052,765.

 

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

 

13
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Copper Miners ETF

 

* Non-income producing security.
(1) In U.S. Dollars unless otherwise indicated.
(A) This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $1,305,370.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $1,367,061.
^ Traded on U.S. Stock Exchange.

 

Amounts designated as “—“ are $0 or have been rounded to $0.

 

AUD — Australian Dollar
CAD — Canadian Dollar
Cl — Class
HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $27,028,464   $   $   $27,028,464 
Repurchase Agreement       1,367,061        1,367,061 
Time Deposits       21,887        21,887 
Total Investments in Securities  $27,028,464   $1,388,948   $   $28,417,412 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

14
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Uranium 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.9%          
AUSTRALIA— 17.0%          
Basic Materials — 17.0%          
Bannerman Resources * (A)   24,413,568   $1,137,352 
Berkeley Resources * (A)   11,908,173    2,564,476 
Energy Resources of Australia *   10,955,362    12,374,207 
Greenland Minerals & Energy * (A) (B)   52,006,205    3,428,498 
Paladin Energy * (B)   37,339,313    10,666,875 
Silex Systems * (A) (B)   11,645,735    5,937,210 
TOTAL AUSTRALIA        36,108,618 
CANADA— 65.4%          
Basic Materials — 65.4%          
Cameco (B)   3,047,425    52,896,454 
Denison Mines * (A) (B)   26,697,187    25,100,020 
Energy Fuels * (A) (B)   1,653,724    9,988,789 
Fission 3.0 * (A)   13,408,055    1,010,852 
Fission Uranium * (B)   11,573,901    8,212,445 
Laramide Resources * (A)   7,242,264    2,248,253 
Mega Uranium * (A)   25,740,956    2,739,735 
UEX * (A) (B)   18,568,291    4,611,399 
Uranium Participation * (A) (B)   7,153,981    32,107,095 
TOTAL CANADA        138,915,042 
FRANCE— 3.5%          
Utilities — 3.5%          
Areva *   558,593    7,505,995 
UNITED STATES— 14.0%          
Basic Materials — 14.0%          
Centrus Energy, Cl A *   42,294    262,223 
Uranerz Energy * (A)   8,270,584    7,774,349 
Uranium Energy * (A) (B)   7,974,917    9,171,155 
Uranium Resources * (A)   2,567,322    4,030,695 
Ur-Energy * (A) (B)   10,457,913    8,366,330 
TOTAL UNITED STATES        29,604,752 

 

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

 

15
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Uranium ETF

 

   Face
Amount(1)/Number
of Warrants
   Value 
COMMON STOCK — continued          
TOTAL COMMON STOCK          
(Cost $321,344,818)       $212,134,407 
           
REPURCHASE AGREEMENTS — 12.3%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$25,000,167 (collateralized by U.S. Treasury Obligations, ranging in par
value $82,470-$3,263,448, 0.250%-4.875%, 11/15/14-05/15/22 with a total
market value of $25,360,142)(C)
   25,000,000    25,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,022,456 (collateralized by U.S. Treasury Notes, par value $1,068,662,
1.125%, 12/31/19 with a total market value of $1,038,689)(C)
   1,022,447    1,022,447 
TOTAL REPURCHASE AGREEMENTS          
(Cost $26,022,447)        26,022,447 
           
TIME DEPOSITS — 0.1%          
Brown Brothers Harriman          
0.030%, 11/03/14   236,422    236,422 
1.799%, 11/03/14, AUD   286    252 
0.337%, 11/03/14, CAD   17    15 
0.091%, 11/03/14, GBP   5    8 
TOTAL TIME DEPOSITS          
(Cost $236,697)        236,697 
           
WARRANTS — 0.0%          
Australia — 0.0%          
Greenland Minerals & Energy *(A)   655,000    8,636 
TOTAL WARRANTS          
(Cost $0)        8,636 
TOTAL INVESTMENTS — 112.3%          
(Cost $347,603,962)       $238,402,187 

 

Percentages are based on Net Assets of $212,356,612.

 

* Non-income producing security.
(1) In U.S. Dollars unless otherwise indicated.
(A) Affiliated investment (see Note 3).
(B) This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $22,806,229.
(C) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $26,022,447.

 

AUD — Australian Dollar
CAD — Canadian Dollar
Cl — Class
GBP — British Pound Sterling

 

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

 

16
 

 

  

 

Schedule of Investments October 31, 2014

 

Global X Uranium ETF

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $212,134,407   $   $   $212,134,407 
Repurchase Agreements       26,022,447        26,022,447 
Time Deposits       236,697        236,697 
Warrants       8,636        8,636 
Total Investments in Securities  $212,134,407   $26,267,780   $   $238,402,187 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

  

17
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Lithium 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.7%          
AUSTRALIA— 2.7%          
Basic Materials — 2.7%          
Galaxy Resources *   4,853,772   $162,125 
Orocobre *   501,493    1,207,822 
TOTAL AUSTRALIA        1,369,947 
CANADA— 0.3%          
Basic Materials — 0.3%          
Avalon Rare Metals * (A)   498,107    110,450 
RB Energy * (A)(C)(D)   809,122    7,177 
Western Lithium USA *   55,160    38,650 
TOTAL CANADA        156,277 
CHILE— 8.5%          
Basic Materials — 8.5%          
Sociedad Quimica y Minera de Chile ADR   180,181    4,275,695 
CHINA— 4.7%          
Industrials — 4.7%          
BYD, Cl H   369,500    2,344,156 
FRANCE— 4.6%          
Industrials — 4.6%          
Blue Solutions *   3,163    116,510 
Saft Groupe   74,544    2,213,485 
TOTAL FRANCE        2,329,995 
HONG KONG— 6.3%          
Consumer Goods — 5.3%          
FDG Electric Vehicles *(C)(D)   41,788,900    2,694,250 
Industrials — 1.0%          
Coslight Technology International Group *   813,473    523,421 
TOTAL HONG KONG        3,217,671 

 

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

 

18
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Lithium ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
JAPAN— 9.7%          
Industrials — 9.7%          
GS Yuasa   485,094   $2,358,291 
Panasonic   218,900    2,548,187 
TOTAL JAPAN        4,906,478 
SOUTH KOREA— 9.6%          
Basic Materials — 4.1%          
LG Chemical   11,007    2,059,828 
Industrials — 5.5%          
Samsung SDI   23,432    2,762,561 
TOTAL SOUTH KOREA        4,822,389 
TAIWAN— 9.7%          
Industrials — 9.7%          
Advanced Lithium Electrochemistry Cayman *   126,000    189,726 
Changs Ascending Enterprise *   219,917    325,358 
Dynapack International Technology   820,100    1,995,213 
Simplo Technology   489,900    2,383,746 
TOTAL TAIWAN        4,894,043 
UNITED STATES— 43.6%          
Basic Materials — 33.0%          
Avalon Rare Metals * (A)   226,867    54,448 
FMC   150,389    8,624,809 
Rockwood Holdings   103,649    7,971,645 
         16,650,902 
Consumer Goods — 4.9%          
Tesla Motors *   10,200    2,465,340 
Industrials — 5.7%          
Johnson Controls   56,684    2,678,319 
Ultralife *   65,940    209,030 
         2,887,349 
TOTAL UNITED STATES        22,003,591 
TOTAL COMMON STOCK          
(Cost $51,065,911)        50,320,242 
           
REPURCHASE AGREEMENT — 0.5%          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$234,869 (collateralized by U.S. Treasury Notes, par value $245,483,
1.125%, 12/31/19 with a total market value of $238,598)(B)
          
(Cost $234,867)  $234,867    234,867 

 

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

 

19
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Lithium ETF

 

  

Face Amount(1)

   Value 
TIME DEPOSITS — 0.1%          
Brown Brothers Harriman          
1.799%, 11/03/14, AUD   3   $3 
0.337%, 11/03/14, CAD   5,893    5,227 
0.110%, 11/03/14, EUR   21,754    27,255 
0.005%, 11/03/14, HKD   1     
0.005%, 11/03/14, JPY   1     
TOTAL TIME DEPOSITS          
(Cost $32,485)        32,485 
TOTAL INVESTMENTS — 100.3%          
(Cost $51,333,263)       $50,587,594 

 

Percentages are based on Net Assets of $50,389,223.

 

* Non-income producing security.
(1) In U.S. Dollars unless otherwise indicated.
(A) This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $105,504.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $234,867.
(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, 2014 was $2,701,427 and represents 5.4% of Net Assets.
(D) Security considered illiquid. The total value of such security as of October 31, 2014 was $2,701,427 and represented 5.4% of Net Assets.

 

Amounts designated as “—“ are $0 or have been rounded to $0.

ADR — American Depositary Receipt

AUD — Australian Dollar

CAD — Canadian Dollar

Cl — Class

EUR — Euro

HKD — Hong Kong Dollar

JPY — Japanese Yen

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $47,618,815   $   $2,701,427   $50,320,242 
Repurchase Agreement       234,867        234,867 
Time Deposits       32,485        32,485 
Total Investments in Securities  $47,618,815   $267,352   $2,701,427   $50,587,594 

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

  

   Investments in 
   Common Stock 
Beginning Balance as of October 31, 2013  $- 
Transfers into Level 3   2,701,427 
Ending Balance as of October 31, 2014  $2,701,427 

 

For the year ended October 31, 2014, the transfers in and out of Level 3 were due to changes in the availability of observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

Net change in unrealized appreciation/(depreciation) from investments (Level 3) still held as of October 31, 2014 is $0.

 

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

  

20
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Fertilizers/Potash ETF

 

Sector Weightings (unaudited)†:

 

  

† Sector weightings percentages are based on the total market value of investments.

  

   Shares   Value 
COMMON STOCK — 99.8%          
AUSTRALIA— 10.7%          
Basic Materials — 10.7%          
Incitec Pivot   311,805   $797,560 
Nufarm   204,901    891,532 
TOTAL AUSTRALIA        1,689,092 
CANADA— 10.5%          
Basic Materials — 10.5%          
Agrium   282    27,581 
Agrium ^   8,713    852,306 
Potash Corp of Saskatchewan   22,461    767,492 
TOTAL CANADA        1,647,379 
CHILE— 4.4%          
Basic Materials — 4.4%          
Sociedad Quimica y Minera de Chile ADR   29,305    695,408 
CHINA— 7.7%          
Basic Materials — 7.7%          
China BlueChemical   1,517,716    538,183 
Sinofert Holdings   4,414,885    671,751 
TOTAL CHINA        1,209,934 
GERMANY— 4.1%          
Basic Materials — 4.1%          
K+S   22,825    636,721 
ISRAEL— 8.1%          
Basic Materials — 8.1%          
Israel Chemicals   90,971    612,390 
The Israel Corp *   1,348    661,115 
TOTAL ISRAEL        1,273,505 
NETHERLANDS— 4.6%          
Industrials — 4.6%          
OCI *   20,905    727,871 

 

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

 

21
 

  

 

 

Schedule of Investments October 31, 2014

 

Global X Fertilizers/Potash ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
NORWAY— 5.0%          
Basic Materials — 5.0%          
Yara International   17,199   $788,999 
RUSSIA— 4.0%          
Basic Materials — 4.0%          
Uralkali GDR   35,106    627,344 
SOUTH KOREA— 2.5%          
Basic Materials — 2.5%          
Namhae Chemical   50,448    398,399 
SWITZERLAND— 4.1%          
Basic Materials — 4.1%          
Syngenta   2,089    646,375 
TAIWAN— 4.6%          
Basic Materials — 4.6%          
Taiwan Fertilizer   410,982    728,287 
TURKEY— 4.7%          
Basic Materials — 4.7%          
Bagfas Bandirma Gubre Fabrik   61,955    348,814 
Gubre Fabrikalari   208,988    396,289 
TOTAL TURKEY        745,103 
UNITED STATES— 24.8%          
Basic Materials — 24.8%          
CF Industries Holdings   3,416    888,160 
Intrepid Potash *   48,319    649,890 
Mosaic   16,702    740,066 
Scotts Miracle-Gro, Cl A   13,912    824,147 
Terra Nitrogen   5,727    809,340 
TOTAL UNITED STATES        3,911,603 
TOTAL COMMON STOCK          
(Cost $21,715,195)        15,726,020 
           
TIME DEPOSITS — 0.1%          
Brown Brothers Harriman          
0.030%, 11/03/14   19,179    19,179 
1.799%, 11/03/14, AUD   8    7 
0.005%, 11/03/14, HKD   1     
TOTAL TIME DEPOSITS          
(Cost $19,186)        19,186 
TOTAL INVESTMENTS — 99.9%          
(Cost $21,734,381)       $15,745,206 

 

Percentages are based on Net Assets of $15,761,064.

 

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

 

22
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Fertilizers/Potash ETF

 

* Non-income producing security.
^ Traded on U.S. Stock Exchange.
(1) In U.S. Dollars unless otherwise indicated.

 

Amounts designated as “—“ are $0 or have been rounded to $0.

 

ADR — American Depositary Receipt

AUD — Australian Dollar

Cl — Class

GDR — Global Depositary Receipt

HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $15,726,020   $   $   $15,726,020 
Time Deposits       19,186        19,186 
Total Investments in Securities  $15,726,020   $19,186   $   $15,745,206 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

23
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Junior Miners ETF

 

Sector Weightings (unaudited)†:

  

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.7%          
AUSTRALIA— 18.9%          
Basic Materials — 18.9%          
Arrium   124,307   $36,604 
Atlas Iron   63,604    18,729 
Beadell Resources *   63,277    14,183 
Evolution Mining   39,072    20,607 
Independence Group   18,126    72,334 
Jacana Minerals *(A)(B)   2,200    194 
Lynas *   192,403    11,162 
Medusa Mining   16,602    8,683 
Mineral Resources   10,960    81,887 
Mount Gibson Iron   57,369    22,692 
Northern Star Resources   47,559    45,985 
OceanaGold *   20,470    35,986 
OZ Minerals   25,900    88,105 
Paladin Energy *   55,505    15,856 
PanAust   42,089    63,263 
Regis Resources *   25,100    30,447 
Resolute Mining *   52,795    14,850 
Sandfire Resources   7,613    37,541 
Silver Lake Resources *   36,693    8,870 
Sirius Resources NL *   21,000    57,223 
Sundance Resources *   219,096    11,940 
Syrah Resources *   7,336    23,794 
Western Areas   15,550    59,321 
Whitehaven Coal *   53,600    71,378 
TOTAL AUSTRALIA        851,634 
BELGIUM— 1.3%          
Basic Materials — 1.3%          
Nyrstar   16,707    56,308 
BERMUDA— 2.2%          
Basic Materials — 2.2%          
Petra Diamonds *   37,700    100,122 

 

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

 

24
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Junior Miners ETF

 

   Shares   Value 
COMMON STOCK — continued          
BRAZIL— 0.0%          
Basic Materials — 0.0%          
MMX Mineracao e Metalicos *   4,425   $757 
CANADA— 39.7%          
Basic Materials — 39.7%          
African Barrick Gold   12,400    40,866 
Alamos Gold   11,042    82,366 
Argonaut Gold *   13,028    27,733 
AuRico Gold   21,497    69,005 
B2Gold *   72,349    120,640 
Capstone Mining *   29,634    55,459 
Centerra Gold   13,841    54,016 
China Gold International Resources *   20,947    40,131 
Continental Gold *   9,023    15,126 
Denison Mines *   37,716    35,460 
Detour Gold *   13,637    79,830 
Dominion Diamond *   6,911    96,666 
Dundee Precious Metals *   7,679    21,863 
Endeavour Silver *   8,658    26,320 
Fission Uranium *   29,845    21,177 
Fortuna Silver Mines *   10,957    37,902 
HudBay Minerals, Cl B   16,852    128,993 
IAMGOLD   5,313    10,085 
IAMGOLD ^   27,111    51,240 
Ivanhoe Mines, Cl A *   44,558    33,593 
Lake Shore Gold *   36,405    26,478 
MAG Silver *   5,212    31,343 
Nevsun Resources   2,788    9,422 
Nevsun Resources^   14,224    48,219 
Novagold Resources *   20,147    49,763 
Pan American Silver   13,025    120,221 
Premier Gold Mines *   12,609    20,242 
Primero Mining *   13,809    47,155 
Rio Alto Mining *   13,943    29,557 
Rubicon Minerals *   3,930    3,311 
Rubicon Minerals ^ *   26,241    22,357 
Sandstorm Gold *   1,240    3,563 
Sandstorm Gold ^ *   8,634    24,952 
Seabridge Gold *   3,537    22,637 
SEMAFO   23,878    58,242 
Sherritt International   24,492    60,825 
Silver Standard Resources *   6,999    30,586 

 

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

 

25
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Junior Miners ETF

 

   Shares   Value 
COMMON STOCK — continued          
Basic Materials — continued          
Silvercorp Metals   14,218   $17,062 
Taseko Mines *   16,441    21,702 
Thompson Creek Metals *   11,643    22,005 
Torex Gold Resources *   62,634    66,664 
TOTAL CANADA        1,784,777 
CHINA— 0.8%          
Basic Materials — 0.8%          
Zhaojin Mining Industry   70,600    37,507 
EGYPT— 1.6%          
Basic Materials — 1.6%          
Centamin   89,262    73,116 
HONG KONG— 1.8%          
Basic Materials — 0.7%          
China Precious Metal Resources Holdings *   295,800    31,276 
Energy — 1.1%          
Shougang Fushan Resources Group   222,936    50,307 
TOTAL HONG KONG        81,583 
INDONESIA— 0.5%          
Basic Materials — 0.5%          
Aneka Tambang Persero   286,647    23,008 
IRELAND— 0.6%          
Basic Materials — 0.6%          
Kenmare Resources *   230,419    25,325 
JAPAN— 3.4%          
Basic Materials — 3.4%          
Pacific Metals   12,065    37,130 
Toho Zinc   10,947    36,423 
UACJ   21,562    77,320 
TOTAL JAPAN        150,873 
PERU— 0.5%          
Basic Materials — 0.5%          
Hochschild Mining   14,500    22,954 
RUSSIA— 0.2%          
Basic Materials — 0.2%          
Raspadskaya *   20,351    8,233 

 

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

 

26
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Junior Miners ETF

 

   Shares   Value 
COMMON STOCK — continued          
SOUTH AFRICA— 4.9%          
Basic Materials — 4.9%          
Harmony Gold Mining ADR   20,743   $33,604 
Northam Platinum *   19,917    61,245 
Sibanye Gold ADR   17,203    126,442 
TOTAL SOUTH AFRICA        221,291 
TURKEY— 0.7%          
Basic Materials — 0.7%          
Koza Altin Isletmeleri   3,600    23,268 
Park Elektrik Uretim Madencilik Sanayi ve Ticaret   4,400    7,927 
TOTAL TURKEY        31,195 
UNITED KINGDOM— 2.4%          
Basic Materials — 2.4%          
African Minerals *   20,633    4,951 
Ferrexpo   25,315    34,081 
KAZ Minerals   18,800    69,238 
TOTAL UNITED KINGDOM        108,270 
UNITED STATES— 20.2%          
Basic Materials — 20.2%          
Alacer Gold   19,944    33,079 
Allied Nevada Gold *   8,242    11,456 
Alpha Natural Resources *   18,790    36,828 
Arch Coal   18,385    39,711 
Century Aluminum *   4,431    129,740 
Cloud Peak Energy *   5,242    62,747 
Coeur d'Alene Mines *   8,945    33,097 
First Majestic Silver *   9,807    50,310 
Gold Resource   3,945    15,346 
Hecla Mining   29,624    64,580 
McEwen Mining *   19,321    23,958 
Molycorp *   16,128    22,257 
RTI International Metals *   2,618    61,654 
Stillwater Mining *   10,268    134,819 
SunCoke Energy *   5,869    140,269 
Westmoreland Coal *   1,370    50,101 
TOTAL UNITED STATES        909,952 
TOTAL COMMON STOCK          
(Cost $6,967,359)        4,486,905 

 

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

 

27
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Junior Miners ETF

 

  

Face Amount(1)

   Value 
TIME DEPOSITS — 0.5%          
Brown Brothers Harriman          
0.030%, 11/03/14   22,076   $22,076 
1.799%, 11/03/14, AUD   1    1 
TOTAL TIME DEPOSITS          
(Cost $22,077)        22,077 
TOTAL INVESTMENTS — 100.2%          
(Cost $6,989,436)       $4,508,982 

 

Percentages are based on Net Assets of $4,498,744.

 

* Non-income producing security.
^ Traded on U.S. Stock Exchange.
(1) In U.S. Dollars unless otherwise indicated.
(A) 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, 2014 was $194 and represents 0.0% of Net Assets.
(B) Security considered illiquid. The total value of such security as of October 31, 2014 was $194 and represented 0.0% of Net Assets.

 

Amounts designated as “—“ are $0 or have been rounded to $0.

ADR — American Depositary Receipt

AUD — Australian Dollar

Cl — Class

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

 

Investments in Securities  Level 1   Level 2  

Level 3(a)

   Total 
Common Stock  $4,478,478   $8,233   $194   $4,486,905 
Time Deposits       22,077        22,077 
Total Investments in Securities  $4,478,478   $30,310   $194   $4,508,982 

 

(a)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, 2014 the transfers in and out of Level 3 were due to changes in the availability of observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

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

 

28
 

 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X Silver
Miners ETF
   Global X Gold
Explorers ETF
   Global X Copper
Miners ETF
   Global X Uranium
ETF
 
Assets:                    
Cost of Investments  $327,433,551   $55,730,948   $37,550,972   $134,747,000 
Cost of Repurchase Agreements   11,557,783    3,861,446    1,367,061    26,022,447 
Cost of Affiliated Investments       3,490,013        186,834,515 
Cost of Foreign Currency           3     
Investments, at Value  $173,356,134*  $26,636,962*  $27,050,351*  $92,154,896*
Repurchase Agreement, at Value   11,557,783    3,861,446    1,367,061    26,022,447 
Affiliated Investments, at Value       1,052,934        120,224,844 
Foreign Currency, at Value           3     
Cash       25,851 (1)       13,464 (1)
Receivable for Investment Securities Sold   9,019,905        1,365,028     
Receivable for Fund Shares Sold   177,508            59,287 
Dividend and Interest Receivable   5,657    43,154    42,678    104,953 
Unrealized Appreciation on Spot Contracts           175     
Reclaim Receivable           21,496     
Total Assets   194,116,987    31,620,347    29,846,792    238,579,891 
                     
Liabilities:                    
Obligation to Return Securities Lending Collateral   11,557,783    3,887,297    1,367,061    26,035,911 
Payable for Investment Securities Purchased   10,174,703        1,411,321    59,287 
Payable for Capital Shares Redeemed   1,308,453             
Payable due to Investment Adviser   107,712    19,035    15,503    128,081 
Unrealized Depreciation on Spot Contracts   3,335        142     
Total Liabilities   23,151,986    3,906,332    2,794,027    26,223,279 
Net Assets  $170,965,001   $27,714,015   $27,052,765   $212,356,612 
Net Assets Consist of:                    
Paid-in Capital  $464,563,650   $89,606,750   $48,418,512   $533,907,784 
Undistributed (Distributions in Excess of) Net Investment Income/(Accumulated Net Investment Loss)   (55,245)   (6,566)   263,104    8,946,170 
Accumulated Net Realized Loss on Investments   (139,458,887)   (30,355,104)   (11,136,783)   (221,295,568)
Net Unrealized Depreciation on Investments   (154,077,417)   (31,531,065)   (10,500,621)   (109,201,775)
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   (7,100)       8,553    1 
Net Assets  $170,965,001   $27,714,015   $27,052,765   $212,356,612 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   19,600,000    2,874,758    3,250,000    18,265,071 
                     
Net Asset Value, Offering and Redemption Price Per Share  $8.72   $9.64   $8.32   $11.63 
*Includes Market Value of Securities on Loan  $9,973,544   $2,993,071   $1,305,370   $22,806,229 

 

(1) Cash is restricted, received from securities on loan. (See Note 7 in Notes to Financial Statements.)

 

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

 

29
 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X Lithium
ETF
   Global X
Fertilizers/Potash
ETF
   Global X Junior
Miners ETF
 
Assets:               
Cost of Investments  $51,098,396   $21,734,381   $6,989,436 
Cost of Repurchase Agreement   234,867         
Cost of Foreign Currency   946,254         
Investments, at Value  $50,352,727*  $15,745,206   $4,508,982 
Repurchase Agreement, at Value   234,867         
Foreign Currency, at Value   951,278         
Cash   25,096(1)        
Receivable for Investment Securities Sold   5,711,196         
Dividend and Interest Receivable   26,936    15,136    1,584 
Unrealized Appreciation on Spot Contracts   19         
Due From Broker       1,146     
Reclaim Receivable       22,326    982 
Total Assets   57,302,119    15,783,814    4,511,548 
                
Liabilities:               
Payable for Investment Securities Purchased   5,703,426    13,173    5,559 
Cash Overdraft   844,895         
Obligation to Return Securities Lending Collateral   259,963         
Payable for Fund Shares Redeemed   72,113         
Payable due to Investment Adviser   32,443    9,556    2,910 
Due To Broker           4,326 
Unrealized Depreciation on Spot Contracts   56    21    9 
Total Liabilities   6,912,896    22,750    12,804 
Net Assets  $50,389,223   $15,761,064   $4,498,744 
Net Assets Consist of:               
Paid-in Capital  $102,817,437   $23,890,803   $10,218,961 
Undistributed Net Investment Income/Accumulated Net Investment Loss   289,051    305,048    (2,782)
Accumulated Net Realized Loss on Investments   (51,971,515)   (2,444,190)   (3,237,043)
Net Unrealized  Depreciation on Investments   (745,669)   (5,989,175)   (2,480,454)
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   (81)   (1,422)   62 
Net Assets  $50,389,223   $15,761,064   $4,498,744 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   4,200,000    1,450,000    383,201 
                
Net Asset Value, Offering and Redemption Price Per Share  $12.00   $10.87   $11.74 
*Includes Market Value of Securities on Loan  $105,504   $   $ 

 

(1)Cash is restricted, received from securities on loan. (See Note 7 in Notes to Financial Statements.)

 

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

 

30
 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X Silver
Miners ETF
   Global X Gold
Explorers ETF
   Global X
Copper Miners
ETF
   Global X
Uranium ETF
 
Investment Income:                    
Dividend Income  $2,059,929   $   $725,956   $898,967 
Interest Income   403    25    23    401 
Security Lending Income   144,806    267,811    21,974    1,284,830 
Less: Foreign Taxes Withheld   (161,707)       (14,965)   (134,845)
Total Investment Income   2,043,431    267,836    732,988    2,049,353 
Supervision and Administration Fees(1)   1,484,428    258,158    212,913    1,423,482 
Total Expenses   1,484,428    258,158    212,913    1,423,482 
Net Investment Income   559,003    9,678    520,075    625,871 
Net Realized Loss on:                    
Investments (2)   (57,287,436)   (5,546,943)   (4,417,749)   (3,539,473)
Affiliated Investments (2)       (1,439,548)       (11,919,253)
Foreign Currency Transactions   (75,860)   (6,768)   (26,019)   (118,150)
Net Realized Loss on Investments, Affiliated Investments and Foreign Currency Transactions   (57,363,296)   (6,993,259)   (4,443,768)   (15,576,876)
Net Change in Unrealized Appreciation (Depreciation) on:                    
Investments   (23,882,526)   (5,547,128)   (645,170)   (13,583,687)
Affiliated Investments       (473,177)       (39,707,845)
Foreign Currency Translations   3,170    (26)   13,337    7 
Net Change in Unrealized Depreciation on Investments, Affiliated Investments and Foreign Currency Translations   (23,879,356)   (6,020,331)   (631,833)   (53,291,525)
Net Realized and Unrealized Loss on Investments, Affiliated Investments and Foreign Currency Transactions and Translations   (81,242,652)   (13,013,590)   (5,075,601)   (68,868,401)
Net Decrease in Net Assets Resulting from Operations  $(80,683,649)  $(13,003,912)  $(4,555,526)  $(68,242,530)

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  
(2) Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)

 

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

 

31
 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X
Lithium ETF
   Global X
Fertilizers/Potash
ETF
   Global X Junior
Miners ETF
 
Investment Income:               
Dividend Income  $957,541   $580,990   $70,602 
Interest Income   65    16    3 
Security Lending Income   27,212         
Less: Foreign Taxes Withheld   (155,566)   (60,238)   (7,393)
Total Investment Income   829,252    520,768    63,212 
Supervision and Administration Fees(1)   414,670    134,650    38,507 
Total Expenses   414,670    134,650    38,507 
Net Investment Income   414,582    386,118    24,705 
Net Realized Gain (Loss) on:               
Investments (2)   (9,618,316)   (928,101)   (457,212)
Foreign Currency Transactions   817    1,856    485 
Net Realized Loss on Investments and Foreign Currency Transactions   (9,617,499)   (926,245)   (456,727)
Net Change in Unrealized Appreciation (Depreciation) on:               
Investments   4,635,225    (640,541)   (1,428,533)
Foreign Currency Translations   (2,565)   (2,080)   20 
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   4,632,660    (642,621)   (1,428,513)
Net Realized and Unrealized Loss on Investments and Foreign Currency Transactions and Translations   (4,984,839)   (1,568,866)   (1,885,240)
Net Decrease in Net Assets Resulting from Operations  $(4,570,257)  $(1,182,748)  $(1,860,535)

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  
(2) Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)

 

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

 

32
 

 

 

Statements of Changes in Net Assets

 

   Global X Silver Miners ETF   Global X Gold Explorers ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income (Loss)  $559,003   $1,799,528   $9,678   $(219,006)
Net Realized Loss on Investments, Affiliated Investments and Foreign Currency Transactions(1)   (57,363,296)   (52,723,423)   (6,993,259)   (14,771,461)
Net Change in Unrealized Depreciation on Investments, Affiliated Investments and Foreign Currency Translations   (23,879,356)   (137,292,070)   (6,020,331)   (16,783,162)
Net Decrease in Net Assets Resulting from Operations   (80,683,649)   (188,215,965)   (13,003,912)   (31,773,629)
Dividends and Distributions from:                    
Net Investment Income   (1,275,569)   (3,117,053)       (1,890,494)
Total Dividends and Distributions   (1,275,569)   (3,117,053)       (1,890,494)
Capital Share Transactions:                    
Issued   50,580,032    62,405,000    16,427,825    25,777,500 
Redeemed   (15,895,569)   (38,799,000)   (7,729,518)   (1,345,123)
Increase in Net Assets from Capital Share Transactions   34,684,463    23,606,000    8,698,307    24,432,377 
Total Decrease in Net Assets   (47,274,755)   (167,727,018)   (4,305,605)   (9,231,746)
Net Assets:                    
Beginning of Year   218,239,756    385,966,774    32,019,620    41,251,366 
End of Year  $170,965,001   $218,239,756   $27,714,015   $32,019,620 
Undistributed (Distributions in Excess of) Net Investment Income/(Accumulated Net Investment Loss)  $(55,245)  $342,851   $(6,566)  $(1,387,052)
Share Transactions:                    
Issued   4,000,000    3,450,000    1,050,000    1,287,500(2)
Redeemed   (1,350,000)   (1,950,000)   (550,000)     (100,242)(2)
Net Increase in Shares Outstanding from Share Transactions   2,650,000    1,500,000    500,000    1,187,258 

 

(1) Includes realized gain (loss) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)
(2)Adjusted to reflect the effect of a 1 for 4 reverse share split on May 16, 2013. (See Note 9 in the Notes to Financial Statements.)

 

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

 

33
 

 

 

Statements of Changes in Net Assets

 

   Global X Copper Miners ETF   Global X Uranium ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $520,075   $503,553   $625,871   $679,183 
Net Realized Loss on Investments, Affiliated Investments and Foreign Currency Transactions(1)   (4,443,768)   (4,403,652)   (15,576,876)   (117,718,649)
Net Change in Unrealized Appreciation (Depreciation) on Investments, Affiliated Investments and Foreign Currency Translations   (631,833)   (2,860,215)   (53,291,525)   70,217,355 
Net Decrease in Net Assets Resulting from Operations   (4,555,526)   (6,760,314)   (68,242,530)   (46,822,111)
Dividends and Distributions from:                    
Net Investment Income   (225,417)   (1,026,703)   (734,117)   (2,536,311)
Total Dividends and Distributions   (225,417)   (1,026,703)   (734,117)   (2,536,311)
Capital Share Transactions:                    
Issued   4,282,425    13,827,500    170,458,752    33,324,000 
Redeemed   (5,276,910)   (4,253,000)   (7,996,486)   (762,848)
Increase (Decrease) in Net Assets from Capital Share Transactions   (994,485)   9,574,500    162,462,266    32,561,152 
Total Increase (Decrease) in Net Assets   (5,775,428)   1,787,483    93,485,619    (16,797,270)
Net Assets:                    
Beginning of Year   32,828,193    31,040,710    118,870,993    135,668,263 
End of Year  $27,052,765   $32,828,193   $212,356,612   $118,870,993 
Undistributed (Distributions in Excess of) Net Investment Income  $263,104   $(43,214)  $8,946,170   $15,720 
Share Transactions:                    
Issued   450,000    1,350,000    10,600,000    1,816,667(2)
Redeemed   (550,000)   (400,000)   (550,000)     (51,596)(2)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   (100,000)   950,000    10,050,000    1,765,071 

 

(1)Includes realized gain (loss) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)
(2)Adjusted to reflect the effect of a 1 for 4 reverse share split on May 16, 2013. (See Note 9 in the Notes to Financial Statements.)

 

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

 

34
 

 

 

Statements of Changes in Net Assets

 

   Global X Lithium ETF   Global X Fertilizers/Potash ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $414,582   $119,219   $386,118   $485,091 
Net Realized Loss on Investments and Foreign Currency Transactions(1)   (9,617,499)   (6,709,625)   (926,245)   (102,022)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   4,632,660    1,798,258    (642,621)   (3,832,165)
Net Decrease in Net Assets Resulting from Operations   (4,570,257)   (4,792,148)   (1,182,748)   (3,449,096)
Dividends and Distributions from:                    
Net Investment Income   (160,079)   (1,597,778)   (366,898)   (330,509)
Total Dividends and Distributions   (160,079)   (1,597,778)   (366,898)   (330,509)
Capital Share Transactions:                    
Issued   10,505,000            4,105,000 
Redeemed   (6,490,918)   (12,375,500)   (5,553,179)   (5,845,000)
Increase (Decrease) in Net Assets from Capital Share Transactions   4,014,082    (12,375,500)   (5,553,179)   (1,740,000)
Total Decrease in Net Assets   (716,254)   (18,765,426)   (7,102,825)   (5,519,605)
Net Assets:                    
Beginning of Year   51,105,477    69,870,903    22,863,889    28,383,494 
End of Year  $50,389,223   $51,105,477   $15,761,064   $22,863,889 
Undistributed (Distributions in Excess of) Net Investment Income  $289,051   $(95,185)  $305,048   $302,042 
Share Transactions:                    
Issued   750,000            350,000 
Redeemed   (500,000)   (900,000)   (500,000)   (450,000)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   250,000    (900,000)   (500,000)   (100,000)

 

(1)Includes realized gain (loss) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

35
 

 

 

Statements of Changes in Net Assets

 

   Global X Junior Miners ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:          
Net Investment Income  $24,705   $22,860 
Net Realized Loss on Investments and Foreign Currency Transactions(1)   (456,727)   (600,164)
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translations   (1,428,513)   (1,296,295)
Net Decrease in Net Assets Resulting from Operations   (1,860,535)   (1,873,599)
Dividends and Distributions from:          
Net Investment Income       (337,710)
Total Dividends and Distributions       (337,710)
Capital Share Transactions:          
Issued   2,436,603    5,786,500 
Redeemed   (1,614,086)   (748,458)
Increase in Net Assets from Capital Share Transactions   822,517    5,038,042 
Total Increase (Decrease) in Net Assets   (1,038,018)   2,826,733 
Net Assets:          
Beginning of Year   5,536,762    2,710,029 
End of Year  $4,498,744   $5,536,762 
Accumulated Net Investment Loss/Distributions in Excess of Net Investment Income  $(2,782)  $(32,081)
Share Transactions:          
Issued   150,000    300,000(2)
Redeemed   (100,000)     (50,132)(2)
Net Increase in Shares Outstanding from Share Transactions   50,000    249,868 

 

(1)Includes realized gain (loss) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)
(2)Adjusted to reflect the effect of a 1 for 3 reverse share split on May 16, 2013. (See Note 10 in the Notes to Financial Statements.)

 

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

 

36
 

 

 

Financial Highlights

 

Selected Per Share Data & Ratios

For a Share Outstanding Throughout the Period

 

   Net Asset
Value,
Beginning of
Period ($)
   Net
Investment
Income
(Loss) ($)*
   Net Realized
and
Unrealized
Gain (Loss)
on
Investments
($)
   Total from
Operations
($)
   Distribution
from Net
Investment
Income ($)
   Distribution
from
Capital
Gains ($)
   Total from
Distributions
($)
   Net Asset
Value, End
of Period
($)
   Total
Return
(%)**
   Net
Assets
End of
Period
($)(000)
   Ratio of
Expenses
to
Average
Net Assets
(%)
   Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
(%)
   Portfolio
Turnover
(%)††
 
Global X Silver Miners ETF                                                        
2014   12.88    0.03    (4.12)   (4.09)   (0.07)       (0.07)   8.72    (31.85)   170,965    0.65    0.24    24.23 
2013   24.98    0.11    (12.01)   (11.90)   (0.20)       (0.20)   12.88    (47.97)   218,240    0.65    0.67    23.79 
2012   23.66    0.13    1.23    1.36    (0.04)       (0.04)   24.98    5.76    385,967    0.65    0.62    18.13 
2011   20.20    0.04    3.66    3.70    (0.24)       (0.24)   23.66    18.20    363,106    0.65    0.16    26.50 
2010(1)   14.50    0.05    5.65    5.70                20.20    39.31    171,672    0.65   0.61   0.35 
Global X Gold Explorers ETF                                                    
2014   13.48        (3.84)   (3.84)               9.64    (28.49)   27,714    0.65    0.02    29.94 
2013(2)   34.72    (0.12)   (19.68)   (19.80)   (1.44)       (1.44)   13.48    (59.16)   32,020    0.65    (0.65)   31.73 
2012(2)   53.44    (0.24)   (17.46)   (17.70)   (1.02)       (1.02)   34.72    (33.42)   41,251    0.65    (0.65)   43.12 
2011(2)(3)   61.96    (0.42)   (8.10)   (8.52)               53.44    (13.75)   27,392    0.65   (0.65)†   29.96 
Global X Copper Miners ETF                                                    
2014   9.80    0.15    (1.56)   (1.41)   (0.07)       (0.07)   8.32    (14.49)   27,053    0.65    1.59    15.77 
2013   12.93    0.17    (2.87)   (2.70)   (0.43)       (0.43)   9.80    (21.69)   32,828    0.65    1.63    37.06 
2012   14.92    0.24    (1.32)   (1.08)   (0.57)   (0.34)   (0.91)   12.93    (7.08)   31,041    0.65    1.84    28.90 
2011   16.63    0.35    (1.97)   (1.62)   (0.09)       (0.09)   14.92    (9.85)   45,517    0.65    1.91    15.78 
2010(1)   14.40        2.23    2.23                16.63    15.49    29,929    0.65   0.06   1.36 
Global X Uranium ETF                                                    
2014   14.47    0.04    (2.80)   (2.76)   (0.08)       (0.08)   11.63    (19.18)   212,357    0.69    0.30    20.90 
2013(4)   21.03    0.09    (6.28)   (6.19)   (0.37)       (0.37)   14.47    (29.88)   118,871    0.69    0.51    73.16 
2012(4)   30.27    0.08    (9.32)   (9.24)               21.03    (30.53)   135,668    0.69    0.30    55.90 
2011(4)(5)   50.34    0.44    (19.34)   (18.90)   (1.17)       (1.17)   30.27    (38.70)   199,349    0.69   1.10   24.17 

 

(1) The Fund commenced operations on April 19, 2010.
(2) Per share amounts have been adjusted for a 1 for 4 reverse share split on May 16, 2013. For more information see Note 9 in the Notes to Financial Statements
(3) The Fund commenced operations on November 3, 2010.
(4) Per share amounts have been adjusted for a 1 for 3 reverse share split on May 16, 2013. For more information see Note 9 in the Notes to Financial Statements
(5) The Fund commenced operations on November 4, 2010.
* Per share data calculated using average shares method.
** Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund  shares.
Annualized.
†† Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

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

 

37
 

 

 

Financial Highlights

 

Selected Per Share Data & Ratios

For a Share Outstanding Throughout the Period

 

   Net Asset
Value,
Beginning of
Period ($)
   Net
Investment
Income
(Loss) ($)*
   Net Realized
and
Unrealized
Gain (Loss)
on
Investments
($)
   Total from
Operations
($)
   Distribution
from Net
Investment
Income ($)
   Distribution
from
Capital
Gains ($)
   Total from
Distributions
($)
   Net Asset
Value, End
of Period
($)
   Total
Return
(%)**
   Net
Assets
End of
Period
($)(000)
   Ratio of
Expenses
to
Average
Net Assets
(%)
   Ratio of
Net
Investment
Income
(Loss) to
Average
Net Assets
(%)
   Portfolio
Turnover
(%)††
 
Global X Lithium ETF                                                    
2014   12.94    0.10    (1.00)   (0.90)   (0.04)       (0.04)   12.00    (6.97)   50,389    0.75    0.75    43.37 
2013   14.41    0.03    (1.15)   (1.12)   (0.35)       (0.35)   12.94    (8.00)   51,105    0.75    0.21    38.46 
2012   15.90    0.21    (1.68)   (1.47)   (0.02)       (0.02)   14.41    (9.25)   69,871    0.75    1.40    28.78 
2011   19.83    (0.04)   (3.62)   (3.66)   (0.25)   (0.02)   (0.27)   15.90    (18.86)   107,301    0.75    (0.22)   24.87 
2010(2)   15.51    (0.03)   4.35    4.32                19.83    27.85    78,317    0.75   (0.62)†   5.55 
Global X Fertilizers/Potash ETF                                                    
2014   11.73    0.23    (0.90)   (0.67)   (0.19)       (0.19)   10.87    (5.79)   15,761    0.69    1.98    18.79 
2013   13.85    0.25    (2.21)   (1.96)   (0.16)       (0.16)   11.73    (14.33)   22,864    0.69    1.93    14.12 
2012   14.06    0.19    (0.29)   (0.10)   (0.09)   (0.02)   (0.11)   13.85    (0.61)   28,383    0.69    1.42    24.05 
2011(3)   15.05    0.06    (1.05)   (0.99)               14.06    (6.58)   35,160    0.69   0.90   7.55 
Global X Junior Miners ETF                                                        
2014   16.62    0.07    (4.95)   (4.88)               11.74    (29.36)   4,499    0.69    0.44    27.75 
2013(1)   32.52    0.12    (12.64)   (12.52)   (3.38)       (3.38)   16.62    (42.49)   5,537    0.69    0.60    37.23 
2012(1)   34.59    (0.18)   (1.03)   (1.21)   (0.86)       (0.86)   32.52    (3.16)   2,710    0.75    (0.57)   167.10 
2011(1)(4)   45.12    (0.20)   (10.33)   (10.53)               34.59    (23.34)   2,882    0.75   (0.77)†   28.23 

 

(1) Per share amounts have been adjusted for a 1 for 3 reverse share split on May 16, 2013. For more information see Note 9 in the Notes to Financial Statements.
(2) The Fund commenced operations on July 22, 2010.
(3) The Fund commenced operations on May 25, 2011.
(4) The Fund commenced operations on March 16, 2011.
* Per share data calculated using average shares method.
** Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund  shares.
Annualized.
†† Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

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

 

38
 

 

 

Notes to Financial Statements
October 31, 2014

 

1. ORGANIZATION

 

The Global X Funds (the “Trust”) is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of October 31, 2014, the Trust had eighty-eight portfolios, forty of which were operational. The financial statements herein and the related notes pertain to the Global X Silver Miners ETF, Global X Gold Explorers ETF, Global X Copper Miners ETF, Global X Uranium ETF, Global X Lithium ETF, Global X Fertilizers/Potash ETF and Global X Junior Miners ETF (the “Funds”). Each Fund is non-diversified.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the significant accounting policies followed by the Funds.

 

USE OF ESTIMATES – The Funds are an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.

 

SECURITY VALUATION — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).

 

For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

 

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board of Directors (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been

 

39
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

SECURITY VALUATION (continued)

 

de-listed from its primary trading exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security's last close and the time that the Funds calculate their net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC (“Adviser”) becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of October 31, 2014, there were $2,701,427 and $194 of fair valued securities in the Global X Lithium ETF and Global X Junior Miners ETF, respectively. There were no other securities priced using the Fair Value Procedures.

 

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

The three levels of the fair value hierarchy are described below:

 

Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date

 

Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Fund has the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost)

 

Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments and fair value of investments for which the Fund does not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term)

 

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For the year ended October 31, 2014, there have been no significant changes to the Funds’ fair valuation methodologies.

 

40
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

SECURITY VALUATION (concluded)

The following table summarizes the quantitative inputs and assumptions used for items categorized as material Level 3 investments as of October 31, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.

 

Global X Lithium ETF

 

Quantitative information about Level 3 fair value measurements

Assets  Fair Value at 10/31/14   Valuation Technique(s)  Unobservable Input  Discount Percentage
Range
Common Stock  $2,701,427   Discount from the Last Traded Price  Last Traded Price
Comparability Adjustment %
  9% to 87%

 

The unobservable inputs used to determine fair value of Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.

 

DUE TO/FROM BROKERS — Due to/from brokers includes cash and collateral balances with the Funds’ clearing brokers or counterparties at October 31, 2014. The Funds continuously monitor the credit standing of each broker or counterparty with whom they conduct business.  In the event a broker or counterparty is unable to fulfill its obligations, the Funds would be subject to counterparty credit risk.

 

REPURCHASE AGREEMENTS — Securities pledged as collateral for repurchase agreements are held by Citibank N.A. and are designated as being held on each Fund’s behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (included in Repurchase Agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities.

 

Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Funds.

 

41
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

At October 31, 2014, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:

 

       Fair Value of Non-cash   Cash Collateral     
   Repurchase Agreements   Collateral Received   Received   Net Amount(1) 
Global X Silver Miners ETF                    
Barclays  $10,000,000   $10,000,000   $-   $- 
Deutsche Bank   1,557,783    1,557,783    -    - 
Global X Gold Explorers ETF                    
Deutsche Bank   3,861,446    3,861,446    -    - 
Global X Copper Miners ETF                    
Deutsche Bank   1,367,061    1,367,061    -    - 
Global X Uranium ETF                    
Barclays   25,000,000    25,000,000    -    - 
Deutsche Bank   1,022,447    1,022,447         - 
Global X Lithium ETF                    
Deutsche Bank   234,867    234,867    -    - 

(1) Net Amount represents the net amount receivable due from the counterparty in the event of default.

 

FEDERAL INCOME TAXES — It is each Fund’s intention to qualify or continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements.

 

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. Management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

 

As of and during the year ended October 31, 2014, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year, the Funds did not incur any interest or penalties.

 

SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.

 

42
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (concluded)

 

FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

 

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Funds distribute their net investment income on a pro rata basis. Any net realized capital gains are distributed annually. All distributions are recorded on ex-dividend date.

 

CREATION UNITS — The Funds issue and redeem shares (“Shares”) at Net Asset Value (“NAV”) and only in large blocks of Shares (each block of Shares for a Fund is called a “Creation Unit” or multiples thereof). Purchasers of Creation Units (“Authorized Participants“) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an investor on the same day.

 

An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction to the custodian on the date of such redemption, regardless of the number of Creation Units redeemed that day.

 

If a Creation Unit is purchased or redeemed for cash, a higher transaction fee will be charged. The following table discloses Creation Unit breakdown:

 

   Creation Unit       Value at October     
   Shares   Creation Fee   31, 2014   Redemption Fee 
Global X Silver Miners ETF   50,000   $1,000   $436,000   $1,000 
Global X Gold Explorers ETF   50,000    1,000    482,000    1,000 
Global X Copper Miners ETF   50,000    1,000    416,000    1,000 
Global X Uranium ETF   50,000    1,000    581,500    1,000 
Global X Lithium ETF   50,000    1,000    600,000    1,000 
Global X Fertilizers/Potash ETF   50,000    1,000    543,500    1,000 
Global X Junior Miners ETF   50,000    1,000    587,000    1,000 

 

43
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

3. RELATED PARTY TRANSACTIONS

 

The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board of Trustees, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate Distribution Agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate Investment Advisory Agreement), under what is essentially an "all-in" fee structure. For its service to the Funds, under the Supervision and Administration Agreement, each Fund pays a monthly fee to the Adviser at the annual rate (stated as a percentage of the average daily net assets of the Fund). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions, acquired fund fees and other transaction expenses, interest expenses, and extraordinary expenses (such as litigation and indemnification expenses).

 

   Supervision and 
   Administration Fee 
Global X Silver Miners ETF   0.65%
Global X Gold Explorers ETF   0.65%
Global X Copper Miners ETF   0.65%
Global X Uranium ETF   0.69%
Global X Lithium ETF   0.75%
Global X Fertilizers/Potash ETF   0.69%
Global X Junior Miners ETF   0.69%

 

The Adviser and MCCA Lithium ETF, LLC (“MCCA”), a single purpose limited liability firm, have an agreement, pursuant to which MCCA has agreed to assist the Adviser, in its capacity as sponsor of the Global X Lithium ETF, by providing initial capital and additional financial resources to the Adviser in connection with the listing, launch and the continuing operation of the Global X Lithium Fund. In return, the Adviser has agreed to compensate MCCA for its financial assistance to the Adviser with respect to the Global X Lithium ETF by sharing with MCCA fifty percent (50%) of the Adviser’s Net Profits with respect to the Global X Lithium ETF. For this purpose, the term Net Profits means, for any calendar quarter, the total management fees received by the Adviser with respect to the Global X Lithium ETF less direct expenses, marketing expenses and overhead expenses for the Global X Lithium ETF during such quarter. In the event that there are no Net Profits with respect to the Global X Lithium ETF in any calendar quarter, MCCA shall pay fifty percent of the negative shortfall in Net Profits to the Adviser. The agreement between the parties does not contemplate that MCCA or any of its affiliates will be involved directly or indirectly in the distribution of shares of the Global X Lithium ETF.

 

SEI Investments Global Funds Services (“SEIGFS”) serves as Sub-Administrator to the Funds. As Sub-Administrator, SEIGFS provides the Funds with the required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements

 

44
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

3. RELATED PARTY TRANSACTIONS (continued)

 

and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, the Sub-Administrator receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser.

 

SEI Investments Distribution Co. (“SIDCO”) serves as each Funds’ underwriter and distributor of Shares pursuant to a Distribution Agreement. Under the Distribution Agreement, SIDCO, as agent, receives orders to create and redeem Shares in Creation Unit Aggregations and transmits such orders to the Trust’s custodian and transfer agent. The Distributor has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (i) the costs of processing and maintaining records of creations of Creation Units; (ii) all costs of maintaining the records required of a registered broker/dealer; (iii) the expenses of maintaining its registration or qualification as a dealer or broker under Federal or state laws; (iv) filing fees; and (v) all other expenses incurred in connection with the distribution services as contemplated in the Distribution Agreement. SIDCO receives no fee for its distribution services under the Distribution Agreement.

 

Brown Brothers Harriman & Co. (“BBH”), located at 40 Water Street, Boston, MA 02109, serves as Custodian of Funds’ assets. As Custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Fund, (2) collect and receive all income and other payments and distributions on account of the Fund’s portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Fund concerning the Fund’s operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As compensation for these services, the Custodian receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.

 

At October 31, 2014, Global X Gold Explorers ETF and Global X Uranium ETF own greater than 5% of the outstanding shares of the following common stocks. These investments are noted as “Affiliated Investment” in the Schedules of Investments.

 

The following is a summary of the transactions with affiliates for the year ended October 31, 2014:

 

            Changes in             
            Unrealized             
Value At   Purchases at   Proceeds   Appreciation   Realized   Value at   Dividend 
10/31/2013   Cost   from Sales   (Depreciation)   Loss   10/31/2014   Income 
Global X Gold Explorers ETF                          
Gold Canyon Resources                          
$2,457,145   $1,213,031   $(704,517)  $(473,177)  $(1,439,548)  $1,052,934   $- 
Global X Uranium ETF                          
Bannerman Resources                          
$868,809   $1,132,296   $(706,265)  $2,857,923   $(3,015,411)  $1,137,352   $- 
Berkeley Resources                          
 1,788,653    2,048,488    (709,021)   188,627    (752,271)   2,564,476    - 
Denison Mines                          
 9,913,657    26,843,613    (1,267,875)   (9,750,299)   (639,076)   25,100,020    - 
Energy Fuels                          
 4,066,327    9,100,184    (426,348)   (2,726,038)   (25,336)   9,988,789    - 

 

45
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

3. RELATED PARTY TRANSACTIONS (concluded)

 

            Changes in             
            Unrealized             
Value At   Purchases at   Proceeds   Appreciation   Realized   Value at   Dividend 
10/31/2013   Cost   from Sales   (Depreciation)   Loss   10/31/2014   Income 
Fission 3.0                               
$-   $1,791,654   $(282,790)  $(480,181)  $(17,831)  $1,010,852   $- 
Greenland Minerals & Energy                     
 7,878,640    4,809,124    (2,356,281)   (3,462,129)   (3,440,856)   3,428,498    - 
Greenland Minerals & Energy Warrant                     
 -    -    -    8,636    -    8,636    - 
Laramide Resources                     
 1,039,006    2,509,028    (136,937)   (1,071,343)   (91,501)   2,248,253    - 
Mega Uranium                          
 695,671    3,059,592    (285,781)   959,254    (1,689,001)   2,739,735    - 
Silex Systems                           
 5,464,944    8,922,736    (381,560)   (8,017,451)   (51,459)   5,937,210    - 
UEX                               
 3,969,361    5,151,446    (1,547,524)   (1,700,101)   (1,261,783)   4,611,399    - 
Uranerz Energy                          
 3,147,270    7,615,578    (520,710)   (2,200,568)   (267,221)   7,774,349    - 
Uranium Energy                          
 4,438,157    9,611,523    (374,045)   (4,353,372)   (151,108)   9,171,155    - 
Uranium Participation                          
 8,314,806    27,490,564    (1,070,072)   (2,627,251)   (952)   32,107,095    - 
Uranium Resources                          
 1,362,383    5,891,106    (169,343)   (3,010,684)   (42,767)   4,030,695    - 
Ur-Energy                           
 5,464,983    9,085,928    (1,389,033)   (4,322,868)   (472,680)   8,366,330    - 
Totals:                           
$58,412,667   $125,062,860   $(11,623,585)  $(39,707,845)  $(11,919,253)  $120,224,844   $- 

 

4. INVESTMENT TRANSACTIONS

 

For the year ended October 31, 2014, the purchases and sales of investments in securities, excluding in-kind transactions, long-term U.S. Government and short-term securities were:

 

   Purchases   Sales and Maturities 
Global X Silver Miners ETF  $54,484,368   $57,038,086 
Global X Gold Explorers ETF   11,478,809    11,613,932 
Global X Copper Miners ETF   5,572,284    5,132,154 
Global X Uranium ETF   42,870,166    42,829,944 
Global X Lithium ETF   23,701,164    23,670,550 
Global X Fertilizers/Potash ETF   3,659,841    3,978,278 
Global X Junior Miners ETF   1,560,360    1,537,167 

 

46
 

 

 

Notes to Financial Statements (continued)
October 31, 2014

 

4. INVESTMENT TRANSACTIONS (concluded)

 

For the years ended October 31, 2014, in-kind transactions associated with creations and redemptions were:

 

   Purchases   Sales and Maturities   Realized Gain 
Global X Silver Miners ETF  $50,460,864   $15,836,571   $1,273,352 
Global X Gold Explorers ETF   16,459,659    7,748,634    874,815 
Global X Copper Miners ETF   4,274,343    5,265,265    522,868 
Global X Uranium ETF   170,157,507    7,973,974    1,260,399 
Global X Lithium ETF   8,850,976    5,301,237    1,530,749 
Global X Fertilizers/Potash ETF   -    5,184,776    126,429 
Global X Junior Miners ETF   2,439,784    1,615,215    225,508 

 

For the years ended October 31, 2013, in-kind transactions associated with creations and redemptions were:

 

   Purchases   Sales and Maturities   Realized Gain (Loss) 
Global X Silver Miners ETF  $62,443,359   $38,771,921   $1,251,715 
Global X Gold Explorers ETF   25,834,037    1,349,849    155,061 
Global X Copper Miners ETF   13,814,170    4,245,214    436,241 
Global X Uranium ETF   32,740,034    732,362    81,522 
Global X Lithium ETF   -    11,644,475    1,923,524 
Global X Fertilizers/Potash ETF   3,815,379    5,411,456    251,851 
Global X Junior Miners ETF   5,760,364    742,029    (19,792)

 

During the year ended October 31, 2014, there were no purchases or sales of long-term U.S. Government securities for the Funds.

 

5. TAX INFORMATION

 

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.

 

The following differences, primarily attributable to distribution reclassifications, investment in master limited partnership, return of capital, foreign currency, redemptions in-kind and sales of passive foreign investment companies have been reclassified to/from the following accounts during the fiscal year ended October 31, 2014.

 

Global X Funds  Paid-in Capital   Undistributed Net
Investment Income
   Accumulated Net
Realized Loss
 
Global X Silver Miners ETF  $(485,602)  $318,470   $167,132 
Global X Gold Explorers ETF   (1,924,675)   1,370,808    553,867 
Global X Copper Miners ETF   467,483    11,660    (479,143)
Global X Uranium ETF   (1,823,627)   9,038,696    (7,215,069)
Global X Lithium ETF   1,518,415    129,733    (1,648,148)
Global X Fertilizers/Potash ETF   105,404    (16,214)   (89,190)
Global X Junior Miners ETF   221,594    4,594    (226,188)

 

These reclassifications have no impact on net assets or net asset value per share.

 

47
 

 

 
 
Notes to Financial Statements (continued)
October 31, 2014

 

5. TAX INFORMATION (continued)

 

The tax character of dividends and distributions declared during the years ended October 31, 2014 and 2013 were as follows:

 

Global X Funds  Ordinary Income   Long-Term
Capital Gain
   Return of Capital   Totals 
     
Global X Silver Miners ETF                    
2014  $1,275,569   $   $   $1,275,569 
2013   3,117,053            3,117,053 
Global X Gold Explorers ETF                    
2014  $   $   $   $ 
2013   1,890,494            1,890,494 
Global X Copper Miners ETF                    
2014  $225,417   $   $   $225,417 
2013   1,026,703            1,026,703 
Global X Uranium ETF                    
2014  $734,117   $   $   $734,117 
2013   2,536,311            2,536,311 
Global X Lithium ETF                    
2014  $160,079   $   $   $160,079 
2013   1,597,778            1,597,778 
Global X Fertilizers/Potash ETF                    
2014  $366,898   $   $   $366,898 
2013   330,509            330,509 
Global X Junior Miners ETF                    
2014  $   $   $   $ 
2013   337,710            337,710 

 

As of October 31,2014, the components of tax basis accumulated losses were as follows:

 

   Global X Funds 
   Global X Silver
Miners ETF
   Global X Gold
Explorers ETF
   Global X Copper
Miners ETF
   Global X Uranium
ETF
 
Undistributed Ordinary Income  $   $   $472,475   $8,992,689 
Capital Loss Carryforwards   (123,324,501)   (16,217,215)   (8,437,959)   (173,560,460)
Unrealized Depreciation on Investments and Foreign Currency   (170,233,869)   (45,675,521)   (13,400,254)   (156,983,392)
Late Year Loss Deferral *   (40,279)            
Other Temporary Differences       1    (9)   (9)
Total Accumulated Losses  $(293,598,649)  $(61,892,735)  $(21,365,747)  $(321,551,172)

 

   Global X Funds 
   Global X Lithium
ETF
   Global X
Fertilizers/Potash
ETF
   Global X Junior
Miners ETF
 
Undistributed Ordinary Income  $301,758   $305,028   $28,543 
Capital Loss Carryforwards   (51,683,786)   (2,414,103)   (2,897,051)
Unrealized Depreciation on Investments and Foreign Currency   (1,046,181)   (6,020,657)   (2,851,710)
Other Temporary Differences   (5)   (7)   1 
Total Accumulated Losses  $(52,428,214)  $(8,129,739)  $(5,720,217)

 

*Deferred late-year losses represent ordinary losses realized on investment transactions from January 1, 2014 through October 31, 2014.

 

48
 

 

 
 
Notes to Financial Statements (continued)
October 31, 2014

 

5. TAX INFORMATION (concluded)

 

For Federal income tax purposes, capital losses incurred in taxable years beginning before December 22, 2010 may be carried forward for a maximum period of eight years and applied against future gains. As of October 31, 2014, the Funds that had capital loss carryforwards are listed below:

 

   Global X Silver   Global X Gold   Global X   Global X   Global X Junior 
Expiration Date  Miners ETF   Explorers ETF   Uranium ETF   Lithium ETF   Miners ETF 
Oct. 2019  $8,433,465   $130,976   $12,705,798   $7,329,308   $506,011 

 

During the fiscal year ended October 31, 2014, no Funds utilized capital loss carryforwards to offset capital gains.

 

Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years are required to be used prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, preenactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

 

Losses carried forward under these new provisions are as follows:

 

Global X Funds  Short-Term Loss   Long-Term Loss   Total 
Global X Silver Miners ETF  $18,061,290   $96,829,746   $114,891,036 
Global X Gold Explorers ETF   5,158,634    10,927,605    16,086,239 
Global X Copper Miners ETF   2,044,539    6,393,420    8,437,959 
Global X Uranium ETF   40,611,362    120,243,300    160,854,662 
Global X Lithium ETF   9,532,302    34,822,176    44,354,478 
Global X Fertilizers/Potash ETF   900,313    1,513,790    2,414,103 
Global X Junior Miners ETF   1,601,784    789,256    2,391,040 

 

The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at October 31, 2014 were as follows:

 

       Aggregated Gross   Aggregated Gross     
       Unrealized   Unrealized   Net Unrealized 
Global X Funds  Federal Tax Cost   Appreciation   Depreciation   Depreciation 
Global X Silver Miners ETF  $355,140,686   $-   $(170,226,769)  $(170,226,769)
Global X Gold Explorers ETF   77,226,863    -    (45,675,521)   (45,675,521)
Global X Copper Miners ETF   41,826,219    208,409    (13,617,216)   (13,408,807)
Global X Uranium ETF   395,385,580    8,636    (156,992,029)   (156,983,393)
Global X Lithium ETF   51,633,694    7,979,235    (9,025,335)   (1,046,100)
Global X Fertilizers/Potash ETF   21,764,441    647,711    (6,666,946)   (6,019,235)
Global X Junior Miners ETF   7,360,754    101,910    (2,953,682)   (2,851,772)

 

The preceding differences between book and tax cost are primarily due to mark-to-market treatment of passive foreign investment companies and wash sales.

 

49
 

 

 
 
Notes to Financial Statements (continued)
October 31, 2014

 

6. CONCENTRATION OF RISKS

 

The Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.

 

The securities markets of emerging countries are less liquid and subject to greater price volatility, and have a smaller market capitalization, than the U.S. securities markets. In certain countries, there may be fewer publicly traded securities and the market may be dominated by a few issues or sectors. Issuers and securities markets in such countries are not subject to as extensive and frequent accounting, financial and other reporting requirements or as comprehensive government regulations as are issuers and securities markets in the U.S. In particular, the assets and profits appearing on the financial statements of emerging country issuers may not reflect their financial position or results of operations in the same manner as financial statements for U.S. issuers. Substantially less information may be publicly available about emerging country issuers than is available about issuers in the United States.

 

The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.

 

The Funds use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the underlying index in approximately the same proportions as in the underlying index. The Funds may utilize a representative sampling strategy with respect to their underlying indices when a replication strategy might be detrimental to their shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow its underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to the Funds but not the Underlying Indexes). Commodity related securities are susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have a great impact on these Funds.

 

7. LOANS OF PORTFOLIO SECURITIES

 

The Funds may lend portfolio securities having a market value up to one-third of the Funds’ total assets. Security loans made pursuant to the securities lending agreement are required at all times to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign-based securities. Such collateral will be cash securities issued or guaranteed by the U.S. Government or any agencies. Cash collateral received in connection with these loans can be invested in repurchase agreements or U.S. Treasury obligations and is recognized in the Schedule of Investments and Statement of Asset and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the statement of assets and liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the 

 

50
 

 

 
 
Notes to Financial Statements (continued)
October 31, 2014

 

7. LOANS OF PORTFOLIO SECURITIES (concluded)

 

securities. The Funds could also experience delays and costs in gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. As of October 31, 2014, the value of securities on loan was $9,973,544, $2,993,071, $1,305,370, $22,806,229 and $105,504 for the Global X Silver Miners ETF, Global X Gold Explorers ETF, Global X Copper Miners ETF, Global X Uranium ETF and Global X Lithium ETF, respectively and the value of securities purchased with the cash collateral held from securities on loan was $11,557,783, $3,861,446, $1,367,061, $26,022,447 and $234,867 for the Global X Silver Miners ETF, Global X Gold Explorers ETF, Global X Copper Miners ETF, Global X Uranium ETF and Global X Lithium ETF, respectively.

 

At October 31, 2014, the following Funds had securities on loan, by counterparty:

 

   Market Value   Cash Collateral 
Global X Silver Miners ETF          
BNP Prime Brokerage  $120   $150 
Credit Suisse   498,475    594,310 
Deutsche Bank Securities   1,941,774    2,445,360 
Goldman Sachs & Co.   2,568,912    2,943,000 
JPMorgan   662,350    810,500 
Merrill Lynch Pierce Fenner & Smith   940,215    1,053,768 
National Financial Services   2,919,081    3,201,804 
Nomura Securities   23,577    27,264 
UBS Securities   419,040    481,627 
Global X Gold Explorers ETF          
Barclays Capital   916,876    1,167,835 
Credit Suisse   782,941    932,890 
Deutsche Bank Securities   19,028    28,400 
JPMorgan   734,277    952,363 
Morgan Stanley   537,708    802,549 
Nomura Securities   2,241    3,260 
Global X Copper Miners ETF          
Credit Suisse   1,231,108    1,288,371 
Merrill Lynch Pierce Fenner & Smith   64,523    68,370 
UBS Securities   9,739    10,320 
Global X Uranium ETF          
Barclays Capital   687,060    943,737 
BNP Prime Brokerage   248,348    300,000 
Citigroup   3,925,069    4,204,195 
Credit Suisse   178,436    192,500 
Deutsche Bank Securities   1,748,571    1,902,550 
Goldman Sachs & Co.   876,501    972,800 
JPMorgan   7,465,984    8,273,789 
Macquarie Capital   173,338    187,000 
Merrill Lynch Pierce Fenner & Smith   1,659,483    1,792,866 
Morgan Stanley   4,645,210    5,992,818 
UBS Securities   1,198,229    1,273,656 
Global X Lithium ETF          
Citigroup   126    1,417 
Credit Suisse   36,119    156,633 
Goldman Sachs & Co.   66,270    74,716 
JPMorgan   2,838    25,600 
Morgan Stanley   45    400 
Nomura Securities   106    1,197 

 

51
 

 

 
 

Notes to Financial Statements (concluded)

October 31, 2014

 

8. CONTRACTUAL OBLIGATIONS

 

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.

 

Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.

 

9. REVERSE SHARE SPLIT

 

Effective May 16, 2013, the Global X Gold Explorers ETF, Global X Uranium ETF and the Global X Junior Miners ETF executed a reverse share split for shareholders of record after the close of markets on May 15, 2013. The effect of this transaction was to divide the number of outstanding shares of the Fund by the ratio below, resulting in a corresponding increase in the net asset value per share. The capital share activity presented in the statement of changes in net assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions. The details of the reverse split are as follows:

 

Fund Name   Ratio
Global X Gold Explorers ETF   1:4
Global X Uranium ETF   1:3
Global X Junior Miners ETF     1:3

 

10. SUBSEQUENT EVENTS

 

The Funds have been evaluated regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional disclosure or adjustments were required to the financial statements as the date the financial statements were issued, except as follows:

 

Subsequent to the October 31, 2014 fiscal year end, the following portfolio of the Trust commenced operations:

 

Fund Name Commenced Operations
Global X GF China Bond ETF November 18, 2014    

 

52
 

 

 
 
Report of Independent Registered Public Accounting Firm
October 31, 2014

 

The Board of Trustees and Shareholders of Global X Funds

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Global X Silver Miners ETF, Global X Gold Explorers ETF, Global X Copper Miners ETF, Global X Uranium ETF, Global X Lithium ETF, Global X Fertilizers/Potash ETF, and Global X Junior Miners ETF (seven of the series constituting Global X Funds) (the “Funds”) as of October 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years or periods then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Global X Silver Miners ETF, Global X Copper Miners ETF and Global X Lithium ETF for each of the periods presented through October 31, 2010 were audited by other auditors whose report dated December 23, 2010, expressed an unqualified opinion on those financial statements and financial highlights.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above at October 31, 2014, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years or periods then ended, in conformity with U.S. generally accepted accounting principles.

 

   

 

Philadelphia, Pennsylvania
December 29, 2014

 

53
 

 

 

Disclosure Of Fund Expenses (unaudited)

 

All Exchange Traded Funds (“ETF”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund.

 

Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.

 

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

 

The table on the next page illustrates your Fund’s costs in two ways:

 

Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

 

You can use this information, together with the actual amount you invested in the Funds, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Funds under “Expenses Paid During Period.”

 

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Funds had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

 

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.

 

54
 

 

 

 

Disclosure of Fund Expenses (unaudited) (concluded)

 

   Beginning
Account
Value
5/1/2014
   Ending
Account
Value
10/31/2014
   Annualized
Expense
Ratios
   Expenses
Paid
During
Period(1)
 
Global X Silver Miners ETF                
Actual Fund Return  $1,000.00   $697.60    0.65%  $2.78 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
Global X Gold Explorers ETF                    
Actual Fund Return  $1,000.00   $695.00    0.65%  $2.78 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
Global X Copper Miners ETF                    
Actual Fund Return  $1,000.00   $885.10    0.65%  $3.09 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
Global X Uranium ETF                    
Actual Fund Return  $1,000.00   $757.70    0.69%  $3.06 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
Global X Lithium ETF                    
Actual Fund Return  $1,000.00   $916.40    0.75%  $3.62 
Hypothetical 5% Return   1,000.00    1,021.42    0.75    3.82 
Global X Fertilizers/Potash ETF                    
Actual Fund Return  $1,000.00   $916.50    0.69%  $3.33 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
Global X Junior Miners ETF                    
Actual Fund Return  $1,000.00   $715.40    0.69%  $2.98 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 

 

(1)Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 184/365 (to reflect the one-half year period.)

 

55
 

 

 

 

Supplemental Information (unaudited)

 

Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Funds generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. The Funds’ Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of the Funds’ holdings. The Market Price of the Funds will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

 

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV.

 

Further information regarding premiums and discounts is available on the Funds’ website at www.GlobalXFunds.com.

 

56
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

Set forth below are the names, addresses, year of birth, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of Funds in fund complex overseen by trustee, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.

 

Name,
Address
(Year of
Birth)

Position(s)
Held

with Funds

Principal Occupation(s) During

the Past 5 Years

Number of
Funds in
Trust
Overseen by
Trustee

Other
Directorships
Held

by Trustees

Independent Trustees2  

Sanjay Ram Bharwani

623 Fifth Ave,

15th floor

New York, NY 10022

(1974)

Trustee (since 2008) CEO of Risk Advisors Inc. (since 2007) (consulting firm). 403 None.

Scott R. Chichester1

623 Fifth Ave,

15th floor

New York, NY 10022

(1970)

 

Trustee (since 2008) CFO, Sterling Seal & Supply Inc. (since 2011), Director, President & Treasurer, Bayview Acquisition Corp (since 2010), CPA, Penda Aiken Inc. (2009-2011) (consultant); Founder and President, DirectPay USA LLC (since 2006) (payroll company); Chief Financial Officer, Ong Corporation (2002-2010) (technology company); Proprietor, Scott R. Chichester CPA (since 2001) (CPA firm). 403 Director of Bayview Acquisition Corp. (since 2010).

Kartik Kiran Shah

623 Fifth Ave,

15th floor

New York, NY 10022

(1977)

Trustee (since 2008) Vice President, Business Development, Cynvenio Biosystems (2012-2014); Independent Consultant, Self-Employed (2011-2012) (non-financial services); Director, Wireless Generation (2008-2011) (software). 403 None.

 

57
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of October 31, 2014.

 

Name, Address
(Year of Birth)
Position(s) Held
with Funds

Principal Occupation(s)
During

the Past 5 Years

Number of Funds
in Trust
Overseen by Trustee

Other
Directorships Held

by Trustees

Interested Trustee / Officers2  

Bruno del Ama

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Trustee (since 2008), President, Chief Executive Officer

(since 2008)

Chief Executive Officer, Global X Management Company (“GXMC”) (since 2008); Chief Compliance Officer, GXMC (2008-2013). 403 None.

Jose C. Gonzalez

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Chief Operating Officer (since 2008); Chief Compliance Officer (2008-5/2014), Treasurer, Principal Accounting Officer and Chief Financial Officer (2008-9/2014)

Chief Operating Officer, Global X Management Company LLC (since 2008); Founder and President of GWM Group, Inc. (since 2006) (broker-dealer firm).

 

N/A N/A

Thomas K. Lynch

623 Fifth Ave,

15th floor

New York, NY 10022

(1956)

Treasurer, Principal Accounting Officer and Chief Financial Officer (since 9/2014); Chief Compliance Officer (since 5/2014). Chief Compliance Officer, GXMC (since 5/2014); Senior Compliance Officer, GXMC (2/2014 - 4/2014); Compliance, Financial and Operations Consultant (2013); Chief Compliance Officer, Van Eck Associates (12/ 2006 - 2/ 2013). N/A N/A

Daphne Tippens Chisolm

11524-C Providence Road, Suite 236

Charlotte, NC 28277

(1969)

Secretary (since 2012) General Counsel, GXMC (since 2011); Chief Compliance Officer, GXMC (1/2014 - 5/2014); Founder and President of Law Offices of DT Chisolm, P.C. (since 2009) (law firm); Counsel, Dechert (2007-2009) (law firm). N/A N/A

Dianne M. Descoteaux4

One Freedom Valley Drive

Oaks, PA 19456

(1977)

Assistant Secretary (since 2011) Counsel, SEI Investments (since 2010); Associate, Morgan, Lewis & Bockius LLP (2006-2010). N/A N/A

 

58
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

Name, Address
(Year of Birth)
Position(s) Held
with Funds
Principal Occupation(s) During
the Past 5 Years

Other Directorships
Held

by Trustees

Lisa Whittaker4

One Freedom Valley Drive

Oaks, PA 19456

(1978)

Assistant Secretary (since 2013) Counsel at SEI Investments (since 2012); Associate Counsel and Compliance Officer at The Glendale Trust Company (2011-2012); Associate of Drinker Biddle & Reath LLP (2006-2011). N/A

Peter Rodriguez4

One Freedom Valley Drive

Oaks, PA 19456

(1962)

Assistant Treasurer

(since 2011)

Fund Accounting Director, SEI Investments Global Funds Services (since 2011); Mutual Fund Trading Director, SEI Global Trust Company (2009-2011); Asset Data Services Director, SEI Global Wealth Services (2006-2009). N/A
1Mr. Chichester is currently married to a sister of Mr. del Ama’s wife. While an “immediate family member” (as defined in Section 2(a)(19) of the 1940 Act) of Mr. del Ama would be considered an Interested Person, Mr. Chichester is not considered an immediate family member for this purpose. Although this fact was taken into consideration in determining whether Mr. Chichester should be considered to be an Independent Trustee for purposes of the Section 2(a)(19) of the 1940 Act, it was determined that this relationship was not one that should disqualify Mr. Chichester from serving as an Independent Trustee of the Trust.

 

2Each Trustee serves until his or her successor is duly elected or appointed and qualified.

 

3As of October 31, 2014, the Trust had eighty-eight investment portfolios, forty of which were operational.

 

4These officers of the Trust also serve as officers of one or more mutual funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor.

 

59
 

 

 

 

Notice To Shareholders (unaudited) 

 

For shareholders that do not have an October 31, 2014 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2014 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended October 31, 2014, the Funds have designated the following items with regard to distributions paid during the year.

 

   Long-Term
Capital Gain
Distributions
   Ordinary
Income
Distributions
   Total
Distributions
  

Qualifying
for
Corporate
Dividends
Received
Deduction
(1)

  

Qualifying
Dividend
Income (2)

  

U.S.
Government
Interest (3)

  

Interest
Related
Dividends
(4)

  

Short Term
Capital
Gain
Dividends(5)

   Foreign
Tax
Credit
 
Global X Silver Miners ETF   0.00%   100.00%   100.00%   44.50%   100.00%   0.00%   0.00%   0.00%   0.00%
Global X Gold Explorers ETF   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%
Global X Copper Miners ETF   0.00%   100.00%   100.00%   66.71%   100.00%   0.00%   0.00%   0.00%   4.13%
Global X Uranium ETF   0.00%   100.00%   100.00%   0.00%   36.52%   0.00%   0.00%   0.00%   7.06%
Global X Lithium ETF   0.00%   100.00%   100.00%   14.79%   100.00%   0.00%   0.00%   0.00%   43.92%
Global X Fertilizers/Potash ETF   0.00%   100.00%   100.00%   23.42%   100.00%   0.00%   0.00%   0.00%   14.10%
Global X Junior Miners ETF   0.00%   100.00%   100.00%   25.54%   100.00%   0.00%   0.00%   0.00%   100.00%

 

(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary Income distributions (the total of short term capital gain and net investment income distributions).

(2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.

(3) "U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year.  Generally, interest from direct U.S. Government obligations is exempt from state income tax.  However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.

(4) The percentage in this column represents the amount of "Qualifying Interest Income" as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors.

(5) The percentage of this column represents the amount of “Short Term Capital Gain Dividend” is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors. 

 

The Funds intend to pass through a foreign tax credit to shareholders. For the fiscal year ended October 31, 2014, the total amount of foreign source income and foreign tax credit are as follows:

 

Fund Name  Foreign Source Income   Foreign Tax Credit Pass Through 
Global X Silver Miners ETF  $-   $- 
Global X Gold Explorers ETF   -    - 
Global X Copper Miners ETF   732,686    9,704 
Global X Uranium ETF   898,967    55,752 
Global X Lithium ETF   732,388    125,360 
Global X Fertizers/Potash ETF   422,330    60,237 
Global X Junior Miners ETF   50,561    7,393 

 

The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2014. Complete information will be computed and reported in conjunction with your 2014 Form 1099-DIV.

 

60
 

 

 

623 Fifth Avenue, 15th floor

New York, NY 10022

1-888-GXFund-1

(1-888-493-8631)

www.globalxfunds.com

 

Investment Adviser:

Global X Management Company LLC

623 Fifth Avenue, 15th floor

New York, NY 10022

 

Distributor:

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, PA 19456

 

Sub-Administrator:

SEI Investments Global Funds Services

One Freedom Valley Drive

Oaks, PA 19456

 

Counsel for Global X Funds and the Independent Trustees:

K&L Gates LLP

1601 K Street N.W.

Washington, DC 20006

 

Custodian:

Brown Brothers Harriman & Co.

40 Water Street

Boston, MA 02109

 

Independent Registered Public Accounting Firm:

Ernst & Young LLP

2005 Market Street

Suite 700

Philadelphia, PA 19103

 

This information must be preceded or accompanied by a current prospectus for the Funds described.

 

GLX-AR-001-0600

  

 
 

 

 

 

 

Global X China Consumer ETF (ticker: CHIQ)

Global X China Energy ETF (ticker: CHIE)

Global X China Financials ETF (ticker: CHIX)

Global X China Industrials ETF (ticker: CHII)

Global X China Materials ETF (ticker: CHIM)

Global X NASDAQ China Technology ETF (ticker: QQQC)

Global X Southeast Asia ETF (ticker: ASEA)

(formerly Global X FTSE ASEAN 40 ETF)

Global X FTSE Andean 40 ETF (ticker: AND)

Global X MSCI Colombia ETF (ticker: GXG)

(formerly Global X FTSE Colombia 20 ETF)

Global X Brazil Mid Cap ETF (ticker: BRAZ)

Global X Brazil Consumer ETF (ticker: BRAQ)

Global X Brazil Financials ETF (ticker: BRAF)

Global X MSCI Argentina ETF (ticker: ARGT)

(formerly Global X FTSE Argentina 20 ETF)

Global X FTSE Greece 20 ETF (ticker: GREK)

Global X MSCI Norway ETF (ticker: NORW)

(formerly Global X FTSE Norway 30 ETF)

Global X FTSE Nordic Region ETF (ticker: GXF)

Global X Central Asia & Mongolia Index ETF (ticker: AZIA)

Global X MSCI Nigeria ETF (ticker: NGE)

(formerly Global X Nigeria Index ETF)

Global X Next Emerging & Frontier ETF (ticker: EMFM)

Global X FTSE Portugal 20 ETF (ticker: PGAL)

 

Annual Report

 

October 31, 2014

 

 
 

 

 

Table of Contents

 

Management Discussion of Fund Performance (unaudited) 1
   
Schedule of Investments  
   
Global X China Consumer ETF 25
   
Global X China Energy ETF 28
   
Global X China Financials ETF 31
   
Global X China Industrials ETF 34
   
Global X China Materials ETF 37
   
Global X NASDAQ China Technology ETF 40
   
Global X Southeast Asia ETF 42
   
Global X FTSE Andean 40 ETF 45
   
Global X MSCI Colombia ETF 49
   
Global X Brazil Mid Cap ETF 52
   
Global X Brazil Consumer ETF 55
   
Global X Brazil Financials ETF 58
   
Global X MSCI Argentina ETF 60
   
Global X FTSE Greece 20 ETF 63
   
Global X MSCI Norway ETF 66
   
Global X FTSE Nordic Region ETF 70
   
Global X Central Asia & Mongolia Index ETF 73
   
Global X MSCI Nigeria ETF 76
   
Global X Next Emerging & Frontier ETF 78
   
Global X FTSE Portugal 20 ETF 91
   
Statements of Assets and Liabilities 94
   
Statements of Operations 99
   
Statements of Changes in Net Assets 104
   
Financial Highlights 114
   
Notes to Financial Statements 117
   
Report of Independent Registered Public Accounting Firm 135
   
Disclosure of Fund Expenses (unaudited) 136
   
Supplemental Information (unaudited) 139
   
Trustees and Officers of the Trust (unaudited) 140
   
Notice to Shareholders (unaudited) 143

 

The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

A description of the policies and procedures that Global X Funds uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-888-GXFund-1; and (ii) on the Commission’s website at http://www.sec.gov.

 

 
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X China Consumer ETF

 

Global X China Consumer ETF

 

The Global X China Consumer ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Consumer Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the consumer sector in China. It is comprised of selected companies which have their main business operations in the consumer sector and are domiciled in China or have their main business operations in that country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the first ETF worldwide focused exclusively on the consumer sector in China.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 12.09%, while the Index decreased 12.43%. The Fund had a net asset value of $15.87 per share on October 31, 2013 and ended the reporting period with a net asset value of $13.82 on October 31, 2014.

 

During the reporting period, the highest returns came from E-Commerce China Dangdang and ANTA Sports Products, which returned 48.36% and 42.29%, respectively. The worst performers were Labixiaoxin Snacks Group and Biostime International Holdings, which returned -73.71% and -69.35%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X China Consumer ETF   -12.09%   -11.60%   -2.50%   -1.62%   -1.79%   -1.82%
Solactive China Consumer Index   -12.43%   -12.43%   -2.36%   -2.36%   -1.50%   -1.50%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.61%   15.61%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on November 30, 2009.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

1
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X China Energy ETF

 

Global X China Energy ETF

 

The Global X China Energy ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Energy Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the energy sector in China. It is comprised of selected companies which have their main business operations in the energy sector and are domiciled in China or have their main business operations in that country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation’s first ETF focused exclusively on the energy sector in China.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 1.34%, while the Index increased 2.52%. The Fund had a net asset value of $15.11 per share on October 31, 2013 and ended the reporting period with a net asset value of $15.03 on October 31, 2014.

 

During the reporting period, the highest returns came from Xinjiang Goldwind Science & Technology and Huadian Power International, which returned 78.47% and 64.40%, respectively. The worst performers were Anton Oilfield Services Group and LDK Solar, which returned -66.14% and -62.96%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X China Energy ETF   1.34%   1.40%   4.87%   5.77%   1.35%   1.28%
Solactive China Energy Index   2.52%   2.52%   5.82%   5.82%   2.28%   2.28%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.47%   15.47%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on December 15, 2009.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

2
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X China Financials ETF

 

Global X China Financials ETF

 

The Global X China Financials ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Financials Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the financial sector in China. It is comprised of selected companies which have their main business operations in the financial sector and are domiciled in China or have their main business operations in that country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation’s first ETF focused exclusively on the financial sector in China.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 2.08%, while the Index increased 2.52%. The Fund had a net asset value of $13.29 per share on October 31, 2013 and ended the reporting period with a net asset value of $13.50 on October 31, 2014.

 

During the reporting period, the highest returns came from China Taiping Insurance Holdings and China Everbright, which returned 44.74% and 35.04%, respectively. The worst performers were Agile Property Holdings and Greentown China Holdings, which returned -49.35% and -48.33%, respectively.

 

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X China Financials ETF   2.08%   2.32%   8.55%   9.08%   -0.83%   -0.91%
Solactive China Financials Index   2.52%   2.52%   9.07%   9.07%   -0.50%   -0.50%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.54%   15.54%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on December 10, 2009.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

3
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X China Industrials ETF

 

Global X China Industrials ETF

 

The Global X China Industrials ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Industrials Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the industrial sector in China. It is comprised of selected companies which have their main business operations in the industrial sector and are domiciled in China or have their main business operations in that country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the first ETF worldwide focused exclusively on the industrial sector in China.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 8.13%, while the Index increased 7.82%. The Fund had a net asset value of $12.14 per share on October 31, 2013 and ended the reporting period with a net asset value of $12.93 on October 31, 2014.

 

During the reporting period, the highest returns came from China Zhongwang Holdings and Sunny Optical Technology Group, which returned 74.39% and 69.54%, respectively. The worst performers were Zoomlion Heavy Industry Science & Technology and Sany Heavy Equipment International Holdings, which returned -45.73% and -23.24%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X China Industrials ETF   8.13%   9.52%   5.38%   6.32%   -2.74%   -2.65%
Solactive China Industrials Index   7.82%   7.82%   5.70%   5.70%   -2.34%   -2.34%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.61%   15.61%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on November 30, 2009.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

4
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X China Materials ETF

 

Global X China Materials ETF

 

The Global X China Materials ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive China Materials Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the materials sector in China. It is comprised of selected companies which have their main business operations in the materials sector and are domiciled in China or have their main business operations in that country. Only securities which are tradable for foreign investors without restrictions are eligible. The Fund is the nation’s first ETF focused exclusively on the materials sector in China.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 0.57%, while the Index increased 2.24%. The Fund had a net asset value of $15.13 per share on October 31, 2013 and ended the period with a net asset value of $14.80 on October 31, 2014.

 

During the reporting period, the highest returns came from Sinopec Yizheng Chemical Fibre and China Molybdenum, which returned 139.24% and 47.09%, respectively. The worst performers were China BlueChemical and Hidili Industry International Development, which returned -42.42% and -36.45% respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X China Materials ETF   -0.57%   1.77%   -7.27%   -6.13%   -12.88%   -12.51%
Solactive China Materials Index   2.24%   2.24%   -6.66%   -6.66%   -11.84%   -11.84%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.09%   15.09%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on January 12, 2010.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

5
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ China Technology ETF

 

Global X NASDAQ China Technology ETF

 

The Global X NASDAQ China Technology ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the NASDAQ OMX China Technology Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the technology sector in China. It is made up of securities of companies which have their main business operations in the technology sector and generally includes companies whose businesses involve: computer services; internet; software; computer hardware; electronic office equipment; semiconductors; and telecommunications equipment. Only securities which are tradable for foreign investors without restrictions are eligible.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 13.85%, while the Index increased 15.30%. The Fund had a net asset value of $20.63 per share on October 31, 2013 and ended the reporting period with a net asset value of $23.48 on October 31, 2014.

 

During the reporting period, the highest returns came from BYD Electronic International and YY, which returned 155.59% and 68.52%, respectively. The worst performers were Sungy Mobile and ChinaCache International Holdings, which returned -76.69% and -56.70%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X NASDAQ China Technology ETF   13.85%   13.54%   15.93%   16.10%   10.40%   10.24%
Hybrid NASDAQ OMX China Technology Index/Solactive China Technology Index**   15.30%   15.30%   16.93%   16.93%   11.22%   11.22%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   15.75%   15.75%

 

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 12, 2011 and NASDAQ OMX China Technology Index thereafter. The inception of the NASDAQ OMX China Technology Index was on November 14, 2011.

 

6
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X NASDAQ China Technology 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

7
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Southeast Asia ETF

 

Global X Southeast Asia ETF

 

The Global X Southeast Asia ETF, formerly the Global X FTSE ASEAN 40 ETF (the “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 (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of the 40 largest companies in the five ASEAN regions: Indonesia, Philippines, Singapore, Malaysia and Thailand. The Index is free float-adjusted and weighted by market capitalization and designed using eligible stocks within the FTSE All-World universe. The Fund is the nation’s first ETF focused exclusively on the ASEAN region.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 1.68%, while the Index increased 2.28%. The Fund had a net asset value of $17.12 per share on October 31, 2013 and ended the reporting period with a net asset value of $16.76 on October 31, 2014.

 

During the reporting period, the highest returns came from Siam Commercial Bank and Tenaga Nasional, which returned 60.99% and 38.93%, respectively. The worst performers were Genting Singapore and PTT Exploration & Production, which returned -29.87% and -15.37%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Southeast Asia ETF   1.68%   2.27%   5.58%   5.90%   5.30%   5.35%
FTSE/ASEAN 40 Index   2.28%   2.28%   6.13%   6.13%   5.91%   5.91%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   14.16%   14.16%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on February 16, 2011.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

8
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X FTSE Andean 40 ETF

 

Global X FTSE Andean 40 ETF

 

The Global X Andean 40 ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Andean 40 Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to represent the performance of the 40 largest and most liquid companies listed on the Chile, Colombia, and Peru stock exchanges. The Index is designed to provide investors with a comprehensive and transparent way to measure the performance of the constituent companies. The Fund is the nation’s first ETF focused exclusively on the Andean region.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 11.84%, while the Index decreased 11.37%. The Fund had a net asset value of $12.21 per share on October 31, 2013 and ended the reporting period with a net asset value of $10.60 on October 31, 2014.

 

During the reporting period, the highest returns came from CorpBanca and Credicorp, which returned 21.08% and 17.86%, respectively. The worst performers were CAP and Embotelladora Andina, which returned -52.64% and -43.41%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X FTSE Andean 40 ETF   -11.84%   -12.40%   -6.38%   -6.34%   -7.38%   -7.47%
FTSE Andean 40 Index   -11.37%   -11.37%   -6.14%   -6.14%   -6.88%   -6.88%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   14.79%   14.79%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on February 2, 2011.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

9
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Colombia ETF

 

Global X MSCI Colombia ETF

 

The Global X MSCI Colombia ETF, formerly the Global X FTSE Colombia 20 ETF (the “Fund”), seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Colombia Capped Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The MSCI All Colombia Capped Index is a market capitalization-weighted index of the 24 most liquid stocks in the Colombian market. The Index is designed to measure broad based equity market performance in Colombia.

 

On July 15, 2014, the index for the Fund was changed from the FTSE Colombia 20 Index to the MSCI All Colombia Capped Index. For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 11.73%, while the Hybrid MSCI All Colombia Capped Index/FTSE Colombia 20 Index decreased 10.61%. The Fund had a net asset value of $20.55 per share on October 31, 2013 and ended the reporting period with a net asset value of $17.42 on October 31, 2014.

 

During the reporting period, the highest returns came from Textiles Fabricato Tejicondor and Banco Davivienda, which returned 22.30% and 16.37%, respectively. The worst performers were Ecopetrol and Canacol Energy, which returned

-39.33% and -25.67%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   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   -11.73%   -11.19%   -0.81%   -0.85%   7.10%   7.09%   18.25%   18.37%
Hybrid MSCI All Colombia Capped Index/FTSE Colombia 20 Index**   -10.61%   -10.61%   -0.07%   -0.07%   8.32%   8.32%   19.42%   19.42%
FTSE Colombia 20 Index   -8.98%   -8.98%   0.54%   0.54%   8.71%   8.71%   19.80%   19.80%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.69%   16.69%   18.89%   18.89%

 

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 and MSCI All Colombia Capped Index thereafter. The inception of the MSCI All Colombia Capped Index was on June 30, 2014.

 

Effective July 15, 2014, the Fund changed its index from the FTSE Colombia 20 Index to the MSCI All Colombia Capped Index (“New Index”). This change was effected due to the planned migration to the New Index, potentially allowing for broader access to the local market.

 

10
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Colombia 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. The Fund’s performace reflects contractual fee waivers in effect until at least August 1, 2015. Absent these waivers performance would be lower. Index returns assume reinvestment of dividends and, unlike a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

11
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Brazil Mid Cap ETF

 

Global X Brazil Mid Cap ETF

 

The Global X Brazil Mid Cap ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Mid Cap Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of Brazilian mid-capitalization companies. It is comprised of mid-market capitalization securities of companies that are domiciled or have their main business operations in Brazil. The Fund is the first ETF globally focused exclusively on Brazil mid-capitalization companies.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 11.59%, while the Index decreased 11.13%. The Fund had a net asset value of $14.58 per share on October 31, 2013 and ended the reporting period with a net asset value of $12.22 on October 31, 2014.

 

During the reporting period, the highest returns came from Oleo e Gas Participacoes and Kroton Educacional, which returned 80.73% and 79.42%, respectively. The worst performers were Oi and Metalurgica Gerdau, which returned

-69.36% and -45.76%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Brazil Mid Cap ETF   -11.59%   -11.83%   -4.40%   -4.35%   -2.17%   -2.30%
Solactive Brazil Mid Cap Index   -11.13%   -11.13%   -3.55%   -3.55%   -1.40%   -1.40%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   17.04%   17.04%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on June 21, 2010.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

12
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Brazil Consumer ETF

 

Global X Brazil Consumer ETF

 

The Global X Brazil Consumer ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Consumer Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the consumer sector in Brazil. It is comprised of selected companies which have their main business operations in the consumer sector and are domiciled or have their main business operations in Brazil. The Fund is the nation’s first ETF focused exclusively on the Brazil consumer sector.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 6.20%, while the Index decreased 4.84%. The Fund had a net asset value of $17.89 per share on October 31, 2013 and ended the reporting period with a net asset value of $16.57 on October 31, 2014.

 

During the reporting period, the highest returns came from B2W Cia Digital and Anhanguera Educacional Participacoes, which returned 94.29% and 37.64%, respectively. The worst performers were Rossi Residencia and Saraiva Livreiros Editores, which returned -67.82% and -54.51%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Brazil Consumer ETF   -6.20%   -6.78%   0.90%   0.04%   2.56%   2.36%
Solactive Brazil Consumer Index   -4.84%   -4.84%   2.06%   2.06%   3.71%   3.71%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   18.53%   18.53%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on July 7, 2010.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

13
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Brazil Financials ETF

 

Global X Brazil Financials ETF

 

The Global X Brazil Financials ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Brazil Financials Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect the performance of the financial sector in Brazil. It is comprised of selected companies which have their main business operations in the financial sector and are domiciled or have their main business operations in Brazil. The Fund is the first ETF worldwide focused exclusively on the financial sector in Brazil.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 9.25%, while the Index decreased 8.82%. The Fund had a net asset value of $12.12 per share on October 31, 2013 and ended the reporting period with a net asset value of $10.88 on October 31, 2014.

 

During the reporting period, the highest returns came from BB Seguridade Participacoes and CETIP – Mercados Organizados, which returned 30.48% and 20.64%, respectively. The worst performers were Rossi Residencial and Brasil Insurance Participacoes e Administracao, which returned -67.82% and -61.92%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Brazil Financials ETF   -9.25%   -10.68%   -7.04%   -7.37%   -5.13%   -5.51%
Solactive Brazil Financials Index   -8.82%   -8.82%   -6.49%   -6.49%   -4.56%   -4.56%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   17.62%   17.62%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on July 28, 2010.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

14
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Argentina ETF

 

Global X MSCI Argentina ETF

 

The Global X MSCI Argentina ETF, formerly the Global X FTSE Argentina 20 ETF (the “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 (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to represent the performance of the Broad Argentina Equity Universe, while including a minimum number of constituents. 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. The index targets a minimum of 25 securities and 20 issuers at construction. The Index is designed to take into account the 25% and 50% concentration constraints required for a fund to qualify as a regulated investment company (RIC) in the United States.

 

On August 15, 2014, the index for the Fund was changed from the FTSE Argentina 20 Index to the MSCI All Argentina 25/50 Index. For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 5.03%, while the Hybrid MSCI All Argentina 25/50 Index/FTSE Argentina 20 Index increased 6.13%. The Fund had a net asset value of $20.29 per share on October 31, 2013 and ended the reporting period with a net asset value of $21.18 on October 31, 2014.

 

During the reporting period, the highest returns came from Pampa Energia and BBVA Banco Frances, which returned 110.99% and 82.54%, respectively. The worst performers were Arcos Dorados Holdings and McEwen Mining, which returned -47.46% and -42.06%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X MSCI Argentina ETF   5.03%   4.57%   0.15%   0.33%   -7.85%   -7.87%
Hybrid MSCI All Argentina 25/50 Index /
FTSE Argentina 20 Index**
   6.13%   6.13%   1.26%   1.26%   -6.95%   -6.95%
FTSE Argentina 20 Index   4.60%   4.60%   0.77%   0.77%   -7.32%   -7.32%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   14.95%   14.95%

 

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. This change was effected due to the planned migration to the New Index, potentially allowing for broader access to the local market.

 

15
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Argentina 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 a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

 

16
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X FTSE Greece 20 ETF

 

Global X FTSE Greece 20 ETF

 

The Global X FTSE Greece 20 ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/ATHEX Custom Capped Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance in Greece. The Fund is the nation’s first ETF focused exclusively on Greece.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 29.83%, while the Index decreased 29.69%. The Fund had a net asset value of $22.60 per share on October 31, 2013 and ended the reporting period with a net asset value of $15.84 on October 31, 2014.

 

During the reporting period, the highest returns came from Folli Follie and Grivalia Properties, which returned 12.66% and 10.97%, respectively. The worst performers were Hellenic Petroleum and National Bank of Greece, which returned

-60.64% and -58.46%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN
FOR THE YEAR ENDED OCTOBER 31, 2014
 
   One Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X FTSE Greece 20 ETF   -29.83%   -30.86%   1.67%   1.38%
FTSE/ATHEX Custom Capped Index   -29.69%   -29.69%   2.75%   2.75%
S&P 500 Index   17.27%   17.27%   20.12%   20.12%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on December 7, 2011.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

17
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Norway ETF

 

Global X MSCI Norway ETF

 

The Global X MSCI Norway ETF, formerly the Global X FTSE Norway 30 ETF (the “Fund”), seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Norway IMI 25/50 Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance in Norway. The Fund is the nation’s first ETF focused exclusively on Norway.

 

On July 15, 2014, the index for the Fund was changed from the FTSE Norway 30 Index to the MSCI Norway IMI 25/50 Index. For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 9.46%, while the Hybrid MSCI Norway IMI 25/50 Index/FTSE Norway 30 Index decreased 9.72%. The Fund had a net asset value of $16.76 per share on October 31, 2013 and ended the reporting period with a net asset value of $14.82 on October 31, 2014.

 

During the reporting period, the highest returns came from Algeta and Marine Harvest, which returned 51.60% and 35.82%, respectively. The worst performers were Polarcus and Fred Olsen Energy, which returned -75.31% and -71.66%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   One Year Return   Three Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X MSCI Norway ETF   -9.46%   -9.09%   4.78%   5.12%   2.09%   2.21%
Hybrid MSCI Norway IMI 25/50 Index / FTSE Norway 30 Index**   -9.72%   -9.72%   4.65%   4.65%   2.16%   2.16%
FTSE Norway 30 Index   -10.44%   -10.44%   4.37%   4.37%   1.95%   1.95%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.07%   16.07%

 

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 (“New Index”) thereafter. This change was effected due to the planned migration to the New Index, potentially allowing for broader access to the local market.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

18
 

 

 

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 (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Nordic 30 Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is a market capitalization-weighted index of the 30 largest and most liquid stocks in Sweden, Denmark, Norway and Finland. The Index is designed to measure broad based equity market performance in these countries. The Fund is the nation’s first ETF focused exclusively on the Nordic region.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 5.30%, while the Index increased 5.02%. The Fund had a net asset value of $23.74 per share on October 31, 2013 and ended the reporting period with a net asset value of $24.36 on October 31, 2014.

 

During the reporting period, the highest returns came from Scania and Novo Nordisk, which returned 50.41% and 37.41%, respectively. The worst performers were Seadrill and SKF, which returned -45.31% and -22.23%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014 
   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   5.30%   5.34%   15.07%   15.50%   10.82%   10.78%   12.57%   12.62%
FTSE Nordic 30 Index   5.02%   5.02%   14.57%   14.57%   10.60%   10.60%   12.50%   12.50%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.69%   16.69%   17.31%   17.31%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on August 17, 2009.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

19
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Central Asia & Mongolia Index ETF

 

Global X Central Asia & Mongolia Index ETF

 

The Global X Central Asia & Mongolia Index ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Central Asia & Mongolia Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance in Central Asia and Mongolia. The Fund is the nation’s first ETF focused exclusively on Central Asia and Mongolia.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 8.23%, while the Index decreased 7.59%. The Fund had a net asset value of $13.74 per share on October 31, 2013 and ended the reporting period with a net asset value of $12.29 on October 31, 2014.

 

During the reporting period, the highest returns came from Bank of Georgia Holdings and Halyk Savings Bank of Kazakhstan JSC, which returned 32.67% and 24.35%, respectively. The worst performers were Max Petroleum and Tethys Petroleum, which returned -61.27% and -58.14%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2014
 
   One Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Central Asia & Mongolia Index ETF   -8.23%   -8.51%   -9.81%   -10.01%
Solactive Central Asia & Mongolia Index   -7.59%   -7.59%   -9.26%   -9.26%
S&P 500 Index   17.27%   17.27%   19.63%   19.63%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on April 2, 2013.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

20
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Nigeria ETF

 

Global X MSCI Nigeria ETF

 

The Global X MSCI Nigeria ETF, formerly the Global X Nigeria Index ETF (the “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 (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance in Nigeria. The Fund is the nation’s first ETF focused exclusively on Nigeria.

 

On August 15, 2014, the index for the Fund was changed from the Solactive Nigeria Index to the MSCI All Nigeria Select 25/50 Index. For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 11.55%, while the Hybrid MSCI All Nigeria Select 25/50 Index/Solactive Nigeria Index decreased 10.70%. The Fund had a net asset value of $14.92 per share on October 31, 2013 and ended the reporting period with a net asset value of $13.02 on October 31, 2014.

 

During the reporting period, the highest returns came from Transnational Corp of Nigeria and Oando, which returned 115.41% and 88.40%, respectively. The worst performers were Unilever Nigeria and Skye Bank, which returned -41.68% and -39.00%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR THE YEAR ENDED
OCTOBER 31, 2014
 
   One Year Return   Annualized Inception to Date* 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X MSCI Nigeria ETF   -11.55%   -10.33%   -8.98%   -6.16%
Hybrid MSCI All Nigeria Select 25/50 Index / Solactive Nigeria Index   -10.70%   -10.70%   -8.13%   -8.13%
Solactive Nigeria Index   -13.04%   -13.04%   -9.58%   -9.58%
S&P 500 Index   17.27%   17.27%   19.63%   19.63%

 

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 (“New Index”) thereafter. This change was effected due to the planned migration to the New Index, potentially allowing for broader access to the local market.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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. The Fund’s performance reflects contractual fee waivers in effect until at least March 1, 2015. Absent these waivers performance would be lower. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

 

21
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X MSCI Nigeria ETF

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

22
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X Next Emerging & Frontier ETF

 

Global X Next Emerging & Frontier ETF

 

The Global X Next Emerging & Frontier ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Next Emerging & Frontier Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance of the Next Emerging markets and Frontier markets companies.

 

For the period from the Fund’s commencement date on November 6, 2013 through October 31, 2014 (the “reporting period”), the Fund increased 2.07%, while the Index increased 2.39%. The Fund had a net asset value of $25.08 per share on November 6, 2013 and ended the reporting period with a net asset value of $25.55 on October 31, 2014.

 

During the reporting period, the highest returns came from Grameenphone and Emaar Properties PJSC, which returned 102.01% and 82.83%, respectively. The worst performers were iSentric and Resolute Mining, which returned -58.12% and -54.57%, respectively.

 

 

   AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2014
 
   Cumulative Inception to Date* 
   Net Asset Value   Market Price 
Global X Next Emerging & Frontier ETF   2.07%   1.23%
Solactive Next Emerging & Frontier Index   2.39%   2.39%
S&P 500 Index   16.27%   16.27%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on November 6, 2013. Total return is for the period indicated and has not been annualized.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

23
 

 

 

Management Discussion of Fund Performance (unaudited)

Global X FTSE Portugal 20 ETF

 

Global X FTSE Portugal 20 ETF

 

The Global X FTSE Portugal 20 ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE Portugal 20 Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is designed to reflect broad based equity market performance in Portugal. The Fund is the nation’s first ETF focused exclusively on Portugal.

 

For the period from the Fund’s commencement date on November 12, 2013 through October 31, 2014 (the “reporting period”), the Fund decreased 15.89%, while the Index decreased 14.66%. The Fund had a net asset value of $15.04 per share on November 12, 2013 and ended the reporting period with a net asset value of $12.65 on October 31, 2014.

 

During the reporting period, the highest returns came from Banco Comercial Portugues and Banco BPI, which returned 26.73% and 24.61%, respectively. The worst performers were Sonae Industria and Portugal Telecom, which returned

-61.27% and -58.14%, respectively.

 

   AVERAGE ANNUAL TOTAL RETURN FOR
THE PERIOD ENDED OCTOBER 31, 2014*
 
   Cumulative Inception to Date* 
   Net Asset Value   Market Price 
Global X FTSE Portugal 20 ETF   -15.89%   -15.76%
FTSE Portugal 20 Index   -14.66%   -14.66%
S&P 500 Index   16.41%   16.41%

 

Growth of a $10,000 Investment

(At Net Asset Value)

 

 

*Fund commenced operations on November 12, 2013. Total return is for the period indicated and has not been annualized.

 

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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

24
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X China Consumer 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 8 in Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 100.1%
CHINA— 75.1%          
Consumer Goods — 45.3%          
ANTA Sports Products   1,675,396   $3,283,735 
BYD, Cl H (A)   978,500    6,207,732 
China Yurun Food Group * (A)   2,938,388    1,257,923 
Daphne International Holdings (A)   1,761,524    885,850 
Dongfeng Motor Group, Cl H   3,964,446    6,124,157 
Great Wall Motor, Cl H   1,542,299    6,761,678 
Guangzhou Automobile Group, Cl H   4,824,117    4,292,140 
Hengan International Group   599,449    6,318,980 
Li Ning * (A)   2,313,369    1,226,009 
Shenzhou International Group Holdings   1,074,362    3,705,795 
Tingyi Cayman Islands Holding   2,433,825    6,050,669 
Tsingtao Brewery, Cl H   714,917    5,282,229 
Uni-President China Holdings (A)   2,776,143    2,566,658 
Want Want China Holdings   5,005,909    6,829,291 
         60,792,846 
Consumer Services — 29.8%          
Air China, Cl H   3,713,028    2,403,471 
Ajisen China Holdings   1,189,993    819,394 
China Southern Airlines, Cl H   3,394,895    1,190,700 
Chow Tai Fook Jewellery Group (A)   2,318,379    3,222,628 
Ctrip.com International ADR *   82,969    4,837,093 
E-Commerce China Dangdang ADR, Cl A * (A)   109,200    1,433,796 
Golden Eagle Retail Group (A)   966,947    1,184,495 
GOME Electrical Appliances Holding   25,150,705    3,956,553 
Home Inns & Hotels Management ADR *   36,527    1,103,480 
Intime Retail Group (A)   2,557,484    2,229,291 
New Oriental Education & Technology Group ADR *   56,877    1,228,543 
Parkson Retail Group   2,456,612    719,067 
Sun Art Retail Group (A)   4,510,625    4,827,495 
Vipshop Holdings ADR *   32,000    7,337,280 
Wumart Stores, Cl H (A)   1,237,211    1,070,467 
Youku.com ADR *   123,596    2,422,482 
         39,986,235 
TOTAL CHINA        100,779,081 

 

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

 

25
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Consumer ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued        
HONG KONG— 25.0%          
Consumer Goods — 19.3%          
Belle International Holdings, Cl A   5,554,596   $7,069,304 
Biostime International Holdings (A)   338,000    765,329 
Bosideng International Holdings (A)   6,049,462    897,060 
China Agri-Industries Holdings   4,795,156    1,830,212 
China Foods* (A)   1,566,113    585,636 
China Mengniu Dairy   1,470,826    6,495,744 
China Resources Enterprise   2,570,457    6,111,928 
Skyworth Digital Holdings   3,897,588    2,135,954 
         25,891,167 
Consumer Services — 5.7%          
China Dongxiang Group   6,119,588    1,120,515 
Melco Crown Entertainment ADR   240,937    6,539,030 
         7,659,545 
TOTAL HONG KONG        33,550,712 
TOTAL COMMON STOCK          
(Cost $156,619,247)        134,329,793 
           
REPURCHASE AGREEMENTS — 13.1%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$16,000,107 (collateralized by U.S. Treasury Bills, ranging in par value

$8,016-$2,965,011, 0.250%-4.875%, 11/15/14-05/15/22 with a total
market value of $16,230,491) (B)
   16,000,000    16,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,500,938 (collateralized by U.S. Treasury Bills, par value
$1,568,767, 1.125%, 12/31/19 with a total market value of $1,524,768)(B)
   1,500,925    1,500,925 
TOTAL REPURCHASE AGREEMENTS          
(Cost $17,500,925)        17,500,925 
           
TIME DEPOSITS — 0.3%          
Brown Brothers Harriman          
0.030%, 11/03/14   342,198    342,198 
0.005%, 11/03/14, HKD   10    1 
TOTAL TIME DEPOSITS          
(Cost $342,199)        342,199 
TOTAL INVESTMENTS — 113.5%          
(Cost $174,462,371)       $152,172,917 

 

Percentages are based on Net Assets of $134,014,036.

 

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

 

26
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Consumer ETF

 

 

*Non-Income Producing Security.
(1)In U.S. Dollars unless otherwise indicated.  
(A)This security or a partial position of this security is on loan at October 31, 2014. The total value of securities on loan at October 31, 2014 was $15,680,079.

(B)This security was purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $17,500,925.

 

ADR — American Depositary Receipt
Cl — Class
HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $134,329,793   $   $   $134,329,793 
Repurchase Agreements       17,500,925        17,500,925 
Time Deposits       342,199        342,199 
Total Investments in Securities  $134,329,793   $17,843,124   $   $152,172,917 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

27
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Energy ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.9%          
CHINA— 52.1%          
Energy — 39.3%          
Anton Oilfield Services Group   48,428   $10,241 
China Coal Energy, Cl H   126,891    77,720 
China Longyuan Power Group, Cl H   154,076    164,502 
China Oilfield Services, Cl H   87,956    183,507 
China Petroleum & Chemical, Cl H   524,197    454,225 
China Shenhua Energy, Cl H   78,340    220,720 
Daqo New Energy ADR *   280    10,898 
Hanwha SolarOne ADR *   4,088    8,503 
JA Solar Holdings ADR *   1,366    11,433 
JinkoSolar Holding ADR *   1,213    29,925 
PetroChina, Cl H   366,113    458,396 
ReneSola ADR *   4,066    9,758 
Tianneng Power International   30,315    10,828 
Trina Solar ADR *   3,162    33,391 
Yanzhou Coal Mining, Cl H   88,075    74,047 
Yingli Green Energy Holding ADR *   4,690    13,741 
         1,771,835 
Oil & Gas — 4.5%          
ENN Energy Holdings   31,361    203,407 
Utilities — 8.3%          
Datang International Power Generation, Cl H   133,812    70,226 
Huadian Power International, Cl H   80,761    61,650 
Huaneng Power International, Cl H   153,021    187,843 
Huaneng Renewables, Cl H   145,900    52,489 
         372,208 
TOTAL CHINA        2,347,450 
HONG KONG— 47.8%          
Energy — 22.9%          
Beijing Enterprises Holdings   25,373    207,101 
China Gas Holdings   90,337    161,682 
CNOOC   275,585    432,822 
Kunlun Energy   150,305    199,239 

 

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

 

28
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Energy ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Energy — continued          
Shougang Fushan Resources Group   137,815   $31,099 
         1,031,943 
Oil & Gas — 2.5%          
China Oil & Gas Group   204,700    32,466 
Shunfeng Photovoltaic International *   52,500    43,800 
Xinjiang Goldwind Science & Technology, Cl H   21,500    38,757 
         115,023 
Utilities — 22.4%          
China Power International Development   134,184    60,559 
China Resources Gas Group   39,700    113,389 
China Resources Power Holdings   78,601    228,550 
GCL-Poly Energy Holdings*   518,611    175,206 
Hong Kong & China Gas   92,067    214,877 
Power Assets Holdings   22,600    218,126 
         1,010,707 
TOTAL HONG KONG        2,157,673 
TOTAL COMMON STOCK          
(Cost $4,551,673)        4,505,123 
           
TIME DEPOSITS — 0.4%          
Brown Brothers Harriman          
0.030%, 11/03/14   16,078    16,078 
0.005%, 11/03/14, HKD   5    1 
TOTAL TIME DEPOSITS          
(Cost $16,079)        16,079 
TOTAL INVESTMENTS — 100.3%          
(Cost $4,567,752)       $4,521,202 

 

Percentages are based on Net Assets of $4,508,837.

 

*Non-income producing security
(1)In U.S. Dollars unless otherwise indicated.

 

ADR — American Depositary Receipt

Cl — Class

HKD — Hong Kong Dollar

 

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

 

29
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Energy ETF

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $4,505,123   $   $   $4,505,123 
Time Deposits       16,079        16,079 
Total Investments in Securities  $4,505,123   $16,079   $   $4,521,202 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

30
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Financials ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.6%          
CHINA— 77.2%          
Financials — 71.3%          
Agricultural Bank of China, Cl H   4,926,888   $2,287,084 
Bank of China, Cl H   10,171,834    4,866,090 
Bank of Communications, Cl H   2,477,271    1,855,909 
China Citic Bank, Cl H   2,029,722    1,321,706 
China Construction Bank, Cl H   6,479,626    4,829,307 
China Life Insurance, Cl H   792,040    2,369,420 
China Merchants Bank, Cl H   1,191,934    2,207,057 
China Minsheng Banking, Cl H   1,529,355    1,532,274 
China Pacific Insurance Group, Cl H   540,712    2,021,953 
Chongqing Rural Commercial Bank, Cl H   647,767    311,555 
CITIC Securities, Cl H   259,196    646,386 
E-House China Holdings ADR   21,831    218,092 
Industrial & Commercial Bank of China, Cl H   7,256,637    4,800,205 
PICC Property & Casualty, Cl H   1,095,442    2,008,612 
Ping An Insurance Group of China, Cl H   288,007    2,352,646 
Sino-Ocean Land Holdings   1,146,252    654,773 
SOHO China   481,559    353,320 
         34,636,389 
Real Estate — 5.9%          
Agile Property Holdings   323,012    182,015 
Country Garden Holdings   1,457,997    573,408 
Evergrande Real Estate Group   1,143,761    439,500 
Greentown China Holdings   155,993    162,325 
Guangzhou R&F Properties   250,293    272,717 
Longfor Properties   307,038    355,925 
Shimao Property Holdings   313,804    674,934 
Shui On Land   877,801    200,344 
         2,861,168 
TOTAL CHINA        37,497,557 
HONG KONG— 22.4%          
Financials — 20.7%          
Cheung Kong Holdings   129,350    2,295,049 
China Everbright   220,141    428,065 
China Overseas Land & Investment   806,366    2,339,493 

 

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

 

31
 

  

 

 

Schedule of Investments October 31, 2014

 

Global X China Financials ETF

 

  

Shares/Rights/

Face Amount (1)

   Value 
COMMON STOCK — continued          
Financials — continued          
China Resources Land   483,408   $1,149,428 
Franshion Properties China   760,958    179,564 
Haitong Securities, Cl H   338,500    580,520 
Hopson Development Holdings *   149,061    132,431 
KWG Property Holding   300,185    208,247 
New China Life Insurance, Cl H   249,511    933,028 
People's Insurance Group of China, Cl H   2,102,100    908,040 
Shenzhen Investment   554,718    160,224 
Sunac China Holdings   426,600    369,105 
Yuexiu Property   2,004,345    369,586 
         10,052,780 
Real Estate — 1.7%          
China Taiping Insurance Holdings *   301,130    646,122 
Poly Property Group   515,807    199,533 
         845,655 
TOTAL HONG KONG        10,898,435 
TOTAL COMMON STOCK          
(Cost $49,908,573)        48,395,992 
           
RIGHTS — 0.1%          
China — 0.0%          
Agile Property Holdings, Expires 11/11/14, Exercise Price 3.80, HKD*   44,176    2,905 
           
Hong Kong — 0.1%          
China Taiping Insurance Holdings, Expires 11/18/14, Exercise Price 11.89, HKD*   44,022    26,964 
           
TOTAL RIGHTS          
(Cost $–)        29,869 
           
TIME DEPOSITS — 0.1%          
Brown Brothers Harriman          
0.030%, 11/03/14   42,109    42,109 
0.005%, 11/03/14, HKD   11    1 
TOTAL TIME DEPOSITS          
(Cost $42,110)        42,110 
TOTAL INVESTMENTS — 99.8%          
(Cost $49,950,683)       $48,467,971 

 

Percentages are based on Net Assets of $48,585,334.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated..

 

ADR — American Depositary Receipt

Cl — Class

 

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

 

32
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Financials ETF

 

HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $48,395,992   $   $   $48,395,992 
Rights       29,869        29,869 
Time Deposits       42,110        42,110 
Total Investments in Securities  $48,395,992   $71,979   $   $48,467,971 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

33
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Industrials ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 96.9%          
CHINA— 72.7%          
Industrials — 72.7%          
Anhui Conch Cement, Cl H   83,837   $274,585 
BYD, Cl H   42,144    267,367 
China Communications Construction, Cl H   368,683    282,863 
China COSCO Holdings, Cl H *   296,462    133,032 
China Lesso Group Holdings   112,745    59,170 
China National Building Material, Cl H   284,817    264,060 
China National Materials   122,246    27,743 
China Railway Construction, Cl H   217,011    227,779 
China Railway Group, Cl H   439,868    271,117 
China Rongsheng Heavy Industry Group *   374,218    59,835 
China Shanshui Cement Group   223,852    82,553 
China Shipping Container Lines, Cl H *   430,852    122,780 
China Shipping Development, Cl H *   130,644    85,914 
China South Locomotive and Rolling Stock (A)(B)   234,313    238,386 
China Zhongwang Holdings   160,308    84,544 
Dongfang Electric, Cl H   38,943    65,882 
First Tractor, Cl H   45,941    29,383 
Guangshen Railway, Cl H   164,188    70,501 
Haitian International Holdings   73,196    157,053 
Harbin Power Equipment, Cl H   73,571    44,398 
Hollysys Automation Technologies *   4,462    109,453 
Jiangsu Expressway, Cl H   140,479    156,869 
Metallurgical Corp of China, Cl H   329,541    90,510 
Sany Heavy Equipment International Holdings *   103,294    22,909 
Shanghai Electric Group, Cl H   321,151    160,675 
Weichai Power, Cl H   55,859    214,283 
Yangzijiang Shipbuilding Holdings   222,543    195,623 
Zhejiang Expressway, Cl H   164,800    166,177 
Zhuzhou CSR Times Electric, Cl H (A)(B)   62,693    269,601 
TOTAL CHINA        4,235,045 
HONG KONG— 24.2%          
Industrials — 24.2%          
AviChina Industry & Technology, Cl H   238,700    181,598 
Beijing Capital International Airport, Cl H   159,571    117,077 
China High Speed Transmission Equipment Group *   109,150    85,995 
China International Marine Containers Group, Cl H   50,500    117,863 

 

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

 

34
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Industrials ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Industrials — continued          
China Merchants Holdings International   87,218   $275,537 
China Resources Cement Holdings   199,741    135,733 
Shanghai Industrial Holdings   53,299    164,257 
Shenzhen International Holdings   92,496    146,940 
Sunny Optical Technology Group   69,264    111,820 
Zoomlion Heavy Industry Science and Technology   144,500    69,499 
TOTAL HONG KONG        1,406,319 
TOTAL COMMON STOCK          
(Cost $6,003,666)        5,641,364 
           
TIME DEPOSITS — 0.4%          
Brown Brothers Harriman          
0.030%, 11/03/14   19,149    19,149 
0.005%, 11/03/14, HKD   12,919    1,666 
TOTAL TIME DEPOSITS          
(Cost $20,815)        20,815 
TOTAL INVESTMENTS — 97.3%          
(Cost $6,024,481)       $5,662,179 

 

Percentages are based on Net Assets of $5,820,634.

  

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)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, 2014 was $507,987 and represents 8.7% of Net Assets.
(B)Security considered illiquid. The total value of such securities as of October 31, 2014 was $507,987 and represented 8.7% of Net Assets.

 

Cl — Class
HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(1)

   Total 
Common Stock  $5,133,377   $   $507,987   $5,641,364 
Time Deposits       20,815        20,815 
Total Investments in Securities  $5,133,377   $20,815   $507,987   $5,662,179 

 

(1)Please see Note 2 for details on the unobservable inputs and the interrelationships and sensitivity between these inputs for those Level 3 securities that are not valued by third party pricing vendors or broker quotes.

 

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

 

35
 

 

 

Schedule of Investments October 31, 2014

 

Global X China Industrials ETF

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

   Investments in
Common Stock
 
     
Beginning Balance as of October 31, 2013  $ 
Transfers into Level 3   507,987 
Ending Balance as of October 31, 2014  $507,987 

 

For the year ended October 31, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

Net change in unrealized appreciation/(depreciation) from investments (Level 3) still held as of October 31, 2014 is $0.

 

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

 

36
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Materials ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.9%          
CHINA— 65.8%          
Basic Materials — 65.8%          
Aluminum Corp of China, Cl H *   352,399   $156,315 
Angang Steel, Cl H   192,884    142,017 
BBMG, Cl H   209,800    148,249 
China BlueChemical   314,729    111,603 
China Hongqiao Group   198,482    152,793 
China Molybdenum, Cl H   213,988    127,479 
Dongyue Group   201,457    75,853 
Fosun International   128,500    152,274 
Hunan Non-Ferrous Metal, Cl H (A)(B) *   272,387    87,457 
Jiangxi Copper, Cl H   84,941    150,929 
Maanshan Iron & Steel, Cl H *   320,525    83,487 
Real Gold Mining(A)(B) *   97,864    11,180 
Sinofert Holdings *   326,030    49,608 
Sinopec Shanghai Petrochemical, Cl H   426,110    132,418 
Sinopec Yizheng Chemical Fibre, Cl H *   307,914    136,185 
Zhaojin Mining Industry   152,244    80,880 
Zijin Mining Group, Cl H   575,649    147,713 
TOTAL CHINA        1,946,440 
HONG KONG— 32.6%          
Basic Materials — 32.6%          
China Lumena New Materials (A)(B) *   578,350    23,305 
China Precious Metal Resources Holdings *   582,500    61,591 
Citic Pacific   83,000    145,340 
Fufeng Group   165,944    77,888 
Kingboard Chemical Holdings   71,800    141,281 
Kingboard Laminates Holdings   140,128    57,098 
Nine Dragons Paper Holdings   189,600    146,933 
North Mining Shares, Cl C *   1,701,156    78,968 
Shougang Concord International Enterprises *   1,140,224    52,930 
West China Cement   428,800    42,575 
Yingde Gases   172,849    135,289 
TOTAL HONG KONG        963,198 

 

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

 

37
 

  

 

Schedule of Investments October 31, 2014

 

Global X China Materials ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
SINGAPORE— 1.5%          
Basic Materials — 1.5%          
Midas Holdings   178,266   $45,070 
TOTAL COMMON STOCK          
(Cost $3,740,944)        2,954,708 
           
TIME DEPOSITS — 0.5%          
Brown Brothers Harriman          
0.030%, 11/03/14   16,132    16,132 
0.005%, 11/03/14, HKD   2     
TOTAL TIME DEPOSITS          
(Cost $16,132)        16,132 
TOTAL INVESTMENTS — 100.4%          
(Cost $3,757,076)       $2,970,840 

 

Percentages are based on Net Assets of $2,959,319.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)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, 2014 was $121,942 and represents 4.1% of Net Assets .
(B)Security considered illiquid. The total value of such securities as of October 31, 2014 was $121,942 and represented 4.1% of Net Assets.

  

Cl — Class
HKD — Hong Kong Dollar

 

Amounts designated as “—“ are either $0 or have been rounded to $0.

 

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

 

38
 

 

 

Schedule of Investments October 31, 2014

 

Global X China Materials ETF

  

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(1)

   Total 
Common Stock  $2,832,766   $   $121,942   $2,954,708 
Time Deposits       16,132        16,132 
Total Investments in Securities  $2,832,766   $16,132   $121,942   $2,970,840 

 

(1)Please see Note 2 for details on the unobservable inputs and the interrelationships and sensitivity between these inputs for those Level 3 securities that are not valued by third party pricing vendors or broker quotes.

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

   Investments in
Common Stock
 
     
Beginning Balance as of October 31, 2013  $11,184 
Change in unrealized appreciation/(depreciation)   (3)
Transfers into Level 3   110,761 
Ending Balance as of October 31, 2014  $121,942 

 

For the year ended October 31, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

Net change in unrealized appreciation/(depreciation) from investments (Level 3) still held as of October 31, 2014 is $(3).

 

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

 

39
 

  

 

Schedule of Investments October 31, 2014

 

Global X NASDAQ China Technology ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.9%          
CHINA— 79.0%          
Technology — 79.0%          
21Vianet Group ADR *   32,877   $687,787 
500.com ADR, Cl A *   4,706    145,180 
Autohome ADR *   1,449    76,638 
Baidu ADR *   8,562    2,044,349 
BYD Electronic International   560,481    667,067 
China Communications Services, Cl H   627,803    294,667 
China Finance Online ADR *   12,789    72,897 
ChinaCache International Holdings ADR *   6,568    67,650 
Coolpad Group   1,823,415    390,302 
FIH Mobile *   1,627,519    866,729 
Kingdee International Software Group   1,275,649    417,803 
Lenovo Group   1,202,163    1,770,258 
NetEase ADR   20,861    1,975,954 
O-Net Communications Group   349,800    95,623 
Qihoo 360 Technology ADR *   20,909    1,525,939 
Semiconductor Manufacturing International *   9,744,674    1,005,227 
SINA *   19,874    814,238 
Sohu.com *   15,538    754,991 
Sungy Mobile ADR *   4,714    31,631 
Tencent Holdings   112,535    1,793,548 
Travelsky Technology, Cl H   231,455    241,746 
YY ADR *   10,810    895,716 
ZTE, Cl H   407,411    987,638 
TOTAL CHINA        17,623,578 
HONG KONG— 20.9%          
Technology — 20.9%          
Alibaba Health Information Technology *   1,166,029    727,716 
ASM Pacific Technology   88,143    969,491 
Chinasoft International *   770,376    259,269 
Comba Telecom Systems Holdings   631,097    289,703 
Digital China Holdings   583,038    542,801 
Ju Teng International Holdings   571,544    318,376 
TCL Communication Technology Holdings   369,832    363,385 
V1 Group   2,339,278    247,345 

 

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

 

40
 

  

 

Schedule of Investments October 31, 2014

 

Global X NASDAQ China Technology ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Technology — continued          
VTech Holdings   74,892   $937,695 
TOTAL HONG KONG        4,655,781 
TOTAL COMMON STOCK          
(Cost $19,512,628)        22,279,359 
           
TIME DEPOSIT — 0.0%          
Brown Brothers Harriman, 0.005%, 11/03/14, HKD          
(Cost $1)   11    1 
TOTAL INVESTMENTS — 99.9%          
(Cost $19,512,629)       $22,279,360 

 

Percentages are based on Net Assets of $22,306,871.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.

 

ADR — American Depositary Receipt

Cl — Class

HKD — Hong Kong Dollar

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

  

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $22,279,359   $   $   $22,279,359 
Time Deposit       1        1 
Total Investments in Securities  $22,279,359   $1   $   $22,279,360 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

41
 

  

 

Schedule of Investments October 31, 2014

 

Global X Southeast Asia ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.8%          
INDONESIA— 17.2%          
Consumer Goods — 3.9%          
Astra International   1,636,431   $917,403 
Unilever Indonesia   93,296    234,687 
         1,152,090 
Financials — 8.6%          
Bank Central Asia   1,002,256    1,082,287 
Bank Mandiri   760,760    651,541 
Bank Rakyat Indonesia Persero   869,460    796,795 
         2,530,623 
Telecommunications — 3.2%          
Telekomunikasi Indonesia ADR   20,591    933,802 
Utilities — 1.5%          
Perusahaan Gas Negara   859,739    423,289 
TOTAL INDONESIA        5,039,804 
MALAYSIA— 28.1%          
Basic Materials — 1.5%          
Petronas Chemicals Group   232,124    434,009 
Consumer Goods — 1.5%          
IOI   299,693    445,542 
Consumer Services — 1.8%          
Genting   178,515    529,154 
Financials — 11.4%          
CIMB Group Holdings   436,805    861,857 
Malayan Banking   357,581    1,054,506 
Public Bank   253,129    1,426,773 
         3,343,136 
Industrials — 2.5%          
Sime Darby   254,022    747,566 

 

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

 

42
 

  

 

Schedule of Investments October 31, 2014

 

Global X Southeast Asia ETF

 

   Shares   Value 
COMMON STOCK — continued          
Oil & Gas — 1.5%          
Petronas Gas   63,839   $436,300 
Telecommunications — 6.4%          
Axiata Group   407,428    873,259 
DiGi.Com   300,800    566,072 
Maxis   211,606    433,602 
         1,872,933 
Utilities — 1.5%          
Tenaga Nasional   112,655    457,573 
TOTAL MALAYSIA        8,266,213 
PHILIPPINES— 3.2%          
Consumer Services — 1.5%          
SM Investments   25,697    448,660 
Telecommunications — 1.7%          
Philippine Long Distance Telephone ADR   7,008    491,471 
TOTAL PHILIPPINES        940,131 
SINGAPORE— 36.2%          
Consumer Goods — 1.4%          
Wilmar International   169,621    422,238 
Consumer Services — 3.4%          
Genting Singapore   489,945    419,245 
Jardine Cycle & Carriage   8,027    249,146 
Singapore Airlines   40,573    312,464 
         980,855 
Financials — 21.3%          
CapitaLand   204,488    504,261 
DBS Group Holdings   143,873    2,068,279 
Oversea-Chinese Banking   252,836    1,945,195 
United Overseas Bank   96,287    1,722,755 
         6,240,490 
Industrials — 1.2%          
Singapore Technologies Engineering   125,045    364,775 
Oil & Gas — 2.9%          
Keppel   116,607    856,297 
Telecommunications — 6.0%          
Singapore Telecommunications   595,534    1,751,162 
TOTAL SINGAPORE        10,615,817 
THAILAND— 15.1%          
Consumer Services — 1.7%          
CP ALL   354,763    495,601 

 

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

 

43
 

  

 

Schedule of Investments October 31, 2014

 

Global X Southeast Asia ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
Financials — 5.5%          
Bangkok Bank   38,601   $234,664 
Kasikornbank   95,418    691,392 
Siam Commercial Bank   126,671    690,332 
         1,616,388 
Industrials — 1.1%          
Siam Cement   24,136    334,954 
Oil & Gas — 4.4%          
PTT   68,914    778,641 
PTT Exploration & Production   111,980    503,687 
         1,282,328 
Telecommunications — 2.4%          
Advanced Info Service   95,671    702,038 
TOTAL THAILAND        4,431,309 
TOTAL COMMON STOCK          
(Cost $30,762,662)        29,293,274 
           
TIME DEPOSIT — 0.2%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $45,956)  $45,956    45,956 
TOTAL INVESTMENTS — 100.0%          
(Cost $30,808,618)       $29,339,230 

 

Percentages are based on Net Assets of $29,335,963.

 

ADR — American Depositary Receipt

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $29,293,274   $   $   $29,293,274 
Time Deposit       45,956        45,956 
Total Investments in Securities  $29,293,274   $45,956   $   $29,339,230 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments. 

 

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

 

44
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Andean 40 ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments. 

 

   Shares   Value 
COMMON STOCK — 96.6%          
CHILE— 50.6%          
Basic Materials — 5.3%          
CAP   5,961   $56,996 
Empresas CMPC   94,539    231,711 
Sociedad Quimica y Minera de Chile ADR   7,813    185,402 
         474,109 
Consumer Goods — 2.2%          
Cia Cervecerias Unidas ADR   6,287    133,976 
Embotelladora Andina ADR, Cl B   3,355    62,437 
         196,413 
Consumer Services — 10.1%          
Cencosud   95,050    268,990 
Latam Airlines Group ADR *   28,441    346,980 
SACI Falabella   40,565    296,024 
         911,994 
Financials — 11.2%          
Banco de Chile ADR   3,364    248,936 
Banco de Credito e Inversiones   3,675    205,632 
Banco Santander Chile ADR   13,180    279,284 
Corpbanca ADR   9,064    183,093 
Parque Arauco   42,614    86,472 
         1,003,417 
Oil & Gas — 4.3%          
Empresas COPEC   31,939    386,217 
Technology — 1.1%          
Sonda   39,994    96,661 

 

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

 

45
 

  

 

Schedule of Investments October 31, 2014

 

Global X FTSE Andean 40 ETF

 

   Shares   Value 
COMMON STOCK — continued          
Telecommunications — 1.1%          
ENTEL Chile   9,255   $99,603 
Utilities — 15.3%          
AES Gener   214,581    118,735 
Aguas Andinas, Cl A   247,492    148,561 
Colbun   599,506    162,254 
E.CL   44,682    65,661 
Empresa Nacional de Electricidad ADR   9,471    442,106 
Enersis ADR   28,502    450,047 
         1,387,364 
TOTAL CHILE        4,555,778 
COLOMBIA— 32.9%          
Consumer Goods — 4.9%          
Almacenes Exito   16,604    234,466 
Grupo Nutresa   15,315    206,603 
         441,069 
Financials — 11.9%          
BanColombia ADR   7,101    401,704 
Celsia ESP   22,600    65,801 
Financiera Colombiana   7,425    145,491 
Financiera Colombiana - Temporary   202    3,725 
Grupo Aval Acciones y Valores ADR   6,782    91,421 
Grupo de Inversiones Suramericana   17,637    365,449 
         1,073,591 
Industrials — 4.7%          
Cementos Argos   31,532    160,663 
Grupo Argos   24,256    263,188 
         423,851 
Oil & Gas — 9.3%          
Ecopetrol ADR   18,370    492,316 
Pacific Rubiales Energy ^   22,886    345,081 
         837,397 
Utilities — 2.1%          
Interconexion Electrica   25,480    108,807 
Isagen   62,600    82,626 
         191,433 
TOTAL COLOMBIA        2,967,341 
PERU— 13.1%          
Basic Materials — 5.6%          
Cia de Minas Buenaventura ADR   15,466    142,287 
Southern Copper   12,537    360,815 
         503,102 

 

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

 

46
 

  

 

Schedule of Investments October 31, 2014

 

Global X FTSE Andean 40 ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
Financials — 7.5%          
BBVA Banco Continental   25,000   $40,876 
Credicorp   1,056    168,960 
Credicorp Ltd.   2,924    470,764 
         680,600 
TOTAL PERU        1,183,702 
TOTAL COMMON STOCK          
(Cost $10,864,584)        8,706,821 
           
PREFERRED STOCK — 3.3%          
COLOMBIA— 3.3%          
Financials — 2.2%          
Banco Davivienda,   7,570    112,774 
Grupo Aval Acciones y Valores   134,171    89,849 
         202,623 
Industrials — 1.1%          
Grupo Argos   9,110    100,350 
TOTAL PREFERRED STOCK          
(Cost $261,720)        302,973 
           
TIME DEPOSIT — 0.1%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $4,947)  $4,947    4,947 
TOTAL INVESTMENTS — 100.0%          
(Cost $11,131,251)       $9,014,741 

 

Percentages are based on Net Assets of $9,010,458.

 

* Non-income producing security.
^ Security traded on the Toronto Stock Exchange.
ADR — American Depositary Receipt
Cl — Class
Ltd. — Limited

 

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

 

47
 

  

 

Schedule of Investments October 31, 2014

 

Global X FTSE Andean 40 ETF

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $8,706,821   $   $   $8,706,821 
Preferred Stock   302,973            302,973 
Time Deposit       4,947        4,947 
Total Investments in Securities  $9,009,794   $4,947   $   $9,014,741 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

48
 

  

 

Schedule of Investments October 31, 2014

 

Global X MSCI Colombia ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 88.2%          
COLOMBIA— 88.2%          
Consumer Goods — 9.0%          
Almacenes Exito   309,761   $4,374,158 
Grupo Nutresa   351,727    4,744,880 
         9,119,038 
Financials — 31.9%          
Banco de Bogota   47,217    1,558,052 
BanColombia ADR   221,888    12,552,204 
Bolsa de Valores de Colombia   292,661,726    3,124,376 
Celsia ESP   1,563,812    4,553,135 
Financiera Colombiana   99,589    1,951,427 
Financiera Colombiana – Temporary   2,622    48,349 
Grupo Aval Acciones y Valores   398,611    264,999 
Grupo Aval Acciones y Valores ADR   81,710    1,101,451 
Grupo de Inversiones Suramericana   337,069    6,984,276 
Interbolsa(B)(C) *   1,320,603    641 
         32,138,910 
Industrials — 13.1%          
Cementos Argos   271,687    1,384,308 
Cemex Latam Holdings *   548,912    4,874,482 
Grupo Argos   319,795    3,469,910 
Mineros (B)(C)   2,561,063    3,471,090 
         13,199,790 
Oil & Gas — 20.6%          
Canacol Energy *   806,471    2,753,926 
Ecopetrol ADR (A)   401,824    10,768,883 
Pacific Rubiales Energy ^   475,585    7,171,001 
         20,693,810 
Utilities — 13.6%          
Empresa de Energia de Bogota   5,918,677    4,681,521 
Interconexion Electrica   1,045,862    4,466,134 

 

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

 

49
 

  

 

Schedule of Investments October 31, 2014

 

Global X MSCI Colombia ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
Utilities — continued          
Isagen   3,408,359   $4,498,720 
         13,646,375 
TOTAL COMMON STOCK          
(Cost $105,137,199)        88,797,923 
           
PREFERRED STOCK — 11.7%          
COLOMBIA— 11.7%          
Consumer Services — 4.3%          
Avianca Holdings   2,307,076    4,321,394 
Financials — 7.1%          
Banco Davivienda   316,769    4,719,063 
Grupo Aval Acciones y Valores   1,431,941    958,912 
Grupo de Inversiones Suramericana   73,403    1,481,773 
         7,159,748 
Industrials — 0.3%          
Grupo Argos   29,038    319,865 
TOTAL PREFERRED STOCK          
(Cost $10,609,940)        11,801,007 
           
TIME DEPOSIT — 0.1%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $115,736)  $115,736    115,736 
TOTAL INVESTMENTS — 100.0%          
(Cost $115,862,875)       $100,714,666 

 

Percentages are based on Net Assets of $100,687,511.

 

*Non-income producing security
(A)This security or a partial position of this security is on loan at October 31, 2014. The total value of securities on loan at October 31, 2014 was $6,235,100. This security is collateralized by cash in the amount of $6,514,284, which is held at Citibank.
(B)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, 2014 was $3,471,731 and represents 3.4% of Net Assets .
(C)Security considered illiquid. The total value of such securities as of October 31, 2014 was $3,471,731 and represented 3.4% of Net Assets.

  

^ Security traded on the Toronto Stock Exchange
ADR — American Depositary Receipt

  

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

 

50
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Colombia ETF

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(1)

   Total 
Common Stock  $85,326,192   $   $3,471,731   $88,797,923 
Preferred Stock   11,801,007            11,801,007 
Time Deposit       115,736        115,736 
Total Investments in Securities  $97,127,199   $115,736   $3,471,731   $100,714,666 

 

(1)Please see Note 2 for details on the unobservable inputs and the interrelationships and sensitivity between these inputs for those Level 3 securities that are not valued by third party pricing vendors or broker quotes.

 

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

   Investments in 
   Common Stock 
     
Beginning Balance as of October 31, 2013  $6,839 
Change in unrealized appreciation/(depreciation)   (6,198)
Transfers into Level 3   3,471,090 
Ending Balance as of October 31, 2014  $3,471,731 

 

For the year ended October 31, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

Net change in unrealized appreciation/(depreciation) from investments (Level 3) still held as of October 31, 2014 is $(6,198).

 

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

 

51
 

  

 

Schedule of Investments October 31, 2014

 

Global X Brazil Mid Cap ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 91.0%          
BRAZIL— 91.0%          
Basic Materials — 7.9%          
Cia Siderurgica Nacional ADR   83,005   $272,256 
Fibria Celulose ADR *   28,787    352,065 
         624,321 
Consumer Goods — 10.1%          
Cosan, Cl A   9,382    99,355 
Cosan Industria e Comercio   6,143    86,607 
Hypermarcas *   21,027    148,353 
JBS   52,035    234,358 
M Dias Branco   2,356    92,533 
Natura Cosmeticos   9,619    141,142 
         802,348 
Consumer Services — 13.3%          
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR   7,604    317,847 
Kroton Educacional   55,760    401,362 
Localiza Rent a Car   8,222    119,705 
Lojas Renner   7,081    214,152 
         1,053,066 
Financials — 13.0%          
BM&F Bovespa   100,766    447,676 
BR Malls Participacoes   23,711    192,321 
CETIP - Mercados Organizados   12,072    154,501 
Cyrela Brazil Realty Empreendimentos e Participacoes   15,679    78,732 
Multiplan Empreendimentos Imobiliarios   4,399    91,890 
Porto Seguro   5,306    64,231 
         1,029,351 
Industrials — 11.0%          
All America Latina Logistica   25,902    71,684 

 

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

 

52
 

  

 

Schedule of Investments October 31, 2014

 

Global X Brazil Mid Cap ETF

 

   Shares   Value 
COMMON STOCK — continued          
Industrials — continued          
Cosan Logistica *   6,143   $10,391 
Duratex   15,763    57,181 
EcoRodovias Infraestrutura e Logistica   11,227    50,702 
Embraer ADR   5,969    230,642 
Klabin   54,704    273,135 
WEG   16,075    191,515 
         885,250 
Telecommunications — 8.9%          
Tim Participacoes ADR   25,728    708,035 
Utilities — 26.8%          
Centrais Eletricas Brasileiras ADR   59,207    149,794 
Cia de Saneamento Basico do Estado de Sao Paulo ADR   35,652    276,660 
Cia Energetica de Minas Gerais ADR   45,220    261,372 
Cia Paranaense de Energia ADR   5,496    77,494 
CPFL Energia ADR   27,654    412,044 
EDP - Energias do Brasil   13,081    51,557 
Tractebel Energia   11,487    158,017 
Transmissora Alianca de Energia Eletrica   5,000    37,498 
Ultrapar Participacoes ADR   32,144    697,525 
         2,121,961 
TOTAL COMMON STOCK          
(Cost $7,580,029)        7,224,332 
           
PREFERRED STOCK — 7.9%          
BRAZIL— 7.9%          
Basic Materials — 1.8%          
Braskem   8,294    61,289 
Metalurgica Gerdau   15,115    82,553 
         143,842 
Consumer Services — 1.9%          
Lojas Americanas   25,189    150,100 
Financials — 1.1%          
Bradespar   12,586    85,875 
Telecommunications — 2.0%          
Oi*   308,711    163,617 
Utilities — 1.1%          
Cia Energetica de Sao Paulo   8,746    87,088 
TOTAL PREFERRED STOCK          
(Cost $1,284,130)        630,522 

 

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

 

53
 

  

 

Schedule of Investments October 31, 2014

 

Global X Brazil Mid Cap ETF

 

   Face
Amount/Number
of Warrants
   Value 
CORPORATE OBLIGATIONS — 0.6%          
Hypermarcas(A) (B)          
11.300%, 10/15/18  $59,000   $24,446 
3.000%, 10/15/15   59,000    24,446 
TOTAL CORPORATE OBLIGATIONS          
(Cost $70,852)        48,892 
           
WARRANTS — 0.0%          
Hypermarcas Strike Price $29.48, Expires 10/15/15(A)(B)*          
(Cost $—)   59     
           
TIME DEPOSIT — 0.4%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $29,482)   29,482    29,482 
TOTAL INVESTMENTS — 99.9%          
(Cost $8,964,493)       $7,933,228 

 

Percentages are based on Net Assets of $7,942,263.

 

*Non-income producing security.

 

(A)Securities considered illiquid. The total value of such securities as of October 31, 2014 was $48,892 and represented 0.6% of Net Assets.
(B)Securities are fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of October 31, 2014, was $48,892 and represented 0.6% of Net Assets.

  

ADR — American Depositary Receipt
Cl — Class

 

Amounts designated as “—“ are either $0 or have been rounded to $0.

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(a)

   Total 
Common Stock  $7,224,332   $   $   $7,224,332 
Preferred Stock   630,522            630,522 
Corporate Obligations           48,892    48,892 
Time Deposit       29,482        29,482 
Warrants                
Total Investments in Securities  $7,854,854   $29,482   $48,892   $7,933,228 

  

(a) 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, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

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

 

54
 

 

 

Schedule of Investments October 31, 2014

 

Global X Brazil Consumer ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 93.2%          
BRAZIL— 93.2%          
Consumer Goods — 54.0%          
AMBEV ADR   66,821   $446,364 
Arezzo Industria e Comercio   10,912    127,647 
BRF ADR   21,005    547,180 
Cia Hering   35,653    363,295 
Cosan, Cl A   40,251    426,258 
Cosan Industria e Comercio   27,787    391,756 
Gafisa ADR   50,264    107,565 
Grendene   17,052    121,559 
Hypermarcas *   59,980    423,181 
JBS   135,916    612,147 
M Dias Branco   10,718    420,953 
Marfrig Alimentos *   62,786    154,825 
Minerva *   24,285    126,203 
Natura Cosmeticos   27,816    408,150 
Sao Martinho   12,202    193,963 
SLC Agricola   10,526    72,463 
Souza Cruz   48,092    392,428 
Technos   9,649    38,542 
         5,374,479 
Consumer Services — 39.2%          
B2W Cia Digital *   17,004    223,721 
Cia Brasileira de Distribuicao Grupo Pao de Acucar ADR   10,664    445,755 
Cosan Logistica *   27,787    47,001 
Gol Linhas Aereas Inteligentes ADR   22,077    114,138 
International Meal Holdings   10,867    78,398 
Kroton Educacional   80,028    576,044 
Localiza Rent a Car   29,401    428,052 
Lojas Renner   15,991    483,618 
Marisa Lojas   11,596    74,205 
Multiplus   11,327    160,433 
Raia Drogasil   49,842    456,886 
Restoque Comercio e Confeccoes de Roupas *   25,679    89,174 

 

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

 

55
 

  

 

Schedule of Investments October 31, 2014

 

Global X Brazil Consumer ETF

 

   Shares/Face
Amount/Number
of Warrants
   Value 
COMMON STOCK — continued          
Consumer Services — continued          
Rossi Residencial *   80,863   $32,300 
Smiles   15,931    277,913 
Via Varejo *   41,674    404,943 
         3,892,581 
TOTAL COMMON STOCK          
(Cost $9,323,829)        9,267,060 
           
PREFERRED STOCK — 5.7%          
BRAZIL— 5.7%          
Consumer Goods — 1.0%     
Alpargatas   27,958    99,026 
Consumer Services — 4.7%     
Lojas Americanas   78,612    468,445 
Saraiva Livreiros Editores   93    525 
         468,970 
TOTAL PREFERRED STOCK          
(Cost $498,665)        567,996 
           
CORPORATE OBLIGATIONS — 0.7%
Hypermarcas(A)(B)          
11.300%, 10/15/18  $84,000    34,804 
3.000%, 10/15/15   84,000    34,804 
           
TOTAL CORPORATE OBLIGATIONS          
(Cost $100,875)        69,608 
           
WARRANTS — 0.0%
Hypermarcas, Strike Price $29.48, Expires 10/15/15(A)(B)*          
(Cost $—)   84     
           
TIME DEPOSIT — 0.1%
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $13,084)   13,084    13,084 
TOTAL INVESTMENTS — 99.7%          
(Cost $9,936,453)       $9,917,748 

 

Percentages are based on Net Assets of $9,942,650.

 

*Non-income producing security.
(A)Securities considered illiquid. The total value of such securities as of October 31, 2014 was $69,608 and represented 0.7% of Net Assets.
(B)Securities are fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of October 31, 2014, was $69,608 and represented 0.7% of Net Assets.

 

ADR — American Depositary Receipt
Cl — Class

 

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

 

56
 

 

 

Schedule of Investments October 31, 2014

 

Global X Brazil Consumer ETF

 

Amounts designated as “—“ are either $0 or have been rounded to $0.

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:
 
Investments in Securities 

Level 1

  

Level 2

  

Level 3(a)

  

Total

 
Common Stock  $9,267,060   $   $   $9,267,060 
Preferred Stock   567,996            567,996 
Corporate Obligations           69,608    69,608 
Time Deposit       13,084        13,084 
Warrants                
Total Investments in Securities  $9,835,056   $13,084   $69,608   $9,917,748 

 

(a) 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, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

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

 

57
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Brazil Financials ETF

 

Sector Weightings (unaudited)†:

 

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 95.9%          
BRAZIL— 95.9%          
Financials — 95.9%          
Aliansce Shopping Centers   4,992   $37,031 
Banco Bradesco ADR   19,010    284,770 
Banco do Brasil   13,313    150,469 
Banco Santander Brasil ADR   44,735    245,148 
BB Seguridade Participacoes   10,897    146,836 
BM&F Bovespa   26,821    119,158 
BR Malls Participacoes   16,471    133,597 
BR Properties   17,314    88,354 
Brasil Brokers Participacoes   11,664    15,071 
Brasil Insurance Participacoes e Administracao   6,704    20,357 
Brookfield Incorporacoes *   21,304    13,720 
CETIP - Mercados Organizados   11,208    143,443 
Cielo   8,004    132,745 
Cyrela Brazil Realty Empreendimentos e Participacoes   19,254    96,684 
Even Construtora e Incorporadora   15,534    33,937 
Ez Tec Empreendimentos e Participacoes   3,514    30,364 
Grupo BTG Pactual   9,579    122,400 
Helbor Empreendimentos   7,700    19,019 
Iguatemi Empresa de Shopping Centers   4,636    47,428 
Itau Unibanco Holding ADR   19,576    288,942 
LPS Brasil Consultoria de Imoveis   4,197    14,540 
MRV Engenharia e Participacoes   21,781    72,797 
Multiplan Empreendimentos Imobiliarios   5,591    116,790 
PDG Realty Empreendimentos e Participacoes *   91,756    45,626 
Porto Seguro   6,623    80,174 
Rossi Residencial *   20,774    8,298 
Sul America   18,453    98,980 
TOTAL COMMON STOCK          
(Cost $3,219,391)        2,606,678 
           
PREFERRED STOCK — 3.5%          
BRAZIL— 3.5%          
Financials — 3.5%     
Banco ABC Brasil   3,617    20,300 

 

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

 

58
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Brazil Financials ETF

 

   Shares/Face
Amount
   Value 
PREFERRED STOCK — continued
Financials — continued     
Banco do Estado do Rio Grande do Sul    12,638   $76,237 
TOTAL PREFERRED STOCK          
(Cost $116,925)        96,537 
           
TIME DEPOSIT — 0.5%
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $12,689)    $12,689    12,689 
TOTAL INVESTMENTS — 99.9%          
(Cost $3,349,005)        $2,715,904 

 

Percentages are based on Net Assets of $2,718,963.

 

*Non-income producing security.

 

ADR — American Depositary Receipt

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $2,606,678   $   $   $2,606,678 
Preferred Stock   96,537            96,537 
Time Deposit       12,689        12,689 
Total Investments in Securities  $2,703,215   $12,689   $   $2,715,904 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

59
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Argentina ETF

 

Sector Weightings (unaudited)†:

 

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.8%
ARGENTINA— 82.8%          
Basic Materials — 19.5%          
Tenaris ADR    101,360   $4,017,910 
Consumer Goods — 1.9%          
Cresud SACIF y A ADR    37,537    394,138 
Consumer Services — 19.5%          
Arcos Dorados Holdings, Cl A    126,079    776,647 
MercadoLibre    23,734    3,231,384 
         4,008,031 
Financials — 15.5%     
Banco Macro ADR    24,228    1,023,391 
BBVA Banco Frances ADR    62,239    822,800 
Grupo Financiero Galicia ADR    67,462    991,691 
IRSA Inversiones y Representaciones ADR    25,704    378,620 
         3,216,502 
Oil & Gas — 13.6%          
Petrobras Argentina ADR    90,121    608,317 
Transportadora de Gas del Sur ADR *   138,955    469,668 
YPF ADR    49,144    1,728,394 
         2,806,379 
Telecommunications — 7.5%          
Grupo Clarin GDR, Cl B    50,169    416,403 
Telecom Argentina ADR    49,279    1,136,867 
         1,553,270 
Utilities — 5.3%          
Empresa Distribuidora Y Comercializadora Norte ADR *   33,337    410,379 
Pampa Energia ADR *   62,003    690,713 
         1,101,092 
TOTAL ARGENTINA        17,097,322 

 

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

 

60
 

 

 

 

Schedule of Investments

October 31, 2014

 

Global X MSCI Argentina ETF

 

   Shares   Value 
COMMON STOCK — continued          
CANADA— 5.5%          
Basic Materials — 2.7%          
Pan American Silver   28,761   $265,464 
Silver Standard Resources *   66,924    292,458 
         557,922 
Industrials — 2.3%          
Finning International   17,946    463,194 
Oil & Gas — 0.5%          
Pan American Silver   11,429    105,628 
TOTAL CANADA        1,126,744 
CHILE— 5.6%          
Consumer Goods — 3.9%          
Cia Cervecerias Unidas ADR   22,895    487,892 
Embotelladora Andina ADR, Cl B   17,195    319,999 
         807,891 
Consumer Services — 1.7%          
Cencosud   120,938    342,253 
TOTAL CHILE        1,150,144 
HONG KONG— 1.3%          
Oil & Gas — 1.3%          
EPI Holdings *   11,975,600    268,691 
SPAIN— 1.7%          
Consumer Goods — 1.7%          
Prosegur Cia de Seguridad   59,700    350,055 
UNITED STATES— 2.9%          
Basic Materials — 1.3%          
McEwen Mining *   226,454    280,803 
Oil & Gas — 1.6%          
Apco Oil and Gas International *   22,958    328,988 
TOTAL UNITED STATES        609,791 
TOTAL COMMON STOCK          
(Cost $21,805,333)        20,602,747 

 

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

 

61
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Argentina ETF

 

   Face Amount   Value 
TIME DEPOSIT — 0.2%
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $40,433)  $40,433   $40,433 
TOTAL INVESTMENTS — 100.0%          
(Cost $21,845,766)       $20,643,180 

 

Percentages are based on Net Assets of $20,652,247.

 

*Non-income producing security.

 

ADR — American Depositary Receipt

Cl — Class

GDR — Global Depositary Receipt

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $20,602,747   $   $   $20,602,747 
Time Deposit       40,433        40,433 
Total Investments in Securities  $20,602,747   $40,433   $   $20,643,180 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

62
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Greece 20 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 8 in Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.6%          
CYPRUS— 0.3%          
Financials — 0.3%          
Bank of Cyprus (C)(D) *   3,387,287   $534,734 
GREECE— 99.3%          
Basic Materials — 3.9%          
Mytilineos Holdings *   841,417    5,408,093 
Consumer Goods — 17.7%          
Coca-Cola HBC   624,811    13,584,586 
Coca-Cola HBC AG ADR *   213,250    4,627,525 
JUMBO *   599,538    6,572,646 
         24,784,757 
Consumer Services — 10.2%          
Folli Follie   227,680    7,445,277 
OPAP   569,158    6,895,643 
         14,340,920 
Financials — 33.2%          
Alpha Bank AE *   9,937,290    6,474,210 
Eurobank Ergasias *   34,884,753    12,106,843 
National Bank of Greece ADR * (A)   6,440,261    15,649,834 
Piraeus Bank *   8,527,016    12,392,832 
         46,623,719 
Industrials — 10.9%          
Ellaktor *   1,403,938    3,957,728 
Metka   272,133    2,659,447 
Titan Cement   333,861    7,399,613 

  

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

 

63
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Greece 20 ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Industrials — continued          
Viohalco *   412,060   $1,316,485 
         15,333,273 
Oil & Gas — 5.8%          
Hellenic Petroleum *   743,560    3,819,578 
Motor Oil Hellas Corinth Refineries   587,520    4,298,837 
         8,118,415 
Real Estate Investment Trusts — 3.2%          
Grivalia Properties REIC   412,163    4,451,350 
Telecommunications — 8.3%          
Hellenic Telecommunications Organization *   1,028,575    11,611,177 
Utilities — 6.1%          
Athens Water Supply & Sewage   438,337    3,026,044 
Public Power *   590,749    4,485,296 
Terna Energy   361,045    1,035,887 
         8,547,227 
TOTAL GREECE        139,218,931 
TOTAL COMMON STOCK          
(Cost $207,524,190)        139,753,665 
           
U.S. TREASURY OBLIGATION — 13.6%          
           
United States Treasury Bills          
0.000%, 11/06/14(E)          
(Cost $19,000,000)   19,000,000    19,000,000 
           
REPURCHASE AGREEMENT — 1.7%          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14 repurchase price
$2,341,220 (collateralized by U.S. Treasury Notes, par value $2,447,022,
1.125%, 12/31/19 with a total market value of $2,378,391) (B)
          
(Cost $2,341,200)   2,341,200    2,341,200 
           
TIME DEPOSIT — 0.1%          
Brown Brothers Harriman, 0.110%, 11/03/14, EUR          
(Cost $122,378)   97,676    122,378 
TOTAL INVESTMENTS — 115.0%          
(Cost $228,987,768)       $161,217,243 

  

Percentages are based on Net Assets of $140,201,261.

 

*Non Income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014. The total value of securities on loan at October 31, 2014 was $1,896,372.
(B)This security was purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $2,341,200.

 

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

 

64
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Greece 20 ETF

  

(C)Securities considered illiquid. The total value of such securities as of October 31, 2014 was $534,734 and represented 0.3% of Net Assets.
(D)Securities are fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of October 31, 2014, was $534,734 and represented 0.3% of Net Assets.
(E)The rate reported on the Schedule of Investments is the effective yield at time of purchase.

 

ADR — American Depositary Receipt

EUR — Euro

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(a)

   Total 
Common Stock  $139,218,931   $   $534,734   $139,753,665 
U.S. Treasury Obligation       19,000,000        19,000,000 
Repurchase Agreement       2,341,200        2,341,200 
Time Deposit       122,378        122,378 
Total Investments in Securities  $139,218,931   $21,463,578   $534,734   $161,217,243 

 

(a) 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, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

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

 

65
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Norway 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 8 in Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.2%          
CYPRUS— 0.2%          
Oil & Gas — 0.2%          
Songa Offshore *   1,250,700   $431,659 
NORWAY— 96.6%          
Basic Materials — 10.5%          
Borregaard   163,400    1,137,580 
Norsk Hydro   1,634,676    9,138,301 
Yara International   193,144    8,860,420 
         19,136,301 
Consumer Goods — 10.6%          
Austevoll Seafood   207,800    1,348,191 
Bakkafrost P   38,335    936,939 
Kongsberg Automotive Holding *   320,265    305,986 
Leroy Seafood Group   44,040    1,663,487 
Marine Harvest   425,907    6,024,903 
Orkla   1,067,284    8,149,680 
Salmar   55,340    995,973 
         19,425,159 
Consumer Services — 4.2%          
Norwegian Air Shuttle * (A)   42,421    1,367,325 
Schibsted (A)   119,834    6,335,173 
         7,702,498 
Financials — 19.8%          
Aker, Cl A   48,900    1,191,535 
DnB   1,150,554    21,115,930 
Gjensidige Forsikring (A)   318,414    5,777,768 
Norwegian Property   1,005,868    1,534,653 
Selvaag Bolig   104,198    302,515 

 

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

 

66
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Norway ETF

 

   Shares   Value 
COMMON STOCK — continued          
Financials — continued          
SpareBank 1 Nord Norge   80,300   $469,834 
SpareBank 1 SMN   205,600    1,827,285 
Storebrand *   768,823    3,938,068 
         36,157,588 
Industrials — 4.6%          
American Shipping   22,300    145,341 
BW LPG   82,560    781,452 
Deep Sea Supply   809,800    916,438 
Golden Ocean Group   790,900    961,241 
Hexagon Composites   49,000    203,955 
Hoegh LNG Holdings *   84,600    1,090,239 
IDEX * (A)   178,300    85,835 
Ocean Yield   20,600    126,023 
Stolt-Nielsen   61,410    1,105,216 
Thin Film Electronics *   197,900    121,947 
Tomra Systems   264,654    1,979,711 
Wilh Wilhelmsen, Cl B   118,427    861,319 
         8,378,717 
Oil & Gas — 32.7%          
Akastor (A)   260,036    895,547 
Aker Solutions *   260,036    1,683,243 
Archer *   618,200    595,215 
Awilco Drilling (A)   10,180    143,253 
BW Offshore   842,300    1,031,821 
Det Norske Oljeselskap *   188,905    1,220,006 
DNO International * (A)   1,026,784    2,494,335 
Electromagnetic GeoServices *   439,500    234,365 
Fred Olsen Energy   58,860    627,311 
Kvaerner (A)   411,900    544,238 
Odfjell Drilling   33,207    97,885 
Petroleum Geo-Services (A)   333,890    1,654,365 
ProSafe   398,170    1,822,464 
REC Solar *   28,920    387,471 
Renewable Energy * (A)   3,058,700    1,222,393 
Seadrill   421,358    9,468,228 
Sevan Drilling *   296,267    42,129 
Statoil   1,410,156    31,958,801 
TGS Nopec Geophysical (A)   160,260    3,738,846 
         59,861,916 
Technology — 3.4%          
Atea   136,692    1,493,265 
Dolphin Group *   605,584    259,241 
Nordic Semiconductor (A)   282,544    1,590,382 

  

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

 

67
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Norway ETF

 

  

Shares/Face Amount(1)

   Value 
COMMON STOCK — continued          
Technology — continued          
Opera Software   237,840   $2,973,440 
         6,316,328 
Telecommunications — 10.8%          
Telenor   884,604    19,864,608 
TOTAL NORWAY        176,843,115 
UNITED ARAB EMIRATES— 0.1%          
Oil & Gas — 0.1%          
Polarcus * (A)   911,700    121,542 
UNITED KINGDOM— 2.3%          
Oil & Gas — 2.3%          
Subsea 7   385,603    4,149,616 
TOTAL COMMON STOCK          
(Cost $210,884,649)        181,545,932 
REPURCHASE AGREEMENTS — 7.0%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$11,000,073 (collateralized by U.S. Treasury Notes, ranging in par value
$109,630-$2,146,341, 0.250%-4.875%, 11/15/14-05/15/22 with a total
          
market value of $11,158,463)(B)   11,000,000    11,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,720,130 (collateralized by U.S. Treasury Notes, par value
$1,797,865, 1.125%, 12/31/19 with a total market value of
$1,747,441)(B)
   1,720,116    1,720,116 
TOTAL REPURCHASE AGREEMENTS          
(Cost $12,720,116)        12,720,116 
TIME DEPOSITS — 0.6%          
Brown Brothers Harriman          
0.030%, 11/03/14   37,536    37,536 
0.650%, 05/01/14, NOK   7,696,322    1,140,027 
TOTAL TIME DEPOSITS          
(Cost $1,177,563)        1,177,563 
TOTAL INVESTMENTS — 106.8%          
(Cost $224,782,328)       $195,443,611 

  

Percentages are based on Net Assets of $183,037,614.

 

*Non-Income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014. The total value of securities on loan at October 31, 2014 was $12,009,359.
(B)This security was purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $12,720,116.

 

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

 

68
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Norway ETF

 

Cl — Class

NOK — Norwegian Krone

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $181,545,932   $   $   $181,545,932 
Repurchase Agreements       12,720,116        12,720,116 
Time Deposits       1,177,563        1,177,563 
Total Investments in Securities  $181,545,932   $13,897,679   $   $195,443,611 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

69
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Nordic Region ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.4%          
DENMARK— 24.6%          
Consumer Goods — 1.6%          
Carlsberg, Cl B   10,639   $936,600 
Financials — 3.3%          
Danske Bank   72,733    1,994,362 
Health Care — 17.1%          
Coloplast, Cl B   10,167    884,779 
Novo Nordisk ADR   181,985    8,222,082 
Novozymes, Cl B   23,730    1,100,451 
         10,207,312 
Industrials — 2.6%          
A P Moller - Maersk, Cl B   676    1,574,832 
TOTAL DENMARK        14,713,106 
FINLAND— 13.5%          
Financials — 3.8%          
Sampo, Cl A   47,551    2,274,036 
Industrials — 2.8%          
Kone, Cl B   38,504    1,654,685 
Technology — 5.2%          
Nokia ADR   378,500    3,130,195 
Utilities — 1.7%          
Fortum   44,809    1,038,049 
TOTAL FINLAND        8,096,965 
NORWAY— 13.3%          
Basic Materials — 2.6%          
Norsk Hydro   135,520    757,595 

 

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

 

70
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Nordic Region ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
Basic Materials — continued          
Yara International   17,397   $798,082 
         1,555,677 
Financials — 3.3%          
DnB   108,746    1,995,798 
Oil & Gas — 4.7%          
Seadrill   35,122    789,217 
Statoil ADR   88,841    2,038,901 
         2,828,118 
Telecommunications — 2.7%          
Telenor   70,486    1,582,829 
TOTAL NORWAY        7,962,422 
SWEDEN— 48.0%          
Consumer Goods — 2.2%          
Svenska Cellulosa, Cl B   58,393    1,302,751 
Consumer Services — 5.8%          
Hennes & Mauritz, Cl B   88,195    3,500,270 
Financials — 20.3%          
Investor, Cl B   45,531    1,625,525 
Nordea Bank   296,685    3,796,638 
Skandinaviska Enskilda Banken, Cl A   146,325    1,870,524 
Svenska Handelsbanken, Cl A   44,467    2,115,716 
Swedbank, Cl A   106,045    2,798,634 
         12,207,037 
Industrials — 11.7%          
Assa Abloy, Cl B   31,489    1,664,180 
Atlas Copco, Cl A   62,313    1,794,385 
Sandvik   99,741    1,090,375 
SKF, Cl B   41,289    824,636 
Volvo, Cl B   141,273    1,621,721 
         6,995,297 
Technology — 5.5%          
Ericsson ADR   276,754    3,276,767 
Telecommunications — 2.5%          
TeliaSonera   217,761    1,502,206 
TOTAL SWEDEN        28,784,328 
TOTAL COMMON STOCK          
(Cost $54,667,577)        59,556,821 
TIME DEPOSITS — 0.0%          
Brown Brothers Harriman          
0.030%, 11/03/14  $27,286    27,286 

 

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

  

71
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Nordic Region ETF

 

  

Face Amount(1)

   Value 
TIME DEPOSITS — continued          
0.005%, 11/03/14, SEK   12   $2 
TOTAL TIME DEPOSITS          
(Cost $27,288)        27,288 
TOTAL INVESTMENTS — 99.4%          
(Cost $54,694,865)       $59,584,109 

  

Percentages are based on Net Assets of $59,926,553.

 

(1)In U.S. Dollars unless otherwise indicated.

ADR — American Depositary Receipt

Cl — Class

SEK — Swedish Krone

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $59,556,821   $   $   $59,556,821 
Time Deposits       27,288        27,288 
Total Investments in Securities  $59,556,821   $27,288   $   $59,584,109 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 and Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

72
 

 

 

Schedule of Investments October 31, 2014

 

Global X Central Asia & Mongolia Index ETF

 

Sector Weightings (unaudited)†:

 

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.6%          
CANADA— 13.1%          
Basic Materials — 13.1%          
Centerra Gold   22,432   $87,543 
Dundee Precious Metals *   26,869    76,500 
SouthGobi Resources *   57,050    31,706 
Turquoise Hill Resources *   38,015    127,350 
TOTAL CANADA        323,099 
CHINA— 7.6%          
Oil & Gas — 7.6%          
MIE Holdings   758,400    104,638 
SPT Energy Group   257,600    81,380 
TOTAL CHINA        186,018 
HONG KONG— 3.9%          
Basic Materials — 3.9%          
Mongolia Energy *   4,399,200    97,001 
KAZAKHSTAN— 31.4%          
Financials — 9.0%          
Halyk Savings Bank of Kazakhstan JSC GDR   22,480    220,304 
Oil & Gas — 13.5%          
KazMunaiGas Exploration Production JSC GDR   15,942    254,275 
Nostrum Oil & Gas *   7,304    78,876 
         333,151 
Telecommunications — 8.9%          
KCell JSC GDR   16,262    217,748 
TOTAL KAZAKHSTAN        771,203 
MONGOLIA— 6.5%          
Basic Materials — 6.5%          
Mongolian Mining *   1,784,500    158,772 
SWEDEN— 5.1%          
Telecommunications — 5.1%          
TeliaSonera   18,246    125,868 

  

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

 

73
 

 

 

Schedule of Investments October 31, 2014

 

Global X Central Asia & Mongolia Index ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
UNITED ARAB EMIRATES— 6.7%          
Oil & Gas — 6.7%          
Dragon Oil   19,268   $165,689 
UNITED KINGDOM— 25.3%          
Basic Materials — 17.2%          
Central Asia Metals   48,219    123,429 
China Nonferrous Gold *   213,813    112,882 
KAZ Minerals *   18,222    67,109 
Polymetal International   14,470    119,221 
         422,641 
Financials — 4.7%          
Bank of Georgia Holdings   2,803    114,800 
Oil & Gas — 3.4%          
Tethys Petroleum *   316,738    83,611 
TOTAL UNITED KINGDOM        621,052 
TOTAL COMMON STOCK          
(Cost $2,748,152)        2,448,702 
           
TIME DEPOSITS — 0.2%          
Brown Brothers Harriman          
0.091%, 11/03/14, GBP   2,411    3,857 
0.005%, 11/03/14, HKD   4    1 
TOTAL TIME DEPOSITS          
(Cost $3,858)        3,858 
TOTAL INVESTMENTS — 99.8%          
(Cost $2,752,010)       $2,452,560 

  

Percentages are based on Net Assets of $2,457,033.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.

GBP — British Pound Sterling

GDR — Global Depositary Receipt

HKD — Hong Kong Dollar

 

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

 

74
 

 

 

Schedule of Investments October 31, 2014

 

Global X Central Asia & Mongolia Index ETF

  

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $2,448,702   $   $   $2,448,702 
Time Deposits       3,858        3,858 
Total Investments in Securities  $2,448,702   $3,858   $   $2,452,560 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

75
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Nigeria ETF

 

 Sector Weightings (unaudited)†: 

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.7%          
NIGERIA— 99.7%          
Consumer Goods — 36.0%          
Dangote Sugar Refinery   4,294,400   $181,472 
Flour Mills of Nigeria   1,233,612    457,252 
Guinness Nigeria   664,658    648,007 
Nestle Nigeria   246,915    1,460,771 
Nigerian Breweries   3,019,539    2,953,005 
Unilever Nigeria   1,776,263    387,100 
         6,087,607 
Financials — 45.7%          
Access Bank   10,468,300    537,160 
Diamond Bank   11,225,300    406,591 
Ecobank Transnational   7,015,534    804,679 
FBN Holdings   9,802,192    685,236 
Fidelity Bank *   8,050,616    94,770 
First City Monument Bank   10,612,916    249,226 
Guaranty Trust Bank   11,567,200    1,745,729 
Skye Bank   8,968,900    129,945 
Transnational Corp of Nigeria   21,894,800    533,987 
UAC of Nigeria   1,750,680    560,133 
United Bank for Africa   15,001,562    430,169 
Zenith Bank   12,276,800    1,571,193 
         7,748,818 
Industrials — 8.6%          
Ashaka Cement   475,193    89,904 
Dangote Cement   564,000    732,025 
Lafarge Cement WAPCO Nigeria   951,600    631,853 
         1,453,782 
Oil & Gas — 9.4%          
Forte Oil   435,328    557,004 
Oando *   3,671,500    480,077 
SEPLAT Petroleum Development   169,967    558,782 
         1,595,863 

 

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

 

76
 

 

 

Schedule of Investments October 31, 2014

 

Global X MSCI Nigeria ETF

  

  

Face Amount(1)

   Value 
COMMON STOCK — continued          
TOTAL COMMON STOCK          
(Cost $18,861,168)       $16,886,070 
           
TIME DEPOSITS — 0.2%          
Brown Brothers Harriman          
0.030%, 11/03/14   25,846    25,846 
0.091%, 11/03/14, GBP   1    2 
0.650%, 11/03/14, NOK   18    3 
TOTAL TIME DEPOSITS          
(Cost $25,851)        25,851 
TOTAL INVESTMENTS — 99.9%          
(Cost $18,887,019)       $16,911,921 

 

Percentages are based on Net Assets of $16,923,981.

 

(1)In U.S. Dollars unless otherwise indicated.

GBP — British Pound Sterling

NOK — Norwegian Krone

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $12,740,198   $4,145,872   $   $16,886,070 
Time Deposits       25,851        25,851 
Total Investments in Securities  $12,740,198   $4,171,723   $   $16,911,921 

 

For the year ended October 31, 2014, the transfers in and out of Level 3 were due to changes in the availability of observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

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Global X Next Emerging & Frontier ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 99.6%          
           
ARGENTINA— 3.6%          
Consumer Services — 1.8%          
Arcos Dorados Holdings, Cl A   95,031   $585,391 
MercadoLibre   16,197    2,205,221 
         2,790,612 
Oil & Gas — 1.8%          
YPF ADR   76,998    2,708,020 
TOTAL ARGENTINA        5,498,632 
AUSTRALIA— 0.8%          
Basic Materials — 0.7%          
Paladin Energy *   2,464,800    704,129 
Resolute Mining *   916,600    257,820 
         961,949 
Consumer Services — 0.1%          
Donaco International *   272,900    217,090 
iSentric *   35,523    8,275 
         225,365 
TOTAL AUSTRALIA        1,187,314 
BAHRAIN— 0.1%          
Financials — 0.1%          
Al-Salam Bank   262,700    132,395 

 

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

 

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   Shares   Value 
COMMON STOCK — continued          
BANGLADESH—1.0%         
Consumer Services — 0.3%          
Square Pharmaceuticals   114,666   $412,967 
Telecommunications — 0.7%          
GrameenPhone   238,600    1,154,690 
TOTAL BANGLADESH        1,567,657 
CANADA— 2.6%          
Basic Materials — 2.2%          
African Barrick Gold   195,830    645,394 
Asanko Gold *   66,841    100,785 
Endeavour Mining *   328,934    140,040 
First Quantum Minerals   94,229    1,420,811 
Turquoise Hill Resources *   291,377    976,899 
         3,283,929 
Oil & Gas — 0.4%          
Pan American Silver   69,415    641,540 
TOTAL CANADA        3,925,469 
CAYMAN ISLANDS— 0.4%          
Consumer Services — 0.4%          
NagaCorp   657,983    553,184 
CHILE— 4.2%          
Basic Materials — 0.3%          
Empresas CMPC   95,200    233,331 
Sociedad Quimica y Minera de Chile, Cl B   7,650    177,758 
         411,089 
Consumer Services — 1.5%          
Cencosud   71,400    202,061 
Latam Airlines Group *   88,060    1,053,716 
SACI Falabella   148,680    1,084,994 
         2,340,771 
Financials — 0.3%          
Banco de Chile   2,064,127    251,490 
Banco Santander Chile   4,664,700    246,929 
         498,419 
Oil & Gas — 0.2%          
Empresas COPEC   20,230    244,628 
Utilities — 1.9%          
Empresa Nacional de Electricidad   953,549    1,485,963 
Enersis   4,309,153    1,370,959 
         2,856,922 

  

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

 

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   Shares   Value 
COMMON STOCK — continued          
TOTAL CHILE       $6,351,829 
COLOMBIA— 2.5%          
Consumer Goods — 0.1%          
Almacenes Exito   13,090    184,845 
Financials — 0.2%          
Grupo de Inversiones Suramericana   11,121    230,434 
Industrials — 0.1%          
Cementos Argos   43,046    219,329 
Oil & Gas — 2.1%          
Ecopetrol   627,448    838,830 
Pacific Rubiales Energy ^   152,059    2,292,788 
         3,131,618 
TOTAL COLOMBIA        3,766,226 
CZECH REPUBLIC— 1.3%          
Financials — 0.2%          
Komercni Banka   1,309    280,343 
Telecommunications — 0.1%          
Telefonica Czech Republic   17,850    199,383 
Utilities — 1.0%          
CEZ   57,021    1,576,893 
TOTAL CZECH REPUBLIC        2,056,619 
EGYPT— 0.6%          
Financials — 0.5%          
Commercial International Bank Egypt SAE   58,600    395,690 
Talaat Moustafa Group   182,550    268,334 
         664,024 
Telecommunications — 0.1%          
Global Telecom Holding SAE *   302,703    184,161 
TOTAL EGYPT        848,185 
FRANCE— 0.2%          
Oil & Gas — 0.2%          
Etablissements Maurel et Prom   32,341    386,844 
GREECE— 0.0%          
Industrials — 0.0%          
Metka   8,182    79,959 
HUNGARY— 0.7%          
Consumer Services — 0.2%          
Richter Gedeon Nyrt   16,746    255,382 

  

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

 

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   Shares   Value 
COMMON STOCK — continued          
Financials — 0.4%          
OTP Bank   38,390   $634,131 
Oil & Gas — 0.1%          
MOL Hungarian Oil & Gas   3,213    152,756 
TOTAL HUNGARY        1,042,269 
INDONESIA— 8.7%          
Basic Materials — 1.3%          
Indocement Tunggal Prakarsa   178,500    354,489 
Semen Indonesia Persero   1,225,085    1,609,286 
         1,963,775 
Consumer Goods — 1.9%          
Astra International   2,496,097    1,399,343 
Charoen Pokphand Indonesia   643,700    223,710 
Gudang Garam   91,514    437,313 
Indofood CBP Sukses Makmur TBK   238,000    217,617 
Indofood Sukses Makmur   476,900    269,329 
Unilever Indonesia   111,169    279,647 
         2,826,959 
Consumer Services — 0.2%          
Kalbe Farma   2,559,600    361,119 
Financials — 3.0%          
Bank Central Asia   1,600,268    1,728,051 
Bank Mandiri   2,093,918    1,793,302 
Bank Rakyat Indonesia Persero   1,130,500    1,036,019 
         4,557,372 
Industrials — 0.1%          
United Tractors   142,800    217,125 
Telecommunications — 1.1%          
Telekomunikasi Indonesia Persero   7,706,505    1,753,652 
Utilities — 1.1%          
Perusahaan Gas Negara   3,256,539    1,603,344 
TOTAL INDONESIA        13,283,346 
KAZAKHSTAN— 0.2%          
Oil & Gas — 0.2%          
KazMunaiGas Exploration Production JSC GDR   18,761    299,238 
KENYA— 0.2%          
Telecommunications — 0.2%          
Safaricom   2,155,400    292,768 

 

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

 

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Global X Next Emerging & Frontier ETF

 

   Shares   Value 
COMMON STOCK — continued          
KUWAIT— 1.1%          
Financials — 1.1%          
Kuwait Finance House   397,414   $1,067,802 
National Bank of Kuwait SAK   178,080    595,031 
TOTAL KUWAIT        1,662,833 
LUXEMBOURG— 0.1%          
Consumer Goods — 0.1%          
Adecoagro *   24,455    221,807 
MALAYSIA— 10.8%          
Basic Materials — 0.2%          
Petronas Chemicals Group   136,290    254,825 
Consumer Goods — 0.4%          
British American Tobacco Malaysia   10,705    226,191 
IOI   178,200    264,923 
Kuala Lumpur Kepong   30,350    212,222 
         703,336 
Consumer Services — 0.6%          
Genting   95,200    282,192 
Genting Malaysia   226,100    295,578 
IHH Healthcare   230,452    346,808 
         924,578 
Energy — 0.8%          
Sapurakencana Petroleum   1,152,767    1,195,086 
Financials — 2.4%          
CIMB Group Holdings   339,770    670,398 
Malayan Banking   497,826    1,468,089 
Public Bank   269,200    1,517,358 
         3,655,845 
Industrials — 1.2%          
MISC   142,800    297,821 
Sime Darby   508,330    1,495,974 
         1,793,795 
Oil & Gas — 0.2%          
Petronas Dagangan   23,800    147,608 
Petronas Gas   31,649    216,301 
         363,909 
Telecommunications — 3.5%          
Axiata Group   694,767    1,489,126 
DiGi.Com   1,001,002    1,883,773 

 

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

 

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Global X Next Emerging & Frontier ETF

 

   Shares   Value 
COMMON STOCK — continued          
Telecommunications — continued          
Maxis   691,396   $1,416,739 
Telekom Malaysia   205,785    450,453 
         5,240,091 
Utilities — 1.5%          
Tenaga Nasional   523,973    2,128,230 
YTL   452,200    228,214 
         2,356,444 
TOTAL MALAYSIA        16,487,909 
MEXICO— 11.1%          
Basic Materials — 2.8%          
Fresnillo   90,211    1,006,658 
Grupo Mexico, Cl B   461,568    1,586,727 
Industrias Penoles   10,674    241,459 
Mexichem   347,317    1,418,851 
         4,253,695 
Consumer Goods — 1.7%          
Arca Continental   49,138    315,975 
Coca-Cola Femsa   23,800    251,735 
Fomento Economico Mexicano   82,809    796,773 
Grupo Bimbo, Ser A   95,200    279,608 
Grupo Lala, Cl B   299,181    681,888 
Kimberly-Clark de Mexico, Cl A   99,183    230,543 
         2,556,522 
Consumer Services — 1.1%          
Grupo Elektra   9,163    347,956 
Wal-Mart de Mexico   578,480    1,339,914 
         1,687,870 
Financials — 1.1%          
Grupo Financiero Banorte, Cl O   122,984    787,184 
Grupo Financiero Inbursa, Cl O   309,400    932,360 
         1,719,544 
Industrials — 2.4%          
Alfa, Cl A   564,170    1,798,847 
Cemex *   592,129    729,023 
OHL Mexico *   101,790    285,298 
Promotora y Operadora de Infraestructura *   58,013    799,228 
         3,612,396 
Telecommunications — 1.7%          
America Movil   1,382,967    1,689,360 
Grupo Televisa   113,521    821,419 
         2,510,779 

  

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

 

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Global X Next Emerging & Frontier ETF

  

   Shares   Value 
COMMON STOCK — continued          
Utilities — 0.3%          
Infraestructura Energetica Nova   78,840   $480,423 
TOTAL MEXICO        16,821,229 
NIGERIA— 0.3%          
Consumer Goods — 0.1%          
Nigerian Breweries   212,800    208,111 
Financials — 0.2%          
Guaranty Trust Bank   1,503,200    226,864 
TOTAL NIGERIA        434,975 
OMAN— 0.6%          
Financials — 0.2%          
BankMuscat SAOG   154,700    282,880 
Telecommunications — 0.4%          
Oman Telecommunications SAOG   130,110    562,684 
TOTAL OMAN        845,564 
PAKISTAN— 0.6%          
Oil & Gas — 0.5%          
Oil & Gas Development   101,500    225,200 
Pakistan Petroleum   285,600    567,949 
         793,149 
Telecommunications — 0.1%          
Pakistan Telecommunication   764,993    154,219 
TOTAL PAKISTAN        947,368 
PANAMA— 1.3%          
Consumer Services — 1.3%          
Copa Holdings, Cl A   16,747    1,958,059 
PAPUA NEW GUINEA— 1.3%          
Oil & Gas — 1.3%          
Oil Search   255,827    1,940,639 
PERU— 0.6%          
Financials — 0.6%          
Credicorp Ltd.   5,649    909,489 
PHILIPPINES— 3.8%          
Consumer Goods — 0.5%          
JG Summit Holdings *   203,049    288,680 
Universal Robina   101,717    421,602 
         710,282 
Consumer Services — 0.8%          
SM Investments   73,124    1,276,717 

 

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

 

84
 

 

 

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Global X Next Emerging & Frontier ETF

 

   Shares   Value 
COMMON STOCK — continued          
Financials — 0.4%          
Ayala   21,420   $329,355 
SM Prime Holdings   838,497    326,617 
         655,972 
Industrials — 0.5%          
Alliance Global Group   487,900    275,072 
DMCI Holdings   672,730    242,857 
International Container Terminal Services   95,200    246,088 
         764,017 
Real Estate — 0.2%          
Ayala Land   428,400    319,808 
Technology — 1.0%          
Philippine Long Distance Telephone   22,684    1,579,160 
Utilities — 0.4%          
Aboitiz Power   280,458    256,240 
Manila Electric   42,840    250,119 
         506,359 
TOTAL PHILIPPINES        5,812,315 
POLAND— 4.8%          
Basic Materials — 0.9%          
KGHM Polska Miedz   37,256    1,439,230 
Consumer Goods — 0.2%          
LPP *   85    254,019 
Financials — 1.7%          
Bank Pekao   12,644    662,169 
Bank Zachodni *   2,523    286,244 
Powszechna Kasa Oszczednosci Bank Polski   60,891    678,156 
Powszechny Zaklad Ubezpieczen   5,686    853,932 
         2,480,501 
Oil & Gas — 1.0%          
Polski Koncern Naftowy Orlen S.A.   99,686    1,243,036 
Polskie Gornictwo Naftowe i Gazownictwo   162,300    242,779 
         1,485,815 
Utilities — 1.0%          
PGE   242,550    1,594,110 
TOTAL POLAND        7,253,675 
QATAR— 1.9%          
Financials — 0.7%          
Qatar National Bank   18,420    1,083,990 
Industrials — 1.2%          
Industries Qatar QSC   35,056    1,813,665 

 

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

 

85
 

 

 

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   Shares   Value 
COMMON STOCK — continued          
TOTAL QATAR       $2,897,655 
RUSSIA— 0.7%          
Basic Materials — 0.7%          
Polyus Gold International   336,121    1,005,578 
SOUTH AFRICA— 9.5%          
Basic Materials — 1.5%          
Anglo American Platinum *   17,255    543,500 
AngloGold Ashanti   48,330    409,057 
Aquarius Platinum *   374,603    98,886 
Impala Platinum Holdings   60,620    440,588 
Kumba Iron Ore   19,616    489,113 
Mondi   17,421    290,828 
         2,271,972 
Consumer Goods — 0.5%          
Tiger Brands   25,813    774,857 
Consumer Services — 4.1%          
Aspen Pharmacare Holdings   28,961    1,031,449 
Mediclinic International   98,156    875,203 
Naspers, Cl N   14,988    1,862,327 
Shoprite Holdings   43,004    621,995 
Steinhoff International Holdings   199,111    1,016,553 
Woolworths Holdings   108,118    767,210 
         6,174,737 
Financials — 1.1%          
FirstRand   220,480    942,035 
Standard Bank Group   62,265    782,047 
         1,724,082 
Industrials — 0.6%          
Bidvest Group   29,910    821,381 
Oil & Gas — 0.1%          
Exxaro Resources   19,040    198,208 
Technology — 0.5%          
Sasol   15,383    764,750 
Telecommunications — 1.1%          
MTN Group   37,763    834,088 
Vodacom Group   69,110    837,240 
         1,671,328 
TOTAL SOUTH AFRICA        14,401,315 

 

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

 

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   Shares   Value 
COMMON STOCK — continued          
SOUTH KOREA— 0.2%          
Consumer Services — 0.2%          
Kolao Holdings   18,454   $283,182 
THAILAND— 8.8%          
Basic Materials — 0.4%          
PTT Global Chemical   322,531    613,967 
Consumer Goods — 1.3%          
Charoen Pokphand Foods   991,457    951,275 
Thai Beverage(A)   1,775,507    1,024,905 
         1,976,180 
Consumer Services — 1.3%          
Bangkok Dusit Medical Services, Cl F   1,771,600    1,006,282 
CP ALL   648,522    905,979 
         1,912,261 
Financials — 0.5%          
Siam Commercial Bank   156,260    851,586 
Industrials — 1.6%          
Airports of Thailand   117,494    872,998 
Siam Cement   86,440    1,194,289 
Siam Cement NVDR   22,360    308,935 
         2,376,222 
Oil & Gas — 1.9%          
PTT   148,891    1,682,281 
PTT Exploration & Production   280,360    1,261,060 
         2,943,341 
Telecommunications — 1.8%          
Advanced Info Service   185,454    1,360,869 
Intouch Holdings, Cl F   32,200    73,159 
Intouch Holdings   5,900    13,405 
Intouch Holdings NVDR   265,830    603,974 
Total Access Communication   21,500    68,322 
Total Access Communication NVDR   195,721    621,957 
         2,741,686 
TOTAL THAILAND        13,415,243 
TURKEY— 8.5%          
Basic Materials — 1.6%          
Eregli Demir ve Celik Fabrikalari   1,199,573    2,501,587 
Consumer Goods — 0.4%          
Anadolu Efes Biracilik Ve Malt Sanayii *   17,850    209,035 
Coca-Cola Icecek   10,710    244,571 

 

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

 

87
 

 

 

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   Shares   Value 
COMMON STOCK — continued          
Consumer Goods — continued          
Ford Otomotiv Sanayi   15,470   $197,887 
         651,493 
Consumer Services — 1.8%          
BIM Birlesik Magazalar   69,699    1,594,770 
Turk Hava Yollari *   348,475    1,144,214 
         2,738,984 
Financials — 1.4%          
Akbank   189,000    683,574 
Turkiye Garanti Bankasi   188,425    736,658 
Turkiye Is Bankasi, Cl C   281,144    704,063 
         2,124,295 
Industrials — 1.2%          
Enka Insaat ve Sanayi   116,254    281,707 
KOC Holding   298,736    1,527,184 
         1,808,891 
Oil & Gas — 1.0%          
Tupras Turkiye Petrol Rafinerileri   68,143    1,480,903 
Telecommunications — 1.1%          
Turk Telekomunikasyon   90,036    259,134 
Turkcell Iletisim Hizmetleri *   228,640    1,328,464 
         1,587,598 
TOTAL TURKEY        12,893,751 
UKRAINE— 0.3%          
Consumer Goods — 0.3%          
Kernel Holding *   49,731    391,920 
UNITED ARAB EMIRATES— 3.3%          
Financials — 1.1%          
First Gulf Bank PJSC   233,913    1,155,873 
National Bank of Abu Dhabi PJSC   166,140    610,643 
         1,766,516 
Industrials — 0.6%          
DP World   44,946    861,165 
Real Estate — 1.6%          
Emaar Properties PJSC   893,371    2,432,265 
TOTAL UNITED ARAB EMIRATES        5,059,946 
UNITED KINGDOM— 2.2%          
Basic Materials — 0.5%          
KAZ Minerals   216,735    798,202 
Financials — 0.4%          
Bank of Georgia Holdings   16,774    686,997 

 

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

 

88
 

 

 

Schedule of Investments October 31, 2014

 

Global X Next Emerging & Frontier ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Oil & Gas — 0.9%          
Afren *   452,200   $558,866 
Premier Oil   186,673    770,213 
         1,329,079 
Telecommunications — 0.4%          
Cable & Wireless Communications   774,762    597,935 
TOTAL UNITED KINGDOM        3,412,213 
UNITED STATES— 0.5%          
Oil & Gas — 0.5%          
Vaalco Energy *   93,718    695,388 
VIETNAM— 0.2%          
Utilities — 0.2%          
PetroVietnam Gas JSC   75,070    373,939 
TOTAL COMMON STOCK          
(Cost $153,450,010)        151,397,926 
           
PREFERRED STOCK — 0.3%          
COLOMBIA— 0.3%          
Consumer Services — 0.1%          
Avianca Holdings   115,101    215,596 
Financials — 0.2%          
Banco Davivienda   14,600    217,503 
TOTAL PREFERRED STOCK          
(Cost $472,933)        433,099 
           
CONVERTIBLE BOND — 0.0%          
BankMuscat SAOG  4.500%, 03/20/17          
(Cost $–)   2,702    758 
           
TIME DEPOSITS — 0.4%          
Brown Brothers Harriman          
0.030%, 11/03/14   591,024    591,024 
1.799%, 11/03/14, AUD   6    5 
0.337%, 11/03/14, CAD   25    22 
TOTAL TIME DEPOSITS          
(Cost $591,051)        591,051 
TOTAL INVESTMENTS — 100.3%          
(Cost $154,513,994)       $152,422,834 

 

Percentages are based on Net Assets of $152,027,109.

 

*Non-income producing security.
^Security traded on the Toronto Stock Exchange.

 

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

 

89
 

 

 

Schedule of Investments October 31, 2014

 

Global X Next Emerging & Frontier ETF

 

 

(1)In U.S. Dollars unless otherwise indicated.
(A)Securities are fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of October 31, 2014, was $1,024,905 and represented 0.7% of Net Assets.

 

ADR — American Depositary Receipt

AUD — Australian Dollar

CAD — Canadian Dollar

Cl — Class

GDR — Global Depositary Receipt

Ltd. — Limited

NVDR — Non-voting Depositary Receipt

Ser — Series

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(a)

   Total 
Common Stock  $150,373,021   $   $1,024,905   $151,397,926 
Preferred Stock   433,099            433,099 
Convertible Bond       758        758 
Time Deposits       591,051        591,051 
Total Investments in Securities  $150,806,120   $591,809   $1,024,905   $152,422,834 

 

(a) 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, 2014, the transfers in and out of Level 3 were due to changes in the availability of

observable inputs to determine fair value. Transfers between levels are recognized at period end.

 

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

 

90
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Portugal 20 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 8 in Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 99.8%          
PORTUGAL— 99.8%          
Basic Materials — 12.7%          
Altri   415,628   $1,161,769 
Cimpor Cimentos de Portugal   107,799    219,879 
Portucel   473,103    1,758,095 
Semapa-Sociedade de Investimento e Gestao   121,703    1,471,293 
Sonae Industria *   179,121    40,395 
         4,651,431 
Consumer Goods — 8.5%          
Jeronimo Martins   160,947    1,407,316 
Sonae   1,285,713    1,722,016 
         3,129,332 
Consumer Services — 5.3%          
ZON OPTIMUS   340,905    1,953,215 
Energy — 14.8%          
Galp Energia   373,781    5,415,996 
Financials — 18.5%          
Banco BPI, Cl G * (A)   943,048    1,844,388 
Banco Comercial Portugues, Cl R * (A)   36,994,966    4,171,580 
Banco Espirito Santo (D)(E) *   2,085,614     
BANIF - Banco Internacional do Funchal *   85,797,316    773,966 
         6,789,934 
Industrials — 4.4%          
Mota-Engil   297,332    1,557,161 

 

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

 

91
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Portugal 20 ETF

 

   Shares/Face
Amount/Number of
Rights
   Value 
COMMON STOCK — continued          
Industrials — continued          
Sonae Capital *   249,669   $90,402 
         1,647,563 
Technology — 0.4%          
Novabase SGPS   42,800    128,697 
Telecommunication Services — 4.5%          
Portugal Telecom (A)   897,935    1,470,402 
Sonaecom *   91,145    174,605 
         1,645,007 
Utilities — 30.7%          
EDP Renovaveis   279,445    1,815,001 
Energias de Portugal   1,927,118    8,284,084 
REN - Redes Energeticas Nacionais   375,941    1,164,821 
         11,263,906 
TOTAL COMMON STOCK          
(Cost $44,747,645)        36,625,081 
           
U.S. TREASURY OBLIGATION — 8.2%          
United States Treasury Bills          
0.000%, 11/06/14 (C)          
(Cost $3,000,000)  $3,000,000    3,000,000 
           
RIGHTS — 0.0%          
Mota-Engil, Expires 12/31/14 (E)*          
(Cost $—)   16,400     
           
REPURCHASE AGREEMENT — 4.3%          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,595,626 (collateralized by U.S. Treasury Notes, par value $1,667,735
1.125%, 12/31/19 with a total market value of $1,620,960) (B)
          
(Cost $1,595,613)   1,595,613    1,595,613 
TOTAL INVESTMENTS — 112.3%          
(Cost $49,343,258)       $41,220,694 

 

Percentages are based on Net Assets of $36,691,521.

 

*Non-income producing security.
(A)This security or a partial position of this security is on loan at October 31, 2014. The total value of securities on loan at October 31, 2014 was $1,450,044.
(B)This security was purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $1,595,613.
(C)The rate reported on the Schedule of Investments is the effective yield at time of purchase.
(D)Security considered illiquid. The total value of such security as of October 31, 2014 was $0 and represented 0.0% of Net Assets.

 

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

 

92
 

 

 

Schedule of Investments October 31, 2014

 

Global X FTSE Portugal 20 ETF

 

(E)Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such security as of October 31, 2014 was $0 and represented 0.0% of Net Assets.

 

Cl — Class

 

Amounts designated as “—“ are either $0 or have been rounded to $0.

 

The following is a summary of the inputs used as of October 31, 2014 in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $36,625,081   $   $   $36,625,081 
U.S. Treasury Obligation       3,000,000        3,000,000 
Rights                
Repurchase Agreement       1,595,613        1,595,613 
Total Investments in Securities  $36,625,081   $4,595,613   $   $41,220,694 

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

93
 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X China
Consumer ETF
   Global X China
Energy ETF
   Global X China
Financials ETF
   Global X China
Industrials ETF
 
Assets:                    
Cost of Investments  $156,961,446   $4,567,752   $49,950,683   $6,024,481 
Cost of Repurchase Agreement   17,500,925             
Investments, at Value  $134,671,992*  $4,521,202   $48,467,971   $5,662,179 
Repurchase Agreement, at Value   17,500,925             
Receivable for Investment Securities Sold   11,975,874    138,886    1,348,415    299,937 
Dividend and Interest Receivable   113,531        21,767    2,114 
Receivable for Capital Shares Sold               2,469,693 
Total Assets   164,262,322    4,660,088    49,838,153    8,433,923 
                     
Liabilities:                    
Obligation to Return Securities Lending Collateral   17,500,925             
Payable for Investment Securities Purchased   12,672,694    148,583    1,227,179    2,611,463 
Payable due to Investment Adviser   74,667    2,668    25,640    1,826 
Total Liabilities   30,248,286    151,251    1,252,819    2,613,289 
Net Assets  $134,014,036   $4,508,837   $48,585,334   $5,820,634 
Net Assets Consist of:                    
Paid-in Capital  $175,238,288   $5,096,233   $50,922,310   $7,680,973 
Undistributed Net Investment Income   1,730,708    81,629    580,994    39,452 
Accumulated Net Realized Loss on Investments   (20,665,570)   (622,475)   (1,435,260)   (1,537,489)
Net Unrealized Depreciation on Investments   (22,289,454)   (46,550)   (1,482,712)   (362,302)
Net Unrealized Appreciation on Foreign Currency Translations   64        2     
Net Assets  $134,014,036   $4,508,837   $48,585,334   $5,820,634 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   9,700,000    300,000    3,600,000    450,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $13.82   $15.03   $13.50   $12.93 
                     
*Includes Market Value of Securities on Loan  $15,680,079   $   $   $ 

 

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

 

94
 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X China
Materials ETF
   Global X NASDAQ
China Technology
ETF
   Global X Southeast
Asia ETF
   Global X FTSE
Andean 40 ETF
 
Assets:                    
Cost of Investments  $3,757,076   $19,512,629   $30,808,618   $11,131,251 
Cost of Foreign Currency           6,935     
Investments, at Value  $2,970,840   $22,279,360   $29,339,230   $9,014,741 
Foreign Currency, at Value           6,935     
Receivable for Investment Securities Sold   125,639             
Dividend and Interest Receivable   347    40,662        1,164 
Reclaim Receivable           5,780     
Total Assets   3,096,826    22,320,022    29,351,945    9,015,905 
                     
Liabilities:                    
Payable for Investment Securities Purchased   135,856             
Payable due to Investment Adviser   1,651    11,983    15,982    5,447 
Cash Overdraft       1,168         
Total Liabilities   137,507    13,151    15,982    5,447 
Net Assets  $2,959,319   $22,306,871   $29,335,963   $9,010,458 
Net Assets Consist of:                    
Paid-in Capital  $4,656,472   $20,668,941   $31,984,358   $12,385,534 
Undistributed Net Investment Income   30,768    54,302    641,309    140,219 
Accumulated Net Realized Loss on Investments   (941,681)   (1,183,103)   (1,821,075)   (1,398,783)
Net Unrealized Appreciation (Depreciation) on Investments   (786,236)   2,766,731    (1,469,388)   (2,116,510)
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   (4)       759    (2)
Net Assets  $2,959,319   $22,306,871   $29,335,963   $9,010,458 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   199,971    950,000    1,750,000    850,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $14.80   $23.48   $16.76   $10.60 

 

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

 

95
 

 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X MSCI
Colombia ETF
   Global X Brazil
Mid Cap ETF
   Global X Brazil
Consumer ETF
   Global X Brazil
Financials ETF
 
Assets:                    
Cost of Investments  $115,862,875   $8,964,493   $9,936,453   $3,349,005 
Cost of Foreign Currency   5,429    925    4,186     
Investments, at Value  $100,714,666*  $7,933,228   $9,917,748   $2,715,904 
Cash   6,514,284(1)            
Foreign Currency, at Value   5,429    925    4,186     
Receivable for Capital Shares Sold   3,482,323             
Receivable for Investment Securities Sold   128,038             
Dividend and Interest Receivable   49,514    12,666    27,038    4,836 
Unrealized Appreciation on Spot Contracts   120             
Total Assets   110,894,374    7,946,819    9,948,972    2,720,740 
                     
Liabilities:                    
Obligation to Return Securities Lending Collateral   6,514,284             
Payable for Investment Securities Purchased   3,470,096             
Due to Broker   143,303             
Payable due to Investment Adviser   51,071    4,549    6,290    1,777 
Payable due to Custodian   24,686             
Unrealized Depreciation on Spot Contracts   3,423    7    32     
Total Liabilities   10,206,863    4,556    6,322    1,777 
Net Assets  $100,687,511   $7,942,263   $9,942,650   $2,718,963 
Net Assets Consist of:                    
Paid-in Capital  $140,571,869   $13,930,951   $12,757,969   $4,608,454 
Undistributed Net Investment Income   1,165,141    209,391    238,743    113,368 
Accumulated Net Realized Loss on Investments   (25,910,650)   (5,166,088)   (3,034,917)   (1,369,530)
Net Unrealized Depreciation on Investments   (15,148,209)   (1,031,265)   (18,705)   (633,101)
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   9,360    (726)   (440)   (228)
Net Assets  $100,687,511   $7,942,263   $9,942,650   $2,718,963 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   5,780,000    650,000    600,000    250,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $17.42   $12.22   $16.57   $10.88 
                     
*Includes Market Value of Securities on Loan  $6,235,100   $   $   $ 

 

(1) Cash is restricted, received from securities on loan. (See Note 7 in Notes to Financial Statements.)

 

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

 

96
 

 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X MSCI
Argentina ETF
   Global X FTSE
Greece 20 ETF
   Global X MSCI
Norway ETF
   Global X FTSE
Nordic Region
ETF
 
Assets:                    
Cost of Investments  $21,845,766   $226,646,568   $212,062,212   $54,694,865 
Cost of Repurchase Agreement       2,341,200    12,720,116     
Cost of Foreign Currency       1         
Investments, at Value  $20,643,180   $158,876,043*  $182,723,495*  $59,584,109 
Repurchase Agreement, at Value       2,341,200    12,720,116     
Foreign Currency, at Value       1         
Receivable for Investment Securities Sold   762,163    857,058         
Dividend and Interest Receivable   4,244    2,199    223,257    174 
Reclaim Receivable   126        162,373    367,381 
Unrealized Appreciation on Spot Contracts       439    6,901     
Due from Broker           3,412     
Receivable for Capital Shares Sold       911,889         
Total Assets   21,409,713    162,988,829    195,839,554    59,951,664 
                     
Liabilities:                    
Payable for Investment Securities Purchased   743,046    186,150         
Payable due to Investment Adviser   12,919    73,448    79,594    25,111 
Cash Overdraft       18,526,753         
Payable due to Custodian       51,830    2,230     
Obligation to Return Securities Lending Collateral       2,341,200    12,720,116     
Due to Broker   1,501             
Payable for Capital Shares Redeemed       1,584,195         
Payable for Foreign Capital Gains Tax       23,992         
Total Liabilities   757,466    22,787,568    12,801,940    25,111 
Net Assets  $20,652,247   $140,201,261   $183,037,614   $59,926,553 
Net Assets Consist of:                    
Paid-in Capital  $24,704,090   $224,741,416   $214,941,690   $54,389,344 
Undistributed Net Investment Income   31,028    707,125    4,442,674    1,695,771 
Accumulated Net Realized Loss on Investments   (2,880,282)   (17,477,194)   (6,995,530)   (1,008,606)
Net Unrealized Appreciation (Depreciation) on Investments   (1,202,586)   (67,770,525)   (29,338,717)   4,889,244 
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   (3)   439    (12,503)   (39,200)
Net Assets  $20,652,247   $140,201,261   $183,037,614   $59,926,553 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   974,975    8,850,000    12,350,000    2,460,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $21.18   $15.84   $14.82   $24.36 
                     
*Includes Market Value of Securities on Loan  $   $1,896,372   $12,009,359   $ 

 

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

 

97
 

 

 

 

Statements of Assets and Liabilities
October 31, 2014

 

   Global X Central
Asia & Mongolia
Index ETF
   Global X MSCI
Nigeria ETF
   Global X Next
Emerging &
Frontier ETF
   Global X FTSE
Portugal 20 ETF
 
Assets:                    
Cost of Investments  $2,752,010   $18,887,019   $154,513,994   $47,747,645 
Cost of Repurchase Agreement               1,595,613 
Cost of Foreign Currency           291,606     
Investments, at Value  $2,452,560   $16,911,921   $152,422,834   $39,625,081*
Repurchase Agreement, at Value               1,595,613 
Foreign Currency, at Value           132,035     
Dividend and Interest Receivable   6,514    18,214    111,987    4,080 
Reclaim Receivable   3,971    4,736    17,999    75,586 
Receivable due from Custodian       124,484         
Unrealized Appreciation on Spot Contracts           1     
Receivable for Investment Securities Sold           656,656     
Due from Broker           155,772     
Total Assets   2,463,045    17,059,355    153,497,284    41,300,360 
                     
Liabilities:                    
Payable for Investment Securities Purchased       124,484         
Cash Overdraft   4,469            2,989,057 
Payable due to Investment Adviser   1,478    10,890    63,570    18,251 
Payable due to Custodian   65        30,211    5,918 
Obligation to Return Securities Lending Collateral               1,595,613 
Due to Broker           999,740     
Payable for Capital Shares Redeemed           376,645     
Unrealized Depreciation on Spot Contracts           9     
Total Liabilities   6,012    135,374    1,470,175    4,608,839 
Net Assets  $2,457,033   $16,923,981   $152,027,109   $36,691,521 
Net Assets Consist of:                    
Paid-in Capital  $2,865,881   $19,602,813   $152,738,518   $45,932,120 
Undistributed Net Investment Income   54,942    383,917    1,775,431    575,664 
Accumulated Net Realized Loss on Investments   (165,083)   (1,087,049)   (404,253)   (1,687,532)
Net Unrealized Depreciation on Investments   (299,450)   (1,975,098)   (2,091,160)   (8,122,564)
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations   743    (602)   8,573    (6,167)
Net Assets  $2,457,033   $16,923,981   $152,027,109   $36,691,521 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   200,000    1,300,000    5,950,000    2,900,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $12.29   $13.02   $25.55   $12.65 
*Includes Market Value of Securities on Loan  $   $   $   $1,450,044 

 

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

 

98
 

 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X
China
Consumer
ETF
   Global X
China Energy
ETF
   Global X
China
Financials
ETF
   Global X
China
Industrials
ETF
 
Investment Income:                    
Dividend Income  $2,817,080   $118,857   $851,641   $73,294 
Interest Income   70    28    28    3 
Security Lending Income   236,023             
Less: Foreign Taxes Withheld   (83,761)   (9,119)   (55,284)   (4,549)
Total Investment Income   2,969,412    109,766    796,385    68,748 
Supervision and Administration Fees(1)   1,055,474    28,011    214,864    23,588 
Total Expenses   1,055,474    28,011    214,864    23,588 
Net Investment Income   1,913,938    81,755    581,521    45,160 
Net Realized Gain (Loss) on:                    
Investments (2)   (2,703,686)   134,208    (2,273,883)   (488,710)
Foreign Currency Transactions   (1,291)   (76)   (1,007)   8 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   (2,704,977)   134,132    (2,274,890)   (488,702)
Net Change in Unrealized Appreciation (Depreciation) on:                    
Investments   (22,388,135)   (382,965)   (2,627,364)   713,439 
Foreign Currency Translation   542    1    (2)   (77)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (22,387,593)   (382,964)   (2,627,366)   713,362 
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions and Translation   (25,092,570)   (248,832)   (4,902,256)   224,660 
Net Increase (Decrease) in Net Assets Resulting from Operations  $(23,178,632)  $(167,077)  $(4,320,735)  $269,820 

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  

(2) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements).

 

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

 

99
 

 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X
China
Materials
ETF
   Global X
NASDAQ
China
Technology
ETF
   Global X
Southeast
Asia ETF
   Global X
FTSE
Andean 40
ETF
 
Investment Income:                    
Dividend Income  $49,315   $180,689   $1,040,062   $263,296 
Interest Income   4    9    20    2 
Less: Foreign Taxes Withheld   (2,765)   (4,380)   (42,594)   (32,026)
Total Investment Income   46,554    176,318    997,488    231,272 
Supervision and Administration Fees(1)   15,847    121,920    215,296    68,569 
Total Expenses   15,847    121,920    215,296    68,569 
Net Investment Income   30,707    54,398    782,192    162,703 
Net Realized Gain (Loss) on:                    
Investments (2)   116,884    222,390    (1,156,632)   (792,528)
Foreign Currency Transactions   62    (96)   (30,433)   9,018 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   116,946    222,294    (1,187,065)   (783,510)
Net Change in Unrealized Appreciation (Depreciation) on:                    
Investments   (240,011)   1,408,514    (371,494)   (785,058)
Foreign Currency Translation   (71)       1,007    13 
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (240,082)   1,408,514    (370,487)   (785,045)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions and Translation   (123,136)   1,630,808    (1,557,552)   (1,568,555)
Net Increase (Decrease) in Net Assets Resulting from Operations  $(92,429)  $1,685,206   $(775,360)  $(1,405,852)

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  

(2) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

100
 

 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X
MSCI
Colombia ETF
   Global X
Brazil Mid
Cap ETF
   Global X
Brazil
Consumer
ETF
   Global X
Brazil
Financials
ETF
 
Investment Income:                    
Dividend Income  $3,051,064   $320,570   $361,498   $137,528 
Interest Income   104    15,259    14,500    7 
Security Lending Income   101,619             
Less: Foreign Taxes Withheld   (75,017)            
Total Investment Income   3,077,770    335,829    375,998    137,535 
Supervision and Administration Fees(1)   753,891    62,950    105,214    19,851 
Income tax (2)           808    5 
Custodian Fees   108,945             
Total Expenses   862,836    62,950    106,022    19,856 
  Waiver of Supervision and Administration Fees   (132,223)            
Net Expenses   730,613    62,950    106,022    19,856 
Net Investment Income   2,347,157    272,879    269,976    117,679 
Net Realized Gain (Loss) on:                    
Investments     (1,179,333)(3)     (464,811)(3)   144,270(3)   (147,920)
Foreign Currency Transactions   (131,994)   (19,311)   2,619    641 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   (1,311,327)   (484,122)   146,889    (147,279)
Net Change in Unrealized Appreciation (Depreciation) on:                    
Investments   (19,284,545)   (902,730)   (1,193,472)   (209,137)
Foreign Currency Translation   13,493    (89)   (33)   (102)
Net Change in Unrealized Depreciation on Investments  and Foreign Currency Translation   (19,271,052)   (902,819)   (1,193,505)   (209,239)
Net Realized and Unrealized Loss on Investments and Foreign Currency Transactions and Translation   (20,582,379)   (1,386,941)   (1,046,616)   (356,518)
Net Decrease in Net Assets Resulting from Operations  $(18,235,222)  $(1,114,062)  $(776,640)  $(238,839)

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  

(2)

See Note 2 in Notes to Financial Statements.

(3) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements).

 

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

 

101
 

 

 

 

Statements of Operations
For the year ended October 31, 2014

 

   Global X
MSCI
Argentina
ETF
   Global X
FTSE Greece
20 ETF
   Global X
MSCI Norway
ETF
   Global X
FTSE Nordic
Region ETF
 
Investment Income:                    
Dividend Income  $194,547   $2,111,413   $5,856,280   $2,404,189 
Interest Income   18    146    113    12 
Security Lending Income       2,301    392,630    15,665 
Less: Foreign Taxes Withheld   (20,959)   (129,084)   (906,490)   (170,998)
Total Investment Income   173,606    1,984,776    5,342,533    2,248,868 
Supervision and Administration Fees(1)   104,009    1,092,988    627,408    306,971 
Custodian Fees   570    144,659         
Total Expenses   104,579    1,237,647    627,408    306,971 
Net Expenses   104,579    1,237,647    627,408    306,971 
Net Investment Income   69,027    747,129    4,715,125    1,941,897 
Net Realized Gain (Loss) on:                    
Investments (2)   212,773    3,505,710    1,544,359    3,152,093 
Foreign Currency Transactions   3,516    (53,754)   (78,894)   (16,146)
Net Realized Gain on Investments and Foreign Currency Transactions   216,289    3,451,956    1,465,465    3,135,947 
Net Change in Unrealized Depreciation on:                    
Investments   (1,390,956)   (88,239,303)   (35,362,354)   (2,916,326)
Foreign Currency Translation   (3)   (320)   (12,503)   (42,382)
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translation   (1,390,959)   (88,239,623)   (35,374,857)   (2,958,708)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions and Translation   (1,174,670)   (84,787,667)   (33,909,392)   177,239 
Net Increase(Decrease) in Net Assets Resulting from Operations  $(1,105,643)  $(84,040,538)  $(29,194,267)  $2,119,136 

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)

(2) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements).

 

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

 

102
 

 

 

 

Statements of Operations
For the year or period ended October 31, 2014

 

   Global X
Central Asia
& Mongolia
Index ETF
   Global X
MSCI Nigeria
ETF
  

Global X
Next
Emerging &
Frontier
ETF(4)

  

Global X
FTSE
Portugal 20
ETF(5)

 
Investment Income:                    
Dividend Income  $77,344   $594,483   $2,656,537   $822,676 
Interest Income   3,811    19    1,253    15 
Security Lending Income               10,644 
Less: Foreign Taxes Withheld   (5,107)   (55,206)   (270,063)   (123,422)
Total Investment Income   76,048    539,296    2,387,727    709,913 
Supervision and Administration Fees(1)   14,672    96,032    453,531    122,253 
Income Tax (2)           17     
Custodian Fees   169    33,893    80,583    13,646 
Total Expenses   14,841    129,925    534,131    135,899 
  Waiver of Supervision and Administration Fees       (33,893)        
Net Expenses   14,841    96,032    534,131    135,899 
Net Investment Income   61,207    443,264    1,853,596    574,014 
Net Realized Gain (Loss) on:                    
Investments   (148,332)   (1,087,050)     (188,929)(3)     (1,291,034)(3)
Foreign Currency Transactions   (2,399)   (59,347)   (49,871)   1,650 
Net Realized Loss on Investments and Foreign Currency Transactions   (150,731)   (1,146,397)   (238,800)   (1,289,384)
Net Change in Unrealized Appreciation (Depreciation) on:                    
Investments   (169,521)   (1,689,405)   (2,091,160)   (8,122,564)
Foreign Currency Translation   766    (490)   8,573    (6,167)
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translation   (168,755)   (1,689,895)   (2,082,587)   (8,128,731)
Net Realized and Unrealized Loss on Investments and Foreign Currency Transactions and Translation   (319,486)   (2,836,292)   (2,321,387)   (9,418,115)
Net Decrease in Net Assets Resulting from Operations  $(258,279)  $(2,393,028)  $(467,791)  $(8,844,101)

 

(1) The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  
(2) See Note 2 in Notes to Financial Statements.
(3) Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)
(4) Commenced operations on November 6, 2013.
(5) Commenced operations on November 12, 2013.

 

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

 

103
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X China Consumer ETF   Global X China Energy ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $1,913,938   $2,017,582   $81,755   $84,934 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions (1)   (2,704,977)   5,995,641    134,132    (83,593)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (22,387,593)   10,376,723    (382,964)   541,289 
Net Increase (Decrease) in Net Assets Resulting from Operations   (23,178,632)   18,389,946    (167,077)   542,630 
Dividends and Distributions from:                    
Net Investment Income   (1,981,753)   (2,128,638)   (85,026)   (88,625)
Total Dividends and Distributions   (1,981,753)   (2,128,638)   (85,026)   (88,625)
Capital Share Transactions:                    
Issued   48,155,014    84,722,000    1,700,115     
Redeemed   (59,534,481)   (57,144,000)   (1,473,525)   (736,000)
Increase (Decrease) in Net Assets from Capital Share Transactions   (11,379,467)   27,578,000    226,590    (736,000)
Total Increase (Decrease) in Net Assets   (36,539,852)   43,839,308    (25,513)   (281,995)
Net Assets:                    
Beginning of Year   170,553,888    126,714,580    4,534,350    4,816,345 
End of Year  $134,014,036   $170,553,888   $4,508,837   $4,534,350 
Undistributed Net Investment Income  $1,730,708   $1,780,604   $81,629   $85,001 
Share Transactions:                    
Issued   3,050,000    5,750,000    100,000     
Redeemed   (4,100,000)   (4,050,000)   (100,000)   (50,000)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   (1,050,000)   1,700,000        (50,000)

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

104
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X China Financials ETF   Global X China Industrials ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $581,521   $244,069   $45,160   $56,240 
Net Realized Loss on Investments and Foreign Currency Transactions (1)   (2,274,890)   (163,619)   (488,702)   (227,952)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (2,627,366)   1,634,223    713,362    498,090 
Net Increase (Decrease) in Net Assets Resulting from Operations   (4,320,735)   1,714,673    269,820    326,378 
Dividends and Distributions from:                    
Net Investment Income   (243,282)   (186,317)   (65,300)   (64,616)
Total Dividends and Distributions   (243,282)   (186,317)   (65,300)   (64,616)
Capital Share Transactions:                    
Issued   43,844,234    38,748,500    2,505,369     
Redeemed   (33,212,829)   (3,771,500)   (1,137,500)   (574,500)
Increase (Decrease) in Net Assets from Capital Share Transactions   10,631,405    34,977,000    1,367,869    (574,500)
Total Increase (Decrease) in Net Assets   6,067,388    36,505,356    1,572,389    (312,738)
Net Assets:                    
Beginning of Year   42,517,946    6,012,590    4,248,245    4,560,983 
End of Year  $48,585,334   $42,517,946   $5,820,634   $4,248,245 
Undistributed Net Investment Income  $580,994   $243,279   $39,452   $50,774 
Share Transactions:                    
Issued   3,200,000    3,000,000    200,000     
Redeemed   (2,800,000)   (300,000)   (100,000)   (50,000)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   400,000    2,700,000    100,000    (50,000)

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements).

 

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

 

105
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X China Materials ETF   Global X NASDAQ China Technology
ETF
 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $30,707   $39,240   $54,398   $5,445 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   116,946(1)   (651,209)   222,294(1)   (201,661)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (240,082)   480,290    1,408,514    1,654,248 
Net Increase (Decrease) in Net Assets Resulting from Operations   (92,429)   (131,679)   1,685,206    1,458,032 
Dividends and Distributions from:                    
Net Investment Income   (36,867)   (40,384)   (3,666)   (16,025)
Total Dividends and Distributions   (36,867)   (40,384)   (3,666)   (16,025)
Capital Share Transactions:                    
Issued   3,210,002        11,389,496    6,121,500 
Redeemed   (2,390,367)   (438)   (1,081,619)    
Increase (Decrease) in Net Assets from Capital Share Transactions   819,635    (438)   10,307,877    6,121,500 
Total Increase (Decrease) in Net Assets   690,339    (172,501)   11,989,417    7,563,507 
Net Assets:                    
Beginning of Year   2,268,980    2,441,481    10,317,454    2,753,947 
End of Year  $2,959,319   $2,268,980   $22,306,871   $10,317,454 
Undistributed Net Investment Income  $30,768   $36,867   $54,302   $3,667 
Share Transactions:                    
Issued   200,000        500,000    300,000 
Redeemed   (150,000)     (29)(2)   (50,000)    
Net Increase (Decrease) in Shares Outstanding from Share Transactions   50,000    (29)   450,000    300,000 

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements).

(2) Adjusted to reflect the effect of a 1 for 2 share split on May 16, 2013.

 

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

 

106
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X Southeast Asia ETF   Global X FTSE Andean 40 ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $782,192   $1,344,793   $162,703   $157,723 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions     (1,187,065)(1)   437,210(1)     (783,510)(1)   (272,504)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (370,487)   (2,149,844)   (785,045)   (1,313,187)
Net Decrease in Net Assets Resulting from Operations   (775,360)   (367,841)   (1,405,852)   (1,427,968)
Dividends and Distributions from:                    
Net Investment Income   (1,423,135)   (806,416)   (153,480)   (155,634)
Total Dividends and Distributions   (1,423,135)   (806,416)   (153,480)   (155,634)
Capital Share Transactions:                    
Issued   871,105    40,455,000    1,612,500    3,345,500 
Redeemed   (18,970,966)   (22,302,500)   (1,425,000)    
Increase (Decrease) in Net Assets from Capital Share Transactions   (18,099,861)   18,152,500    187,500    3,345,500 
Total Increase (Decrease) in Net Assets   (20,298,356)   16,978,243    (1,371,832)   1,761,898 
Net Assets:                    
Beginning of Year   49,634,319    32,656,076    10,382,290    8,620,392 
End of Year  $29,335,963   $49,634,319   $9,010,458   $10,382,290 
Undistributed Net Investment Income  $641,309   $1,285,520   $140,219   $121,253 
Share Transactions:                    
Issued   50,000    2,300,000    150,000    250,000 
Redeemed   (1,200,000)   (1,350,000)   (150,000)    
Net Increase (Decrease) in Shares Outstanding from Share Transactions   (1,150,000)   950,000        250,000 

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

107
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X MSCI Colombia ETF   Global X Brazil Mid Cap ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $2,347,157   $3,492,239   $272,879   $535,095 
Net Realized Loss on Investments and Foreign Currency Transactions (1)   (1,311,327)   (6,132,756)   (484,122)   (937,657)
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translation   (19,271,052)   (9,050,403)   (902,819)   (415,458)
Net Decrease in Net Assets Resulting from Operations   (18,235,222)   (11,690,920)   (1,114,062)   (818,020)
Dividends and Distributions from:                    
Net Investment Income   (4,567,150)   (3,654,817)   (531,843)   (544,000)
Total Dividends and Distributions   (4,567,150)   (3,654,817)   (531,843)   (544,000)
Capital Share Transactions:                    
Issued   29,655,286    42,301,000         
Redeemed   (55,789,957)   (59,709,500)   (2,802,000)   (7,242,000)
Decrease in Net Assets from Capital Share Transactions   (26,134,671)   (17,408,500)   (2,802,000)   (7,242,000)
Total Decrease in Net Assets   (48,937,043)   (32,754,237)   (4,447,905)   (8,604,020)
Net Assets:                    
Beginning of Year   149,624,554    182,378,791    12,390,168    20,994,188 
End of Year  $100,687,511   $149,624,554   $7,942,263   $12,390,168 
Undistributed Net Investment Income  $1,165,141   $2,094,412   $209,391   $487,665 
Share Transactions:                    
Issued   1,550,000    2,000,000         
Redeemed   (3,050,000)   (3,050,000)   (200,000)   (500,000)
Net Decrease in Shares Outstanding from Share Transactions   (1,500,000)   (1,050,000)   (200,000)   (500,000)

 

(1)

Includes realized gains(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

108
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X Brazil Consumer ETF   Global X Brazil Financials ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $269,976   $180,332   $117,679   $78,417 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   146,889(1)   142,953(1)   (147,279)     (626,596)(1)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (1,193,505)   (1,992,485)   (209,239)   366,257 
Net Decrease in Net Assets Resulting from Operations   (776,640)   (1,669,200)   (238,839)   (181,922)
Dividends and Distributions from:                    
Net Investment Income   (185,072)   (293,164)   (22,454)   (149,310)
Total Dividends and Distributions   (185,072)   (293,164)   (22,454)   (149,310)
Capital Share Transactions:                    
Issued           555,500     
Redeemed   (7,882,187)   (4,508,500)       (1,089,000)
Increase (Decrease) in Net Assets from Capital Share Transactions   (7,882,187)   (4,508,500)   555,500    (1,089,000)
Total Increase (Decrease) in Net Assets   (8,843,899)   (6,470,864)   294,207    (1,420,232)
Net Assets:                    
Beginning of Year   18,786,549    25,257,413    2,424,756    3,844,988 
End of Year  $9,942,650   $18,786,549   $2,718,963   $2,424,756 
Undistributed Net Investment Income  $238,743   $150,412   $113,368   $15,512 
Share Transactions:                    
Issued           50,000     
Redeemed   (450,000)   (250,000)       (100,000)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   (450,000)   (250,000)   50,000    (100,000)

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

109
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X MSCI Argentina ETF   Global X FTSE Greece 20 ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $69,027   $22,958   $747,129   $336,427 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   216,289(1)   (752,497)   3,451,956(1)     (1,115,260)(1)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (1,390,959)   1,578,925    (88,239,623)   16,321,802 
Net Increase (Decrease) in Net Assets Resulting from Operations   (1,105,643)   849,386    (84,040,538)   15,542,969 
Dividends and Distributions from:                    
Net Investment Income   (45,738)   (31,297)   (53,067)   (30,671)
Net Realized Gains           (99,419)   (17,078)
Total Dividends and Distributions   (45,738)   (31,297)   (152,486)   (47,749)
Capital Share Transactions:                    
Issued   33,130,182    2,832,000    365,866,512    72,034,500 
Redeemed   (17,921,744)   (443)   (236,410,164)   (18,455,000)
Increase in Net Assets from Capital Share Transactions   15,208,438    2,831,557    129,456,348    53,579,500 
Total Increase in Net Assets   14,057,057    3,649,646    45,263,324    69,074,720 
Net Assets:                    
Beginning of Year   6,595,190    2,945,544    94,937,937    25,863,217 
End of Year  $20,652,247   $6,595,190   $140,201,261   $94,937,937 
Undistributed Net Investment Income  $31,028   $4,223   $707,125   $53,064 
Share Transactions:                    
Issued   1,500,000    150,000 (2)    16,150,000    3,700,000 
Redeemed   (850,000)   (25) (2)    (11,500,000)   (1,100,000)
Net Increase in Shares Outstanding from Share Transactions   650,000    149,975    4,650,000    2,600,000 

 

(1)

Includes realized gains(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)
(2) Adjusted to reflect the effect of a 1 for 2 share split on May 16, 2013.

 

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

 

110
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X MSCI Norway ETF   Global X FTSE Nordic Region ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
 
Operations:                    
Net Investment Income  $4,715,125   $2,017,974   $1,941,897   $1,204,474 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   1,465,465(1)   861,775(1)   3,135,947(1)   (462,098)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translation   (35,374,857)   5,669,899    (2,958,708)   9,575,936 
Net Increase (Decrease) in Net Assets Resulting from Operations   (29,194,267)   8,549,648    2,119,136    10,318,312 
Dividends and Distributions from:                    
Net Investment Income   (2,012,342)   (1,583,434)   (1,480,041)   (698,310)
Total Dividends and Distributions   (2,012,342)   (1,583,434)   (1,480,041)   (698,310)
Capital Share Transactions:                    
Issued   157,097,512    29,239,000    13,753,500    20,101,500 
Redeemed   (23,318,063)   (16,869,000)   (10,480,721)    
Increase in Net Assets from Capital Share Transactions   133,779,449    12,370,000    3,272,779    20,101,500 
Total Increase in Net Assets   102,572,840    19,336,214    3,911,874    29,721,502 
Net Assets:                    
Beginning of Year   80,464,774    61,128,560    56,014,679    26,293,177 
End of Year  $183,037,614   $80,464,774   $59,926,553   $56,014,679 
Undistributed Net Investment Income  $4,442,674   $1,818,785   $1,695,771   $1,143,775 
Share Transactions:                    
Issued   9,000,000    1,850,000    550,000    950,000 
Redeemed   (1,450,000)   (1,100,000)   (450,000)    
Net Increase in Shares Outstanding from Share Transactions   7,550,000    750,000    100,000    950,000 

 

(1) Includes realized gains/(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

111
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X Central Asia & Mongolia Index
ETF
   Global X MSCI Nigeria ETF 
   Year Ended
October 31, 2014
  

Period Ended
October 31, 2013(1)

   Year Ended
October 31, 2014
  

Period Ended
October 31, 2013(1)

 
Operations:                    
Net Investment Income  $61,207   $48,324   $443,264   $81,137 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   (150,731)     (70,246)(2)   (1,146,397)   11,702 
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translation   (168,755)   (129,952)   (1,689,895)   (285,805)
Net Decrease in Net Assets Resulting from Operations   (258,279)   (151,874)   (2,393,028)   (192,966)
Dividends and Distributions from:                    
Net Investment Income   (52,316)       (76,054)    
Net Realized Gains           (16,784)    
Total Dividends and Distributions   (52,316)       (92,838)    
Capital Share Transactions:                    
Issued   1,394,002    2,207,000    14,117,633    6,162,500 
Redeemed       (681,500)   (677,320)    
Increase in Net Assets from Capital Share Transactions   1,394,002    1,525,500    13,440,313    6,162,500 
Total Increase in Net Assets   1,083,407    1,373,626    10,954,447    5,969,534 
Net Assets:                    
Beginning of Year/Period   1,373,626        5,969,534     
End of Year/Period  $2,457,033   $1,373,626   $16,923,981   $5,969,534 
Undistributed Net Investment Income  $54,942   $48,449   $383,917   $76,054 
Share Transactions:                    
Issued   100,000    150,000    950,000    400,000 
Redeemed       (50,000)   (50,000)    
Net Increase in Shares Outstanding from Share Transactions   100,000    100,000    900,000    400,000 

 

(1) Commenced operations on April 2, 2013.
(2) Includes realized gains(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

112
 

 

 

 

Statements of Changes in Net Assets
 

 

   Global X Next
Emerging &
Frontier ETF
   Global X FTSE
Portugal 20 ETF
 
  

Period Ended
October 31, 2014(1)

  

Period Ended
October 31, 2014(2)

 
Operations:          
Net Investment Income  $1,853,596   $574,014 
Net Realized Loss on Investments and Foreign Currency Transactions (3)   (238,800)   (1,289,384)
Net Change in Unrealized Depreciation on Investments and Foreign Currency Translation   (2,082,587)   (8,128,731)
Net Decrease in Net Assets Resulting from Operations   (467,791)   (8,844,101)
Dividends and Distributions from:          
Net Investment Income   (28,312)    
Total Dividends and Distributions   (28,312)    
Capital Share Transactions:          
Issued   156,318,000    53,026,360 
Redeemed   (3,794,788)   (7,490,738)
Increase in Net Assets from Capital Share Transactions   152,523,212    45,535,622 
Total Increase in Net Assets   152,027,109    36,691,521 
Net Assets:          
Beginning of Period        
End of Period  $152,027,109   $36,691,521 
Undistributed Net Investment Income  $1,775,431   $575,664 
Share Transactions:          
Issued   6,100,000    3,450,000 
Redeemed   (150,000)   (550,000)
Net Increase in Shares Outstanding from Share Transactions   5,950,000    2,900,000 

 

(1)Commenced operations on November 6, 2013.
(2)Commenced operations on November 12, 2013.
(3)Includes realized gains(losses) as a result of in-kind transactions. (See Note 4 in Notes to Financial Statements.)

 

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

 

113
 

 

 

 

Financial Highlights
 

 

Selected Per Share Data & Ratios

For a Share Outstanding Throughout the Period

 

   Net Asset
Value,
Beginning of
Period ($)
   Net
Investment
Income ($)*
   Net Realized
and
Unrealized
Gain (Loss)
on
Investments
($)
   Total from
Operations
($)
   Distribution
from Net
Investment
Income ($)
   Distribution
from
Capital
Gains ($)
   Total from
Distributions
($)
   Net Asset
Value, End
of Period
($)
   Total
Return
(%)**
   Net
Assets
End of
Period
($)(000)
   Ratio of
Expenses
to
Average
Net Assets
(%)
   Ratio of
Net
Investment
Income to
Average
Net Assets
(%)
   Portfolio
Turnover
(%)
 
Global X China Consumer ETF                                         
2014   15.87    0 .17    (2 .07)    (1 .90)    (0 .15)        (0 .15)    13.82    (12 .09)    134,014    0 .65    1 .18    18 .89 
2013   14.00    0 .16    1 .88    2 .04    (0 .17)        (0 .17)    15.87    14 .66    170,554    0 .65    1 .11    27 .76 
2012   15.29    0 .24    (1 .47)    (1 .23)    (0 .06)        (0 .06)    14.00    (8 .06)    126,715    0 .65    1 .73    17 .32 
2011   20.33    0 .17    (5 .02)    (4 .85)    (0 .19)        (0 .19)    15.29    (23 .99)    136,858    0 .65    0 .98    12 .37 
2010 (1)   15.65    0 .17    4 .51    4 .68                20.33    29 .90    174,875    0 .65   1 .03†    3 .91††
Global X China Energy ETF                                                    
2014   15.11    0 .29    (0 .09)    0 .20    (0 .28)        (0 .28)    15.03    1 .34    4,509    0 .65    1 .90    12 .65 
2013   13.76    0 .26    1 .34    1 .60    (0 .25)        (0 .25)    15.11    11 .72    4,534    0 .65    1 .82    24 .41 
2012   13.78    0 .25    (0 .01)    0 .24    (0 .26)        (0 .26)    13.76    1 .87    4,816    0 .65    1 .85    17 .22 
2011   15.72    0 .27    (2 .07)    (1 .80)    (0 .14)        (0 .14)    13.78    (11 .57)    4,822    0 .65    1 .70    11 .39 
2010 (2)   15.02    0 .23    0 .47    0 .70                15.72    4 .66    4,717    0 .65†    1 .80   20 .55††
Global X China Financials ETF                                                    
2014   13.29    0 .23    0 .05   0 .28    (0 .07)        (0 .07)    13.50    2 .08    48,585    0 .65    1 .76    6 .90 
2013   12.03    0 .27    1 .36    1 .63    (0 .37)        (0 .37)    13.29    13 .61    42,518    0 .65    2 .09    33 .49 
2012   10.92    0 .20    0 .92    1 .12    (0 .01)        (0 .01)    12.03    10 .28    6,013    0 .65    1 .76    14 .02 
2011   14.77    0 .03    (3 .56)    (3 .53)    (0 .32)        (0 .32)    10.92    (24 .29)    10,924    0 .65    0 .25    41 .54 
2010 (3)   14.90    0 .27    (0 .40)    (0 .13)                14.77    (0 .87)    70,158    0 .65   2 .26   14 .42††
Global X China Industrials ETF                                                    
2014   12.14    0 .15    0 .83    0 .98    (0 .19)        (0 .19)    12.93    8 .13    5,821    0 .65    1 .24    10 .61 
2013   11.40    0 .15    0 .75    0 .90    (0 .16)        (0 .16)    12.14    7 .89    4,248    0 .65    1 .28    19 .01 
2012   11.39    0 .16    (0 .13)    0 .03    (0 .02)        (0 .02)    11.40    0 .30    4,561    0 .65    1 .48    23 .00 
2011   17.13    0 .13    (5 .64)    (5 .51)    (0 .23)        (0 .23)    11.39    (32 .56)    4,558    0 .65    0 .88    20 .13 
2010 (1)   15.50    0 .08    1 .55    1 .63                17.13    10 .52    12,850    0 .65†    0 .61   12 .74††
Global X China Materials ETF                                                    
2014   15.13    0 .19    (0 .27)    (0 .08)    (0 .25)        (0 .25)    14.80    (0 .57)    2,959    0 .65    1 .26    13 .51 
2013 (4)   16.28    0 .17    (1 .05)    (0 .88)    (0 .27)        (0 .27)    15.13    (5 .63)    2,269    0 .65    1 .65    31 .07 
2012 (4)   19.16    0 .25    (3 .13)    (2 .88)                16.28    (15 .03)    2,441    0 .65    1 .50    50 .30 
2011 (4)   29.18    0 .01    (9 .74)    (9 .73)    (0 .29)        (0 .29)    19.16    (33 .69)    2,875    0 .65    0 .05    36 .82 
2010 (4)(5)   29.90    0 .05    (0 .77)    (0 .72)                29.18    (2 .41)    57,642    0 .65   0 .23   6 .13††
Global X NASDAQ China Technology ETF                                                    
2014   20.63    0 .06    2 .80    2 .86    (0 .01)        (0 .01)    23.48    13 .85    22,307    0 .65    0 .29    64 .79 
2013   13.77    0 .02    6 .92    6 .94    (0 .08)        (0 .08)    20.63    50 .68    10,317    0 .65    0 .14    57 .24 
2012   15.38    0 .05    (1 .47)    (1 .42)    (0 .19)        (0 .19)    13.77    (9 .17)    2,754    0 .65    0 .35    53 .45 
2011   17.21    0 .38    (2 .05)    (1 .67)    (0 .03)    (0 .13)    (0 .16)    15.38    (9 .81)    4,614    0 .65    2 .26    16 .79 
2010 (6)   14.90    0 .03    2 .28    2 .31                17.21    15 .50    4,301    0 .65†    0 .24   5 .15††
Global X Southeast Asia ETF                                                    
2014   17.12    0 .39    (0 .16)    0 .23    (0 .59)        (0 .59)    16.76    1 .68    29,336    0 .65    2 .36    8 .36 
2013   16.75    0 .47    0 .28^   0 .75    (0 .38)        (0 .38)    17.12    4 .50    49,634    0 .65    2 .73    24 .07 
2012   15.51    0 .51    1 .10    1 .61    (0 .37)        (0 .37)    16.75    10 .77    32,656    0 .65    3 .23    9 .69 
2011 (7)   15.08    0 .38    0 .05    0 .43                15.51    2 .85    23,262    0 .62†    3 .46   2 .68††

 

(1) The Fund commenced operations on November 30, 2009.
(2) The Fund commenced operations on December 15, 2009.
(3) The Fund commenced operations on December 10, 2009.
(4) Per share amounts have been restated for a 1 for 2 reverse share split. See Note 8 in the Notes to Financial Statements.
(5) The Fund commenced operations on January 12, 2010.
(6) The Fund commenced operations on December 8,2009.
(7) The Fund commenced operations on February 16, 2011.
^ The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
* Per share data calculated using average shares method.
** Total Return is for the period indicated and has not been annualized.  The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Annualized.
†† Portfolio turnover rate is for the period indicated and has not been annualized. Excludes effect of in-kind transfers.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

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

 

114
 

 

 

 

Financial Highlights
 

 

Selected Per Share Data & Ratios

For a Share Outstanding Throughout the Period

 

   Net Asset
Value,
Beginning of
Period ($)
   Net
Investment
Income ($)*
   Net Realized
and
Unrealized
Gain (Loss)
on
Investments
($)
   Total from
Operations
($)
   Distribution
from Net
Investment
Income ($)
   Distribution
from
Capital
Gains ($)
   Total from
Distributions
($)
   Net Asset
Value, End
of Period
($)
   Total
Return
(%)**
   Net
Assets
End of
Period
($)(000)
   Ratio of
Expenses
to
Average
Net Assets
(%)
   Ratio of
Net
Investment
Income to
Average
Net Assets
(%)
   Portfolio
Turnover
(%)
 
Global X FTSE Andean 40 ETF                                         
2014   12.21    0 .19    (1 .63)    (1 .44)    (0 .17)        (0 .17)    10.60    (11 .84)    9,010    0 .72    1 .71    19 .94 
2013   14.37    0 .23    (2 .13)    (1 .90)    (0 .26)        (0 .26)    12.21    (13 .52)    10,382    0 .72    1 .71    22 .05 
2012   13.61    0 .23    0 .77     1 .00     (0 .24)        (0 .24)    14.37    7 .63     8,620    0 .72    1 .65    25 .80 
2011(1)   14.88    0 .19    (1 .46)    (1 .27)                13.61    (8 .53)    6,806    0 .72†    1 .81†    15 .83†† 
Global X MSCI Colombia ETF                                                    
2014   20.55    0 .40    (2 .78)    (2 .38)    (0 .75)        (0 .75)    17.42    (11 .73)    100,688    0 .66@   2 .12    47 .57 
2013   21.89    0 .42    (1 .31)    (0 .89)    (0 .45)        (0 .45)    20.55    (4 .21)    149,625    0 .75@   2 .05    52 .06 
2012   19.19    0 .39    2 .52     2 .91     (0 .21)        (0 .21)    21.89    15 .41     182,379    0 .78@   1 .92    61 .70 
2011   22.99    0 .29    (3 .88)    (3 .59)    (0 .13)    (0 .08)    (0 .21)    19.19    (15 .69)    141,613    0 .81@   1 .39    63 .11 
2010   13.92    0 .16    9 .44     9 .60     (0 .53)        (0 .53)    22.99    71 .28     196,355    0 .86   0 .77    40 .95 
Global X Brazil Mid Cap ETF                                                    
2014   14.58    0 .39    (2 .04)    (1 .65)    (0 .71)        (0 .71)    12.22    (11 .59)    7,942    0 .69    2 .99    17 .72 
2013   15.55    0 .50    (1 .02)    (0 .52)    (0 .45)        (0 .45)    14.58    (3 .52)    12,390    0 .69    3 .32    16 .38 
2012   15.55    0 .47    (0 .13)    0 .34     (0 .34)        (0 .34)    15.55    2 .42     20,994    0 .69    2 .98    34 .81 
2011   18.28    0 .46    (2 .94)    (2 .48)    (0 .23)    (0 .02)    (0 .25)    15.55    (13 .73)    23,329    0 .69    2 .68    16 .90 
2010(2)   15.16    0 .08    3 .04     3 .12                 18.28    20 .58     29,242    0 .69†    1 .24†    2 .69†† 
Global X Brazil Consumer ETF                                                    
2014   17.89    0 .33    (1 .44)    (1 .11)    (0 .21)        (0 .21)    16.57    (6 .20)    9,943    0 .78‡    1 .98    18 .59 
2013   19.43    0 .15    (1 .45)    (1 .30)    (0 .24)        (0 .24)    17.89    (6 .80)    18,787    0 .77    0 .80    15 .01 
2012   16.78    0 .14    2 .73     2 .87     (0 .22)        (0 .22)    19.43    17 .49     25,257    0 .77    0 .83    49 .88 
2011   19.95    0 .28    (3 .42)    (3 .14)    (0 .02)    (0 .01)    (0 .03)    16.78    (15 .74)    29,361    0 .77    1 .53    37 .28 
2010(3)   15.48        4 .47     4 .47                 19.95    28 .88     24,934    0 .77†    0 .07†    4 .72†† 
Global X Brazil Financials ETF                                                    
2014   12.12    0 .52    (1 .65)    (1 .13)    (0 .11)        (0 .11)    10.88    (9 .25)    2,719    0 .77‡    4 .56    17 .31 
2013   12.82    0 .30    (0 .50)    (0 .20)    (0 .50)        (0 .50)    12.12    (1 .87)    2,425    0 .77    2 .36    14 .87 
2012   14.92    0 .34    (1 .80)    (1 .46)    (0 .64)        (0 .64)    12.82    (9 .79)    3,845    0 .77    2 .47    24 .79 
2011   17.40    0 .46    (2 .85)    (2 .39)    (0 .09)        (0 .09)    14.92    (13 .80)    7,461    0 .77    2 .85    37 .24 
2010(4)   15.08    0 .05    2 .27     2 .32                 17.40    15 .38     7,829    0 .77†    1 .15†     —†† 
Global X MSCI Argentina ETF                                                    
2014   20.29    0 .10    0 .91   1 .01     (0 .12)        (0 .12)    21.18    5 .03     20,652    0 .74    0 .49    95 .29 
2013(5)   16.84    0 .10    3 .53     3 .63     (0 .18)        (0 .18)    20.29    21 .73     6,595    0 .74    0 .57    26 .52 
2012(5)   22.04    0 .24    (4 .85)    (4 .61)    (0 .59)        (0 .59)    16.84    (21 .44)    2,946    0 .74    1 .25    29 .51 
2011(5)(6)   29.86    0 .45    (8 .27)    (7 .82)                22.04    (26 .19)    3,857    0 .75†    2 .53†    40 .86†† 

 

(1) The Fund commenced operations on February 2, 2011.
(2) The Fund commenced operations on June 21, 2010.
(3) The Fund commenced operations on July 7, 2010.
(4) The Fund commenced operations on July 28, 2010.
(5) Per share amounts have been restated for a 1 for 2 reverse share split. See Note 8 in the Notes to Financial Statements.
(6) The Fund commenced operations on March 2, 2011.
^ The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
* Per share data calculated using average shares method.
** Total Return is for the period indicated and has not been annualized.  The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Annualized.
†† Portfolio turnover rate is for the period indicated and has not been annualized. Excludes effect of in-kind transfers.
@ The ratio of Expenses to Average Net Assets includes the effect of a waiver. If these offsets were excluded, the ratio would have been 0.78%, 0.80%, 0.83%, 0.83%, and 0.86% for the years ended October 31, 2014, 2013, 2012, 2011, and 2010, respectively.
The ratio of Expenses to Average Net Assets includes the effect of income taxes. If these expenses were excluded, the ratio would have been 0.77%, and 0.77% for the Global X Brazil Consumer ETF and Global X Brazil Financials ETF, respectively.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

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

 

115
 

 

 

 

Financial Highlights
 

 

Selected Per Share Data & Ratios

For a Share Outstanding Throughout the Period

 

   Net Asset
Value,
Beginning of
Period ($)
   Net
Investment
Income ($)*
   Net Realized
and
Unrealized
Gain (Loss)
on
Investments
($)
   Total from
Operations
($)
   Distribution
from Net
Investment
Income ($)
   Distribution
from
Capital
Gains ($)
   Total from
Distributions
($)
   Net Asset
Value, End
of Period
($)
   Total
Return
(%)**
   Net
Assets
End of
Period
($)(000)
   Ratio of
Expenses
to Average
Net Assets
(%)
   Ratio of
Net
Investment
Income to
Average
Net Assets
(%)
   Portfolio
Turnover
(%)
 
Global X FTSE Greece 20 ETF                                         
2014   22.60    0 .08    (6 .83)    (6 .75)    (0 .01)        (0 .01)    15.84    (29 .83)    140,201    0 .62    0 .38    64 .19 
2013   16.16    0 .15    6 .32     6 .47     (0 .02)    (0 .01)    (0 .03)    22.60    40 .14     94,938    0 .61    0 .84    77 .29 
2012(1)   15.18    0 .25    0 .76     1 .01     (0 .03)        (0 .03)    16.16    6 .70     25,863    0 .62†    1 .93†    23 .99†† 
Global X MSCI Norway ETF                                                    
2014   16.76    0 .63    (2 .18)    (1 .55)    (0 .39)        (0 .39)    14.82    (9 .46)    183,038    0 .50    3 .76    26 .50 
2013   15.09    0 .50    1 .60     2 .10     (0 .43)        (0 .43)    16.76    14 .21     80,465    0 .50    3 .23    11 .01 
2012   13.96    0 .49    1 .00     1 .49     (0 .36)        (0 .36)    15.09    11 .24     61,129    0 .50    3 .52    23 .39 
2011(2)   14.80    0 .44    (1 .27)    (0 .83)    (0 .01)        (0 .01)    13.96    (5 .62)    74,707    0 .50†    3 .03†    24 .26†† 
Global X FTSE Nordic Region ETF                                                    
2014   23.74    0 .79    0 .46     1 .25     (0 .63)        (0 .63)    24.36    5 .30     59,927    0 .50    3 .16    6 .05 
2013   18.65    0 .62    4 .97     5 .59     (0 .50)        (0 .50)    23.74    30 .54     56,015    0 .50    2 .92    8 .95 
2012   17.47    0 .50    1 .27     1 .77     (0 .53)    (0 .06)    (0 .59)    18.65    10 .84     26,293    0 .50    2 .88    10 .15 
2011   19.22    0 .53    (2 .11)    (1 .58)    (0 .17)        (0 .17)    17.47    (8 .34)    29,005    0 .50    2 .74    3 .59 
2010   16.07    0 .32    2 .84     3 .16     (0 .01)        (0 .01)    19.22    19 .68     12,683    0 .50    1 .91    4 .07 
Global X Central Asia & Mongolia Index ETF                                                    
2014   13.74    0 .38    (1 .48)    (1 .10)    (0 .35)        (0 .35)    12.29    (8 .23)    2,457    0 .69    2 .84    55 .76 
2013(3)   14.84    0 .41    (1 .51)    (1 .10)                13.74    (7 .41)    1,374    0 .69†    5 .01†    11 .01†† 
Global X MSCI Nigeria ETF                                                    
2014   14.92    0 .47    (2 .16)    (1 .69)    (0 .17)    (0 .04)    (0 .21)    13.02    (11 .55)    16,924    0 .68   3 .14    54 .75 
2013(3)   15.31    0 .30    (0 .69)    (0 .39)                14.92    (2 .55)    5,970    0 .68†@    3 .54†    5 .44†† 
Global X Next Emerging & Frontier ETF                                                    
2014(4)   25.08    0 .51    0 .01   0 .52     (0 .05)        (0 .05)    25.55    2 .07     152,027    0 .58†‡    2 .00†    24 .14†† 
Global X FTSE Portugal 20 ETF                                                    
2014(5)   15.04    0 .38    (2 .77)    (2 .39)                12.65    (1 5.89)    36,692    0 .61†    2 .58†    53 .58†† 

 

(1) The Fund commenced operations on December 7, 2011.
(2) The Fund commenced operations on November 9, 2010.
(3) The Fund commenced operations on April 2, 2013.
(4) The Fund commenced operations on November 6, 2013.
(5) The Fund commenced operations on November 12, 2013.
^ The amount shown for a share outstanding throughout the period does not accord with the aggregate net gains on investments for the period because of the sales and repurchases of fund shares in relation to fluctuating market value of the investments of the Fund.
* Per share data calculated using average shares method.
** Total Return is for the period indicated and has not been annualized.  The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Annualized.
†† Portfolio turnover rate is for the period indicated and has not been annualized. Excludes effect of in-kind transfers.
@ The ratio of Expenses to Average Net Assets includes the effect of a waiver. If these offsets were excluded, the ratio would have been 0.92% and 0.92% for the year and period ended October 31, 2014, and 2013, respectively.
The ratio of Expenses to Average Net Assets includes the effect of income taxes. If these expenses were excluded, the ratio would have been 0.58% for the Global X Next Emerging & Frontier ETF.

 

Amounts designated as “—” are either $0 or have been rounded to $0.

 

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

  

116
 

 

 

 

Notes to Financial Statements
October 31, 2014

 

1. ORGANIZATION

 

The Global X Funds (the "Trust") is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of October 31, 2014, the Trust had eighty-eight portfolios, forty of which were operational. The financial statements herein and the related notes pertain to the Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Materials ETF, Global X NASDAQ China Technology ETF, Global X Southeast Asia ETF (formerly Global X FTSE ASEAN 40 ETF), Global X FTSE Andean 40 ETF, Global X MSCI Colombia ETF (formerly Global X FTSE Colombia 20 ETF), Global X Brazil Mid Cap ETF, Global X Brazil Consumer ETF, Global X Brazil Financials ETF, Global X MSCI Argentina ETF (formerly Global X FTSE Argentina 20 ETF), Global X FTSE Greece 20 ETF, Global X MSCI Norway ETF (formerly Global X FTSE Norway 30 ETF), Global X FTSE Nordic Region ETF, Global X Central Asia & Mongolia Index ETF, Global X MSCI Nigeria ETF (formerly Global X Nigeria Index ETF), Global X Next Emerging & Frontier ETF and Global X FTSE Portugal 20 ETF (each a “Fund”, collectively, the “Funds”). Each Fund is non-diversified.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the Significant Accounting Policies followed by the Funds.

 

USE OF ESTIMATES — The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.

 

SECURITY VALUATION — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ and the Nigerian Stock Exchange), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).

 

For securities traded on NASDAQ and the Nigerian Stock Exchange, the Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

 

117
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security's last close and the time that the Funds calculate net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disaster, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC (the “Adviser”) becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of October 31, 2014, there were securities valued using Fair Value Procedures of $507,987, $121,942, $3,471,731, $48,892, $69,608, $534,734, and $1,024,905 in Global X China Industrials ETF, Global X China Materials ETF, Global X MSCI Colombia ETF, Global X Brazil Mid Cap ETF, Global X Brazil Consumer ETF, Global X FTSE Greece 20 ETF and Global X Next Emerging & Frontier ETF, respectively. There were no other securities priced using the Fair Value Procedures.

 

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date

 

Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost)

  

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Notes to Financial Statements
October 31, 2014 (continued)

 

 2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Level 3 – Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments and, fair value of investments for which the Funds do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term)

 

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

 

For the year ended October 31, 2014, there have been no significant changes to the Funds’ fair valuation methodologies.

 

The following table summarizes the quantitative inputs and assumptions used for items categorized

as material Level 3 investments as of October 31, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.

 

Global X China Industrials ETF

 

Quantitative information about level 3 fair value measurements 
Assets  Fair Value at 10/31/14   Valuation Technique(s)  Unobservable Input  Discount Percentage 
       Discount from the Last  Last Traded Price    
Common Stock  $507,987   Traded Price  Comparability Adjustment %   0%

  

Global X China Materials ETF

 

Quantitative information about Level 3 fair value measurements 
Assets  Fair Value at 10/31/14   Valuation Technique(s)  Unobservable Input  Discount Percentage Range 
       Discount from the Last  Last Traded Price    
Common Stock  $121,942   Traded Price  Comparability Adjustment %   0% to 90%

 

Global X MSCI Colombia ETF

 

Quantitative information about Level 3 fair value measurements 
Assets  Fair Value at 10/31/14   Valuation Technique(s)  Unobservable Input  Range 
        Discount from the Last  Last Traded Price     
Common Stock  $3,471,731   Traded Price  Comparability Adjustment %   5% to 99%

  

The unobservable inputs used to determine fair value of Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.

 

DUE TO/FROM BROKERS —Due to/from brokers includes cash and collateral balances with the Funds’ clearing brokers or counterparties at October 31, 2014. The Funds continuously monitor the credit standing of each broker or counterparty with whom they conduct business.  In the event a broker or counterparty is unable to fulfill its obligations, the Funds would be subject to counterparty credit risk.

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

REPURCHASE AGREEMENTS — Securities pledged as collateral for repurchase agreements are held by Citibank, N.A. and are designated as being held on each Fund’s behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Fund bears the risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Fund is prevented from exercising its rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (included in Repurchase Agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities.

 

Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund.

 

At October 31, 2014, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:

 

       Fair Value of Non-cash   Cash Collateral     
   Repurchase Agreements   Collateral Received   Received   Net Amount(1) 
Global X China Consumer ETF                    
Barclays  $16,000,000   $16,000,000   $-   $- 
Deutsche Bank   1,500,925    1,500,925    -    - 
Global X FTSE Greece 20 ETF                    
Deutsche Bank   2,341,200    2,341,200    -    - 
Global X MSCI Norway ETF                    
Barclays   11,000,000    11,000,000    -    - 
Deutsche Bank   1,720,116    1,720,116    -    - 
Global X FTSE Portugal 20 ETF                    
Deutsche Bank   1,595,613    1,595,613    -    - 

 

(1)Net Amount represents the net amount receivable due from the counterparty in the event of default.

 

FEDERAL INCOME TAXES — It is each Fund’s intention to qualify or continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements.

 

During the year ended October 31, 2014, The Global X Brazil Consumer ETF, Global X Brazil Financials ETF, and Global X Next Emerging & Frontier ETF incurred federal excise tax in the amount of $808, $5, and $17, respectively. No other provisions for Federal income taxes have been made in the financial statements.

 

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is "more-likely-than-not" (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as 

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

  

As of and during the year ended October 31, 2014, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year, the Funds did not incur any interest or penalties.

 

SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.

 

FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

 

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Funds distribute their net investment income on a pro rata basis. Any net realized capital gains are distributed annually. All distributions are recorded on ex-dividend date.

 

CREATION UNITS — The Funds issue and redeem shares ("Shares") at Net Asset Value (“NAV”) and only in large blocks of Shares, (each block of Shares for a Fund is called a "Creation Unit" or multiples thereof). Purchasers of Creation Units ("Authorized Participants") at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an investor on the same day. An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard redemption fee per transaction payable to the Custodian on the date of such redemption, regardless of the number of Creation Units redeemed that day.

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

If a Creation Unit is purchased or redeemed for cash, a higher Transaction Fee will be charged. The following table discloses Creation Unit breakdown:

 

           Value at     
   Creation Unit       October 31,   Redemption 
   Shares   Creation Fee   2014   Fee 
Global X China Consumer ETF   50,000   $1,900   $691,000   $1,900 
Global X China Energy ETF   50,000    1,900    751,500    1,900 
Global X China Financials ETF   50,000    1,900    675,000    1,900 
Global X China Industrials ETF   50,000    1,900    646,500    1,900 
Global X China Materials ETF   50,000    1,900    751,500    1,900 
Global X NASDAQ China Technology ETF   50,000    1,900    1,174,000    1,900 
Global X Southeast Asia ETF   50,000    2,300    838,000    2,300 
Global X FTSE Andean 40 ETF   50,000    2,300    530,000    2,300 
Global X MSCI Colombia ETF   50,000    2,500    871,000    2,500 
Global X Brazil Mid Cap ETF   50,000    1,900    611,000    1,900 
Global X Brazil Consumer ETF   50,000    1,500    828,500    1,500 
Global X Brazil Financials ETF   50,000    1,500    544,000    1,500 
Global X MSCI Argentina ETF   50,000    1,000    1,059,000    1,000 
Global X FTSE Greece 20 ETF   50,000    1,000    792,000    1,000 
Global X MSCI Norway ETF   50,000    1,400    741,000    1,400 
Global X FTSE Nordic Region ETF   50,000    1,400    1,218,000    1,400 
Global X Central Asia & Mongolia Index ETF   50,000    2,700    614,500    2,700 
Global X MSCI Nigeria ETF   50,000    2,300    651,000    2,300 
Global X Next Emerging & Frontier ETF   50,000    9,500    1,277,500    9,500 
Global X FTSE Portugal 20 ETF   50,000    1,000    632,500    1,000 

 

3. RELATED PARTY TRANSACTIONS

 

The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board of Trustees, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate Distribution Agreement), certain shareholder and distribution-related services, if any (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate Investment Advisory Agreement), under what is essentially an "all-in" fee structure. For its service to the Funds, under the Supervision and Administration Agreement, each Fund pays a monthly fee to the Adviser at the annual rate (stated as a percentage of the average daily net assets of the Fund). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions and other transaction expenses, interest expenses, acquired fund fees and extraordinary expenses (such as litigation and indemnification expenses). In addition, the Global X MSCI Colombia ETF, Global X MSCI Argentina ETF, Global X FTSE Greece 20 ETF, Global X Central Asia & Mongolia Index ETF, Global X MSCI Nigeria ETF, Global X Next Emerging & Frontier ETF and Global X FTSE Portugal 20 ETF pay custodial fees that are not covered by the Supervision and Administration Agreement. Pursuant to an agreement with the Custodian, the Global X MSCI Colombia ETF, Global X MSCI Argentina ETF, Global X FTSE Greece 20 ETF, Global X Central Asia & Mongolia Index ETF, Global X MSCI Nigeria ETF, Global X Next Emerging & Frontier ETF and Global X FTSE Portugal 20 ETF may pay up to 0.11%, 0.01%, 0.06%, 0.01%, 0.24%, 0.09% and 0.06% respectively in Custody Fees (in addition to the Supervision and Administration Fee).

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

3. RELATED PARTY TRANSACTIONS (continued)

 

   Supervision and 
   Administration 
   Fee 
Global X China Consumer ETF   0.65%
Global X China Energy ETF   0.65%
Global X China Financials ETF   0.65%
Global X China Industrials ETF   0.65%
Global X China Materials ETF   0.65%
Global X NASDAQ China Technology ETF   0.65%
Global X Southeast Asia ETF   0.65%
Global X FTSE Andean 40 ETF   0.72%
Global X MSCI Colombia ETF*   0.61%
Global X Brazil Mid Cap ETF   0.69%
Global X Brazil Consumer ETF   0.77%
Global X Brazil Financials ETF   0.77%
Global X MSCI Argentina ETF   0.74%
Global X FTSE Greece 20 ETF   0.55%
Global X MSCI Norway ETF   0.50%
Global X FTSE Nordic Region ETF   0.50%
Global X Central Asia & Mongolia Index ETF   0.68%
Global X MSCI Nigeria ETF*   0.68%
Global X Next Emerging & Frontier ETF   0.49%
Global X FTSE Portugal 20 ETF   0.55%

 

*Effective July 15, 2014, pursuant to an Expense Limitation Agreement, the Adviser has agreed to waive or reimburse fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest and extraordinary expenses (such as litigation and indemnification expenses)) will not exceed 0.61% of the Global X MSCI Colombia Fund’s average daily net assets per year until at least August 1, 2015.  Prior to July 15, 2014, pursuant to an Expense Limitation Agreement, the Adviser had agreed to waive or reimburse fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest and extraordinary expenses (such as litigation and indemnification expenses)) did not exceed 0.68% of the Global X MSCI Colombia Fund’s average daily net assets per year until at least March 1, 2015. 

 

Pursuant to an Expense Limitation Agreement, the Adviser has agreed to waive or reimburse fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund (exclusive of taxes, brokerage fees, commissions, and other transaction expenses, interest and extraordinary expenses (such as litigation and indemnification expenses)) will not exceed 0.68% of the Global X MSCI Nigeria Fund’s average daily net assets per year until at least March 1, 2015.

 

Pursuant to the Expense Limitation Agreements, the Funds (at a later date) may reimburse the Adviser for the fees and expenses it waived or reimbursed and/or limited pursuant to the Expense Limitation Agreement during any of the prior three fiscal years, provided that, among other things, any reimbursement made to the Adviser does not cause Total Annual Fund Operating Expenses of the Fund to exceed the maximum permitted rate during the period in which it is paid and the Board of Trustees has approved in advance such reimbursement to the Adviser. At October 31, 2014, the amounts of waivers/reimbursements subject to recoupment for Global X MSCI Colombia ETF were $132,223 expiring in 2017, $84,928 expiring in 2016 and $77,243 expiring in 2015. The amounts of waivers/reimbursements subject to recoupment for Global X MSCI Nigeria ETF were $33,893 expiring in 2017 and $5,469 expiring in 2016. As of October 31, 2014, there has been no recoupment of previously waived and reimbursed fees.

 

SEI Investments Global Funds Services (“SEIGFS”) serves as Sub-Administrator to the Funds. As Sub-Administrator, SEIGFS provides the Funds with the required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, the Sub-Administrator receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser.

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

3. RELATED PARTY TRANSACTIONS (concluded)

 

SEI Investments Distribution Co. (“SIDCO”) serves as each Funds’ underwriter and distributor of Shares pursuant to a Distribution Agreement. Under the Distribution Agreement, SIDCO, as agent, receives orders to create and redeem Shares in Creation Unit Aggregations and transmits such orders to the Trust’s custodian and transfer agent. The Distributor has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (i) the costs of processing and maintaining records of creations of Creation Units; (ii) all costs of maintaining the records required of a registered broker/dealer; (iii) the expenses of maintaining its registration or qualification as a dealer or broker under Federal or state laws; (iv) filing fees; and (v) all other expenses incurred in connection with the distribution services as contemplated in the Distribution Agreement. SIDCO receives no fee for its distribution services under the Distribution Agreement.

 

Brown Brothers Harriman & Co. (“BBH”), located at 40 Water Street, Boston, MA 02109, serves as Custodian of Funds’ assets. As Custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Fund, (2) collect and receive all income and other payments and distributions on account of the Fund’s portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Fund concerning the Fund’s operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As compensation for these services, the Custodian receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.

 

4. INVESTMENT TRANSACTIONS

 

For the period ended October 31, 2014, the purchases and sales of investments in securities, excluding in-kind transactions, long-term U.S. Government and short-term securities were:

  

   Purchases   Sales and
Maturities
 
Global X China Consumer ETF  $31,419,747   $30,527,976 
Global X China Energy ETF   562,077    543,086 
Global X China Financials ETF   2,605,194    2,340,910 
Global X China Industrials ETF   402,015    571,870 
Global X China Materials ETF   337,118    337,607 
Global X NASDAQ China Technology ETF   11,983,835    11,982,935 
Global X Southeast Asia ETF   2,822,239    8,321,557 
Global X FTSE Andean 40 ETF   2,053,997    1,906,277 
Global X MSCI Colombia ETF   53,457,115    72,490,994 
Global X Brazil Mid Cap ETF   1,639,343    3,260,831 
Global X Brazil Consumer ETF   2,539,382    8,580,743 
Global X Brazil Financials ETF   911,711    442,031 
Global X MSCI Argentina ETF   14,160,291    13,284,768 
Global X FTSE Greece 20 ETF   128,015,882    123,651,618 
Global X MSCI Norway ETF   35,602,043    33,986,328 
Global X FTSE Nordic Region ETF   3,831,928    3,741,954 
Global X Central Asia & Mongolia Index ETF   1,201,897    1,200,405 
Global X MSCI Nigeria ETF   17,933,636    7,609,770 
Global X Next Emerging & Frontier ETF   73,126,501    23,870,280 
Global X FTSE Portugal 20 ETF   13,304,951    12,811,233 

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

4. INVESTMENT TRANSACTIONS (continued)

 

During the year or period ended October 31, 2014, there were no purchases or sales of long-term U.S. Government securities for the Funds.

 

For the year or period ended October 31, 2013 and October 31, 2014, in-kind transactions associated with creations and redemptions were, respectively:

 

       Sales and   Realized 
   Purchases   Maturities   Gain/(Loss) 
Global X China Consumer ETF  $84,769,686   $56,960,691   $8,039,568 
Global X China Energy ETF   -    736,908    151,578 
Global X China Financials ETF   38,715,376    3,760,719    306,039 
Global X China Industrials ETF   -    571,688    20,684 
Global X NASDAQ China Technology ETF   6,127,853    -    - 
Global X Southeast Asia ETF   30,200,196    16,631,937    1,496,471 
Global X FTSE Andean 40 ETF   1,803,820    -    - 
Global X MSCI Colombia ETF   14,471,052    19,928,936    (87,329)
Global X Brazil Mid Cap ETF   -    3,589,792    589,045 
Global X Brazil Consumer ETF   -    1,031,963    50,747 
Global X Brazil Financials ETF   -    325,739    (39,490)
Global X MSCI Argentina ETF   2,735,472    -    - 
Global X FTSE Greece 20 ETF   69,281,318    18,417,422    6,681,268 
Global X MSCI Norway ETF   29,193,965    16,855,364    2,326,541 
Global X FTSE Nordic Region ETF   20,050,713    -    - 
Global X Central Asia & Mongolia Index ETF   2,205,126    681,289    (53,621)
Global X MSCI Nigeria ETF   1,361,807    -    - 

  

       Sales and   Realized 
   Purchases   Maturities   Gain/(Loss) 
Global X China Consumer ETF  $47,940,122   $59,438,708   $8,591,703 
Global X China Energy ETF   1,699,167    1,473,707    285,984 
Global X China Financials ETF   43,833,368    33,262,860    (1,909,351)
Global X China Industrials ETF   2,505,310    1,137,325    (192,086)
Global X China Materials ETF   3,140,144    2,325,727    242,887 
Global X NASDAQ China Technology ETF   11,399,519    1,083,174    427,255 
Global X Southeast Asia ETF   618,059    13,850,456    (775,180)
Global X FTSE Andean 40 ETF   861,619    778,248    (48,376)
Global X MSCI Colombia ETF   10,416,753    19,375,791    (1,830,863)
Global X Brazil Mid Cap ETF   -    1,446,513    210,770 
Global X Brazil Consumer ETF   -    1,757,766    (6,808)
Global X Brazil Financials ETF   171,813    -    - 
Global X MSCI Argentina ETF   31,901,934    17,604,834    1,741,787 
Global X FTSE Greece 20 ETF   362,238,361    236,278,267    16,402,582 
Global X MSCI Norway ETF   156,687,697    23,285,532    3,808,749 
Global X FTSE Nordic Region ETF   13,746,411    10,481,543    3,016,773 
Global X Central Asia & Mongolia ETF   1,397,287    -    - 
Global X MSCI Nigeria ETF   3,562,309    -    - 
Global X Next Emerging & Frontier ETF   107,644,116    2,778,201    215,323 
Global X FTSE Portugal 20 ETF   53,044,408    7,499,502    396,498 

 

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Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION

 

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.

 

The following differences, primarily attributable to utilization of earnings and profits on shareholder redemptions and distributions reclassifications, foreign currency, redemptions in-kind and sales of passive foreign investment companies, have been reclassified to/from the following accounts during the fiscal period ended October 31, 2014.

 

Global X Funds  Paid-in
Capital
   Undistributed
Net Investment
Income/(Loss)
   Accumulated
Net Realized
Gain/(Loss)
 
Global X China Consumer ETF  $5,076,614   $17,919   $(5,094,533)
Global X China Energy ETF   286,010    (101)   (285,909)
Global X China Financials ETF   (2,210,040)   (524)   2,210,564 
Global X China Industrials ETF   (200,896)   8,818    192,078 
Global X China Materials ETF   237,398    61    (237,459)
Global X NASDAQ China Technology ETF   423,778    (97)   (423,681)
Global X Southeast Asia ETF   (877,074)   (3,268)   880,342 
Global X FTSE Andean 40 ETF   (58,933)   9,743    49,190 
Global X MSCI Colombia ETF   (2,920,222)   1,290,722    1,629,500 
Global X Brazil Mid Cap ETF   207,385    (19,310)   (188,075)
Global X Brazil Consumer ETF   (62,025)   3,427    58,598 
Global X Brazil Financials ETF   (5)   2,631    (2,626)
Global X MSCI Argentina ETF   1,445,095    3,516    (1,448,611)
Global X FTSE Greece 20 ETF   12,488,847    (40,001)   (12,448,846)
Global X MSCI Norway ETF   3,684,662    (78,894)   (3,605,768)
Global X FTSE Nordic Region ETF   2,839,608    90,140    (2,929,748)
Global X Central Asia & Mongolia Index ETF       (2,398)   2,398 
Global X MSCI Nigeria ETF       (59,347)   59,347 
Global X Next Emerging & Frontier ETF(1)   215,306    (49,853)   (165,453)
Global X FTSE Portugal 20 ETF(2)   396,498    1,650    (398,148)

 

(1) Commenced operations November 6, 2013.

(2) Commenced operations November 12, 2013.

 

126
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION (continued)

 

The tax character of dividends and distributions declared during the periods ended October 31, 2014 and 2013 were as follows:

 

Global X Funds  Ordinary Income   Long-Term
Capital Gain
   Totals 
     
Global X China Consumer ETF
2014  $1,981,753   $   $1,981,753 
2013   2,128,638        2,128,638 
Global X China Energy ETF
2014  $85,026   $   $85,026 
2013   88,625        88,625 
Global X China Financials ETF
2014  $243,282   $   $243,282 
2013   186,317        186,317 
Global X China Industrials ETF
2014  $65,300   $   $65,300 
2013   64,616        64,616 
Global X China Materials ETF
2014  $36,867   $   $36,867 
2013   40,384        40,384 
Global X NASDAQ China Technology ETF
2014  $3,666   $   $3,666 
2013   16,025        16,025 
Global X Southeast Asia ETF
2014  $1,423,135   $   $1,423,135 
2013   806,416        806,416 
Global X FTSE Andean 40 ETF
2014  $153,480   $   $153,480 
2013   155,634        155,634 
Global X MSCI Colombia ETF
2014  $4,567,150   $   $4,567,150 
2013   3,654,817        3,654,817 
Global X Brazil Mid Cap ETF
2014  $531,843   $   $531,843 
2013   544,000        544,000 
Global X Brazil Consumer ETF
2014  $185,072   $   $185,072 
2013   293,164        293,164 
Global X Brazil Financials ETF
2014  $22,454   $   $22,454 
2013   149,310        149,310 
Global X MSCI Argentina ETF
2014  $45,738   $   $45,738 
2013   31,297        31,297 
Global X FTSE Greece 20 ETF
2014  $118,994   $33,492   $152,486 
2013   47,749        47,749 
Global X MSCI Norway ETF
2014  $2,012,342   $   $2,012,342 
2013   1,583,434        1,583,434 
Global X FTSE Nordic Region ETF
2014  $1,480,041   $   $1,480,041 
2013   698,310        698,310 
Global X Central Asia & Mongolia Index ETF
2014  $52,316   $   $52,316 
2013            
Global X MSCI Nigeria ETF
2014  $92,838   $   $92,838 
2013            
Global X Next Emerging & Frontier ETF(1)
2014  $28,312   $   $28,312 
Global X FTSE Portugal 20 ETF(2)
2014  $   $   $ 

 

(1)Commenced operations November 6, 2013.

(2)Commenced operations November 12, 2013.

 

127
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION (continued)

 

As of October 31, 2014, the components of tax basis distributable earnings (accumulated losses) were as follows:

 

 

   Global X China
Consumer ETF
   Global X China
Energy ETF
   Global X China
Financials ETF
 
Undistributed Ordinary Income  $1,969,844   $81,629   $617,665 
Capital Loss Carryforwards   (17,328,473)   (612,885)   (1,306,781)
Unrealized Depreciation on Investments and Foreign Currency   (25,865,619)   (56,137)   (1,647,856)
Other Temporary Differences   (4)   (3)   (4)
Total Accumulated Losses  $(41,224,252)  $(587,396)  $(2,336,976)

   

   Global X China
Industrials ETF
   Global X China
Materials ETF
   Global X
NASDAQ China
Technology ETF
 
Undistributed Ordinary Income  $40,506   $30,768   $58,833 
Capital Loss Carryforwards   (1,441,161)   (938,459)   (898,727)
Unrealized Depreciation on Investments and Foreign Currency   (459,681)   (789,463)   2,477,825 
Other Temporary Differences   (3)   1    (1)
Total Distributable Earnings (Accumulated  Losses)  $(1,860,339)  $(1,697,153)  $1,637,930 

 

   Global X Southeast
Asia ETF
   Global X Andean
40 ETF
   Global X MSCI
Colombia ETF
 
Undistributed Ordinary Income  $641,310   $154,556   $2,089,415 
Capital Loss Carryforwards   (1,652,420)   (1,002,786)   (19,187,538)
Unrealized Depreciation on Investments and Foreign Currency   (1,637,279)   (2,526,847)   (22,786,232)
Other Temporary Differences   (6)   1    (3)
Total Accumulated Losses  $(2,648,395)   $   (3,375,0 76)   $(39,884,358)

 

   Global X Brazil Mid
Cap ETF
   Global X Brazil
Consumer ETF
   Global X Brazil
Financials ETF
 
Undistributed Ordinary Income  $209,389   $238,744   $113,926 
Capital Loss Carryforwards   (5,095,803)   (2,578,461)   (1,143,797)
Unrealized Depreciation on Investments and Foreign Currency   (1,102,273)   (475,602)   (859,617)
Other Temporary Differences   (1)       (3)
Total Accumulated Losses  $(5,988,688)  $(2,815,319)  $(1,889,491)

 

   Global X MSCI
Argentina ETF
   Global X FTSE Greece
20 ETF
   Global X MSCI
Norway ETF
 
Undistributed Ordinary Income  $31,029   $707,126   $4,495,136 
Capital Loss Carryforwards   (1,806,944)   (4,430,311)   (3,797,528)
Unrealized Depreciation on Investments and Foreign Currency   (2,275,925)   (80,816,966)   (32,601,688)
Other Temporary Differences   (3)   (4)   4 
Total Accumulated Losses  $(4,051,843)  $(84,540,155)  $(31,904,076)

 

128
 

 

 

  

Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION (continued)

 

   Global X FTSE
Nordic Region
ETF
   Global X Central
Asia & Mongolia
Index ETF
   Global X MSCI
Nigeria ETF
 
Undistributed Ordinary Income  $2,045,741   $62,356   $383,917 
Capital Loss Carryforwards   (412,755)   (76,411)   (606,112)
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency   3,904,227    (394,791)   (2,456,638)
Other Temporary Differences   (4)   (2)   1 
Total Distributable Earnings (Accumulated  Losses)  $5,537,209   $(408,848)  $(2,678,832)

 

 

   Global X Next
Emerging &
Frontier ETF
   Global X FTSE
Portugal 20 ETF
 
Undistributed Ordinary Income  $1,793,239   $575,663 
Capital Loss Carryforwards   (399,316)   (257,210)
Unrealized Depreciation on Investments and Foreign Currency   (2,105,327)   (9,559,053)
Other Temporary Differences   (5)   1 
Total Accumulated Losses  $(711,409)  $(9,240,599)
           

 

For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward for a maximum period of eight years and applied against future gains. As of October 31, 2014, the Funds that had capital loss carryforwards are listed below:

 

           Global X   Global X   Global X 
       Global X   China   China   China 
   Global X China   China Energy   Financials   Industrials   Materials 
Expiration date  Consumer ETF   ETF   ETF   ETF   ETF 
October 2019  $1,341,121   $33,912   $-   $-   $- 
October 2018   173,208    -    551,954    94,810    - 
   $1,514,329   $33,912   $551,954   $94,810   $- 

 

   Global X   Global X   Global X   MSCI   Global X 
   NASDAQ China   Southeast   FTSE Andean   Colombia   Brazil Mid 
Expiration date  Technology ETF   Asia ETF   40 ETF   ETF   Cap ETF 
October 2019  $236,466   $-   $120,886   $8,249,654   $918,379 
October 2018   -    -    -    -    - 
   $236,466   $-   $120,886   $8,249,654   $918,379 

 

   Global X   Global X   Global X         
   Brazil   Brazil   MSCI   Global X   Global X 
   Consumer   Financials   Argentina   FTSE Greece   MSCI Norway 
Expiration date  ETF   ETF   ETF   20 ETF   ETF 
October 2019  $563,593   $-   $414,683   $-   $1,802,290 
October 2018   -    -    -    -    - 
   $563,593   $-   $414,683   $-   $1,802,290 

 

129
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION (continued)

 

         Global X              Global X 
    Global X    Central Asia    Global X    Global X Next    FTSE 
    FTSE Nordic    &Mongolia    MSCI Nigeria    Emerging &    Portugal 20 
Expiration date   Region ETF    Index ETF    ETF    Frontier ETF    ETF 
October 2019  $-   $-   $-   $-   $- 
October 2018   -    -    -    -    - 
   $-   $-   $-   $-   $- 

 

Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years are required to be used prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, preenactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. Losses carried forward under these new provisions are as follows:

 

Global X Funds  Short-Term Loss   Long-Term Loss   Total 
Global X China Consumer ETF  $2,846,972   $12,967,172   $15,814,144 
Global X China Energy ETF   47,040    531,933    578,973 
Global X China Financials ETF   248,269    506,558    754,827 
Global X China Industrials ETF   560    1,345,791    1,346,351 
Global X China Materials ETF   30,358    908,101    938,459 
Global X NASDAQ China Technology ETF   152,056    510,205    662,261 
Global X Southeast Asia ETF   1,414,797    237,623    1,652,420 
Global X FTSE Andean 40 ETF   387,284    494,616    881,900 
Global X MSCI Colombia ETF   6,755,460    4,182,424    10,937,884 
Global X Brazil Mid Cap ETF   744,516    3,432,908    4,177,424 
Global X Brazil Consumer ETF   695,905    1,318,963    2,014,868 
Global X Brazil Financials ETF   129,982    1,013,815    1,143,797 
Global X MSCI Argentina ETF   288,330    1,103,931    1,392,261 
Global X FTSE Greece 20 ETF   4,430,311        4,430,311 
Global X MSCI Norway ETF   794,087    1,201,151    1,995,238 
Global X FTSE Nordic Region ETF   355,991    56,764    412,755 
Global X Central Asia & Mongolia Index ETF   76,411        76,411 
Global X MSCI Nigeria ETF   228,044    378,068    606,112 
Global X Next Emerging & Frontier ETF(1)   399,316        399,316 
Global X FTSE Portugal 20 ETF(2)   257,210        257,210 

 

(1)Commenced operations November 6, 2013.

(2)Commenced operations November 12, 2013.

 

During the year ended October 31, 2014 the following funds utilized capital loss carryforwards to offset capital gains amounting to:

 

Global X Funds    
Global X NASDAQ China Technology ETF  $18,272 
Global X MSCI Norway ETF   431,879 
Global X FTSE Nordic Region ETF   209,783 

 

130
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

5. TAX INFORMATION (continued)

 

The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at October 31, 2014 were as follows:

 

Global X Funds  Federal Tax
Cost
   Aggregated
Gross
Unrealized
Appreciation
   Aggregated
Gross
Unrealized
Depreciation
   Net Unrealized
Appreciation
(Depreciation)
 
Global X China Consumer ETF  $178,038,600   $7,751,889   $(33,617,572)  $(25,865,683)
Global X China Energy ETF   4,577,339    423,045    (479,182)   (56,137)
Global X China Financials ETF   50,115,829    565,281    (2,213,139)   (1,647,858)
Global X China Industrials ETF   6,121,860    532,057    (991,738)   (459,681)
Global X China Materials ETF   3,760,299    65,688    (855,147)   (789,459)
Global X NASDAQ China Technology ETF   19,801,535    4,040,395    (1,562,570)   2,477,825 
Global X Southeast Asia ETF   30,977,268    1,159,248    (2,797,286)   (1,638,038)
Global X FTSE Andean 40 ETF   11,541,586    367,954    (2,894,799)   (2,526,845)
Global X MSCI Colombia ETF   123,510,258    8,172,727    (30,968,319)   (22,795,592)
Global X Brazil Mid Cap ETF   9,034,775    837,588    (1,939,135)   (1,101,547)
Global X Brazil Consumer ETF   10,392,910    1,634,178    (2,109,340)   (475,162)
Global X Brazil Financials ETF   3,575,293    148,488    (1,007,877)   (859,389)
Global X MSCI Argentina ETF   22,919,102    1,010,809    (3,286,731)   (2,275,922)
Global X FTSE Greece 20 ETF   242,034,648        (80,817,405)   (80,817,405)
Global X MSCI Norway ETF   228,032,787    4,647,176    (37,236,352)   (32,589,176)
Global X FTSE Nordic Region ETF   55,640,682    7,446,571    (3,503,144)   3,943,427 
Global X Central Asia & Mongolia Index ETF   2,848,094    72,730    (468,264)   (395,534)
Global X MSCI Nigeria ETF   19,367,957    295,894    (2,751,930)   (2,456,036)
Global X Next Emerging & Frontier ETF(1)   154,536,734    9,503,004    (11,616,904)   (2,113,900)
Global X FTSE Portugal 20 ETF(2)   50,773,580    33,907    (9,586,793)   (9,552,886)

 

(1)Commenced operation November 6, 2013.

(2)Commenced operation November 12, 2013.

 

The preceding differences between book and tax cost are primarily due to mark to market treatment of passive foreign investment companies and wash sales.

 

6. CONCENTRATION OF RISKS

 

The Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.

 

The securities markets of emerging countries are less liquid and subject to greater price volatility, and have a smaller market capitalization, than the U.S. securities markets. In certain countries, there may be fewer publicly traded securities and the market may be dominated by a few issues or sectors.

 

Issuers and securities markets in such countries are not subject to as extensive and frequent accounting, financial and other reporting requirements or as comprehensive government regulations are issuers and securities markets in the U.S. In particular, the assets and profits appearing on the financial statements of emerging country issuers may not reflect their financial position or results of operations in the same manner as financial statements for U.S. issuers. Substantially less information may be publicly available about emerging country issuers than is available about issuers in the United States.

 

The Funds may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.

 

131
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

6. CONCENTRATION OF RISKS

 

The Funds use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the underlying index in approximately the same proportions as in the underlying index. The Funds may utilize a representative sampling strategy with respect to its underlying index when a replication strategy might be detrimental to its shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow its underlying index, or, in certain instances, when securities in the underlying index become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to the Funds but not the underlying index).

 

Certain Funds may invest in commodity related securities, which are susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have a great impact on those securities.

 

7. REVERSE SHARE SPLIT

 

Effective May 16, 2013, the Global X China Materials ETF and the Global X MSCI Argentina ETF executed a 1-for-2 reverse share split for shareholders of record after the close of markets on May 15, 2013. The effect of this transaction was to divide the number of outstanding shares of the Funds by two, resulting in a corresponding increase in the net asset value per share. The capital share activity presented in the statement of changes in net assets for each of the years in the period then ended, and per share data in the financial highlights for each of the years in the period then ended have been given retroactive effect to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

 

8. LOANS OF PORTFOLIO SECURITIES

 

The Funds may lend portfolio securities having a market value up to one-third of the Funds’ total assets. Security loans made pursuant to the securities lending agreement are required at all times to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign-based securities. Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements or U.S. Treasury obligations and is recognized in the Schedule of Investments and Statement of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the statement of assets and liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Funds could also experience delays and costs in gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. As of October 31, 2014, the value of the securities on loan was $15,680,079, $6,235,100, $1,896,372, $12,009,359 and $1,450,044 for the Global X China Consumer ETF, Global X MSCI Colombia ETF, Global X FTSE Greece 20 ETF, Global X MSCI Norway ETF and Global X FTSE Portugal 20 ETF, respectively. The value of securities purchased with the cash collateral held from securities on loan was $17,500,925, $2,341,200, $12,720,116 and $1,595,613 for the Global X China Consumer ETF, Global X FTSE Greece 20 ETF, Global X MSCI Norway ETF and Global X Portugal 20 ETF, respectively. The

 

132
 

 

 

 

Notes to Financial Statements
October 31, 2014 (continued)

 

8. LOANS OF PORTFOLIO SECURITIES (continued)

 

value of the cash collateral held from securities on loan was $6,514,284 for the Global X MSCI Colombia ETF.

 

At October 31, 2014, the following Funds had securities on loan, by counterparty:

 

   Market Value   Cash Collateral 
Global X China Consumer ETF          
Credit Suisse  $217,422   $774,641 
Deutsche Bank   699,942    761,750 
Goldman Sachs   5,840,281    6,389,669 
Merrill Lynch Pierce Fenner & Smith   296,575    500,000 
Morgan Stanley   8,167,114    8,600,781 
UBS Securities   458,745    474,084 
Global X MSCI Colombia ETF          
Morgan Stanley   5,881,340    6,144,684 
UBS Securities   353,760    369,600 
Global X FTSE Greece 20 ETF          
Citigroup   195,858    241,800 
JPMorgan   1,700,514    2,099,400 
Global X MSCI Norway ETF          
Citigroup   1,224,342    1,306,373 
Credit Suisse   3,771,717    3,953,923 
Deutsche Bank   479,573    540,000 
Goldman Sachs   1,095,279    1,175,275 
JPMorgan   12,035    12,500 
Morgan Stanley   3,379,055    3,536,670 
SG Americas Securities   2,047,358    2,195,375 
Global X FTSE Portugal 20 ETF          
Credit Suisse   1,100,440    1,248,118 
Merrill Lynch Pierce Fenner & Smith   349,604    347,495 

 

9. CONTRACTUAL OBLIGATIONS

 

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds maximum exposure under these arrangements is unknown. However the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.

 

Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.

 

133
 

 

 

 

Notes to Financial Statements
October 31, 2014 (concluded)

 

10. SUBSEQUENT EVENTS

 

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued, except as follows:

 

Subsequent to the October 31, 2014 fiscal year end, the following portfolio of the Trust commenced operations:

 

Fund Name  Commenced Operations
    
Global X GF China Bond ETF  November 18, 2014

 

134
 

 

 

 

Report of Independent Registered Public Accounting Firm
 

 

The Board of Trustees and Shareholders of Global X Funds

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Global X NASDAQ China Technology ETF, Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Materials ETF, Global X Southeast Asia ETF, Global X FTSE Andean 40 ETF, Global X MSCI Colombia ETF, Global X Brazil Mid Cap ETF, Global X Brazil Consumer ETF, Global X Brazil Financials ETF, Global X MSCI Argentina ETF, Global X FTSE Greece 20 ETF, Global X MSCI Norway ETF, Global X FTSE Nordic Region ETF, Global X Central Asia & Mongolia Index ETF, Global X MSCI Nigeria Index ETF, Global X FTSE Portugal 20 ETF and Global X Next Emerging & Frontier ETF (twenty of the series constituting the Global X Funds) (the “Funds”) as of October 31, 2014, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the two years or periods then ended, and the financial highlights for each of the four years or periods then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights of the Global X China Consumer ETF, Global X China Energy ETF, Global X China Financials ETF, Global X China Industrials ETF, Global X China Materials ETF , Global X NASDAQ China Technology ETF, Global X MSCI Colombia ETF, Global X Brazil Mid Cap ETF, Global X Brazil Consumer ETF, Global X Brazil Financials ETF and Global X FTSE Nordic Region ETF for each of the periods presented through October 31, 2010 were audited by other auditors whose report dated December 23, 2010, expressed an unqualified opinion on those financial statements and financial highlights.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above at October 31, 2014, the results of their operations for the year or period then ended, the changes in their net assets for each of the two years or periods then ended, and their financial highlights for each of four years or periods then ended, in conformity with U.S. generally accepted accounting principles.

 

 

 

Philadelphia, Pennsylvania

December 29, 2014

 

135
 

 

 

 

Disclosure of Fund Expenses (unaudited)
 

 

All Exchange Traded Funds (“ETF”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, brokerage fees, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund.

 

Operating expenses such as these are deducted from an ETF’s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.

 

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

 

The table on the next page illustrates your Fund’s costs in two ways:

 

Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

 

You can use this information, together with the actual amount you invested in the Funds, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Funds under “Expenses Paid During Period.”

 

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Funds had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

 

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.

 

136
 

 

 

 

Disclosure of Fund Expenses (unaudited) (continued)

 

   Beginning
Account 
Value
5/1/2014
   Ending
Account
Value
10/31/2014
   Annualized
Expense
Ratios
   Expenses
Paid
During
Period(1)
 
Global X China Consumer ETF
Actual Fund Return  $1,000.00   $984.30    0.65%  $3.25 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X China Energy ETF                    
Actual Fund Return  $1,000.00   $1,048.10    0.65%  $3.36 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X China Financials ETF                    
Actual Fund Return  $1,000.00   $1,160.80    0.65%  $3.54 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X China Industrials ETF                    
Actual Fund Return  $1,000.00   $1,160.70    0.65%  $3.54 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X China Materials ETF                    
Actual Fund Return  $1,000.00   $1,066.30    0.65%  $3.39 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X NASDAQ China Technology ETF                    
Actual Fund Return  $1,000.00   $1,147.60    0.65%  $3.52 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X Southeast Asia ETF                    
Actual Fund Return  $1,000.00   $1,015.10    0.65%  $3.30 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X FTSE Andean 40 ETF                    
Actual Fund Return  $1,000.00   $943.90    0.72%  $3.53 
Hypothetical 5% Return   1,000.00    1,021.58    0.72    3.67 
                    
Global X MSCI Colombia ETF                    
Actual Fund Return  $1,000.00   $911.60    0.64%  $3.10 
Hypothetical 5% Return   1,000.00    1,021.96    0.64    3.28 
                    
Global X Brazil Mid Cap ETF                    
Actual Fund Return  $1,000.00   $944.40    0.69%  $3.38 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
                    
Global X Brazil Consumer ETF                    
Actual Fund Return  $1,000.00   $1,004.90    0.77%  $3.89 
Hypothetical 5% Return   1,000.00    1,021.32    0.77    3.92 
                    
Global X Brazil Financials ETF                    
Actual Fund Return  $1,000.00   $937.90    0.77%  $3.76 
Hypothetical 5% Return   1,000.00    1,021.32    0.77    3.92 
                    
Global X MSCI Argentina ETF                    
Actual Fund Return  $1,000.00   $1,065.90    0.74%  $3.88 
Hypothetical 5% Return   1,000.00    1,021.42    0.74    3.79 
                    
Global X FTSE Greece 20 ETF                    
Actual Fund Return  $1,000.00   $686.60    0.65%  $2.76 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
                    
Global X MSCI Norway ETF                    
Actual Fund Return  $1,000.00   $857.10    0.50%  $2.34 
Hypothetical 5% Return   1,000.00    1,022.68    0.50    2.55 
                    
Global X FTSE Nordic Region ETF                    
Actual Fund Return  $1,000.00   $946.40    0.50%  $2.45 
Hypothetical 5% Return   1,000.00    1,022.68    0.50    2.55 

 

137
 

 

 

 

Disclosure of Fund Expenses (unaudited) (conCLUDED)
 

 

   Beginning
Account
Value
5/1/2014
   Ending
Account
Value
10/31/2014
   Annualized
Expense
Ratios
   Expenses
Paid
During
Period(1)
 
 Global X Central Asia & Mongolia Index ETF                    
Actual Fund Return  $1,000.00   $948.30    0.69%  $3.37 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
                    
Global X MSCI Nigeria ETF                    
Actual Fund Return  $1,000.00   $884.50    0.68%  $3.23 
Hypothetical 5% Return   1,000.00    1,021.78    0.68    3.47 
                    
Global X Next Emerging & Frontier ETF                    
Actual Fund Return  $1,000.00   $985.30    0.58%  $2.89 
Hypothetical 5% Return   1,000.00    1,022.28    0.58    2.96 
                    
Global X FTSE Portugal 20 ETF                    
Actual Fund Return  $1,000.00   $701.60    0.61%  $2.63 
Hypothetical 5% Return   1,000.00    1,022.12    0.61    3.12 

 

(1)Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period.).

 

138
 

 

 

 

Supplemental Information (unaudited)
 

 

Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Funds generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. The Funds’ Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of the Funds’ holdings. The Market Price of the Funds will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

 

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV.

 

Further information regarding premiums and discounts is available on the Funds’ website at www.GlobalXFunds.com.

 

139
 

 

 

 

Trustees and Officers of the Trust (unaudited)
 

 

Set forth below are the names, addresses, year of birth, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of Funds in fund complex overseen by the Trustees, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.

 

Name,
Address
(Year of
Birth)
Position(s)
Held
with Funds
Principal Occupation(s) During
the Past 5 Years
Number of
Funds in
Trust
Overseen by
Trustee
Other
Directorships
Held
by Trustees
Independent Trustees2  

Sanjay Ram Bharwani

623 Fifth Ave,

15th floor

New York, NY 10022

(1974)

Trustee (since 2008) CEO of Risk Advisors Inc. (since 2007) (consulting firm). 403 None.

Scott R. Chichester1

623 Fifth Ave,

15th floor

New York, NY 10022

(1970)

 

Trustee (since 2008) CFO, Sterling Seal & Supply Inc. (since 2011), President & Treasurer, Bayview Acquisition Corp (since 2010), CPA, Penda Aiken Inc. (2009-2011) (consultant); Founder and President, DirectPay USA LLC (since 2006) (payroll company); Chief Financial Officer, Ong Corporation (2002-2010) (technology company); Proprietor, Scott R. Chichester CPA (since 2001) (CPA firm). 403 Director of Bayview Acquisition Corp. (since 2010).

Kartik Kiran Shah

623 Fifth Ave,

15th floor

New York, NY 10022

(1977)

Trustee (since 2008) Vice President, Business Development, Cynvenio Biosystems (2012-2014); Independent Consultant, Self-Employed (2011-2012) (non-financial services); Director, Wireless Generation (2008-2011) (software). 403 None.

 

140
 

 

 

 

Trustees and Officers of the Trust (unaudited) (continued)
 

  

The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of October 31, 2014.

 

Name, Address
(Year of Birth)
Position(s) Held
with Funds
Principal Occupation(s)
During
the Past 5 Years
Number of Funds
in Trust
Overseen by
Trustee
Other
Directorships Held
by Trustees
Interested Trustee / Officers2  

Bruno del Ama

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Trustee (since 2008), President, Chief Executive Officer

(since 2008)

Chief Executive Officer, Global X Management Company ("GXMC")(since 2008); Chief Compliance Officer, GXMC (2008-2013). 403 None.

Jose C. Gonzalez

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Chief Operating Office (since 2008); Chief Compliance Officer (2008-5/2014); Treasurer, Principal Accounting Officer and Chief Financial Officer (2008-9/2014).

Chairman, GXMC (since 2014); Chief Operating Officer, GXMC (2008 - 2/2014); Founder and President of GWM Group, Inc. (since 2006) (broker-dealer

firm).

N/A N/A

Thomas K. Lynch

623 Fifth Ave,

15th floor

New York, NY 10022

(1956)

Treasurer, Principal Accounting Officer and Chief Financial Officer (since 9/2014); Chief Compliance Officer (since 5/2014).

Chief Compliance Officer, GXMC (since 5/2014); Senior Compliance Officer, GXMC (2/2014 - 4/2014); Compliance,

Financial and Operations Consultant (2013); Chief Compliance Officer, Van Eck Associates (12/ 2006 - 2/ 2013).

N/A N/A

Daphne Tippens Chisolm

11524-C Providence Road, Suite 236

Charlotte, NC 28277

(1969)

Secretary (since 2012)

General Counsel, GXMC (since 2011); Chief Compliance Officer, GXMC (1/2014 - 5/2014); Founder and President

of Law Offices of DT Chisolm, P.C. (since 2009) (law firm); Counsel, Dechert (2007-2009) (law firm).

N/A N/A

Dianne M. Descoteaux4

One Freedom Valley Drive

Oaks, PA 19456

(1977)

Assistant Secretary (since 2011) Counsel, SEI Investments (since 2010); Associate, Morgan, Lewis & Bockius LLP (2006-2010). N/A N/A

 

141
 

 

 

 

Trustees and Officers of the Trust (unaudited) (concluded)
 

 

 

Name, Address
(Year of Birth)
Position(s) Held
with Funds
Principal Occupation(s) During
the Past 5 Years
Other Directorships
Held
by Trustees

Lisa Whittaker4

One Freedom Valley Drive

Oaks, PA 19456

(1978)

Assistant Secretary (since 2013)

Counsel at SEI Investments (since 2012); Associate Counsel and Compliance Officer at The Glendale Trust Company (2011-2012); Associate of Drinker Biddle & Reath LLP (2006-2011).

 

N/A

Peter Rodriguez4

One Freedom Valley Drive

Oaks, PA 19456

(1962)

Assistant Treasurer

(since 2011)

Fund Accounting Director, SEI Investments Global Fund Services (since 2011); Mutual Fund Trading Director, SEI Global Trust Company (2009-2011);  Asset Data Services Director, SEI Global Wealth Services (2006-2009). N/A

 

1Mr. Chichester is currently married to a sister of Mr. del Ama’s wife. While an “immediate family member” (as defined in Section 2(a)(19) of the 1940 Act) of Mr. del Ama would be considered an Interested Person, Mr. Chichester is not considered an immediate family member for this purpose. Although this fact was taken into consideration in determining whether Mr. Chichester should be considered to be an Independent Trustee for purposes of the Section 2(a)(19) of the 1940 Act, it was determined that this relationship was not one that should disqualify Mr. Chichester from serving as an Independent Trustee of the Trust.

 

2 Each Trustee serves until his or her successor is duly elected or appointed and qualified.

 

3As of October 31, 2014, the Trust had eighty-eight investment portfolios, forty of which were operational.

 

4 These officers of the Trust also serve as officers of one or more mutual funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor.

 

142
 

 

 

 

Notice to Shareholders (unaudited)
 

  

For shareholders that do not have an October 31, 2014 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2014 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended October 31, 2014, the Funds have designated the following items with regard to distributions paid during the year.

  

   Long-Term
Capital Gain
Distributions
   Ordinary
Income
Distributions
   Total
Distributions
   Qualifying
for
Corporate
Dividends
Received
Deduction
(1)
   Qualifying
Dividend
Income (2)
   U.S.
Government
Interest (3)
   Interest
Related
Dividends
(4)
   Short Term
Capital
Gain
Dividends(5)
   Foreign
Tax Credit
 
Global X China Consumer ETF   0.00%   100.00%   100.00%   0.00%   26.06%   0.00%   0.00%   0.00%   3.38%
Global X China Energy ETF   0.00%   100.00%   100.00%   0.00%   99.78%   0.00%   0.00%   0.00%   9.69%
Global X China Financials ETF   0.00%   100.00%   100.00%   0.00%   100.00%   0.00%   0.00%   0.00%   18.52%
Global X China Industrials ETF   0.00%   100.00%   100.00%   0.00%   91.94%   0.00%   0.00%   0.00%   6.51%
Global X China Materials ETF   0.00%   100.00%   100.00%   0.00%   99.81%   0.00%   0.00%   0.00%   6.98%
Global X NASDAQ China Technology ETF   0.00%   100.00%   100.00%   0.00%   100.00%   0.00%   0.00%   0.00%   54.43%
Global X Southeast Asia ETF   0.00%   100.00%   100.00%   0.00%   66.41%   0.00%   0.00%   0.00%   2.91%
Global X FTSE Andean 40 ETF   0.00%   100.00%   100.00%   0.00%   91.44%   0.00%   0.00%   0.00%   17.21%
Global X MSCI Colombia ETF   0.00%   100.00%   100.00%   0.00%   57.13%   0.00%   0.00%   0.00%   1.61%
Global X Brazil Mid Cap ETF   0.00%   100.00%   100.00%   0.00%   65.24%   0.00%   0.00%   0.00%   0.00%
Global X Brazil Consumer ETF   0.00%   100.00%   100.00%   0.00%   39.78%   0.00%   0.00%   0.00%   0.00%
Global X Brazil Financials ETF   0.00%   100.00%   100.00%   0.00%   81.05%   0.00%   0.00%   0.00%   0.00%
Global X MSCI Argentina ETF   0.00%   100.00%   100.00%   60.31%   100.00%   0.00%   0.00%   0.00%   31.08%
Global X FTSE Greece 20 ETF   11.91%   88.09%   100.00%   0.00%   90.26%   0.01%   0.00%   100.00%   45.76%
Global X MSCI Norway ETF   0.00%   100.00%   100.00%   0.00%   64.91%   0.00%   0.00%   0.00%   1.03%
Global X FTSE Nordic Region ETF   0.00%   100.00%   100.00%   2.12%   90.09%   0.00%   0.00%   0.00%   10.36%
Global X Central Asia & Mongolia Index ETF   0.00%   100.00%   100.00%   0.00%   100.00%   0.00%   0.00%   0.00%   8.89%
Global X MSCI Nigeria ETF   0.00%   100.00%   100.00%   0.00%   100.00%   0.00%   0.00%   100.00%   36.32%
Global X Next Emerging & Frontier ETF   0.00%   100.00%   100.00%   0.00%   100.00%   0.00%   0.00%   0.00%   90.51%
Global X FTSE Portugal 20 ETF   0.00%   100.00%   100.00%   0.00%   99.50%   0.00%   0.00%   0.00%   100.00%

 

 

(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary Income distributions (the total of short term capital gain and net investment income distributions).

(2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.

(3) "U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year.  Generally, interest from direct U.S. Government obligations is exempt from state income tax.  However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.

(4) The percentage in this column represents the amount of "Qualifying Interest Income" as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors.

(5) The percentage of this column represents the amount of “Short Term Capital Gain Dividend” is reflected as a percentage of short term capital gain distribution for calendar year ended 2013 that is exempted from U.S. withholding tax when paid to foreign investors. 

 

143
 

  

 

 

Notice to Shareholders (unaudited)
 

  

The Funds intend to pass through a foreign tax credit to shareholders. For the fiscal year ended October 31, 2014, the total amount of foreign source income and foreign tax credit are as follows:

 

Fund Name  Foreign Source Income   Foreign Tax Credit Pass Through 
Global X China Consumer ETF  $2,817,151   $69,329 
Global X China Energy ETF   118,857    9,119 
Global X China Financials ETF   851,669    55,283 
Global X China Industrials ETF   73,294    4,549 
Global X China Materials ETF   49,315    2,765 
Global X NASDAQ China Technology ETF   180,689    4,379 
Global X Southeast Asia ETF   1,052,031    42,594 
Global X FTSE Andean 40 ETF   263,298    31,899 
Global X MSCI Colombia ETF   3,051,168    74,955 
Global X Brazil Mid Cap ETF   -    - 
Global X Brazil Consumer ETF   -    - 
Global X Brazil Financials ETF   -    - 
Global X MSCI Argentina ETF   194,547    20,625 
Global X FTSE Greece 20 ETF   2,111,433    128,648 
Global X MSCI Norway ETF   5,856,279    20,955 
Global X FTSE Nordic Region ETF   2,404,189    170,998 
Global X Central Asia & Mongolia Index ETF   81,152    5,107 
Global X MSCI Nigeria ETF   594,483    52,950 
Global X Next Emerging & Frontier ETF   2,604,598    270,063 
Global X FTSE Portugal 20 ETF   822,676    123,422 

 

The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2014. Complete information will be computed and reported in conjunction with your 2014 Form 1099-DIV.

 

144
 

 

 

 

623 Fifth Avenue, 15th floor

New York, NY 10022

1-888-GXFund-1

(1-888-493-8631)

www.globalxfunds.com

 

Investment Adviser:

Global X Management Company LLC

623 Fifth Avenue, 15th floor

New York, NY 10022

 

Distributor:

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, PA 19456

 

Sub-Administrator:

SEI Investments Global Funds Services

One Freedom Valley Drive

Oaks, PA 19456

 

Counsel for Global X Funds and the Independent Trustees:

K&L Gates LLP

1601 K Street N.W.

Washington, DC 20006

 

Custodian:

Brown Brothers Harriman & Co.

40 Water Street

Boston, MA 02109

 

Independent Registered Public Accounting Firm:

Ernst & Young LLP

2005 Market Street

Suite 700

Philadelphia, PA 19103

  

This information must be preceded or accompanied by a prospectus for the funds described.

 

GLX-AR-002-0400

 

 
 

 

 

 

Global X SuperDividend® ETF (ticker: SDIV)

Global X SuperDividend® U.S. ETF (ticker: DIV)

Global X Social Media Index ETF (ticker: SOCL)

Global X | JPMorgan Efficiente Index ETF (ticker: EFFE)

Global X | JPMorgan US Sector Rotator Index ETF (ticker: SCTO)

Global X Permanent ETF (ticker: PERM)

Global X Guru Index ETF (ticker: GURU)

Global X Guru International Index ETF (ticker: GURI)

Global X Guru Small Cap Index ETF (ticker: GURX)

Global X SuperIncome Preferred ETF (ticker: SPFF)

 

Annual Report

 

October 31, 2014

 

 
 

 

 

Table of Contents

 

 

 

Management Discussion of Fund Performance (unaudited) 1
   
Schedules of Investments  
   
Global X SuperDividend® ETF 15
   
Global X SuperDividend® U.S. ETF 22
   
Global X Social Media Index ETF 25
   
Global X | JPMorgan Efficiente Index ETF 28
   
Global X | JPMorgan US Sector Rotator Index ETF 29
   
Global X Permanent ETF 30
   
Global X Guru™ Index ETF 35
   
Global X Guru™ International Index ETF 39
   
Global X Guru™ Small Cap Index ETF 43
   
Global X SuperIncome™ Preferred ETF 48
   
Statements of Assets and Liabilities 51
   
Statements of Operations 54
   
Statements of Changes in Net Assets 56
   
Financial Highlights 62
   
Notes to Financial Statements 63
   
Report of Independent Registered Public Accounting Firm 78
   
Disclosure of Fund Expenses (unaudited) 79
   
Approval of Investment Advisory Agreement (unaudited) 81
   
Supplemental Information (unaudited) 85
   
Trustees and Officers of the Trust (unaudited) 86
   
Notice to Shareholders (unaudited) 89

 

The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

 

A description of the policies and procedures that Global X Funds use 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-GXFund-1; and (ii) on the Commission’s website at http://www.sec.gov.

 

 
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X SuperDividend® ETF

 

Global X SuperDividend® ETF

 

The Global X SuperDividend® ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividend™ Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of 100 equally weighted companies that rank among the highest dividend-yielding equity securities in the world.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 8.41%, while the Index increased 8.02%. The Fund had a net asset value of $23.74 per share on October 31, 2013 and ended the reporting period with a net asset value of $24.24 on October 31, 2014.

 

During the reporting period, the highest returns came from NorthStar Realty Finance and BGC Partners which returned 121.78% and 71.33%, respectively. The worst performers were Southern Cross Media Group and CTC Media, which returned -48.65% and -46.23%, respectively. 

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Three Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X SuperDividend® ETF   8.41%   8.53%   11.29%   11.56%   6.71%   6.80%
Solactive Global SuperDividendTM Index   8.02%   8.02%   10.79%   10.79%   6.10%   6.10%
S&P 500 Index   17.27%   17.27%   19.77%   19.77%   16.81%   16.81%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on June 8, 2011.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

1
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X SuperDividend® U.S. ETF

 

Global X SuperDividend® U.S. ETF

 

The Global X SuperDividend® U.S. ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the INDXX SuperDividend™ U.S. Low Volatility Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of 50 equally weighted common stocks, master limited partnerships (“MLPs”) and real estate investment trusts (“REITs”) that rank among the highest dividend-yielding equity securities in the United States, as defined by INDXX, LLC.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund total return was 20.80% vs. 21.03% for the Index. The Fund had a net asset value of $25.94 per share on October 31, 2013 and ended the reporting period with a net asset value of $29.60 on October 31, 2014.

 

During the reporting period, the highest returns came from World Wrestling Entertainment and Vector Group which returned 78.49% and 57.00%, respectively. The worst performers were American Realty Capital Properties and Natural Resource Partners, which returned -31.70% and -26.09%, respectively.

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X SuperDividend® U.S. ETF   20.80%   20.90%   17.18%   17.75%
INDXX SuperDividendTM U.S. Low Volatility Index   21.03%   21.03%   17.70%   17.70%
S&P 500 Index   17.27%   17.27%   19.56%   19.56%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on March 11, 2013. Total return is for the period indicated and has not been annualized.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices above.

 

2
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X Social Media Index ETF

 

Global X Social Media Index ETF

 

The Global X Social Media Index ETF (“Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Social Media Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the equity performance of the largest and most liquid companies involved in the social media industry, including companies that provide social networking, file sharing, and other web-based media applications.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund decreased 0.41%, while the Index decreased 0.20%. The Fund had a net asset value of $19.38 per share on October 31, 2013 and ended the reporting period with a net asset value of $19.30 on October 31, 2014.

 

During the reporting period, the highest returns came from Mixi and PChome Online, which returned 2,161.88% and 86.06% respectively. The worst performers were SINA and Angie's List, which returned -50.99% and -50.50% respectively.

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Social Media Index ETF   (0.41)%   (0.56)%   9.37%   9.11%
Solactive Social Media Index   (0.20)%   (0.20)%   9.98%   9.98%
S&P 500 Index   17.27%   17.27%   20.03%   20.03%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on November 14, 2011.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

3
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X | JPMorgan Efficiente Index ETF

 

Global X | JPMorgan Efficiente Index ETF

 

The Global X | JPMorgan Efficiente Index ETF (“Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the JPMorgan ETF Efficiente 10 TR Series X Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the total return performance of a portfolio of eleven ETFs and two exchange traded products (each an "ETP") (each ETP and ETF a "Constituent" and together the "Constituents"). The share prices of the ETFs and ETPs are expected to track the performance of equities or bonds in developed or emerging markets, real estate investments, U.S. Treasury bonds, U.S. Treasury Inflation Protected Securities, a single commodity or a portfolio of commodity futures contracts. The Index allocates index weights among the Constituents based on a proprietary methodology created by J.P. Morgan Securities LLC. On a monthly basis and subject to certain weighting constraints, the Index is rebalanced to reallocate index weights among the Constituents so that the resulting portfolio would have had the highest return during the previous six months and an annualized volatility level of 10% or less over the same period (subject to upward adjustment under limited circumstances). This methodology is informed by the “modern portfolio theory” approach to asset allocation, which suggests that an investor allocate among assets in a manner that maximizes return for a given risk appetite. Since the Index weights assigned to the Constituents at each monthly rebalancing are determined based on past performance, there is no guarantee that any monthly rebalancing will result in the Index achieving the highest possible returns for the relevant month.

 

For the period from the Fund’s commencement date on October 22, 2014 through October 31, 2014, the Fund increased 2.16%, while the Index increased 2.20%. The Fund had a net asset value of $24.95 per share on October 22, 2014 and ended the reporting period with a net asset value of $25.49 on October 31, 2014.

 

During the reporting period, the highest returns came from Vanguard S&P 500 ETF and Vanguard FTSE Emerging Markets ETF, which returned 4.65% and 3.90% respectively. The worst performers were iShares 20+ Year Treasury Bond ETF and iShares J.P. Morgan USD Emerging Markets Bond ETF, which returned -1.18% and 0.42% respectively.

 

4
 

 

 

Management Discussion of Fund Performance (unaudited) (concluded)
Global X | JPMorgan Efficiente Index ETF

 

   TOTAL RETURN FOR THE PERIOD
ENDED OCTOBER 31, 2014*
 
   Cumulative Inception to Date 
   Net Asset Value   Market Price 
Global X | JPMorgan Efficiente Index ETF   2.16%   0.00%
JPMorgan ETF Efficiente 10 TR Series X Index   2.20%   2.20%
S&P 500 Index   4.74%   4.74%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on October 22, 2014.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

5
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X | JPMorgan US Sector Rotator Index ETF

 

Global X | JPMorgan US Sector Rotator Index ETF

 

The Global X | JPMorgan US Sector Rotator Index ETF (“Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the JPMorgan US Sector Rotator TR Series X Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index aims to participate in the best-performing U.S. sectors of the market while limiting its exposure to the market during periods of high volatility or market declines. The Index is based on a proprietary methodology from J.P. Morgan Securities LLC.

 

The Index rebalances monthly to reflect changing market conditions by tracking the performance of a portfolio of one to five ETFs selected out of a pool of ten U.S. sector ETFs and a U.S. treasury bond ETF. The sectors represented by the U.S. sector ETFs are: consumer discretionary, consumer staples, energy, financials, healthcare, industrial, utilities, materials, technology and real estate.

 

On each monthly rebalancing date, the Index seeks to select up to five U.S. sector ETFs with the highest positive performance during the prior month. The Index will include an allocation to the U.S. treasury bond ETF if fewer than five U.S. sector ETFs have positive performance during the prior month. The U.S. sector ETFs selected for inclusion in the Index each month are equal-volatility weighted, based on each U.S. sector ETF’s realized volatility during the prior month, meaning that each U.S. sector ETF has the same amount of volatility contribution to the Index as of such monthly rebalancing date. If the overall realized volatility of the portfolio of selected U.S. sector ETFs exceeds 20%, based on each U.S. sector ETF’s realized volatility during the prior month, the weight assigned on a monthly rebalancing date to each U.S. sector ETF is adjusted down proportionally and the exposure is re-allocated to the U.S. treasury bond ETF in order to reduce the overall volatility of the Index to 20% as of such monthly rebalancing date. Since the Index weights assigned to the U.S. Sector ETF and the U.S. treasury bond ETF are determined on past performance, there is no guarantee that any monthly rebalancing will result in the Index achieving the highest possible returns for the relevant month.

 

For the period from the Fund’s commencement date on October 22, 2014, the Fund increased 1.52%, while the Index increased 1.58%. The Fund had a net asset value of $25.03 per share on October 22, 2014 and ended the reporting period with a net asset value of $25.41 on October 31, 2014.

 

During the reporting period, the highest returns came from Health Care Select Sector SPDR Fund and Consumer Staples Select Sector SPDR Fund, which returned 6.39% and 2.52% respectively. The worst performers were iShares 1-3 Year Treasury Bond ETF and Utilities Select Sector SPDR Fund, which returned -0.14% and 0.02% respectively.

 

6
 

 

 

Management Discussion of Fund Performance (unaudited)(concluded)
Global X | JPMorgan US Sector Rotator Index ETF

 

   TOTAL RETURN FOR THE PERIOD
ENDED OCTOBER 31, 2014*
 
   Cumulative Inception to Date 
   Net Asset Value   Market Price 
Global X | JPMorgan US Sector Rotator Index ETF   1.52%   0.00%
JPMorgan US Sector Rotator TR Series X Index   1.58%   1.58%
S&P 500 Index   4.74%   4.74%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* The Fund commenced operations on October 22, 2014.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

7
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X Permanent ETF

 

Global X Permanent ETF

 

The Global X Permanent ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Permanent Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of four asset class categories that are designed to perform differently across different economic environments, as defined by Solactive AG.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 1.84%, while the Index increased 2.48%. The Fund had a net asset value of $24.13 per share on October 31, 2013 and ended the reporting period with a net asset value of $24.11 on October 31, 2014.

 

74 of the Fund’s 102 investments held during the reporting period ended October 31, 2014 increased in value for the reporting period, led by Gilead Sciences and Union Pacific, which returned 57.36% and 56.82%, respectively. The worst performers were Vale and ETFS Physical Silver, which returned -33.47% and -27.58%, respectively.

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Permanent ETF   1.84%   1.19%   (0.39)%   (0.34)%
Solactive Permanent Index   2.48%   2.48%   (0.04)%   (0.04)%
S&P 500 Index   17.27%   17.27%   18.47%   18.47%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* Fund commenced operations on February 7, 2012.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

8
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X Guru™ Index ETF

 

Global X Guru™ Index ETF

 

The Global X Guru™ Index ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Guru Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is comprised of the top U.S. listed equity positions reported on Form 13F by a select group of entities that Solactive AG characterizes as hedge funds. Hedge funds are selected from a pool of thousands of privately offered pooled investment vehicles based on the size of their reported equity holdings and the efficacy of replicating their publicly disclosed positions. Hedge funds must have minimum reported holdings of $500 million in their Form 13F to be considered for the Index. Additional filters are applied to eliminate hedge funds that have high turnover rates for equity holdings. Turnover is a measure of the hedge funds and other investors' trading activity or holdings that have been "turned over" or replaced with other holdings.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 9.76%, while the Index increased 10.30%. The Fund had a net asset value of $23.99 per share on October 31, 2013 and ended the reporting period with a net asset value of $26.30 on October 31, 2014.

 

79 of the Fund’s 115 investments held during the year ended October 31, 2014 increased in value for the reporting period, led by Micron Technology and Burlington Stores, which returned 65.53% and 61.93%, respectively. The worst performers were Education Management and VIVUS, which returned -75.92% and -37.70%, respectively.

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X Guru™ Index ETF   9.76%   9.58%   29.44%   29.42%
Solactive Guru Index   10.30%   10.30%   30.24%   30.24%
S&P 500 Index   17.27%   17.27%   23.47%   23.47%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* Fund commenced operations on June 4, 2012.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative Indices on the previous page.

 

9
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X Guru™ International Index ETF

 

Global X Guru™ International Index ETF

 

The Global X Guru™ International Index ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Guru International Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is comprised of international companies reported on Form 13F by hedge funds and other institutional investors. Hedge funds are defined as privately offered pooled investment vehicles. International companies refer to American Depositary Receipts ("ADRs") and other non-US companies.

 

Using a proprietary methodology developed by Solactive AG (the “Index Provider”), the Index Provider determines the pool of hedge funds and other institutional investors whose Form 13F holdings may be included in the Index. Hedge funds are selected from a pool of thousands of privately offered pooled investment vehicles based on the size of their reported equity holdings and the efficacy of replicating their publicly disclosed positions. Institutional investors are selected based on the qualitative factor of whether they have a strong management team with a track record of creating shareholder value. Additional filters are applied to exclude the holdings of hedge funds and institutional investors that report less than $500 million in holdings on their Form 13F or that have high turnover rates for equity holdings, as defined by the Index Provider. Turnover is a measure of the hedge funds and other investors' trading activity or holdings that have been "turned over" or replaced with other holdings.

 

Once the pool of investors has been determined, the Index Provider utilizes Form 13F filings to compile 50 stocks that represent the top international positions from these investors. The stocks must meet minimum size and liquidity thresholds to be included in the Index. Stocks in the Index are equal weighted and rebalanced quarterly following the Form 13F filing timeline.

 

For the period from the Fund’s commencement date on March 10, 2014 through October 31, 2014 (the “reporting period”), the Fund increased 5.33%, while the Index increased 5.88%. The Fund had a net asset value of $14.83 per share on March 10, 2014 and ended the reporting period with a net asset value of $15.62 on October 31, 2014.

 

42 of the Fund’s 75 investments held during the period ended October 31, 2014 increased in value for the reporting period, led by Vipshop Holdings and AerCap Holdings, which returned 232.64% and 107.56%, respectively. The worst performers were AngloGold Ashanti and SINA, which returned -51.30% and -45.23%, respectively.

 

10
 

 

 

Management Discussion of Fund Performance (unaudited) (concluded)

Global X Guru™ International Index ETF

 

   TOTAL RETURN FOR THE PERIOD
ENDED OCTOBER 31, 2014*
 
   Cumulative Inception to Date 
   Net Asset Value   Market Price 
Global X Guru™ International Index ETF   5.33%   5.33%
Solactive Guru International Index   5.88%   5.88%
S&P 500 Index   8.84%   8.84%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* Fund commenced operations on March 10,2014.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

11
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X Guru™ Small Cap Index ETF

 

Global X Guru™ Small Cap Index ETF

 

The Global X Guru™ Small Cap Index ETF (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Guru Small Cap Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index is comprised of small-capitalization companies reported on Form 13F by hedge funds and other institutional investors. Small-capitalization companies are defined as companies whose market capitalization is less than $3 billion as of the date of its inclusion in the Index. Hedge funds are defined as privately offered pooled investment vehicles.

 

Using a proprietary methodology developed by Solactive AG (the “Index Provider”), the Index Provider determines the pool of hedge funds and other institutional investors whose Form 13F holdings may be included in the Index. Hedge funds are selected from a pool of thousands of privately offered pooled investment vehicles based on the size of their reported equity holdings and the efficacy of replicating their publicly disclosed positions. Institutional investors are selected based on the qualitative factor of whether they have a strong management team with a track record of creating shareholder value. Additional filters are applied to exclude the holdings of hedge funds and institutional investors that report less than $500 million in holdings on the Form 13F or that have high turnover rates for equity holdings, as defined by the Index Provider. Turnover is a measure of the hedge funds and other institutional investors' trading activity or holdings that have been "turned over" or replaced with other holdings.

 

Once the pool of investors has been determined, the Index Provider utilizes Form 13F filings to compile 100 stocks that represent the top small-capitalization positions from these investors. The stocks must meet minimum liquidity thresholds to be included in the Index. Stocks in the Index are equal weighted and rebalanced quarterly following the Form 13F filing timeline.

 

For the period from the Fund’s commencement date on March 10, 2014 through October 31, 2014 (the “reporting period”), the Fund decreased 4.33%, while the Index decreased 3.95%. The Fund had a net asset value of $15.01 per share on March 10, 2014 and ended the reporting period with a net asset value of $14.36 on October 31, 2014.

 

89 of the Fund’s 172 investments held during the period ended October 31, 2014 increased in value for the reporting period, led by Depomed and American Railcar Industries, which returned 113.86% and 104.26%, respectively. The worst performers were Education Management and ITT Educational Services, which returned -87.06% and -74.80%, respectively.

 

12
 

 

 

Management Discussion of Fund Performance (unaudited) (concluded)
Global X Guru™ Small Cap Index ETF

 

   TOTAL RETURN FOR THE YEAR
ENDED OCTOBER 31, 2014*
 
   Cumulative Inception to Date 
   Net Asset Value   Market Price 
Global X Guru™ Small Cap Index ETF   (4.33)%   (4.33)%
Solactive Guru Small Cap Index   (3.95)%   (3.95)%
S&P 500 Index   8.84%   8.84%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* Fund commenced operations on March 10,2014.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative indices on previous page.

 

13
 

 

 

Management Discussion of Fund Performance (unaudited)
Global X SuperIncome™ Preferred ETF

 

Global X SuperIncome™ Preferred ETF

 

The Global X SuperIncome™ Preferred ETF (“Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Enhanced Yield North American Preferred Stock Index (the “Index”). The Fund generally seeks to replicate the Index, but may at times invest in a representative sample of securities that collectively has an investment profile similar to the Index and as a result may or may not hold all the securities that are included in the Index.

 

The Index tracks the performance of the highest yielding preferred securities in the U.S., as determined by Standard & Poor’s. The Index is comprised of preferred stocks that meet certain criteria relating to size, liquidity, issuer concentration and rating, maturity, and other requirements, as determined by the Index Provider.

 

For the 12-month period ended October 31, 2014 (the “reporting period”), the Fund increased 6.89%, while the Index increased 7.20%. The Fund had a net asset value of $14.81 per share on October 31, 2013 and ended the reporting period with a net asset value of $14.74 on October 31, 2014.

 

61 of the Fund’s 82 investments held during the period ended October 31, 2014 increased in value for the reporting period, led by Goodyear Tire & Rubber 5.875% and Cliffs Natural Resources 7.000%, which returned 53.94% and 33.02%, respectively. The worst performers were Anglogold Ashanti Holdings Finance 6.000% and Qwest Corp 7.000% Notes, which returned -59.08% and -5.88%, respectively.

 

   AVERAGE TOTAL RETURN FOR THE YEAR ENDED OCTOBER 31, 2014* 
   One Year Return   Annualized Inception to Date 
   Net Asset Value   Market Price   Net Asset Value   Market Price 
Global X SuperIncome™ Preferred ETF   6.89%   6.58%   6.47%   7.42%
S&P Enhanced Yield North American Preferred Stock Index   7.20%   7.20%   6.90%   6.90%
S&P 500 Index   17.27%   17.27%   21.58%   21.58%

 

Growth of a $10,000 Investment

(at Net Asset Value)

 

 

* Fund commenced operations on July 16, 2012.

 

The S&P 500 Index is a market capitalization weighted composite index of 500 large capitalization U.S. companies.

 

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when 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 a Fund's returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

 

There are no assurances that the Fund will meet its stated objectives.

 

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities.

 

Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

See definition of comparative Indices above.

 

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

 

14
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 98.0%          
AUSTRALIA— 18.0%          
Banks — 5.1%          
Bank of Queensland   959,017   $10,629,893 
Bendigo and Adelaide Bank   991,839    10,828,051 
Commonwealth Bank of Australia   149,032    10,542,777 
National Australia Bank   327,539    10,073,827 
Westpac Banking   339,554    10,380,683 
         52,455,231 
Consumer Services — 1.4%          
Myer Holdings (A)   4,423,890    7,543,859 
Southern Cross Media Group   8,102,168    6,979,348 
         14,523,207 
Financials — 1.8%          
ASX   301,262    9,530,457 
IOOF Holdings (A)   1,187,616    9,426,518 
         18,956,975 
Industrials — 1.1%          
Sydney Airport   2,836,493    10,995,318 
Oil & Gas — 1.2%          
APA Group   1,727,791    11,952,354 
Real Estate Investment Trusts — 4.3%          
Abacus Property Group   4,812,194    11,420,744 
Charter Hall Retail   3,035,988    10,861,304 

 

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

 

15
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

   Shares   Value 
COMMON STOCK — continued          
Real Estate Investment Trusts — continued          
Cromwell Property Group   13,937,700   $12,128,688 
Stockland   2,838,136    10,577,586 
         44,988,322 
Telecommunications — 1.0%          
Telstra   2,134,152    10,561,394 
Utilities — 2.1%          
DUET Group   5,314,283    11,491,251 
Spark Infrastructure Group   6,365,685    10,631,297 
         22,122,548 
TOTAL AUSTRALIA        186,555,349 
BELGIUM— 1.2%          
Telecommunications — 1.2%          
Belgacom   340,402    12,841,576 
BERMUDA— 1.0%          
Industrials — 1.0%          
Ship Finance International (A)   579,909    9,968,636 
BRAZIL— 2.3%          
Financials — 1.3%          
Banco do Brasil   1,179,100    13,326,721 
Utilities — 1.0%          
Transmissora Alianca de Energia Eletrica   1,363,000    10,222,014 
TOTAL BRAZIL        23,548,735 
CANADA— 7.1%          
Consumer Services — 1.1%          
Parkland Fuel (A)   590,651    11,551,603 
Financials — 0.4%          
AGF Management, Cl B   488,770    4,439,226 
Oil & Gas — 4.6%          
Bonterra Energy (A)   205,837    9,250,752 
Canadian Oil Sands   538,295    8,431,673 
Crescent Point Energy (A)   289,522    9,565,563 
Freehold Royalties (A)   500,244    9,317,596 
Veresen (A)   693,900    10,887,482 
         47,453,066 
Real Estate Investment Trusts — 1.0%          
Dream Global Real Estate Investment Trust   1,245,265    10,084,056 
TOTAL CANADA        73,527,951 
CHINA— 1.1%          
Consumer Goods — 1.1%          
Pacific Textiles Holdings   8,433,600    11,309,758 

 

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

 

16
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

   Shares   Value 
COMMON STOCK — continued          
FINLAND— 3.9%          
Basic Materials — 0.9%          
UPM-Kymmene   582,720   $9,213,715 
Health Care — 1.1%          
Orion, Cl B   330,298    11,210,641 
Telecommunications — 1.0%          
Elisa   369,739    10,145,065 
Utilities — 0.9%          
Fortum   419,414    9,716,175 
TOTAL FINLAND        40,285,596 
FRANCE— 6.0%          
Financials — 0.8%          
Euler Hermes   78,397    7,677,140 
Industrials — 1.7%          
Bouygues   247,879    8,556,119 
Veolia Environnement   575,419    9,613,747 
         18,169,866 
Oil & Gas — 0.9%          
Total   161,870    9,617,084 
Real Estate Investment Trusts — 1.0%          
Fonciere Des Regions   111,937    10,280,000 
Utilities — 1.6%          
Electricite de France   256,927    7,580,819 
Suez Environnement   518,280    8,720,793 
         16,301,612 
TOTAL FRANCE        62,045,702 
GERMANY— 0.8%          
Telecommunications — 0.8%          
Freenet   308,749    8,078,961 
HONG KONG— 2.0%          
Consumer Services — 1.0%          
Giordano International   19,647,547    10,007,197 
Technology — 1.0%          
VTech Holdings   864,849    10,828,455 
TOTAL HONG KONG        20,835,652 
ISRAEL— 1.0%          
Telecommunications — 1.0%          
Bezeq The Israeli Telecommunication   6,118,939    10,366,297 

 

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

 

17
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

   Shares   Value 
COMMON STOCK — continued          
ITALY— 1.0%          
Utilities — 1.0%          
Hera   3,953,119   $10,400,990 
NETHERLANDS— 1.1%          
Real Estate Investment Trusts — 1.1%          
Corio   234,760    11,415,192 
NORWAY— 0.6%          
Oil & Gas — 0.6%          
Seadrill   281,384    6,322,908 
PORTUGAL— 1.0%          
Utilities — 1.0%          
Energias de Portugal   2,454,051    10,549,206 
RUSSIA— 0.5%          
Consumer Services — 0.5%          
CTC Media   896,561    5,702,128 
SINGAPORE— 7.3%          
Industrials — 2.0%          
Hutchison Port Holdings Trust, Cl U   15,954,679    10,769,408 
Venture   1,817,861    10,931,206 
         21,700,614 
Real Estate Investment Trusts — 4.3%          
Ascendas   6,011,049    10,427,569 
Mapletree Industrial Trust   10,248,500    11,759,267 
Mapletree Logistics Trust   12,540,863    11,462,866 
Suntec Real Estate Investment Trust   7,767,985    10,786,350 
         44,436,052 
Telecommunications — 1.0%          
StarHub   3,095,906    9,946,396 
TOTAL SINGAPORE        76,083,062 
SOUTH AFRICA— 1.1%          
Real Estate Investment Trusts — 1.1%          
Redefine Properties   12,242,325    11,070,954 
SPAIN— 0.9%          
Financials — 0.9%          
Banco Santander   1,086,500    9,567,026 
SWEDEN— 0.9%          
Telecommunications — 0.9%          
TeliaSonera   1,359,117    9,375,754 

 

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

 

18
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

   Shares   Value 
COMMON STOCK — continued          
TAIWAN— 0.8%          
Consumer Goods — 0.8%          
AmTRAN Technology   15,281,654   $8,792,233 
UNITED KINGDOM— 6.6%          
Financials — 5.6%          
Admiral Group   414,837    8,860,068 
Amlin   1,398,978    10,192,535 
Friends Life Group   1,676,221    8,672,605 
Intermediate Capital Group   1,373,626    9,012,319 
Provident Financial   332,052    11,278,060 
Standard Life   1,586,123    9,990,347 
         58,005,934 
Utilities — 1.0%          
SSE   424,993    10,871,977 
TOTAL UNITED KINGDOM        68,877,911 
UNITED STATES— 31.8%          
Consumer Goods — 1.2%          
Vector Group (A)   562,067    12,556,577 
Financials — 4.5%          
AGF Management, Cl B   516,280    4,659,427 
BGC Partners, Cl A   1,445,457    12,257,475 
Home Loan Servicing Solutions   490,928    9,430,727 
New York Community Bancorp (A)   636,719    10,155,668 
OneBeacon Insurance Group, Cl A   648,535    10,331,163 
         46,834,460 
Health Care — 2.1%          
AstraZeneca   150,305    10,925,524 
PDL BioPharma (A)   1,172,900    10,004,837 
         20,930,361 
Industrials — 1.9%          
Costamare   491,081    10,101,536 
RR Donnelley & Sons   551,880    9,630,306 
         19,731,842 
Real Estate Investment Trusts — 18.1%          
American Capital Mortgage Investment   517,638    10,140,528 
Apollo Commercial Real Estate Finance   607,955    9,994,780 
ARMOUR Residential   2,381,431    9,430,467 
Capstead Mortgage   805,122    10,233,101 
Chimera Investment   3,307,566    10,319,606 
Franklin Street Properties   827,062    9,916,473 
Hospitality Properties Trust   383,667    11,360,380 
Invesco Mortgage Capital   623,919    10,319,620 

 

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

 

19
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

   Shares/Number
of Rights/Face
Amount
   Value 
COMMON STOCK — continued          
Real Estate Investment Trusts — continued          
Investors Real Estate Trust   1,159,903   $9,743,185 
Medical Properties Trust   776,622    10,476,631 
New York Mortgage Trust (A)   1,375,112    10,739,625 
NorthStar Realty Finance   726,516    13,498,667 
Omega Healthcare Investors (A)   322,601    12,310,454 
PennyMac Mortgage Investment Trust   424,087    9,156,038 
Resource Capital   1,706,723    9,028,565 
Sabra Health Care   364,101    10,402,366 
Senior Housing Properties Trust   506,113    11,433,093 
Starwood Property Trust   423,949    9,564,289 
         188,067,868 
Telecommunications — 4.0%          
Consolidated Communications Holdings (A)   530,069    13,728,787 
Frontier Communications (A)   2,200,090    14,388,589 
Windstream Holdings (A)   1,301,826    13,643,136 
         41,760,512 
TOTAL UNITED STATES        329,881,620 
TOTAL COMMON STOCK          
(Cost $983,604,668)        1,017,403,197 
           
PREFERRED STOCK — 1.1%          
           
BRAZIL— 1.1%          
Utilities — 1.1%          
AES Tiete   1,478,056    11,271,649 
TOTAL PREFERRED STOCK          
(Cost $13,034,337)        11,271,649 
           
RIGHTS — 0.0%          
Spain — 0.0%          
Banco Santander*   1,078,700    205,428 
TOTAL RIGHTS
(Cost $–)
        205,428 
REPURCHASE AGREEMENTS — 8.2%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$83,000,553 (collateralized by U.S. Treasury Notes, ranging in par value
$348,818-$9,365,930, 0.250%-4.875%, 11/15/14-05/15/22 with a total market
value of $84,195,671) (B)
  $83,000,000    83,000,000 

 

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

 

20
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® ETF

 

  

Face Amount(1)

   Value 
REPURCHASE AGREEMENTS — continued          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/2014, repurchase price
$1,646,402 (collateralized by U.S. Treasury Notes, par value
          
$1,720,805, 1.125%, 12/31/19 with a total market value of $1,672,541) (B)   1,646,388   $1,646,388 
TOTAL REPURCHASE AGREEMENTS           
(Cost $84,646,388)        84,646,388 
           
TIME DEPOSITS — 0.6%          
Brown Brothers Harriman          
0.030%, 11/03/14   5,604,848    5,604,848 
1.799%, 11/03/14, AUD   2,884    2,535 
0.337%, 11/03/14, CAD   121,526    107,788 
0.110%, 11/03/14, EUR   13    17 
0.091%, 11/03/14, GBP   11    18 
0.005%, 11/03/14, HKD   14    3 
2.800%, 11/03/14, NZD   11    8 
4.314%, 11/03/14, ZAR   10    1 
TOTAL TIME DEPOSITS           
(Cost $5,715,218)        5,715,218 
TOTAL INVESTMENTS — 107.9%           
(Cost $1,087,000,611)       $1,119,241,880 

 

Percentages are based on Net Assets of $1,037,576,047.

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $81,446,443.
(B)These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $84,646,388.

 

AUD — Australian Dollar

CAD — Canadian Dollar

Cl — Class

EUR — Euro

GBP — British Pound Sterling

HKD — Hong Kong Dollar

NZD — New Zealand Dollar

ZAR — South African Rand

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $1,017,403,197   $   $   $1,017,403,197 
Preferred Stock   11,271,649            11,271,649 
Rights   205,428            205,428 
Repurchase Agreements       84,646,388        84,646,388 
Time Deposits       5,715,218        5,715,218 
Total Investments in Securities  $1,028,880,274   $90,361,606   $   $1,119,241,880 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

21
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® U.S. 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 7 in the Notes to Financial Statements for more detailed information. 

 

   Shares   Value 
COMMON STOCK — 85.4%          
CANADA— 1.9%          
Consumer Services — 1.9%          
Thomson Reuters   141,429   $5,263,987 
UNITED STATES— 83.5%          
Consumer Goods — 11.3%          
Altria Group   140,455    6,789,595 
Lorillard   101,771    6,258,916 
Philip Morris International   62,732    5,583,775 
Reynolds American   102,013    6,417,638 
Vector Group (A)   279,035    6,233,642 
         31,283,566 
Consumer Services — 4.1%          
Six Flags Entertainment   122,492    4,936,428 
Stonemor Partners (A)   243,666    6,501,009 
         11,437,437 
Financials — 3.5%          
Ellington Financial   207,608    4,669,104 
New York Community Bancorp (A)   314,077    5,009,528 
         9,678,632 
Health Care — 3.9%          
Eli Lilly   83,987    5,570,858 
Merck   87,389    5,063,318 
         10,634,176 
Industrials — 4.7%          
Covanta Holding (A)   278,795    6,153,006 
Iron Mountain   192,734    6,951,915 
         13,104,921 

 

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

 

22
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® U.S. ETF

 

   Shares   Value 
COMMON STOCK — continued          
Oil & Gas — 5.1%          
Chevron   43,211   $5,183,160 
LinnCo (A)   160,954    3,858,067 
Spectra Energy (A)   129,344    5,061,231 
         14,102,458 
Real Estate Investment Trusts — 17.5%          
American Realty Capital Properties   361,612    3,207,498 
Apollo Commercial Real Estate Finance   292,822    4,813,994 
Apollo Residential Mortgage   310,300    5,175,804 
ARMOUR Residential   1,219,703    4,830,024 
Capstead Mortgage   408,923    5,197,411 
Chimera Investment   1,689,411    5,270,962 
Colony Financial   217,574    4,847,549 
New York Mortgage Trust (A)   712,118    5,561,642 
Resource Capital   889,944    4,707,804 
Starwood Property Trust   211,095    4,762,303 
         48,374,991 
Telecommunications — 8.7%          
AT&T (A)   149,796    5,218,893 
CenturyLink   161,111    6,682,884 
Verizon Communications   103,521    5,201,930 
Windstream Holdings (A)   659,278    6,909,234 
         24,012,941 
Utilities — 24.7%          
Ameren   120,661    5,108,787 
Avista   164,439    5,829,363 
Consolidated Edison (A)   88,528    5,609,134 
Duke Energy   68,442    5,622,510 
Empire District Electric (A)   204,518    5,816,492 
Entergy   76,026    6,387,705 
Ferrellgas Partners   201,096    5,427,581 
Northwest Natural Gas   116,481    5,466,453 
Pepco Holdings   239,568    6,549,789 
PPL   155,623    5,445,249 
Southern   115,708    5,364,223 
TECO Energy   293,966    5,764,673 
         68,391,959 
TOTAL UNITED STATES        231,021,081 
TOTAL COMMON STOCK          
(Cost $226,065,249)        236,285,068 
           
MASTER LIMITED PARTNERSHIPS — 14.0%          
UNITED STATES— 14.0%          
Oil & Gas — 14.0%          
Enbridge Energy Partners   182,638    6,587,753 

 

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

 

23
 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperDividend® U.S. ETF

 

   Shares/Face
Amount
   Value 
MASTER LIMITED PARTNERSHIPS — continued          
Oil & Gas — continued          
Energy Transfer Partners (A)   92,202   $5,940,575 
Enterprise Products Partners (A)   149,338    5,510,572 
Memorial Production Partners   229,557    4,804,628 
ONEOK Partners (A)   88,517    4,523,219 
QR Energy (A)   292,523    4,797,377 
TC PipeLines (A)   105,230    6,561,090 
TOTAL MASTER LIMITED PARTNERSHIPS           
(Cost $37,863,915)        38,725,214 
           
REPURCHASE AGREEMENTS — 11.5%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$29,000,193 (collateralized by U.S. Treasury Notes, ranging in par value
$289,024-$5,658,537, 0.250%-4.875%, 11/15/14-05/15/22 with a total market
value of $29,417,765) (B)
  $29,000,000    29,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$2,745,123 (collateralized by U.S. Treasury Notes, par value $2,869,179,
1.125%, 12/31/19 with a total market value of $2,788,707)(B)
   2,745,100    2,745,100 
TOTAL REPURCHASE AGREEMENTS           
(Cost $31,745,100)        31,745,100 
           
TIME DEPOSIT — 0.2%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $748,823)   748,823    748,823 
TOTAL INVESTMENTS — 111.1%           
(Cost $296,423,087)       $307,504,205 

 

Percentages are based on Net Assets of $276,714,634.

 

(A)This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $31,033,584.
(B)These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $31,745,100.

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $236,285,068   $   $   $236,285,068 
Master Limited Partnerships   38,725,214            38,725,214 
Repurchase Agreements       31,745,100        31,745,100 
Time Deposit       748,823        748,823 
Total Investments in Securities  $275,010,282   $32,493,923   $   $307,504,205 

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

24
 

 

 

Schedule of Investments October 31, 2014

 

Global X Social Media Index 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 7 in the Notes to Financial Statements for more detailed information. 

 

   Shares   Value 
COMMON STOCK — 99.8%          
CHINA— 25.1%          
Technology — 25.1%          
Changyou.com ADR * (A)   15,158   $364,398 
NetEase ADR   34,387    3,257,137 
Renren ADR *   265,304    920,605 
SINA *   185,292    7,591,413 
Tencent Holdings   833,065    13,277,135 
Youku.com ADR *   161,861    3,172,476 
YY ADR * (A)   38,596    3,198,064 
TOTAL CHINA        31,781,228 
GERMANY— 0.6%          
Technology — 0.6%          
XING   7,502    795,175 
JAPAN— 12.9%          
Technology — 12.9%          
Dena (A)   298,421    3,769,360 
Gree (A)   287,735    1,991,725 
Mixi (A)   101,390    5,363,211 
Nexon   610,122    5,251,931 
TOTAL JAPAN        16,376,227 
RUSSIA— 6.1%          
Technology — 6.1%          
Mail.ru Group GDR *   58,422    1,416,149 
Yandex, Cl A *   218,326    6,248,490 
TOTAL RUSSIA        7,664,639 
TAIWAN— 1.4%          
Technology — 1.4%          
PChome Online   175,791    1,782,964 
UNITED STATES— 53.7%          
Consumer Goods — 0.8%          
King Digital Entertainment (A)   91,502    1,043,123 

 

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

 

25
 

 

 

Schedule of Investments October 31, 2014

 

Global X Social Media Index ETF

 

  

Shares/Face
Amount(1)

   Value 
COMMON STOCK — continued          
Technology — 52.9%          
Angie's List * (A)   123,932   $863,806 
Demand Media *   24,966    175,761 
Facebook, Cl A *   159,322    11,947,557 
Google, Cl A *   10,983    6,236,916 
Groupon, Cl A * (A)   937,669    6,854,360 
Jive Software * (A)   106,533    650,916 
LinkedIn, Cl A *   61,752    14,138,738 
Nutrisystem   80,409    1,354,088 
Pandora Media *   254,628    4,909,228 
Twitter *   117,739    4,882,636 
United Online   39,115    438,870 
Weibo ADR * (A)   212,993    3,942,501 
Yelp, Cl A * (A)   85,586    5,135,160 
Zynga, Cl A *   2,068,194    5,273,895 
         66,804,432 
TOTAL UNITED STATES        67,847,555 
TOTAL COMMON STOCK           
(Cost $137,054,146)        126,247,788 
           
REPURCHASE AGREEMENTS — 17.0%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$20,000,133 (collateralized by U.S. Treasury Notes, ranging in par value
$83,273-2,272,115, 0.250%-4.875%, 11/15/14-05/15/22 with a total market
value of $20,288,114)(B)
   20,000,000    20,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,498,094 (collateralized by U.S. Treasury Notes, par value $1,565,795,
1.125%, 12/31/19 with a total market value of $1,521,879)(B)
   1,498,082    1,498,082 
TOTAL REPURCHASE AGREEMENTS           
(Cost $21,498,082)        21,498,082 
           
TIME DEPOSITS — 0.2%          
Brown Brothers Harriman          
0.030%, 11/03/14   214,431    214,431 
0.005%, 11/03/14, HKD   1     
0.005%, 11/03/14, JPY   3     
TOTAL TIME DEPOSITS           
(Cost $214,431)        214,431 
TOTAL INVESTMENTS — 117.0%           
(Cost $158,766,659)       $147,960,301 

 

Percentages are based on Net Assets of $126,417,815.

 

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

 

26
 

 

 

Schedule of Investments October 31, 2014

 

Global X Social Media Index ETF

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.
(A)This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $21,082,613.
(B)These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $21,498,082.

 

ADR — American Depositary Receipt

Cl — Class

GDR — Global Depositary Receipt

HKD — Hong Kong Dollar

JPY — Japanese Yen

 

Amounts designated as “—” are $0 or have been rounded to $0.

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $126,247,788   $   $   $126,247,788 
Repurchase Agreements       21,498,082        21,498,082 
Time Deposits       214,431        214,431 
Total Investments in Securities  $126,247,788   $21,712,513   $   $147,960,301 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

27
 

 

 

 

 

Schedule of Investments October 31, 2014

 

Global X | JPMorgan Efficiente Index ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares/Face
Amount
   Value 
EXCHANGE TRADED FUNDS — 100.0%          
iShares 20+ Year Treasury Bond ETF   4,180   $498,465 
iShares J.P. Morgan USD Emerging Markets Bond ETF   4,358    499,775 
Vanguard FTSE Emerging Markets ETF   11,958    509,889 
Vanguard REIT ETF   6,808    537,764 
Vanguard S&P 500 ETF   2,720    503,010 
TOTAL EXCHANGE TRADED FUNDS          
(Cost $2,494,440)        2,548,903 
           
TIME DEPOSIT — 0.0%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $560)  $560    560 
           
TOTAL INVESTMENTS — 100.0%          
(Cost $2,495,000)       $2,549,463 

 

Percentages are based on Net Assets of $2,549,083.

 

ETF — Exchange Traded Fund
FTSE  — Financial Times and Stock Exchange
REIT — Real Estate Investment Trust
S&P — Standard & Poor's
USD — U.S. Dollar

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Exchange Traded Funds  $2,548,903   $   $   $2,548,903 
Time Deposit       560        560 
Total Investments in Securities  $2,548,903   $560   $   $2,549,463 

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments. 

 

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

 

28
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X | JPMorgan US Sector Rotator Index ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on total market value of investments.

 

   Shares/Face
Amount
   Value 
EXCHANGE TRADED FUNDS — 100.0%          
Consumer Staples Select Sector SPDR Fund   13,702   $640,021 
Health Care Select Sector SPDR Fund   5,304    356,800 
Industrial Select Sector SPDR Fund   6,401    353,463 
SPDR Down Jones REIT ETF   7,417    654,625 
Utilities Select Sector SPDR Fund   11,781    535,682 
TOTAL EXCHANGE TRADED FUNDS          
(Cost $2,505,339)        2,540,591 
           
TIME DEPOSIT — 0.0%          
Brown Brothers Harriman, 0.030%          
(Cost $865)  $865    865 
TOTAL TIME DEPOSIT          
(Cost $865)        865 
           
TOTAL INVESTMENTS — 100.0%          
(Cost $2,506,204)       $2,541,456 

 

Percentages are based on Net Assets of $2,541,317.

 

ETF — Exchange Traded Fund
REIT — Real Estate Investment Trust
SPDR — Standard & Poor’s Depositary Receipts

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Exchange Traded Funds  $2,540,591   $   $   $2,540,591 
Time Deposit       865        865 
Total Investments in Securities  $2,540,591   $865   $   $2,541,456 

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments. 

 

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

 

29
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Permanent ETF

 

Sector Weightings (unaudited) †:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Face
Amount/Shares
   Value 
U.S. TREASURY OBLIGATIONS — 51.7%          
U.S. Treasury Bonds          
4.625%, 02/15/40  $430,200   $557,916 
4.375%, 11/15/39   450,800    563,852 
4.375%, 05/15/40   450,700    564,572 
3.875%, 08/15/40   482,318    559,828 
U.S. Treasury Notes          
2.000%, 04/30/16   518,100    530,850 
1.875%, 06/30/15   519,500    525,425 
1.750%, 07/31/15   521,000    527,227 
1.750%, 05/31/16   520,100    531,437 
TOTAL U.S. TREASURY OBLIGATIONS          
(Cost $4,311,193)        4,361,107 
           
EXCHANGE TRADED COMMODITIES — 21.8%          
ETFS Physical Gold   6,696    757,987 
ETFS Physical Silver   17,265    265,099 
ETFS Physical Silver (GBP shares)   3,802    58,406 
Gold Bullion Securities   6,779    757,282 
TOTAL EXCHANGE TRADED COMMODITIES          
(Cost $2,898,716)        1,838,774 
           
COMMON STOCK — 20.0%          
AUSTRALIA— 0.3%          
Basic Materials — 0.3%          
BHP Billiton ADR   437    25,975 
BRAZIL— 0.2%          
Basic Materials — 0.2%          
Vale ADR, Cl B   2,003    20,210 

 

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

 

30
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Permanent ETF

 

   Shares   Value 
COMMON STOCK — continued          
CANADA— 0.3%          
Basic Materials — 0.3%          
Potash Corp of Saskatchewan   714   $24,397 
CHINA— 0.3%          
Oil & Gas — 0.3%          
PetroChina ADR   219    27,485 
FRANCE— 0.3%          
Oil & Gas — 0.3%          
Total SA   362    21,507 
NETHERLANDS— 0.3%          
Oil & Gas — 0.3%          
Royal Dutch Shell ADR, Cl A   331    23,762 
SWITZERLAND— 0.6%          
Basic Materials — 0.6%          
Glencore Xstrata   4,930    25,232 
Syngenta ADR   343    21,266 
TOTAL SWITZERLAND        46,498 
UNITED KINGDOM— 0.6%          
Basic Materials — 0.6%          
Anglo American   1,116    23,505 
Rio Tinto ADR   511    24,513 
TOTAL UNITED KINGDOM        48,018 
UNITED STATES— 17.1%          
Consumer Goods — 1.5%          
Altria Group   332    16,049 
Archer-Daniels-Midland   607    28,529 
Coca-Cola   358    14,993 
Monsanto   225    25,884 
PepsiCo   180    17,311 
Philip Morris International   147    13,084 
Procter & Gamble   166    14,487 
         130,337 
Consumer Services — 1.5%          
Amazon.com *   55    16,800 
Comcast, Cl A   272    15,055 
CVS Health   186    15,961 
Home Depot   193    18,821 
McDonald's   173    16,215 
Twenty-First Century Fox ADR, Cl A   416    14,344 

 

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

 

31
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Permanent ETF

 

   Shares   Value 
COMMON STOCK — continued          
Consumer Services — continued          
Wal-Mart Stores   188   $14,339 
Walt Disney   175    15,992 
         127,527 
Financials — 2.4%          
American Express   205    18,440 
American International Group   348    18,643 
Bank of America   1,181    20,266 
Berkshire Hathaway, Cl B *   133    18,641 
Citigroup   297    15,898 
Goldman Sachs Group   93    17,669 
JPMorgan Chase   277    16,753 
Mastercard, Cl A   250    20,937 
US Bancorp   421    17,935 
Visa, Cl A   74    17,866 
Wells Fargo   367    19,484 
         202,532 
Health Care — 1.8%          
AbbVie   247    15,674 
Amgen   146    23,678 
Bristol-Myers Squibb   310    18,039 
Gilead Sciences *   177    19,824 
Johnson & Johnson   173    18,646 
Merck   323    18,715 
Pfizer   460    13,777 
UnitedHealth Group   233    22,138 
         150,491 
Industrials — 1.6%          
3M   99    15,223 
Boeing   151    18,861 
Deere   299    25,576 
General Electric   634    16,364 
Union Pacific   200    23,290 
United Parcel Service, Cl B   138    14,478 
United Technologies   165    17,655 
         131,447 
Oil & Gas — 0.8%          
Chevron   229    27,469 
Exxon Mobil   308    29,787 
Schlumberger   132    13,023 
         70,279 
Real Estate Investment Trusts — 5.5%          
American Tower, Cl A   467    45,533 
Crown Castle International   562    43,903 
Equity Residential   672    46,744 

 

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

 

32
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Permanent ETF

 

  

Shares/Face Amount(1)

   Value 
COMMON STOCK — continued          
Real Estate Investment Trusts — continued          
General Growth Properties   1,752   $45,394 
HCP   1,010    44,410 
Health Care   693    49,279 
ProLogis   1,086    45,232 
Public Storage   271    49,956 
Simon Property Group   268    48,028 
Ventas   647    44,326 
Washington Prime Group   171    3,015 
         465,820 
Technology — 1.7%          
Apple   157    16,956 
Cisco Systems   581    14,217 
Facebook, Cl A *   218    16,348 
Google, Cl A *   25    14,197 
Intel   596    20,270 
International Business Machines   85    13,974 
Microsoft   437    20,517 
Oracle   345    13,472 
QUALCOMM   179    14,053 
         144,004 
Telecommunications — 0.3%          
AT&T   452    15,748 
Verizon Communications   276    13,869 
         29,617 
TOTAL UNITED STATES        1,452,054 
TOTAL COMMON STOCK          
(Cost $1,516,405)        1,689,906 
           
EXCHANGE TRADED FUNDS — 5.9%          
Vanguard FTSE All-World ex-US ETF, Cl U   4,941    243,789 
Vanguard Small-Cap ETF   2,198    254,155 
TOTAL EXCHANGE TRADED FUNDS          
(Cost $420,830)        497,944 
           
TIME DEPOSITS — 0.2%          
Brown Brothers Harriman          
0.030%, 11/03/14   16,932    16,932 
0.091%, GBP, 11/03/14   1    2 
TOTAL TIME DEPOSITS          
(Cost $16,934)        16,934 
           
TOTAL INVESTMENTS — 99.6%          
(Cost $9,164,078)       $8,404,665 

 

Percentages are based on Net Assets of $8,438,960.

 

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

 

33
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Permanent ETF

 

*Non-income producing security.
(1)In U.S. Dollars unless otherwise indicated.

 

ADR — American Depositary Receipt

Cl — Class

ETF — Exchange Traded Fund

FTSE  — Financial Times and Stock Exchange

GBP — British Pound Sterling

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
U.S. Treasury Obligations  $   $4,361,107   $   $4,361,107 
Exchange Traded Commodities   1,838,774            1,838,774 
Common Stock   1,689,906            1,689,906 
Exchange Traded Funds   497,944            497,944 
Time Deposits       16,934        16,934 
Total Investments in Securities  $4,026,624   $4,378,041   $   $8,404,665 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

34
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Index 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
COMMON STOCK — 96.4%          
ARGENTINA— 1.9%          
Oil & Gas — 1.9%          
YPF ADR   240,600   $8,461,902 
CANADA— 1.9%          
Industrials — 1.9%          
Canadian Pacific Railway   39,580    8,219,974 
CHINA— 1.9%          
Technology — 1.9%          
Baidu ADR *   35,334    8,436,699 
IRELAND— 3.9%          
Health Care — 3.9%          
Actavis *   35,961    8,729,173 
Endo International *   123,251    8,247,957 
TOTAL IRELAND        16,977,130 
MEXICO— 1.8%          
Telecommunications — 1.8%          
America Movil ADR, Ser L   327,925    8,004,649 
UNITED STATES— 85.0%          
Basic Materials — 3.3%          
Celanese, Cl A   130,441    7,660,800 
FMC   117,119    6,716,775 
         14,377,575 
Consumer Goods — 7.1%          
Darling Ingredients *   397,245    6,991,512 

 

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

 

35
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
Consumer Goods — continued          
General Motors   228,823   $7,185,042 
Mondelez International, Cl A   216,395    7,630,088 
NIKE, Cl B   100,384    9,332,700 
         31,139,342 
Consumer Services — 20.7%          
American Airlines Group   197,383    8,161,787 
Burlington Stores *   231,508    9,709,446 
CBS, Cl B   129,085    6,998,989 
Delta Air Lines   200,783    8,077,500 
Extended Stay America   339,045    7,818,378 
Hertz Global Holdings *   256,652    5,625,812 
Houghton Mifflin Harcourt *   416,949    8,343,150 
KAR Auction Services   264,543    8,031,525 
Pandora Media *   274,589    5,294,076 
Time Warner Cable   52,136    7,674,940 
Twenty-First Century Fox ADR, Cl A   215,926    7,445,128 
Twenty-First Century Fox, Cl B   222,992    7,396,645 
         90,577,376 
Financials — 16.6%          
American International Group   143,404    7,682,152 
CIT Group   159,954    7,826,549 
Citigroup   158,915    8,506,720 
Howard Hughes *   48,608    7,163,847 
JPMorgan Chase   136,301    8,243,485 
Moody's   84,657    8,400,514 
Nationstar Mortgage Holdings * (A)   237,449    8,339,209 
Voya Financial   203,500    7,987,375 
Wells Fargo   154,221    8,187,593 
         72,337,444 
Health Care — 1.7%          
Thermo Fisher Scientific   63,707    7,490,032 
Industrials — 9.1%          
Colfax *   120,952    6,577,370 
FleetCor Technologies *   53,536    8,060,380 
Lockheed Martin   45,777    8,723,723 
RR Donnelley & Sons (A)   454,889    7,937,813 
Spirit Aerosystems Holdings, Cl A *   212,096    8,343,857 
         39,643,143 
Oil & Gas — 3.2%          
Hess   78,223    6,634,093 
Pioneer Natural Resources   38,143    7,211,315 
         13,845,408 

 

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

 

36
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Index ETF

 

   Shares/Face
Amount
   Value 
COMMON STOCK — continued          
Real Estate Investment Trusts — 3.5%          
American Homes 4 Rent, Cl A    439,193   $7,699,053 
Crown Castle International    98,673    7,708,335 
         15,407,388 
Technology — 16.1%          
Akamai Technologies *    129,641    7,817,353 
Apple    78,968    8,528,544 
CDW    241,461    7,446,657 
EMC    260,171    7,474,713 
Facebook, Cl A *    105,171    7,886,773 
Hewlett-Packard    220,803    7,922,412 
Micron Technology *    245,655    8,128,724 
Motorola Solutions    126,927    8,186,792 
NCR *    241,686    6,687,451 
         70,079,419 
Telecommunications — 3.7%          
Sprint * (A)    1,360,675    8,068,803 
T-Mobile US *    266,433    7,777,179 
         15,845,982 
TOTAL UNITED STATES         370,743,109 
TOTAL COMMON STOCK          
(Cost $403,163,638)         420,843,463 
           
MASTER LIMITED PARTNERSHIPS — 3.5%          
UNITED STATES— 3.5%          
Oil & Gas — 3.5%          
Enterprise Products Partners (A)    201,110    7,420,959 
Northern Tier Energy    307,487    7,760,972 
TOTAL MASTER LIMITED PARTNERSHIPS          
(Cost $14,428,446)         15,181,931 
           
REPURCHASE AGREEMENTS — 2.8%          
Barclays          
0.080%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$11,000,073 (collateralized by U.S. Treasury Notes, ranging in par value
$109,630-$2,146,341, 0.250%-4.875%, 11/15/14-05/15/22 with a total 
market value of $11,158,463)(B)
  $11,000,000    11,000,000 
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$1,404,084 (collateralized by U.S. Treasury Notes, par value $1,467,536, 
1.125%, 12/31/19 with a total market value of $1,426,376)(B)
   1,404,072    1,404,072 
TOTAL REPURCHASE AGREEMENTS          
(Cost $12,404,072)         12,404,072 

 

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

 

37
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Index ETF

 

   Face Amount   Value 
TIME DEPOSIT — 0.2%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $691,788)  $691,788   $691,788 
TOTAL INVESTMENTS — 102.9%          
(Cost $430,687,944)       449,121,254 

 

Percentages are based on Net Assets of $436,586,036.

 

* Non-income producing security.
(A) This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $11,827,315.
(B) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $12,404,072.

 

ADR — American Depositary Receipt
Cl — Class
Ser — Series

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Common Stock  $420,843,463   $   $   $420,843,463 
Master Limited Partnerships   15,181,931            15,181,931 
Repurchase Agreements       12,404,072        12,404,072 
Time Deposit       691,788        691,788 
Total Investments in Securities  $436,025,394   $13,095,860   $   $449,121,254 

 

For the year ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 3 investments.

 

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

 

38
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ International Index ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 100.0%          
ARGENTINA— 2.3%          
Oil & Gas — 2.3%          
YPF ADR   1,506   $52,966 
BELGIUM— 2.1%          
Consumer Goods — 2.1%          
Anheuser-Busch InBev ADR   439    48,720 
BRAZIL— 9.6%          
Consumer Goods — 4.0%          
AMBEV ADR   6,714    44,849 
BRF ADR   1,911    49,782 
         94,631 
Financials — 3.6%          
Banco Bradesco ADR   2,912    43,622 
Banco Santander Brasil ADR   7,225    39,593 
         83,215 
Industrials — 2.0%          
Embraer ADR   1,224    47,295 
TOTAL BRAZIL        225,141 
CANADA— 15.7%          
Basic Materials — 1.3%          
Barrick Gold   2,589    30,731 
Consumer Goods — 2.1%          
Gildan Activewear, Cl A   839    50,030 
Consumer Services — 2.3%          
IMAX *   1,795    52,881 
Financials — 4.0%          
Brookfield Asset Management, Cl A   1,011    49,509 
Toronto-Dominion Bank   924    45,516 
         95,025 

 

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

 

39
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ International Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
Industrials — 2.2%          
Canadian Pacific Railway   242   $50,258 
Oil & Gas — 1.7%          
Canadian Natural Resources   1,153    40,217 
Technology — 2.1%          
BlackBerry *   4,771    50,095 
TOTAL CANADA        369,237 
CHINA— 7.8%          
Consumer Services — 2.2%          
Vipshop Holdings ADR *   225    51,590 
Health Care — 1.9%          
Mindray Medical International ADR   1,512    44,060 
Technology — 3.7%          
21Vianet Group ADR *   1,622    33,932 
Baidu ADR *   221    52,768 
         86,700 
TOTAL CHINA        182,350 
COLOMBIA— 1.8%          
Financials — 1.8%          
BanColombia ADR   761    43,050 
FINLAND— 2.1%          
Technology — 2.1%          
Nokia ADR   5,963    49,314 
HONG KONG— 1.9%          
Consumer Services — 1.9%          
Melco Crown Entertainment ADR   1,653    44,862 
INDIA— 2.4%          
Technology — 2.4%          
Infosys ADR   829    55,427 
ISRAEL— 6.6%          
Health Care — 2.2%          
Teva Pharmaceutical Industries ADR   915    51,670 
Technology — 4.4%          
Check Point Software Technologies *   713    52,940 
Mellanox Technologies *   1,141    51,106 
         104,046 
TOTAL ISRAEL        155,716 
LUXEMBOURG— 1.7%          
Financials — 1.7%          
Altisource Portfolio Solutions *    546    40,764 

 

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

 

40
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ International Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
MEXICO— 4.1%          
Industrials — 2.0%          
Cemex ADR *   3,767   $46,334 
Telecommunications — 2.1%          
America Movil ADR, Ser L, Cl L   2,043    49,870 
TOTAL MEXICO        96,204 
NETHERLANDS— 11.7%          
Industrials — 5.5%          
AerCap Holdings *   985    42,690 
Chicago Bridge & Iron   777    42,455 
Koninklijke Philips   1,600    44,704 
         129,849 
Oil & Gas — 1.9%          
Royal Dutch Shell ADR, Cl A   605    43,433 
Technology — 4.3%          
InterXion Holding *   1,767    48,310 
NXP Semiconductor *   755    51,838 
         100,148 
TOTAL NETHERLANDS        273,430 
NORWAY— 1.8%          
Oil & Gas — 1.8%          
Golar LNG   744    41,746 
PANAMA— 1.9%          
Consumer Services — 1.9%          
Copa Holdings, Cl A   378    44,196 
SINGAPORE— 2.3%          
Technology — 2.3%          
Avago Technologies, Cl A   635    54,769 
SOUTH AFRICA— 1.0%          
Basic Materials — 1.0%          
AngloGold Ashanti ADR   2,807    23,214 
SOUTH KOREA— 2.0%          
Telecommunications — 2.0%          
SK Telecom ADR   1,651    45,881 
SWITZERLAND— 2.0%          
Financials — 2.0%          
UBS   2,747    47,743 
TAIWAN— 2.2%          
Technology — 2.2%          
Taiwan Semiconductor Manufacturing ADR   2,326    51,219 

 

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

 

41
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ International Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
UNITED KINGDOM— 4.0%          
Health Care — 2.1%          
AstraZeneca ADR   683   $49,818 
Oil & Gas — 1.9%          
BP ADR   1,016    44,155 
TOTAL UNITED KINGDOM        93,973 
UNITED STATES— 13.0%          
Consumer Services — 1.9%          
TAL Education Group ADR *   1,402    44,528 
Health Care — 6.9%          
Grifols ADR   1,280    45,299 
Novadaq Technologies *   3,402    53,139 
Tornier *   2,273    63,531 
         161,969 
Oil & Gas — 1.9%          
Kosmos Energy *   4,848    45,232 
Telecommunications — 2.3%          
Intelsat *   2,714    52,814 
TOTAL UNITED STATES        304,543 
TOTAL COMMON STOCK          
(Cost $2,315,798)        2,344,465 
TOTAL INVESTMENTS — 100.0%          
(Cost $2,315,798)       $2,344,465 

 

Percentages are based on Net Assets of $2,343,413.

 

* Non-income producing security.

 

ADR — American Depositary Receipt
Cl — Class
Ser — Series

 

As of October 31, 2014, all of the Fund's investments were considered Level 1, in accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP.

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 2 or Level 3 investments.

 

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

 

42
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Small Cap Index ETF

 

Sector Weightings (unaudited)†:

 

† Sector weightings percentages are based on the total market value of investments.

 

   Shares   Value 
COMMON STOCK — 95.3%          
ARGENTINA—1.2%          
Financials — 1.2%          
Banco Macro ADR   634   $26,780 
AUSTRALIA— 0.8%          
Basic Materials — 0.8%          
Tronox, Cl A   743    17,966 
CANADA— 3.0%          
Basic Materials — 0.7%          
Pretium Resources *   3,141    14,323 
Consumer Services — 1.1%          
IMAX *   813    23,951 
Industrials — 1.2%          
Progressive Waste Solutions   879    25,693 
TOTAL CANADA        63,967 
CHINA—1.9%          
Health Care — 0.9%          
Mindray Medical International ADR   673    19,611 
Technology — 1.0%          
YY ADR *   254    21,046 
TOTAL CHINA        40,657 
FRANCE— 0.9%          
Health Care — 0.9%          
Flamel Technologies ADR *   1,504    18,349 
GREECE— 0.9%          
Industrials — 0.9%          
StealthGas *   2,213    18,589 

 

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

 

43
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Small Cap Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
IRELAND— 1.3%          
Health Care — 1.3%          
Horizon Pharma *   2,227   $28,817 
ISRAEL— 1.1%          
Technology — 1.1%          
RADWARE *   1,296    24,611 
LUXEMBOURG— 0.9%          
Financials — 0.9%          
Altisource Portfolio Solutions *   247    18,441 
NETHERLANDS— 1.0%          
Technology — 1.0%          
InterXion Holding *   804    21,981 
UNITED STATES— 82.3%          
Basic Materials — 3.7%          
Alpha Natural Resources *   5,517    10,813 
Flotek Industries *   773    17,130 
Mercer International *   2,187    27,512 
Resolute Forest Products *   1,283    23,813 
         79,268 
Consumer Goods — 12.5%          
American Axle & Manufacturing Holdings *   1,206    23,312 
Chico's FAS   1,405    21,187 
Cooper-Standard Holding *   330    18,012 
Cooper Tire & Rubber   729    23,481 
Famous Dave's of America *   852    22,211 
Federal-Mogul Holdings *   1,289    20,121 
Lands' End *   621    29,479 
Libbey *   810    23,288 
MDC Holdings   744    18,168 
Ryland Group   570    20,412 
Take-Two Interactive Software *   994    26,291 
Watsco   235    23,881 
         269,843 
Consumer Services — 13.3%          
Children's Place Retail Stores   445    21,916 
Houghton Mifflin Harcourt *   1,149    22,991 
ITT Educational Services *   2,484    25,113 
Life Time Fitness *   542    30,227 
Meritage Homes *   522    19,204 
Office Depot *   4,202    21,935 

 

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

 

44
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Small Cap Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
Consumer Services — continued          
Pinnacle Entertainment *   885   $22,683 
Sears Hometown and Outlet Stores *   1,120    16,845 
Sinclair Broadcast Group, Cl A   746    21,671 
Sotheby's   550    21,813 
TAL Education Group ADR *   635    20,168 
Tile Shop Holdings *   1,913    16,471 
Vail Resorts   286    24,699 
         285,736 
Financials — 10.1%          
Ambac Financial Group *   881    20,157 
Enstar Group *   151    22,359 
Harbinger Group *   1,732    22,758 
Home Loan Servicing Solutions   1,021    19,613 
MBIA *   2,134    20,828 
MGIC Investment *   2,678    23,888 
Nationstar Mortgage Holdings *   696    24,443 
PennyMac Financial Services, Cl A *   1,430    23,824 
St. Joe *   1,031    19,744 
Walter Investment Management *   868    19,721 
         217,335 
Health Care — 7.1%          
Alere *   631    25,221 
Depomed *   1,489    22,931 
Hill-Rom Holdings   507    22,552 
Keryx Biopharmaceuticals *   1,357    22,865 
Medicines *   847    21,446 
Theravance   965    15,459 
Vanda Pharmaceuticals *   1,784    21,426 
         151,900 
Industrials — 9.7%          
Con-way   431    18,692 
Dycom Industries *   749    23,511 
EnPro Industries *   330    21,295 
GATX   330    20,922 
MasTec *   750    21,480 
Nortek *   259    21,569 
Quad   1,017    22,425 
Scorpio Bulkers *   2,694    13,174 
Swift Transportation, Cl A *   1,038    25,639 
YRC Worldwide *   972    20,840 
         209,547 
Oil & Gas — 8.3%          
Carrizo Oil & Gas *   376    19,530 
DHT Holdings   3,029    20,173 

 

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

 

45
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Small Cap Index ETF

 

   Shares   Value 
COMMON STOCK — continued          
Oil & Gas — continued          
Enbridge Energy Management   619   $21,993 
Exterran Holdings   505    19,862 
Magnum Hunter Resources *   3,312    15,368 
MRC Global *   881    18,527 
Sanchez Energy *   660    11,266 
SandRidge Energy *   4,247    16,563 
Scorpio Tankers   2,244    19,590 
Stone Energy *   648    15,876 
         178,748 
Real Estate Invesment Trust — 1.0%          
Empire State Realty Trust, Cl A   1,321    21,083 
Technology — 10.6%          
CACI International, Cl A *   312    25,675 
Eastman Kodak *   989    21,333 
Entegris *   1,842    25,014 
Immersion *   2,050    17,261 
InterDigital   501    24,765 
OSI Systems *   325    23,036 
Synaptics *   273    18,681 
Tableau Software, Cl A *   366    30,228 
Universal Display *   656    20,520 
Veeco Instruments *   607    21,846 
         228,359 
Telecommunications — 5.0%          
DigitalGlobe *   735    21,014 
Intelsat *   1,229    23,916 
Leap Wireless *(A)(B)   856    2,157 
Marin Software *   2,577    23,064 
VASCO Data Security International *   1,523    38,563 
         108,714 
Utilities — 1.0%          
Dynegy *   741    22,601 
TOTAL UNITED STATES        1,773,134 
TOTAL COMMON STOCK          
(Cost $2,131,262)        2,053,292 
           
MASTER LIMITED PARTNERSHIPS — 4.6%          
UNITED STATES— 4.6%          
Financials — 0.8%          
Och-Ziff Capital Management Group, Cl A   1,599    17,621 
Oil & Gas — 3.8%          
Atlas Energy   498    18,690 
Golar LNG Partners   586    21,207 
Rose Rock Midstream   388    21,325 

 

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

 

46
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X Guru™ Small Cap Index ETF

 

   Shares/Face Amount   Value 
MASTER LIMITED PARTNERSHIPS — continued          
Oil & Gas — continued          
Summit Midstream Partners   422   $19,830 
         81,052 
TOTAL MASTER LIMITED PARTNERSHIPS          
(Cost $102,769)         98,673 
           
TIME DEPOSIT — 0.1%          
Brown Brothers Harriman, 0.030%, 11/03/14          
(Cost $3,483)  $3,483    3,483 
TOTAL INVESTMENTS — 100.0%          
(Cost $2,237,514)        $2,155,448 

 

Percentages are based on Net Assets of $2,154,599.

 

* Non-income producing security.
(A) 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, 2014 was $2,157 and represents 0.1% of Net Assets.
(B) Security considered illiquid. The total value of such security as of October 31, 2014 was $2,157 and represented 0.1% of Net Assets.

 

ADR — American Depositary Receipt
Cl — Class

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2  

Level 3(a)

   Total 
Common Stock  $2,051,135   $   $2,157   $2,053,292 
Master Limited Partnerships   98,673            98,673 
Time Deposit       3,483        3,483 
Total Investments in Securities  $2,149,808   $3,483   $2,157   $2,155,448 

 

(a) 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 period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

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

 

47
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperIncome™ Preferred 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 7 in the Notes to Financial Statements for more detailed information.

 

   Shares   Value 
PREFERRED STOCK — 99.9%          
UNITED STATES— 99.9%          
Basic Materials — 8.1%          
ArcelorMittal, 6.000%   404,281   $8,287,761 
Cliffs Natural Resources, Ser A, 7.000% (A)   218,991    2,299,405 
NuStar Logistics, 7.625%(B)   98,850    2,633,364 
         13,220,530 
Consumer Goods — 3.5%          
CHS, Ser 2, 7.100%(B)   100,285    2,693,655 
CHS, Ser 3, 6.750%(B)   117,621    2,961,697 
         5,655,352 
Financials — 72.3%          
Aegon, 8.000%   127,180    3,620,815 
Ally Financial, Ser A, 8.500%(B)   83,894    2,221,513 
Aviva, 8.250%   96,992    2,717,716 
Barclays Bank, Ser 3, 7.100%   83,494    2,135,777 
Barclays Bank, Ser 4, 7.750%   69,817    1,792,202 
Barclays Bank, Ser 5, 8.125%   161,772    4,175,335 
Capital One Financial, Ser C, 6.250%   118,987    2,896,144 
Citigroup, Ser J, 7.125%(B)   77,784    2,104,835 
Citigroup, Ser L, 6.875%(A)   39,302    1,002,594 
Citigroup Capital XIII, 7.875%(B)   186,048    4,952,598 
Deutsche Bank Contingent Capital Trust III, 7.600%   171,943    4,712,957 
Deutsche Bank Contingent Capital Trust V, 8.050%(A)   120,410    3,391,950 
First Niagara Financial Group, Ser B, 8.625%(B)   84,880    2,368,152 
GMAC Capital Trust I, Ser 2, 8.125%(B)   219,060    5,855,474 
Hartford Financial Services Group, 7.875%(B)   145,013    4,390,994 
HSBC Holdings, 8.125%   112,870    2,966,224 
HSBC Holdings, Ser 2, 8.000%(A)   195,049    5,227,313 
ING Groep, 7.375%   183,633    4,682,641 
ING Groep, 7.200%   132,736    3,398,041 
JPMorgan Chase, Ser T, 6.700%   118,629    3,052,324 
JPMorgan Chase Capital XXIX, Ser CC, 6.700%   194,444    5,001,100 
KKR Financial Holdings, Ser A, 7.375%   89,617    2,330,042 

 

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

 

48
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperIncome™ Preferred ETF

 

   Shares/Face
Amount
   Value 
PREFERRED STOCK — continued          
Lloyds Banking Group, 7.750%   208,960   $5,483,110 
Merrill Lynch Capital Trust III, 7.375%(A)   100,696    2,594,936 
Merrill Lynch Preferred Capital Trust III, 7.000%   100,528    2,576,533 
Merrill Lynch Preferred Capital Trust V, Ser F, 7.280%   113,954    2,933,176 
Morgan Stanley, Ser E, 7.125%(B)   120,536    3,285,811 
Morgan Stanley, Ser F, 6.875%(B)   118,573    3,144,556 
Morgan Stanley, Ser G, 6.625%   69,412    1,768,618 
PartnerRe, Ser E, 7.250%   89,846    2,459,983 
Raymond James Financial, 6.900%   82,345    2,223,315 
Royal Bank of Scotland Group, Ser Q, 6.750%   67,730    1,702,732 
Royal Bank of Scotland Group, Ser S, 6.600%   86,526    2,147,575 
Royal Bank of Scotland Group, Ser T, 7.250%   168,447    4,270,132 
Wells Fargo, Ser J, 8.000%   279,621    8,212,469 
         117,799,687 
Real Estate Investment Trusts — 10.9%          
American Realty Capital Properties, Ser F, 6.700%   261,928    5,767,654 
Annaly Capital Management, Ser D, 7.500%   110,715    2,719,160 
Digital Realty Trust, Ser E, 7.375%   86,570    2,312,285 
Equity Commonwealth, Ser E, 7.250%   66,549    1,687,683 
Hatteras Financial, Ser A, 7.625%   69,376    1,619,236 
NorthStar Realty Finance, Ser B, 8.250%(A)   84,771    2,125,209 
NorthStar Realty Finance, Ser E, 8.750%   60,218    1,536,161 
         17,767,388 
Telecommunications — 5.1%          
Qwest, 7.500%   102,408    2,734,293 
Qwest, Ser 51, 7.375%   118,149    3,116,771 
Qwest, Ser 52, 7.000%(A)   94,014    2,411,459 
         8,262,523 
TOTAL PREFERRED STOCK          
(Cost $163,099,649)        162,705,480 
           
REPURCHASE AGREEMENT — 3.3%          
Deutsche Bank          
0.100%, dated 10/31/14, to be repurchased on 11/03/14, repurchase price
$5,416,045 (collateralized by U.S. Treasury Notes, par value $5,660,803,
1.125%, 12/31/19 with a total market value of $5,502,035)(C)
          
(Cost $5,416,000)  $5,416,000    5,416,000 
           
TOTAL INVESTMENTS — 103.2%          
(Cost $168,515,649)       $168,121,480 

 

Percentages are based on Net Assets of $162,874,705.

 

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

 

49
 

 

 

 

Schedule of Investments October 31, 2014

 

Global X SuperIncome™ Preferred ETF

 

(A) This security or a partial position of this security is on loan at October 31, 2014.  The total value of securities on loan at October 31, 2014 was $5,261,009.
(B) Floating rate security - Rate disclosed is the rate in effect on October 31, 2014.
(C) These securities were purchased with cash collateral held from securities on loan. The total value of such securities as of October 31, 2014 was $5,416,000.

 

Ser — Series

 

The following is a summary of the inputs used as of October 31, 2014, in valuing the Fund's investments carried at value:

 

Investments in Securities  Level 1   Level 2   Level 3   Total 
Preferred Stock  $162,705,480   $   $   $162,705,480 
Repurchase Agreement       5,416,000        5,416,000 
Total Investments in Securities  $162,705,480   $5,416,000   $   $168,121,480 

 

For the period ended October 31, 2014, there have been no transfers between Level 1, Level 2 or Level 3 investments.

 

As of October 31, 2014, there were no Level 2 or Level 3 investments.

 

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

 

50
 

 

 

 

Statements of Assets and Liabilities

October 31, 2014

 

   Global X
SuperDividend®
ETF
   Global X
SuperDividend®
U.S. ETF
   Global X Social
Media Index ETF
   Global X |
JPMorgan
Efficiente Index
ETF
 
Assets:                    
Cost of Investments  $1,002,354,223   $264,677,987   $137,268,577   $2,495,000 
Cost of Repurchase Agreements   84,646,388    31,745,100    21,498,082     
Cost of Foreign Currency   70,777        65,063     
Investments, at Value  $1,034,595,492*  $275,759,105*  $126,462,219*  $2,549,463 
Repurchase Agreement, at Value   84,646,388    31,745,100    21,498,082     
Foreign Currency, at Value   70,796        65,063     
Receivable for Capital Shares Sold   7,256,914    29,528,047         
Dividend and Interest Receivable   3,206,575    983,017    90,465     
Reclaim Receivable   197,019    4,526    4,966     
Unrealized Appreciation on Spot Contracts   719             
Receivable for Investment Securities Sold           8,119,519     
Total Assets   1,129,973,903    338,019,795    156,240,314    2,549,463 
Liabilities:                    
Obligation to Return Securities Lending Collateral   84,646,388    31,745,100    21,498,082     
Payable for Investment Securities Purchased   7,246,199    29,475,012    8,254,677     
Payable due to Investment Adviser   505,269    85,049    69,740    380 
Total Liabilities   92,397,856    61,305,161    29,822,499    380 
Net Assets  $1,037,576,047   $276,714,634   $126,417,815   $2,549,083 
Net Assets Consist of:                    
Paid-in Capital  $1,007,787,535   $265,559,843   $144,761,732   $2,495,000 
Undistributed (Distributions in Excess of) Net Investment Income/(Accumulated Net Investment Loss)   (2,625,792)       (3,828)   (380)
Accumulated Net Realized Gain (Loss) on Investments   199,425    73,673    (7,532,850)    
Net Unrealized Appreciation (Depreciation) on Investments   32,241,269    11,081,118    (10,806,358)   54,463 
Net Unrealized Depreciation on Foreign Currency Translations   (26,390)       (881)    
Net Assets  $1,037,576,047   $276,714,634   $126,417,815   $2,549,083 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   42,800,000    9,350,000    6,550,000    100,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $24.24   $29.60   $19.30   $25.49 
*Includes Market Value of Securities on Loan  $81,446,443   $31,033,584   $21,082,613   $ 

 

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

 

51
 

 

 

 

Statements of Assets and Liabilities

October 31, 2014

 

   Global X |
JPMorgan US
Sector Rotator
Index ETF
   Global X
Permanent ETF
   Global X Guru™
Index ETF
   Global X Guru™
International Index
ETF
 
Assets:                    
Cost of Investments  $2,506,204   $9,164,078   $418,283,872   $2,315,798 
Cost of Repurchase Agreements           12,404,072     
Investments, at Value  $2,541,456   $8,404,665   $436,717,182*  $2,344,465 
Repurchase Agreement, at Value           12,404,072     
Receivable for Investment Securities Sold   1,609,676        2,632,074     
Dividend and Interest Receivable       37,745    146,998    699 
Reclaim Receivable               333 
Total Assets   4,151,132    8,442,410    451,900,326    2,345,497 
Liabilities:                    
Payable for Investment Securities Purchased   1,609,434             
Payable due to Investment Adviser   381    3,450    280,182     
Obligation to Return Securities Lending Collateral           12,404,072     
Payable for Capital Shares Redeemed           2,630,036     
Cash Overdraft               653 
Payable due to Administrator               1,431 
Total Liabilities   1,609,815    3,450    15,314,290    2,084 
Net Assets  $2,541,317   $8,438,960   $436,586,036   $2,343,413 
Net Assets Consist of:                    
Paid-in Capital  $2,503,000   $9,522,178   $421,929,303   $2,334,438 
Undistributed Net Investment Income       90,545    3,815,497    10,465 
Accumulated Net Realized Gain (Loss) on Investments   3,065    (414,350)   (7,592,074)   (30,157)
Net Unrealized Appreciation (Depreciation) on Investments   35,252    (759,413)   18,433,310    28,667 
Net Assets  $2,541,317   $8,438,960   $436,586,036   $2,343,413 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   100,000    350,000    16,600,000    150,000 
                     
Net Asset Value, Offering and Redemption Price Per Share  $25.41   $24.11   $26.30   $15.62 
*Includes Market Value of Securities on Loan  $   $   $11,827,315   $ 

 

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

 

52
 

 

 

 

Statements of Assets and Liabilities

October 31, 2014

 

   Global X Guru™
Small Cap Index
ETF
   Global X
SuperIncome™
Preferred ETF
 
Assets:          
Cost of Investments  $2,237,514   $163,099,649 
Cost of Repurchase Agreement       5,416,000 
Investments, at Value  $2,155,448   $162,705,480*
Repurchase Agreement, at Value       5,416,000 
Dividend and Interest Receivable   407    346,102 
Reclaim Receivable   36     
Receivable for Capital Shares Sold       3,026,810 
Total Assets   2,155,891    171,494,392 
Liabilities:          
Payable due to Administrator   1,292     
Payable for Investment Securities Purchased       3,040,923 
Obligation to Return Securities Lending Collateral       5,416,000 
Payable due to Investment Adviser       75,750 
Cash Overdraft       87,014 
Total Liabilities   1,292    8,619,687 
Net Assets  $2,154,599   $162,874,705 
Net Assets Consist of:          
Paid-in Capital  $2,251,332   $165,321,362 
Undistributed Net Investment Income       314,426 
Accumulated Net Realized Loss on Investments   (14,667)   (2,366,914)
Net Unrealized Depreciation on Investments   (82,066)   (394,169)
Net Assets  $2,154,599   $162,874,705 
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)   150,000    11,050,000 
           
Net Asset Value, Offering and Redemption Price Per Share  $14.36   $14.74 
*Includes Market Value of Securities on Loan  $   $5,261,009 

 

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

 

53
 

  

 

 

Statements of Operations

For the year or period ended October 31, 2014

 

   Global X
SuperDividend®
ETF
   Global X
SuperDividend®
U.S. ETF
   Global X Social
Media Index
ETF
  

Global X |

JPMorgan

Efficiente

Index ETF(2)

  

Global X |

JPMorgan

US Sector

Rotator

Index ETF(2)

 
Investment Income:                         
Dividend Income  $61,826,334   $7,292,826   $490,337   $   $ 
Interest Income   10,100    93    3,395         
Security Lending Income   778,090    91,329    413,899         
Less: Foreign Taxes Withheld   (3,186,336)   (6,790)   (48,811)        
Total Investment Income   59,428,188    7,377,458    858,820         
Supervision and Administration Fees(1)   5,477,435    490,484    871,531    380    381 
Total Expenses   5,477,435    490,484    871,531    380    381 
Net Investment Income (Loss)   53,950,753    6,886,974    (12,711)   (380)   (381)
Net Realized Gain (Loss) on:                         
Investments   29,121,545(3)   2,818,231(3)   8,222,966(3)       3,446 
Foreign Currency Transactions   (365,825)       8,882         
Net Realized Gain on Investments and Foreign Currency Transactions   28,755,720    2,818,231    8,231,848        3,446 
Net Change in Unrealized Appreciation (Depreciation) on:                         
Investments   (20,352,466)   9,558,716    (13,398,705)   54,463    35,252 
Foreign Currency Translations   (37,530)       109         
Net Change in Unrealized Appreciation (Depreciation) on Investments  and Foreign Currency Translations   (20,389,996)   9,558,716    (13,398,596)   54,463    35,252 
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions and Translations   8,365,724    12,376,947    (5,166,748)   54,463    38,698 
Net Increase (Decrease) in Net Assets Resulting from Operations  $62,316,477   $19,263,921   $(5,179,459)  $54,083   $38,317 

 

(1)The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  
(2)The Fund commenced operations October 22, 2014.  
(3)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)  

 

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

 

54
 

  

 

 

Statements of Operations

For the year or period ended October 31, 2014

 

   Global X
Permanent
ETF
   Global X
Guru™ Index
ETF
  

Global X

Guru™

International

Index ETF(2)

  

Global X

Guru™

Small Cap

Index ETF(2)

   Global X
SuperIncome™
Preferred ETF
 
Investment Income:                         
Dividend Income  $74,046   $6,978,810   $21,452   $11,076   $7,433,263 
Interest Income   104,375    207        1    141 
Security Lending Income       723,990            47,287 
Less: Foreign Taxes Withheld   (621)   (35,278)   (2,171)   (43)    
Total Investment Income   177,800    7,667,729    19,281    11,034    7,480,691 
Supervision and Administration Fees(1)   56,789    3,525,454    8,816    10,274    589,602 
Total Expenses   56,789    3,525,454    8,816    10,274    589,602 
Net Investment Income   121,011    4,142,275    10,465    760    6,891,089 
Net Realized Gain (Loss) on:                         
Investments   (70,128)(3)   30,193,967(3)   36,258    (17,095)   (483,511)(3)
Foreign Currency Transactions   118                 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   (70,010)   30,193,967    36,258    (17,095)   (483,511)
Net Change in Unrealized Appreciation (Depreciation) on:                         
Investments   196,407    (2,560,775)   28,667    (82,066)   (826,411)
Net Change in Unrealized Appreciation (Depreciation) on Investments  and Foreign Currency Transactions   196,407    (2,560,775)   28,667    (82,066)   (826,411)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions   126,397    27,633,192    64,925    (99,161)   (1,309,922)
Net Increase (Decrease) in Net Assets Resulting from Operations  $247,408   $31,775,467   $75,390   $(98,401)  $5,581,167 

 

(1)The Supervision and Administration fees reflect the supervisory and administrative fee, which includes fees paid by the Funds for the investment advisory services provided by the Adviser. (See Note 3 in Notes to Financial Statements.)  
(2)The Fund commenced operations March 10, 2014.  
(3)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)  

 

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

 

55
 

 

 

 

Statements of Changes in Net Assets

 

  

   Global X SuperDividend® ETF   Global X SuperDividend® U.S. ETF 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
   Year Ended
October 31, 2014
  

Period Ended

October 31, 2013(1)

 
Operations:                    
Net Investment Income  $53,950,753   $29,155,457   $6,886,974   $1,450,539 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   28,755,720(2)   (14,284,101)(2)   2,818,231(2)   (979,751)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   (20,389,996)   52,400,521    9,558,716    1,522,402 
Net Increase in Net Assets Resulting from Operations   62,316,477    67,271,877    19,263,921    1,993,190 
Dividends and Distributions from:                    
Net Investment Income   (55,528,000)   (35,106,732)   (5,177,061)   (1,333,281)
Return of Capital           (617,714)   (145,569)
Total Dividends and Distributions   (55,528,000)   (35,106,732)   (5,794,775)   (1,478,850)
Capital Share Transactions:                    
Issued   304,468,290    586,001,500    227,401,148    51,365,000 
Redeemed   (48,918,715)   (5,757,000)   (16,035,000)    
Increase in Net Assets  from Capital Share Transactions   255,549,575    580,244,500    211,366,148    51,365,000 
Total Increase in Net Assets   262,338,052    612,409,645    224,835,294    51,879,340 
Net Assets:                    
Beginning of Year/Period   775,237,995    162,828,350    51,879,340     
End of Year/Period  $1,037,576,047   $775,237,995   $276,714,634   $51,879,340 
Undistributed (Distributions in Excess of) Net Investment Income  $(2,625,792)  $(4,150,471)  $   $(148,344)
Share Transactions:                    
Issued   12,250,000    25,450,000    7,950,000    2,000,000 
Redeemed   (2,100,000)   (250,000)   (600,000)    
Net Increase in Shares Outstanding from Share Transactions   10,150,000    25,200,000    7,350,000    2,000,000 

 

(1) The Fund commenced operations on March 11, 2013.

(2) Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)  

 

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

 

56
 

 

 

 

Statements of Changes in Net Assets

 

 

 

   Global X Social Media Index ETF   Global X |
JPMorgan
Efficiente Index
ETF
   Global X |
JPMorgan US
Sector Rotator
Index ETF
 
   Year Ended
October 31, 2014
   Year Ended
October 31, 2013
  

Period Ended

October 31, 2014(1)

  

Period Ended

October 31, 2014(1)

 
Operations:                    
Net Investment Loss  $(12,711)  $(1,263)  $(380)  $(381)
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   8,231,848(2)   (263,977)(2)       3,446 
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   (13,398,596)   4,168,340    54,463    35,252 
Net Increase (Decrease) in Net Assets Resulting from Operations   (5,179,459)   3,903,100    54,083    38,317 
Dividends and Distributions from:                    
Net Investment Income   (1,764)   (98,361)        
Total Dividends and Distributions   (1,764)   (98,361)        
Capital Share Transactions:                    
Issued   104,020,692    84,127,501    2,495,000    2,503,000 
Redeemed   (68,369,208)   (5,456,000)        
Increase in Net Assets  from Capital Share Transactions   35,651,484    78,671,501    2,495,000    2,503,000 
Total Increase in Net Assets   30,470,261    82,476,240    2,549,083    2,541,317 
Net Assets:                    
Beginning of Year/Period   95,947,554    13,471,314         
End of Year/Period  $126,417,815   $95,947,554   $2,549,083   $2,541,317 
Distributions in Excess of Net Investment Income/Accumulated Net Investment Loss  $(3,828)  $(1,350)  $(380)  $ 
Share Transactions:                    
Issued   5,100,000    4,300,000    100,000    100,000 
Redeemed   (3,500,000)   (400,000)        
Net Increase in Shares Outstanding from Share Transactions   1,600,000    3,900,000    100,000    100,000 

 

(1)The Fund commenced operations on October 22, 2014.
(2)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)  

 

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

 

57
 

 

 

 

Statements of Changes in Net Assets

 

 

 

   Global X Permanent ETF 
   Year Ended
October 31, 2014
  

Period Ended

October 31, 2013(1)

   Year Ended
June 30, 2013
 
Operations:               
Net Investment Income  $121,011   $43,524   $165,982 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions(2)   (70,010)   19,164    54,577 
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   196,407    528,051    (1,434,759)
Net Increase (Decrease) in Net Assets Resulting from Operations   247,408    590,739    (1,214,200)
Dividends and Distributions from:               
Net Investment Income   (217,743)       (114,515)
Net Realized Gains   (47,656)        
Total Dividends and Distributions   (265,399)       (114,515)
Capital Share Transactions:               
Issued   1,157,000        17,655,500 
Redeemed   (7,176,640)   (1,162,000)   (16,138,000)
Increase (Decrease) in Net Assets from Capital Share Transactions   (6,019,640)   (1,162,000)   1,517,500 
Total Increase (Decrease) in Net Assets   (6,037,631)   (571,261)   188,785 
Net Assets:               
Beginning of Year/Period   14,476,591    15,047,852    14,859,067 
End of Year/Period  $8,438,960   $14,476,591   $15,047,852 
Undistributed Net Investment Income  $90,545   $151,779   $62,178 
Share Transactions:               
Issued   50,000        700,000 
Redeemed   (300,000)   (50,000)   (650,000)
Net Increase (Decrease) in Shares Outstanding from Share Transactions   (250,000)   (50,000)   50,000 

 

(1)For the period July 1, 2013 to October 31, 2013. Effective July 1, 2013 the Global X Permanent ETF changed its fiscal year end to October 31 (See Note 1 in Notes to Financial Statements.)
(2)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)

 

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

 

58
 

  

 

 

Statements of Changes in Net Assets

 

 

 

   Global X Guru™ Index ETF 
   Year Ended
October 31, 2014
  

Period Ended

October 31, 2013(1)

   Year Ended
June 30, 2013
 
Operations:               
Net Investment Income  $4,142,275   $45,129   $90,358 
Net Realized Gain on Investments and Foreign Currency Transactions   30,193,967(2)   80,579    1,013,460(2)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   (2,560,775)   19,607,750    1,093,978 
Net Increase in Net Assets Resulting from Operations   31,775,467    19,733,458    2,197,796 
Dividends and Distributions from:               
Net Investment Income   (424,262)       (20,046)
Net Realized Gains   (50,655)       (77,984)
Total Dividends and Distributions   (474,917)       (98,030)
Capital Share Transactions:               
Issued   568,526,986    168,586,499    59,344,500 
Redeemed   (404,301,007)       (14,244,000)
Increase in Net Assets  from Capital Share Transactions   164,225,979    168,586,499    45,100,500 
Total Increase in Net Assets   195,526,529    188,319,957    47,200,266 
Net Assets:               
Beginning of Year/Period   241,059,507    52,739,550    5,539,284 
End of Year/Period  $436,586,036   $241,059,507   $52,739,550 
Undistributed Net Investment Income  $3,815,497   $10,057   $10,056 
Share Transactions:               
Issued   22,750,000    7,500,000    2,950,000 
Redeemed   (16,200,000)       (750,000)
Net Increase in Shares Outstanding from Share Transactions   6,550,000    7,500,000    2,200,000 

 

(1)For the period July 1, 2013 to October 31, 2013. Effective July 1, 2013 the Global X Guru™ Index ETF changed its fiscal year end to October 31 (See Note 1 in Notes to Financial Statements.)
(2)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)

 

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

 

59
 

 

 

 

Statements of Changes in Net Assets

 

 

 

   Global X Guru™
International
Index ETF
   Global X Guru™
Small Cap Index
ETF
 
  

Period Ended

October 31, 2014(1)

  

Period Ended

October 31, 2014(1)

 
Operations:          
Net Investment Income  $10,465   $760 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions   36,258    (17,095)
Net Change in Unrealized Appreciation (Depreciation) on Investments   28,667    (82,066)
Net Increase (Decrease) in Net Assets Resulting from Operations   75,390    (98,401)
Capital Share Transactions:          
Issued   3,080,523    2,253,000 
Redeemed   (812,500)    
Increase in Net Assets  from Capital Share Transactions   2,268,023    2,253,000 
Total Increase in Net Assets   2,343,413    2,154,599 
Net Assets:          
Beginning of Period        
End of Period  $2,343,413   $2,154,599 
Undistributed Net Investment Income  $10,465   $ 
Share Transactions:          
Issued   200,000    150,000 
Redeemed   (50,000)    
Net Increase in Shares Outstanding from Share Transactions   150,000    150,000 

 

(1)The Fund commenced operations on March 10, 2014.

 

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

 

60
 

 

 

 

Statements of Changes in Net Assets

 

 

 

   Global X SuperIncome™ Preferred ETF 
   Year Ended
October 31, 2014
  

Period Ended

October 31, 2013(1)

  

Period Ended

June 30, 2013(2)

 
Operations:               
Net Investment Income  $6,891,089   $1,017,923   $999,901 
Net Realized Loss on Investments and Foreign Currency Transactions   (483,511)(3)   (823,814)   (173,657)(3)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations   (826,411)   1,490,613    (1,058,371)
Net Increase (Decrease) in Net Assets Resulting from Operations   5,581,167    1,684,722    (232,127)
Dividends and Distributions from:               
Net Investment Income   (6,808,392)   (978,675)   (796,414)
Net Realized Gains           (6,583)
Total Dividends and Distributions   (6,808,392)   (978,675)   (802,997)
Capital Share Transactions:               
Issued   117,538,007    24,089,500    37,687,000 
Redeemed   (13,401,000)       (1,482,500)
Increase in Net Assets  from Capital Share Transactions   104,137,007    24,089,500    36,204,500 
Total Increase in Net Assets   102,909,782    24,795,547    35,169,376 
Net Assets:               
Beginning of Year/Period   59,964,923    35,169,376     
End of Year/Period  $162,874,705   $59,964,923   $35,169,376 
Undistributed Net Investment Income  $314,426   $228,167   $188,919 
Share Transactions:               
Issued   7,900,000    1,650,000    2,500,000 
Redeemed   (900,000)       (100,000)
Net Increase in Shares Outstanding from Share Transactions   7,000,000    1,650,000    2,400,000 

 

(1)For the period July 1, 2013 to October 31, 2013. Effective July 1, 2013 the Global X SuperIncome™ Preferred ETF changed its fiscal year end to October 31 (See Note 1 in Notes to Financial Statements.)   
(2)The Fund commenced operations on July 16, 2012.  
(3)Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.)  

 

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

 

61
 

 

 

 

Financial Highlights

 

 

 

Selected Per Share Data & Ratios             

For a Share Outstanding Throughout the Period

 

  

Net Asset

Value,

Beginning

of Period

($)

  

Net

Investment

Income

(Loss) ($)*

  

Net

Realized

and

Unrealized

Gain (Loss)

on

Investments

($)

  

Total from

Operations

($)

  

Distribution

from Net

Investment

Income ($)

  

Distribution

from

Capital

Gains ($)

  

Return of

Capital

($)

  

Total from

Distributions

($)

  

Net

Asset

Value,

End of

Period

($)

  

Total

Return

(%)**

  

Net Assets

End of

Period

($)(000)

  

Ratio of

Expenses

to

Average

Net

Assets

(%)

  

Ratio of

Net

Investment

Income

(Loss) to

Average

Net Assets

(%)

  

Portfolio

Turnover

(%)††

 
Global X SuperDividend® ETF                                                                  
2014   23.74    1.40    0.56    1.96    (1.46)           (1.46)   24.24    8.41    1,037,576    0.58    5.71    33.63 
2013   21.86    1.34    2.27    3.61    (1.73)           (1.73)   23.74    17.34    775,238    0.58    5.93    43.64 
2012   21.76    1.62    0.09    1.71    (1.61)           (1.61)   21.86    8.34    162,828    0.58    7.53    34.03 
2011(1)   24.70    0.64    (3.02)   (2.38)   (0.56)           (0.56)   21.76    (9.56)   29,372    0.58   7.22   4.58 
Global X SuperDividend® U.S. ETF                                                   
2014   25.94    1.78    3.45    5.23    (1.41)       (0.16)   (1.57)   29.60    20.80    276,715    0.45    6.32    40.04 
2013(2)   25.15    0.98    0.82    1.80    (0.91)       (0.10)   (1.01)   25.94    7.32    51,879    0.45   6.02   20.36 
Global X Social Media Index ETF                                                   
2014   19.38        (0.08)   (0.08)                   19.30    (0.41)   126,418    0.65    (0.01)   26.52 
2013   12.83        6.66    6.66    (0.11)           (0.11)   19.38    52.34    95,948    0.65    (0.01)   55.96 
2012(3)   14.93    0.12    (2.22)   (2.10)                   12.83    (14.07)   13,471    0.65   0.88   91.78 
Global X | JPMorgan Efficiente Index ETF                                                   
2014(4)   24.95        0.54    0.54                    25.49    2.16    2,549    0.69   (0.69)†    
Global X | JPMorgan US Sector Rotator Index ETF                                                   
2014(4)   25.03        0.38    0.38                    25.41    1.52    2,541    0.69   (0.69)†    63.35 
Global X Permanent ETF                                                                      
2014   24.13    0.24    0.18    0.42    (0.36)   (0.08)       (0.44)   24.11    1.84    8,439    0.48    1.02    24.63 
2013^   23.15    0.07    0.91    0.98                    24.13    4.23    14,477    0.48   0.90   3.08 
2013   24.77    0.25    (1.66)   (1.41)   (0.21)           (0.21)   23.15    (5.77)   15,048    0.48    0.98    44.44 
2012(5)   25.04    0.09    (0.36)   (0.27)                   24.77    (1.08)   14,859    0.48   0.92   14.89 
Global X Guru™ Index ETF                                                         
2014   23.99    0.22    2.12    2.34    (0.03)           (0.03)   26.30    9.76    436,586    0.75    0.88    128.37 
2013^   20.68    0.01    3.30    3.31                    23.99    16.01    241,060    0.75   0.10   24.89 
2013   15.83    0.17    5.66    5.83    (0.20)   (0.78)       (0.98)   20.68    38.08    52,740    0.75    0.85    77.25 
2012(6)   14.96    0.02    0.85    0.87                    15.83    5.82    5,539    0.75   1.90   1.90 
Global X Guru™ International Index ETF                                                   
2014(7)   14.83    0.09    0.70    0.79                    15.62    5.33    2,343    0.75   0.89   62.71 
Global X Guru™ Small Cap Index ETF                                                   
2014(7)   15.01    0.01    (0.66)   (0.65)                   14.36    (4.33)   2,155    0.75   0.06   78.42 
Global X SuperIncome™ Preferred ETF                                                   
2014   14.81    1.01    (0.02)   0.99    (1.06)           (1.06)   14.74    6.89    162,875    0.58    6.78    85.07 
2013^   14.65    0.31    0.18    0.49    (0.33)           (0.33)   14.81    3.38    59,965    0.58   6.34   61.86 
2013(8)   15.02    1.13    (0.47)   0.66    (1.02)   (0.01)       (1.03)   14.65    4.46    35,169    0.58   7.84   91.98 

 

(1)The Fund commenced operations on June 8, 2011.
(2)The Fund commenced operations on March 11, 2013.
(3)The Fund commenced operations on November 14, 2011.
(4)The Fund commenced operations on October 22, 2014.
(5)The Fund commenced operations on February 7, 2012.
(6)The Fund commenced operations on June 4, 2012.
(7)The Fund commenced operations on March 10, 2014.
(8)The Fund commenced operations on July 16, 2012.
^For the period July 1, 2013 to October 31, 2013. Effective July 1, 2013 the Global X Permanent ETF, Global X Guru™ Index ETF (formerly Global X Top Guru Holdings Index ETF) and Global X SuperIncome™ Preferred ETF each changed their fiscal year end to October 31 (See Note 1 in Notes to Financial Statements).
*Per share data calculated using average shares method.
**Total Return is for the period indicated and has not been annualized.  The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
Annualized.
††Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

 

Amounts designated as “—” are $0 or have been rounded to $0.

 

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

 

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Notes to Financial Statements

October 31, 2014

 

1. ORGANIZATION

 

The Global X Funds (the "Trust") is a Delaware statutory trust formed on March 6, 2008. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of October 31, 2014, the Trust had eighty-eight portfolios, forty of which were operational. The financial statements herein and the related notes pertain to the Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X Social Media Index ETF, Global X | JPMorgan Efficiente Index ETF, Global X | JPMorgan US Sector Rotator Index ETF, Global X Permanent ETF, Global X Guru™ Index ETF, Global X Guru™ International Index ETF, Global X Guru™ Small Cap Index ETF and Global X SuperIncome™ Preferred ETF (each a “Fund”, collectively, the “Funds”). Each Fund is non-diversified.

 

Effective July 1, 2013, the Global X Permanent ETF, Global X Guru™ Index ETF (formerly Global X Top Guru Holdings Index ETF) and Global X SuperIncome™ Preferred ETF each changed their fiscal year end to October 31. Their previous fiscal year end was June 30.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

The following is a summary of the significant accounting policies followed by the Funds.

 

USE OF ESTIMATES – The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could materially differ from those estimates.

 

MASTER LIMITED PARTNERSHIPS (“MLPs”) – Certain funds may invest in MLPs. MLPs are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation. To qualify as a MLP and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include natural resource-based activities such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners: the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.

 

Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management. MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units

 

63
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

MASTER LIMITED PARTNERSHIPS (“MLPs”) (concluded)

do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.

 

SECURITY VALUATION — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).

 

For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. The exchange rates used by the Trust for valuation are captured as of the New York or London close each day. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

 

Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a fair value committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or, trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security's last close and the time that the Funds calculate their net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Global X Management Company LLC (the “Adviser”)

 

64
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

SECURITY VALUATION (concluded)

becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee. As of October 31, 2014, there was $2,157 of fair valued securities in the Global X Guru™ Small Cap Index Fund. There were no other securities priced using the Fair Value Procedures.

 

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date

 

Level 2 – Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost)

 

Level 3 – Significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments, and fair value of investments for which the Funds’ do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term)

 

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

 

For the year or period ended October 31, 2014, there have been no significant changes to the Funds’ fair valuation methodologies.

 

The unobservable inputs used to determine fair value of Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.

 

REPURCHASE AGREEMENTS — Securities pledged as collateral for repurchase agreements are held by Citibank, N.A. and are designated as being held on each Fund’s behalf by its custodian under a book-entry system. Each Fund monitors the adequacy of the collateral on a daily basis and can require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest.

 

65
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

REPURCHASE AGREEMENTS (concluded)

It is the Funds’ policy to only enter into repurchase agreements with banks and other financial institutions which are deemed by the Adviser to be creditworthy. The Funds bear the risk of loss in the event that the other party to a repurchase agreement defaults on its obligations and the Funds are prevented from exercising their rights to dispose of the underlying securities received as collateral and the risk of a possible decline in the value of the underlying securities during the period. For financial statement purposes, the Funds record the securities lending collateral (included in Repurchase Agreements, at value or restricted cash) as an asset and the obligation to return securities lending collateral as a liability on the Statements of Assets and Liabilities.

 

Repurchase agreements are entered into by the Funds under Master Repurchase Agreements (“MRA”) which permit the Funds, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from the Funds.

 

At October 31, 2014, the open repurchase agreements by counterparty which are subject to a MRA on a net payment basis are as follows:

 

       Fair Value of Non-cash   Cash Collateral     
   Repurchase Agreements   Collateral Received   Received   Net Amount(1) 
Global X SuperDividend® ETF                    
Barclays  $83,000,000   $83,000,000   $-   $- 
Deutsche Bank   1,646,388    1,646,388    -    - 
Global X SuperDividend® U.S. ETF                    
Barclays   29,000,000    29,000,000    -    - 
Deutsche Bank   2,745,100    2,745,100    -    - 
Global X Social Media Index ETF                    
Barclays   20,000,000    20,000,000    -    - 
Deutsche Bank   1,498,082    1,498,082    -    - 
Global X Guru™ Index ETF                    
Barclays   11,000,000    11,000,000    -    - 
Deutsche Bank   1,404,072    1,404,072    -    - 
Global X SuperIncome™ Preferred ETF                    
Deutsche Bank   5,416,000    5,416,000    -    - 

 

(1)Net Amount represents the net amount receivable due from the counterparty in the event of default.

 

FEDERAL INCOME TAXES – It is each Fund’s intention to qualify, or continue to qualify, as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended. Accordingly, no provisions for Federal income taxes have been made in the financial statements.

 

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is "more-likely-than-not" (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provisions in the current period; however, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

 

66
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

 

FEDERAL INCOME TAXES (concluded)

As of and during the year or period ended October 31, 2014, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties.

 

SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded on the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.

 

FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONThe books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions and translations represent net foreign exchange gains or losses from foreign currency spot contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.

 

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Funds distribute their net investment income on a pro rata basis. Any net realized capital gains are distributed annually. All distributions are recorded on the ex-dividend date.

 

INVESTMENTS IN REITs — With respect to the Funds, dividend income is recorded based on the income included in distributions received from real estate investment trust (“REIT”) investments using published REIT reclassifications, including some management estimates when actual amounts are not available. Distributions received in excess of these estimated amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year end, and may differ from the estimated amounts.

 

CREATION UNITS — The Funds issue and redeem shares (“Shares”) at Net Asset Value (“NAV”) and only in large blocks of Shares, (each block of Shares for a Fund is called a “Creation Unit” or multiples thereof). Purchasers of Creation Units (“Authorized Participants”) at NAV must pay a standard creation transaction fee per transaction. The fee is a single charge and will be the same regardless of the number of Creation Units purchased by an investor on the same day. An Authorized Participant who holds Creation Units and wishes to redeem at NAV would also pay a standard Redemption Fee per transaction to the custodian on the date of such redemption, regardless of the number of Creation Units redeemed that day.

 

67
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

2. SIGNIFICANT ACCOUNTING POLICIES (concluded)

 

CREATION UNITS (concluded)

 

If a Creation Unit is purchased or redeemed for cash, a higher transaction fee will be charged. The following table discloses Creation Unit breakdown:

 

       Creation   Value at October     
   Creation Unit Shares   Fee   31, 2014   Redemption Fee 
Global X SuperDividend® ETF   50,000   $3,800   $1,212,000   $3,800 
Global X SuperDividend® U.S. ETF   50,000    750    1,480,000    750 
Global X Social Media Index ETF   50,000    1,000    965,000    1,000 
Global X | JPMorgan Efficiente Index ETF   50,000    500    1,274,500    500 
Global X | JPMorgan US Sector Rotator Index ETF   50,000    500    1,270,500    500 
Global X Permanent ETF   50,000    1,000    1,205,500    1,000 
Global X GuruTM Index ETF   50,000    750    1,315,000    750 
Global X GuruTM International Index ETF   50,000    750    781,000    750 
Global X GuruTM Small Cap Index ETF   50,000    750    718,000    750 
Global X SuperIncomeTM Preferred ETF   50,000    500    737,000    500 

 

3. RELATED PARTY TRANSACTIONS

 

The Adviser serves as the investment adviser and the administrator for the Funds. Subject to the supervision of the Board of Trustees, the Adviser is responsible for managing the investment activities of the Funds and the Funds’ business affairs and other administrative matters and provides or causes to be furnished all supervisory, administrative and other services reasonably necessary for the operation of the Funds, including certain distribution services (provided pursuant to a separate Distribution Agreement), certain shareholder and distribution-related services (provided pursuant to a separate Rule 12b-1 Plan and related agreements) and investment advisory services (provided pursuant to a separate Investment Advisory Agreement), under what is essentially an "all-in" fee structure. For its service to the Funds, under the Supervision and Administration Agreement, each Fund pays a monthly fee to the Adviser at the annual rate (stated as a percentage of the average daily net assets of the Fund). In addition, the Funds bear other expenses, directly and indirectly, that are not covered by the Supervision and Administration Agreement, which may vary and affect the total expense ratios of the Funds, such as taxes, brokerage fees, commissions, acquired fund fees, and other transaction expenses, interest expenses and extraordinary expenses (such as litigation and indemnification expenses).

 

68
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

3. RELATED PARTY TRANSACTIONS (concluded)

 

   Supervision and 
   Administration Fee 
Global X SuperDividend® ETF   0.58%
Global X SuperDividend® U.S. ETF   0.45%
Global X Social Media Index ETF   0.65%
Global X | JPMorgan Efficiente Index ETF   0.69%
Global X | JPMorgan US Sector Rotator Index ETF   0.69%
Global X Permanent ETF   0.48%
Global X GuruTM Index ETF   0.75%
Global X GuruTM International Index ETF   0.75%
Global X GuruTM Small Cap Index ETF   0.75%
Global X SuperIncomeTM Preferred ETF   0.58%

 

SEI Investments Global Funds Services (“SEIGFS”) serves as Sub-Administrator to the Funds. As Sub-Administrator, SEIGFS provides the Funds with the required general administrative services, including, without limitation: office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting and secretarial services; the calculation of NAV; and assistance with the preparation and filing of reports, registration statements, proxy statements and other materials required to be filed or furnished by the Funds under federal and state securities laws. As compensation for these services, the Sub-Administrator receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser.

 

SEI Investments Distribution Co. (“SIDCO”) serves as each Fund’s underwriter and distributor of Shares pursuant to a Distribution Agreement. Under the Distribution Agreement, SIDCO, as agent, receives orders to create and redeem Shares in Creation Unit Aggregations and transmits such orders to the Trust’s custodian and transfer agent. The Distributor has no obligation to sell any specific quantity of Fund Shares. SIDCO bears the following costs and expenses relating to the distribution of Shares: (i) the costs of processing and maintaining records of creations of Creation Units; (ii) all costs of maintaining the records required of a registered broker/dealer; (iii) the expenses of maintaining its registration or qualification as a dealer or broker under Federal or state laws; (iv) filing fees; and (v) all other expenses incurred in connection with the distribution services as contemplated in the Distribution Agreement. SIDCO receives no fee for its distribution services under the Distribution Agreement.

 

Brown Brothers Harriman & Co. (“BBH”), located at 40 Water Street, Boston, MA 02109, serves as Custodian of Funds’ assets. As Custodian, BBH has agreed to (1) make receipts and disbursements of money on behalf of the Fund, (2) collect and receive all income and other payments and distributions on account of the Fund’s portfolio investments, (3) respond to correspondence from shareholders, security brokers and others relating to its duties; and (4) make periodic reports to the Fund concerning the Fund’s operations. BBH does not exercise any supervisory function over the purchase and sale of securities. As compensation for these services, the Custodian receives certain out-of-pocket costs, transaction fees and asset-based fees which are accrued daily and paid monthly by the Adviser from its fees.

 

69
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

4. INVESTMENT TRANSACTIONS

 

For the year or period ended October 31, 2014, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government and short-term securities were:

 

       Sales and 
   Purchases   Maturities 
Global X SuperDividend® ETF  $321,260,539   $316,432,335 
Global X SuperDividend® U.S. ETF   46,494,656    47,037,018 
Global X Social Media Index ETF   35,337,434    35,175,215 
Global X | JPMorgan Efficiente Index ETF   -    - 
Global X | JPMorgan US Sector Rotator Index ETF   1,609,434    1,609,677 
Global X Permanent ETF   238,825    580,803 
Global X GuruTM Index ETF   594,442,041    591,836,289 
Global X GuruTM International Index ETF   1,153,296    1,219,327 
Global X GuruTM Small Cap Index ETF   1,709,830    1,711,792 
Global X SuperIncomeTM Preferred ETF   87,263,856    86,888,203 

 

For the year ended October 31, 2014, the purchases and sales of long-term U.S. Government securities were:

 

       Sales and 
   Purchases   Maturities 
Global X Permanent ETF  $2,559,031   $4,492,575 

 

For the year or periods ended October 31, 2014 in-kind transactions associated with creations and redemptions were:

 

       Sales and     
   Purchases   Maturities   Realized Gain 
Global X SuperDividend® ETF  $291,318,883   $46,485,624   $6,877,254 
Global X SuperDividend® U.S. ETF   226,952,335    15,011,076    3,725,106 
Global X Social Media Index ETF   102,815,373    67,464,717    13,728,822 
Global X | JPMorgan Efficiente Index ETF   2,494,440    -    - 
Global X | JPMorgan US Sector Rotator Index ETF   2,502,135    -    - 
Global X Permanent ETF   602,819    4,899,378    47,979 
Global X GuruTM Index ETF   568,383,721    403,551,463    37,571,401 
Global X GuruTM International Index ETF   3,080,436    734,683    66,415 
Global X GuruTM Small Cap Index ETF   2,253,119    -    - 
Global X SuperIncomeTM Preferred ETF   117,436,325    13,616,202    873,051 

 

For the year or periods ended June 30, 2013 in-kind transactions associated with creations and redemptions were:

 

       Sales and     
   Purchases   Maturities   Realized Gain 
Global X Permanent ETF  $11,729,628   $10,171,012   $186,744 
Global X GuruTM Index ETF   59,260,722    12,391,609    1,219,288 
Global X SuperIncomeTM Preferred ETF   37,655,138    1,438,509    3,348 

 

70
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

4. INVESTMENT TRANSACTIONS (concluded)

 

For the year or periods ended October 31, 2013, in-kind transactions associated with creations and redemptions were:

 

   Purchases   Maturities   Gain/(Loss) 
Global X SuperDividend® ETF  $559,947,524   $5,170,131   $751,728 
Global X SuperDividend® U.S. ETF   51,281,379    -    - 
Global X Social Media Index ETF   83,598,308    5,418,926    546,004 
Global X Permanent ETF   -    592,624    16,079 
Global X GuruTM Index ETF   168,558,609    -    - 
Global X SuperIncomeTM Preferred ETF   24,107,356    -    - 

 

5. TAX INFORMATION

 

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.

 

The following differences, primarily attributable to foreign currency, redemptions in-kind, REIT adjustments, MLP dividends, return of capital distribution and sales of passive foreign investment companies have been reclassified to/from the following accounts during the fiscal year ended October 31, 2014:

 

Global X Funds  Paid-in Capital   Undistributed Net
Investment Income
   Accumulated Net
Realized Gain (Loss)
 
Global X SuperDividend® ETF  $5,896,042   $3,101,926   $(8,997,968)
Global X SuperDividend® U.S. ETF   2,974,264    (943,855)   (2,030,409)
Global X Social Media Index ETF   13,423,174    11,997    (13,435,171)
Global X | JPMorgan US Sector Rotator Index ETF       381    (381)
Global X Permanent ETF   5,683    35,498    (41,181)
Global X Guru™ Index ETF   37,532,343    87,427    (37,619,770)
Global X Guru™ International Index ETF   66,415        (66,415)
Global X Guru™ Small Cap Index ETF   (1,668)   (760)   2,428 
Global X SuperIncome™ Preferred ETF   871,257    3,562    (874,819)

 

These reclassifications have no impact on net assets or net asset value per share.

 

71
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

5. TAX INFORMATION (continued)

 

The tax character of dividends and distributions declared during the years or periods ended October 31, 2014 and October 31, 2013 were as follows:

 

Global X Funds  Ordinary Income   Long-Term
Capital Gain
   Return of Capital   Totals 
     
Global X SuperDividend® ETF
2014  $55,528,000   $   $   $55,528,000 
2013   35,106,732            35,106,732 
Global X SuperDividend® U.S. ETF
2014  $5,177,061   $   $617,714   $5,794,775 
2013   1,333,281        145,569    1,478,850 
Global X Social Media Index ETF
2014  $1,764   $   $   $1,764 
2013   98,361            98,361 
Global X Permanent ETF
2014  $217,578   $47,821   $   $265,399 
2013*                
2013**   114,515            114,515 
Global X Guru™ Index ETF
2014  $424,270   $50,647   $   $474,917 
2013*                
2013**   98,030            98,030 
Global X SuperIncome™ Preferred Index ETF
2014  $6,808,392   $   $   $6,808,392 
2013*   978,675            978,675 
2013**   802,997            802,997 

 

*For the period from July 1, 2013 to October 31, 2013

**For the year or period ended June 30, 2013

 

72
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

5. TAX INFORMATION (continued)

 

As of October 31, 2014, the components of tax basis distributable earnings (accumulated losses) were as follows:

 

   Global X Funds 
   Global X
SuperDividend®
ETF
   Global X
SuperDividend®
U.S. ETF
   Global X Social
Media Index
ETF
   Global X |
JPMorgan
Efficiente Index
ETF
   Global X |
JPMorgan US
Sector Rotator
Index ETF
 
Undistributed Ordinary Income  $5,093,945   $   $19,487   $   $3,065 
Undistributed Long-Term Capital Gain   1,980,361                 
Capital Loss Carryforwards       (1,452,981)   (4,661,406)        
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency   22,714,204    12,607,769    (13,702,001)   54,463    35,252 
Late Year Loss Deferral *               (380)    
Other Temporary Differences   2    3    3         
Total Distributable Earnings  $29,788,512   $11,154,791   $(18,343,917)  $54,083   $38,317 

  

   Global X Funds 
   Global X
Permanent ETF
   Global X
Guru™ Index ETF
   Global X
Guru™
International
Index ETF
   Global X Guru™
Small Cap Index
ETF
   Global X
SuperIncome™
Preferred ETF
 
Undistributed Ordinary Income  $90,544   $3,815,497   $10,466   $   $539,784 
Undistributed Long-Term Capital Gain                    
Capital Loss Carryforwards   (404,180)   (6,256,459)   (16,419)   (16,000)   (1,398,794)
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency   (769,582)   17,097,695    14,929    (80,734)   (1,362,284)
Other Temporary Differences           (1)   1    (225,363)
Total Distributable Earnings  $(1,083,218)  $14,656,733   $8,975   $(96,733)  $(2,446,657)

 

*Deferred late-year losses represent ordinary losses realized on investment transactions from January 1, 2014 through October 31, 2014.

 

73
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

5. TAX INFORMATION (concluded)

 

Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years are required to be used prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, preenactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. Losses carried forward under these new provisions are as follows:

 

   Short-Term   Long-Term     
Global X Funds  Loss   Loss   Total 
Global X SuperDividend® U.S. ETF  $1,452,981   $-   $1,452,981 
Global X Social Media Index ETF   4,444,314    217,092    4,661,406 
Global X Permanent ETF   390,625    13,555    404,180 
Global X GuruTM Index ETF   6,256,459    -    6,256,459 
Global X GuruTM International Index ETF   16,419    -    16,419 
Global X GuruTM Small Cap Index ETF   16,000    -    16,000 
Global X SuperIncomeTM Preferred ETF   1,060,170    338,624    1,398,794 

 

During the year ended October 31, 2014 the following funds utilized capital loss carryforwards to offset capital gains amounting to:

 

Global X Funds    
Global X SuperDividendTM ETF  $18,271,023 

 

The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at October 31, 2014 were as follows:

 

Global X Funds  Federal Tax Cost   Aggregated Gross
Unrealized
Appreciation
   Aggregated Gross
Unrealized
Depreciation
   Net Unrealized
Appreciation
(Depreciation)
 
Global X SuperDividend® ETF  $1,096,501,286   $81,820,794   $(59,080,200)  $22,740,594 
Global X SuperDividend® U.S. ETF   294,896,436    17,280,112    (4,672,343)   12,607,769 
Global X Social Media Index ETF   161,661,421    13,098,487    (26,799,607)   (13,701,120)
Global X | JPMorgan Efficiente Index ETF   2,495,000    60,399    (5,936)   54,463 
Global X | JPMorgan US Sector Rotator    Index ETF   2,506,204    35,508    (256)   35,252 
Global X Permanent ETF   9,174,247    391,871    (1,161,453)   (769,582)
Global X Guru™ Index ETF   432,023,559    34,950,942    (17,853,247)   17,097,695 
Global X GuruTM International Index ETF   2,329,536    175,547    (160,618)   14,929 
Global X GuruTM Small Cap Index ETF   2,236,182    142,758    (223,492)   (80,734)
Global X SuperIncome™ Preferred ETF   169,483,764    1,743,496    (3,105,780)   (1,362,284)

 

The preceding differences between book and tax cost are primarily due to mark-to-market treatment of passive foreign investment companies, MLP adjustments and wash sales.

 

74
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

6. CONCENTRATION OF RISKS

 

The Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries.

 

The securities markets of emerging countries are less liquid and subject to greater price volatility, and have a smaller market capitalization, than those of U.S. securities markets. In certain countries, there may be fewer publicly traded securities and the market may be dominated by a few issuers or sectors. Issuers and securities markets in such countries are not subject to as extensive and frequent accounting, financial and other reporting requirements or as comprehensive government regulations as are issuers and securities markets in the U.S. In particular, the assets and profits appearing on the financial statements of emerging country issuers may not reflect their financial position or results of operations in the same manner as financial statements for U.S. issuers. Substantially less information

maybe publicly available about emerging country issuers than is available about issuers in the United States.

 

The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on either income or gains earned or repatriated. The Funds accrue and apply such taxes to net investment income, net realized gains and net unrealized gains as income and/or capital gains are earned.

 

The Funds use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of an underlying index in approximately the same proportions as in the underlying index. The Funds may utilize a representative sampling strategy with respect to their underlying indices when a replication strategy might be detrimental to their shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow their underlying indices, or, in certain instances, when securities in the Underlying Indices become temporarily illiquid, unavailable or less liquid, or due to legal restrictions (such as diversification requirements that apply to the Funds but not the Underlying Indices).

 

7. LOANS OF PORTFOLIO SECURITIES

 

The Funds may lend portfolio securities having a market value up to one-third of the Funds’ total assets. Security loans made pursuant to the securities lending agreement are required at all times to be secured by collateral equal to at least 102% for U.S.-based securities and 105% for foreign-based securities. Such collateral received in connection with these loans will be cash and can be invested in repurchase agreements or U.S. Treasury obligations and is recognized in the Schedule of Investments and Statement of Assets and Liabilities. The obligation to return securities lending collateral is also recognized as a liability in the Statement of Assets and Liabilities. It is the Funds’ policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. The Funds could also experience delays and costs in gaining access to the collateral. The Funds bear the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. As of October 31, 2014, the value of securities on

 

75
 

 

 

 

Notes to Financial Statements (continued)

October 31, 2014

 

7. LOANS OF PORTFOLIO SECURITIES (continued)

 

loan was $81,446,443, $31,033,584, $21,082,613, $11,827,315, and $5,261,009 for the Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X Social Media Index ETF, Global X Guru™ Index ETF and Global SuperIncome™ Preferred ETF, respectively and the value of securities purchased with the cash collateral held from securities on loan was $84,646,388, $31,745,100, $21,498,082, $12,404,072 and $5,416,000 for the Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X Social Media Index ETF, Global X Guru™ Index ETF and Global X SuperIncome™ Preferred ETF, respectively.

 

At October 31, 2014, the following Funds had securities on loan, by counterparty:

 

   Market Value   Cash Collateral 
Global X SuperDividend® ETF          
ABN Amro Securities  $4,172,152   $4,325,056 
Barclays   2,202,420    2,256,000 
BMO Capital Markets   141,143    146,102 
BNP Prime Brokerage   9,209,583    9,458,627 
Citigroup   437,589    461,700 
Credit Suisse   656,659    683,751 
Goldman Sachs & Co.   25,628,869    26,353,448 
JPMorgan   6,434,667    6,753,612 
Merrill Lynch Pierce Fenner & Smith   3,770,252    3,956,400 
Morgan Stanley   2,611,415    2,725,085 
Nomura Securities   18,880,611    19,825,757 
UBS Securities   7,301,083    7,700,850 
Global X SuperDividend® U.S. ETF          
Barclays   823,743    837,550 
BMO Capital Markets   206,142    215,000 
BNP Prime Brokerage   1,315,953    1,345,050 
Citigroup   489,794    500,700 
Credit Suisse   180,522    183,917 
Deutsche Bank   5,236,940    5,377,900 
Goldman Sachs & Co.   4,593,303    4,697,763 
Jefferies & Co.   156,981    160,800 
JPMorgan   8,306,996    8,451,600 
Mizuho Securities   1,700,952    1,742,400 
Merrill Lynch Pierce Fenner & Smith   1,661,984    1,737,250 
Morgan Stanley   6,360,274    6,495,170 

 

76
 

 

 

 

Notes to Financial Statements (concluded)

October 31, 2014

 

7. LOANS OF PORTFOLIO SECURITIES (concluded)

 

   Market Value   Cash Collateral 
Global X Social Media Index ETF          
Barclays  $3,590,400   $3,532,500 
Citigroup   3,663,635    3,944,357 
Credit Suisse   852,135    905,145 
Deutsche Bank   2,408,344    2,383,062 
JPMorgan   466,990    469,000 
Morgan Stanley   5,767,833    6,002,291 
Pershing   3,717,889    3,599,407 
UBS Securities   615,387    662,320 
Global X Guru™ Index ETF          
JPMorgan   1,824,556    1,846,400 
Mizuho Securities   4,059,000    4,180,000 
Morgan Stanley   2,907,239    2,948,422 
Pershing   2,158,520    2,548,000 
UBS Securities   878,000    881,250 
Global X SuperIncome™ Preferred ETF          
Citigroup   2,409,246    2,469,600 
Credit Suisse   525,000    525,000 
JPMorgan   947,649    992,050 
Merrill Lynch Pierce Fenner & Smith   1,379,114    1,429,350 

 

8. CONTRACTUAL OBLIGATIONS

 

The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds maximum exposure under these arrangements is unknown. However the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.

 

Pursuant to the Trust’s organizational documents, the Trustees of the Trust and the Trust’s officers are indemnified against certain liabilities that may arise out of the performance of their duties.

 

9. SUBSEQUENT EVENTS

 

The Funds have been evaluated regarding the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional disclosure or adjustments were required to the financial statements as the date the financial statements were issued, except as follows:

 

Subsequent to the October 31, 2014 fiscal year end, the following portfolio of the Trust commenced operations:

 

Fund Name Commenced Operations
Global X GF China Bond ETF November 18, 2014

 

77
 

 

 

 

Report Of Independent Registered Public Accounting Firm

OCTOBER 31, 2014

 

The Board of Trustees and Shareholders of Global X Funds

 

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Global X | JPMorgan US Sector Rotator Index ETF, Global X | JPMorgan Efficiente Index ETF, Global X SuperDividend® ETF, Global X SuperDividend® U.S. ETF, Global X Social Media Index ETF, Global X Permanent ETF, Global X GuruTM Index ETF, Global X GuruTM International Index ETF, Global X GuruTM Small Cap Index ETF, and Global X SuperIncomeTM Preferred ETF (ten of the series constituting the Global X Funds) (the “Funds”) as of October 31, 2014, and the related statements of operations for the year or periods indicated therein, the statements of changes in net assets, and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2014, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds listed above at October 31, 2014, and the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

 

 

  

Philadelphia, Pennsylvania

December 29, 2014

 

78
 

 

 

Disclosure of Fund Expenses (unaudited)

 

  

All Exchange Traded Funds (“ETF”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund.

 

Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.

 

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

 

The table on the next page illustrates your Fund’s costs in two ways:

 

Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

 

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

 

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

 

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.

 

79
 

 

 

Disclosure of Fund Expenses (unaudited) (concluded)

 

 

   Beginning
Account
Value
5/1/2014
   Ending
Account
Value
10/31/2014
   Annualized
Expense
Ratios
   Expenses
Paid
During
Period(1)
 
Global X SuperDividend® ETF
Actual Fund Return  $1,000.00   $999.00    0.58%  $2.92 
Hypothetical 5% Return   1,000.00    1,022.28    0.58    2.96 
Global X SuperDividend® U.S. ETF
Actual Fund Return  $1,000.00   $1084.90    0.45%  $2.36 
Hypothetical 5% Return   1,000.00    1,022.94    0.45    2.29 
Global X Social Media Index ETF
Actual Fund Return  $1,000.00   $1,114.30    0.65%  $3.46 
Hypothetical 5% Return   1,000.00    1,021.93    0.65    3.31 
Global X | JPMorgan Efficiente Index ETF
Actual Fund Return(2)  $1,000.00   $1,021.60    0.69%  $0.19 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
Global X | JPMorgan US Sector Rotator Index ETF
Actual Fund Return(2)  $1,000.00   $1,015.20    0.69%  $0.19 
Hypothetical 5% Return   1,000.00    1,021.73    0.69    3.52 
Global X Permanent ETF
Actual Fund Return  $1,000.00   $1,004.60    0.48%  $2.43 
Hypothetical 5% Return   1,000.00    1,022.79    0.48    2.45 
Global X Guru™ Index  ETF
Actual Fund Return  $1,000.00   $1,077.00    0.75%  $3.93 
Hypothetical 5% Return   1,000.00    1,021.42    0.75    3.82 
Global X Guru™ International Index  ETF
Actual Fund Return  $1,000.00   $1,066.20    0.75%  $3.91 
Hypothetical 5% Return   1,000.00    1,021.42    0.75    3.82 
Global X Guru™ Small Cap Index  ETF
Actual Fund Return  $1,000.00   $1,000.70    0.75%  $3.78 
Hypothetical 5% Return   1,000.00    1,021.42    0.75    3.82 
Global X SuperIncome™ Preferred ETF
Actual Fund Return  $1,000.00   $1,012.40    0.58%  $2.94 
Hypothetical 5% Return   1,000.00    1,022.28    0.58    2.96 

 

(1)Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 184/365 (to reflect the one-half year period.)
(2)Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 10/365 (to reflect the period from inception to date.)

 

80
 

 

 

 

Approval Of Investment Advisory Agreement (unaudited)

 

 

 

Section 15(c) of the Investment Company Act of 1940, as amended ("1940 Act"), requires the board of trustees of an exchange-traded fund (“ETF”), including a majority of those trustees who are not "interested persons" of the ETF, as defined in the 1940 Act ("Independent Trustees"), consider on an initial basis and periodically thereafter (as required by the 1940 Act), at an in person meeting called for such purpose, the terms of each fund’s investment advisory agreement and whether to approve entering into, or renewing, each agreement.

 

At a quarterly Board meeting held on September 5, 2014, the Board of Trustees (including the Trust’s Independent Trustees voting separately) initially considered and unanimously approved (i) the initial Investment Advisory Agreement for the Global X | JP Morgan Efficiente Index ETF and the Global X | JP Morgan US Sector Rotator Index ETF (each a “New Fund”) and (ii) the Supervision and Administration Agreement between the Trust, on behalf of each New Fund, and Global X Management. The Investment Advisory Agreements and Supervision and Administration Agreements for each New Fund are referred to herein as the “New Fund Agreements.”

 

In advance of the Board meeting, the Board (including the Trust’s Independent Trustees) and the Independent Trustees’ independent legal counsel requested (in writing) detailed information from Global X Management in connection with their consideration of the New Fund Agreements and received and reviewed written responses from Global X Management and supporting materials relating to those requests for information. In the course of their consideration of the New Fund Agreements, the Trust’s Independent Trustees were advised by their counsel and, in addition to meeting with management of Global X Management, they met separately in executive session with their counsel.

 

In determining to approve the New Fund Agreements for each New Fund, the Board considered a variety of factors, including the factors discussed at greater detail below. After full consideration of the factors below, as well as other factors that were instructive in their consideration, the Board, including all of the Trust’s Independent Trustees voting separately, concluded that the New Fund Agreements were fair and reasonable and in the best interest of each New Fund. In reaching this decision, the Board did not assign relative weights to the factors discussed below nor did the Board deem any one factor or group of them to be controlling in and of themselves. Each member of the Board may have afforded different weight to the various factors.

 

Nature, Extent and Quality of Services

 

With respect to this factor, the Board considered:

 

the terms of the New Fund Agreements and the range of services to be provided to each New Fund in accordance with the New Fund Agreements;

Global X Management’s key personnel and the portfolio managers who would provide investment advisory services to each New Fund;

 

Global X Management’s responsibilities under the New Fund Agreements to, among other things, (i) manage the investment operations of each New Fund and the composition of each New Fund’s assets, including the purchase, retention and disposition of its holdings, (ii) provide quarterly reports to the Trust’s officers and Board and other reports as the Board deems necessary or appropriate, (iii) vote proxies, exercise consents, and exercise all other rights appertaining to securities and assets held by each New Fund, (iv) select broker-dealers to execute portfolio transactions for each New Fund when necessary, (v) assist in the preparation and filing of reports and

 

 

81
 

 

 

 

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (unaudited)(continued)

 

 

 

proxy statements (if any) to the shareholders of each New Fund and the periodic updating of the registration statement, prospectuses, statement of additional information, and other reports and documents for each New Fund that are required to be filed by the Trust with the Securities and Exchange Commission ("SEC") and other regulatory or governmental bodies, and (vi) monitor anticipated purchases and redemptions of the shares (including creation units) of each New Fund by shareholders and new investors; 

 

the nature, extent and quality of Global X Management’s services (including advisory, administrative and compliance services) that would be made available to each New Fund; and

the quality of Global X Management’s resources and personnel that would be made available to each New Fund, including Global X Management’s experience and the professional qualifications of Global X Management’s key personnel.

 

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to each New Fund.

 

 Performance

 

The Board determined that because each New Fund had not commenced operations, meaningful data relating to investment performance of each New Fund was not available and, therefore, could not be a factor in approving the New Fund Agreements.

 

Cost of Services and Profitability

 

With respect to this factor, the Board considered:

 

Global X Management’s expected cost to provide investment management, supervision and administrative and related services to each New Fund;
The unitary fee (including the proposed investment advisory fee) ("Management Fee") that was proposed to be borne by each New Fund under the New Fund Agreements for the investment advisory, supervisory and administrative services that each New Fund requires under a unitary fee structure (including the types of fees and expenses that are not included within the unitary fee and would be borne by each New Fund); and
the expected profitability to Global X Management, if any, from all services to be provided to each New Fund and all aspects of the relationship between Global X Management and each New Fund.

 

Based on these considerations, the Board concluded that the proposed rate of the Management Fee paid by each Fund to Global X Management, in light of the nature and quality of the services provided, was reasonable and in the best interest of Fund shareholders.

 

82
 

 

 

 

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (unaudited)(continued)

 

 

 

Comparison of Fees and Services

 

With respect to this factor, the Board considered:

 

  comparative information with respect to the proposed Management Fee to be paid to Global X Management by each New Fund. In connection with this consideration, Global X Management provided the Board with comparative expense data for each New Fund, including fees and expenses paid by unaffiliated comparable specialized and/or focused exchange-traded funds and/or other registered funds, as well as the fees and expenses paid by   another series of the Trust under the same unitary Management Fee structure;

 

  the structure of the proposed unitary Management Fee (which includes as one component the proposed investment advisory fee for each New Fund) and the expected total expense ratios for each New Fund. In this regard, the Board took into consideration that the purpose of adopting a unitary Management Fee structure for each New Fund was to create a simple, all-inclusive fee that would provide a level of predictability with respect to the overall expense ratio (i.e., the total fees) of each New Fund and that the proposed Management Fee for each New Fund was set at a competitive fee to make each New Fund viable in the marketplace. The Board also took into consideration that each New Fund, unlike other series of the Trust, would invest substantially in other exchange-traded funds, and that  the unitary fee for each New Fund is based on services provided that will be in addition to, rather than duplicative of, the services provided under the advisory contract(s) of any exchange-traded fund in which a New Fund may invest and
     
 

 

that Global X Management would be responsible for most ordinary expenses of each New Fund, including the costs of various third-party services required by each New Fund, including investment advisory, administrative, audit, certain custody, portfolio accounting, legal, transfer agency and printing costs, but that each New Fund would bear other expenses not covered under the proposed all-inclusive Management Fee, such as taxes, brokerage fees, commissions, and other transaction expenses, interest expenses, and extraordinary expenses.

 

Based on these considerations, the Board concluded that it would be in the best interest of the New Funds and their shareholders to approve the New Fund Agreements.

 

Economies of Scale

 

With respect to this factor, the Board considered:

 

  the extent to which economies of scale would be realized as each New Fund grows and whether the proposed unitary Management Fee for each New Fund reflected these economies of scale;

 

  the significant investment of time, personnel and other resources that Global X Management intends to made in each New Fund in order to seek to assure that each New Fund is attractive to investors; and

 

  that the proposed unitary Management Fee would provide a high level of certainty as to the total level of expenses for each New Fund and its shareholders.

 

83
 

 

 

 

APPROVAL OF INVESTMENT ADVISORY AGREEMENT (unaudited)(continued)

 

 

 

Based on these considerations, the Board concluded that approval of the proposed unitary Management Fee for each New Fund was reasonable.

 

Other Benefits

 

In considering the New Fund Agreements, in addition to the categories discussed above, the Board considered other benefits that may be realized by Global X Management as a result of its relationships with each New Fund.

 

84
 

 

 

 

Supplemental Information (unaudited)

 

 

 

Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Funds generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. The Funds’ Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of the Funds’ holdings. The Market Price of the Funds will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

 

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV.

 

Further information regarding premiums and discounts is available on the Funds’ website at www.GlobalXFunds.com

 

85
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

 

 

Set forth below are the names, addresses, year of birth, position with the Trust, Term of Office and Length of Time Served, the principal occupations for the last five years, number of Funds in fund complex overseen by trustee, and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust.

 

Name,
Address
(Year of
Birth)
Position(s)
Held
with Funds
Principal Occupation(s) During
the Past 5 Years
Number of
Funds in
Trust
Overseen by
Trustee
Other
Directorships
Held
by Trustees
Independent Trustees2  

Sanjay Ram Bharwani

623 Fifth Ave,

15th floor

New York, NY 10022

(1974)

Trustee (since 2008) CEO of Risk Advisors Inc. (since 2007) (consulting firm). 403 None.

Scott R. Chichester1

623 Fifth Ave,

15th floor

New York, NY 10022

(1970)

 

Trustee (since 2008) CFO, Sterling Seal & Supply Inc. (since 2011), Director, President & Treasurer, Bayview Acquisition Corp (since 2010), CPA, Penda Aiken Inc. (2009-2011) (consultant); Founder and President, DirectPay USA LLC (since 2006) (payroll company); Chief Financial Officer, Ong Corporation (2002-2010) (technology company); Proprietor, Scott R. Chichester CPA (since 2001) (CPA firm). 403 Director of Bayview Acquisition Corp. (since 2010).

Kartik Kiran Shah

623 Fifth Ave,

15th floor

New York, NY 10022

(1977)

Trustee (since 2008) Vice President, Business Development, Cynvenio Biosystems (2012-2014); Independent Consultant, Self-Employed (2011-2012) (non-financial services); Director, Wireless Generation (2008-2011) (software). 403 None.

 

86
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

 

 

The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-493-8631. The following chart lists Trustees and Officers as of October 31, 2014.

 

Name, Address
(Year of Birth)
Position(s) Held
with Funds
Principal Occupation(s)
During
the Past 5 Years
Number of Funds
in Trust
Overseen by
Trustee
Other
Directorships Held
by Trustees
Interested Trustee / Officers2  

Bruno del Ama

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Trustee (since 2008), President, Chief Executive Officer

(since 2008)

Chief Executive Officer, Global X Management Company (“GXMC”) (since 2008); Chief Compliance Officer, GXMC (2008-2013). 403 None.

Jose C. Gonzalez

623 Fifth Ave,

15th floor

New York, NY 10022

(1976)

Chief Operating Officer (since 2008); Chief Compliance Officer (2008-5/2014), Treasurer, Principal Accounting Officer and Chief Financial Officer (2008-9/2014) Chief Operating Officer, Global X Management Company LLC (since 2008); Founder and President of GWM Group, Inc. (since 2006) (broker-dealer firm). N/A N/A

Thomas K. Lynch

623 Fifth Ave,

15th floor

New York, NY 10022

(1956)

Treasurer, Principal Accounting Officer and Chief Financial Officer (since 9/2014); Chief Compliance Officer (since 5/2014). Chief Compliance Officer, GXMC (since 5/2014); Senior Compliance Officer, GXMC (2/2014 - 4/2014); Compliance, Financial and Operations Consultant (2013); Chief Compliance Officer, Van Eck Associates (12/ 2006 - 2/ 2013). N/A N/A

Daphne Tippens Chisolm

11524-C Providence Road, Suite 236

Charlotte, NC 28277

(1969)

Secretary (since 2012) General Counsel, GXMC (since 2011); Chief Compliance Officer, GXMC (1/2014 - 5/2014); Founder and President of Law Offices of DT Chisolm, P.C. (since 2009) (law firm); Counsel, Dechert (2007-2009) (law firm). N/A N/A

Dianne M. Descoteaux4

One Freedom Valley Drive

Oaks, PA 19456

(1977)

Assistant Secretary (since 2011) Counsel, SEI Investments (since 2010); Associate, Morgan, Lewis & Bockius LLP (2006-2010). N/A N/A

 

87
 

 

 

 

Trustees and Officers of the Trust (unaudited)

 

 

 

Name, Address

(Year of Birth)

Position(s) Held
with Funds
Principal Occupation(s) During
the Past 5 Years
Other Directorships
Held
by Trustees

Lisa Whittaker4

One Freedom Valley Drive

Oaks, PA 19456

(1978)

Assistant Secretary (since 2013)

Counsel at SEI Investments (since 2012); Associate Counsel and Compliance Officer at The Glendale Trust Company (2011-2012); Associate of Drinker Biddle & Reath LLP (2006-2011).

 

N/A

Peter Rodriguez4

One Freedom Valley Drive

Oaks, PA 19456

(1962)

Assistant Treasurer

(since 2011)

Fund Accounting Director, SEI Investments Global Funds Services (since 2011); Mutual Fund Trading Director, SEI Global Trust Company (2009-2011);  Asset Data Services Director, SEI Global Wealth Services (2006-2009). N/A

 

1Mr. Chichester is currently married to a sister of Mr. del Ama’s wife. While an “immediate family member” (as defined in Section 2(a)(19) of the 1940 Act) of Mr. del Ama would be considered an Interested Person, Mr. Chichester is not considered an immediate family member for this purpose. Although this fact was taken into consideration in determining whether Mr. Chichester should be considered to be an Independent Trustee for purposes of the Section 2(a)(19) of the 1940 Act, it was determined that this relationship was not one that should disqualify Mr. Chichester from serving as an Independent Trustee of the Trust.

 

2Each Trustee serves until his or her successor is duly elected or appointed and qualified.

 

3As of October 31, 2014, the Trust had eighty-eight investment portfolios, forty of which were operational.

 

4These officers of the Trust also serve as officers of one or more mutual funds for which SEI Investments Company or an affiliate acts as investment manager, administrator or distributor.

 

88
 

 

 

 

NOTICE TO SHAREHOLDERS (unaudited)

 

 

 

For shareholders that do not have an October 31, 2014 tax year end, this notice is for informational purposes only. For shareholders with an October 31, 2014 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended October 31, 2014, the Funds are designating the following items with regard to distributions paid during the year.

 

    Return of
Capital
    Long-Term
Capital Gain
Distributions
    Ordinary
Income
Distributions
    Total
Distributions
    Qualifying
for
Corporate
Dividends
Received
Deduction (1)
    Qualifying
Dividend
Income (2)
    U.S.
Government
Interest (3)
    Interest
Related
Dividends (4)
    Short Term
Capital Gain
Dividends(5)
    Foreign Tax
Credit
 
Global X SuperDividend® ETF   0.00%   0.00%   100.00%   100.00%   0.00%   58.65%   0.00%   0.00%   0.00%   1.50%
Global X SuperDividend® U.S. ETF   10.66%   0.00%   89.34%   100.00%   83.68%   84.27%   0.00%   0.00%   0.00%   0.00%
Global X Social Media Index ETF   0.00%   0.00%   100.00%   100.00%   100.00%   100.00%   0.06%   0.00%   0.00%   96.46%
Global X | JPMorgan Efficiente Index ETF   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%
Global X | JPMorgan US Sector Rotator Index ETF   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%
Global X Permanent ETF   0.00%   18.02%   81.98%   100.00%   18.58%   26.29%   32.49%   45.30%   0.00%   0.00%
Global X Guru™ Index ETF   0.00%   10.66%   89.34%   100.00%   97.61%   95.64%   0.00%   0.00%   0.00%   0.00%
Global X Guru™ International Index ETF   0.00%   0.00%   100.00%   100.00%   22.37%   100.00%   0.00%   0.00%   0.00%   100.00%
Global X Guru™ Small Cap Index ETF   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%   0.00%
Global X SuperIncome™ Preferred ETF   0.00%   0.00%   100.00%   100.00%   82.32%   80.45%   0.00%   0.00%   0.00%   0.00%

 

(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of ordinary Income distributions (the total of short term capital gain and net investment income distributions).

(2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Relief Reconciliation Act of 2003 and its reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.

(3) "U.S. Government Interest represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year.  Generally, interest from direct U.S. Government obligations is exempt from state income tax. 

(4) The percentage in this column represents the amount of "Qualifying Interest Income" as created by the American Jobs Creation Act of 2004 and is a percentage of net investment income that is exempt from U.S. withholding tax when paid for foreign investors..

(5) The percentage of this column represents the amount of “Short Term Capital Gain Dividend” is reflected as a percentage of short term capital gain distribution that is exempted from U.S. withholding tax when paid to foreign investors. 

 

The Funds intend to pass through a foreign tax credit to shareholders. For the fiscal year ended October 31, 2014, the total amount of foreign source income and foreign tax credit are as follows:

 

   Foreign Source   Foreign Tax Credit Pass 
Fund Name  Income   Through 
Global X SuperDividend® ETF  $39,620,931   $842,752 
Global X SuperDividend® U.S. ETF   -    - 
Global X Social Media Index ETF   422,291    48,051 
Global X | JPMorgan Efficiente Index ETF   -    - 
Global X | JPMorgan US Sector Rotator Index ETF   -    - 
Global X Permanent ETF   -    - 
Global X GuruTM Index ETF   -    - 
Global X GuruTM International Index ETF   22,016    2,142 
Global X GuruTM Small Cap Index ETF   -    - 
Global X SuperIncomeTM Preferred ETF   -    - 

 

The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2014. Complete information will be computed and reported in conjunction with your 2014 Form 1099-DIV.

 

89
 

 

 

 

NOTES

 

 

 
 

 

 

 

NOTES

 

 
 

 

 

 

NOTES

 

 
 

 

 

 

623 Fifth Avenue, 15th floor

New York, NY 10022

1-888-GXFund-1

(1-888-493-8631)

www.globalxfunds.com

 

Investment Adviser:

Global X Management Company LLC

623 Fifth Avenue, 15th floor

New York, NY 10022

 

Distributor:

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, PA 19456

 

Sub-Administrator:

SEI Investments Global Funds Services

One Freedom Valley Drive

Oaks, PA 19456

 

Counsel for Global X Funds and the Independent Trustees:

K&L Gates LLP

1601 K Street N.W.

Washington, DC 20007

 

Custodian:

Brown Brothers Harriman & Co.

40 Water Street

Boston, MA 02109

 

Independent Registered Public Accounting Firm:

Ernst & Young LLP

2005 Market Street

Suite 700

Philadelphia, PA 19103

  

This information must be preceded or accompanied by a current prospectus for the Funds described.

  

GLX-AR-003-0400

  

 
 

 

Item 2. Code of Ethics.

 

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function.

 

Item 3. Audit Committee Financial Expert.

 

(a)(1) The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee.

 

(a)(2) The audit committee financial expert is Scott Chichester and is independent as defined in Form N-CSR Item 3(a)(2).

 

Item 4. Principal Accountant Fees and Services.

 

Fees billed by Ernst & Young LLP in 2014 and 2013 related to the registrant.

 

In 2014 and 2013, Ernst & Young, LLP billed the registrant aggregate fees for services rendered to the registrant for the last two fiscal years as follows:

 

  2014 2013
    All fees and
services to
the Trust
that were
pre-approved
All fees and
services to
service affiliates
that were
pre-approved
All other fees
and services to
service affiliates
that did not
require
pre-approval
All fees and
services to the
Trust that were
pre-approved
All fees and
services to
service affiliates
that were
pre-approved
All other fees
and services to
service affiliates
that did not
require pre-approval
(a)

Audit Fees

 

$468,530 $0 $0 $361,500 $0 $0
(b)

Audit-Related Fees

 

$0 $0 $0 $0 $0 $0
(c)

Tax Fees

 

$127,725 $0 $0 $100,575 $0 $0
(d)

All Other Fees

 

$0 $0 $0 $0 $0 $0

 

 

(e)(1) Not applicable.

 

(e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows for Ernst & Young LLP in 2014 and 2013:

 

  2014 2013

Audit-Related Fees 

0% 0%
Tax Fees 0% 0%

All Other Fees 

0% 0%

 

 
 

 

(f) Not applicable.

 

(g) The aggregate non-audit fees and services billed by Ernst & Young, LLP in 2014 and 2013 for the last two fiscal years were $127,725 and $100,575, respectively.

 

(h) During the past fiscal year, all non-audit services provided by registrant’s principal accountant to either registrant’s investment adviser or to any entity controlling, controlled by, or under common control with registrant’s investment adviser that provides ongoing services to registrant were pre-approved by the audit committee of registrant’s Board of Trustees.  Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence. 

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable to open-end management investment companies.

 

Item 6. Schedule of Investments.

 

Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable to open-end management investment companies.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable to open-end management investment companies. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.

 

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

 

Not applicable to open-end management investment companies.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have been no material changes.

 

Item 11. Controls and Procedures.

 

(a) The certifying officers, whose certifications are included herewith, have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant’s disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.

 

Items 12. Exhibits.

 

(a)(1) Code of Ethics attached hereto.

 

(a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.

 

(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit.

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Global X Funds
   
   
By (Signature and Title)* /s/ Bruno del Ama
  Bruno del Ama
  President
   

Date: January 20, 2015

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)* /s/ Bruno del Ama
  Bruno del Ama
  President

 

Date: January 20, 2015

 

 

By (Signature and Title)* /s/ Thomas K. Lynch
  Thomas K. Lynch
  Chief Financial Officer

 

Date: January 20, 2015

 

* Print the name and title of each signing officer under his or her signature.

 

 

 

 


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSR/A’ Filing    Date    Other Filings
8/1/15
3/1/15
Filed on / Effective on:1/26/1524F-2NT
1/20/15
1/9/15N-CSR
12/31/14
12/29/14
11/18/14
For Period End:10/31/1424F-2NT,  N-CSR,  NSAR-B
10/22/14
9/5/14
8/15/14485BXT
8/14/14
7/15/14497
7/14/14
6/30/14N-PX,  NSAR-A
3/10/14497K,  8-A12B
1/1/14
11/12/13497,  8-A12B
11/6/138-A12B
10/31/1324F-2NT,  N-CSR,  NSAR-B,  NSAR-BT
7/1/13NSAR-A
6/30/1324F-2NT,  N-CSR,  N-PX,  NSAR-B
5/16/13
5/15/13
4/2/13497,  497K,  8-A12B
3/11/13497K,  8-A12B
10/31/1224F-2NT,  N-CSR,  NSAR-B
9/6/12485BPOS,  497,  497K
8/31/12
7/16/12497,  497K,  8-A12B,  SC 13G/A
6/4/12497K,  8-A12B
2/7/128-A12B
12/12/1125,  8-A12B
12/7/11497,  8-A12B
11/14/118-A12B
10/31/1124F-2NT,  485BPOS,  N-CSR,  NSAR-B
6/8/11497,  8-A12B
5/25/11497,  8-A12B
3/16/11485BPOS,  497,  8-A12B
3/2/11497J,  8-A12B
2/16/11485BPOS
2/2/11485BPOS
12/23/10
12/22/10
11/9/10
11/4/10497J
11/3/10
10/31/1024F-2NT,  N-CSR,  NSAR-B
7/28/10
7/22/108-A12B
7/7/10
6/21/10497,  497J
4/19/10485BPOS,  8-A12B
1/12/10
12/15/09
12/10/09
12/8/09
11/30/098-A12B
8/17/09
2/5/09497
3/6/08
12/31/05
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