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Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
1 (888) GX-FUND-1GLOBALXFUNDS.COM@GLOBALXFUNDS
The Scientific Beta Report
All data as of 6/30/2017 TickerGross Expense
Ratio
Net Expense
Ratio1Since Fund Inception 1 Year
Annualized Since Fund
Inception
Global X Scientific Beta US ETF
SCIU 0.35% 0.19%
NAV 18.11% 13.93% 8.11%
Market Price 18.22% 13.91% 8.16%
SBUXRHMG Index 18.87% 14.21% 8.43%
Global X Scientific Beta Europe ETF
SCID 0.38% —
NAV 10.69% 23.06% 4.87%
Market Price 11.73% 22.78% 5.33%
SBRXRHMN Index 11.37% 23.33% 5.17%
Global X Scientific Beta Asia ex-Japan ETF
SCIX 0.38% —
NAV 4.54% 12.93% 2.10%
Market Price 5.67% 12.96% 2.62%
SBAXRHMN Index 3.76% 13.39% 1.74%
Global X Scientific Beta Japan ETF
SCIJ 0.38% —
NAV 20.91% 17.76% 9.30%
Market Price 21.47% 17.99% 9.54%
SBJURHMN Index 21.67% 18.21% 9.62%
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Indices are unmanaged and do not include the effect of fees, expenses, or sales charges. One cannot invest
directly in an index. For performance data current to the most recent month end, please call 1-888-gxfund-1 or visit our website at globalxfunds.com.
1Fee waivers are contractual and in effect until at least March 1, 2018.
Don’t just be smart. Be Scientific.
OVERVIEW
The Global X Scientific Beta ETFs are a family of funds that provide core equity exposure to U.S. and international markets. The ETFs may be considered viable alternatives to actively managed funds as they seek to outperform market capitalization weighted indexes by following a methodology rooted in academic research, while preserving the lower costs and transparency of an ETF.
SCIUUnited States
SCIDEurope
SCIXAsia ex-Japan
SCIJJapan
Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
1 (888) GX-FUND-1GLOBALXFUNDS.COM@GLOBALXFUNDS
Total 18.87%
Apple, Inc. 3.62%
Microsoft Corporation 2.56%
Amazon.com, Inc. 1.85%
Facebook, Inc. Class A 1.72%
Johnson & Johnson 1.72%
Exxon Mobil Corporation 1.65%
JPMorgan Chase & Co. 1.56%
Berkshire Hathaway, Inc. Class B 1.55%
Alphabet, Inc. Class A 1.33%
Alphabet, Inc. Class C 1.31%
Holdings subject to change.
1 Since inception of SCIU ETF, 5/12/15.2 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.
SCIU TOP 10 HOLDINGSSource: Global X Funds. As of 6/30/17.
S&P 500 INDEX TOP 10 HOLDINGSSource: SPDR. As of 6/30/17.
SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2017Source: Bloomberg, June 2017
Global X Scientific Beta US S&P 500 Index SciBeta United States Multi-Beta Multi-Strategy ERC
-15%
25%
15%
0%
May 15 Jul 15 Oct 15 Mar 16Dec 15 Jun 17Mar 17Dec 16Oct 16 Jul 16 May 16
20.87%
18.87%
18.11%
VOLATILITYSource: Bloomberg, June 2017
8.31% 7.35% 7.01%
8.18%
Global X Scientific Beta US S&P 500 Index
Q2 2017 1 Year
HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and SPDR.
43% Overlap by weight between SciBeta U.S. and S&P 500
412 Number of overlapping holdings
90% Holdings in SciBeta U.S.
also in S&P 500
82% Holdings in S&P 500 also in SciBeta U.S.
57% Active share
S&P 500Index
Global XScientific Beta U.S.
43%
ONE YEAR AND MOST RECENT QUARTER RETURNSSource: ERI Scientific Beta and Bloomberg, June 2017
Value LowVolatility
DiversifiedIndex²
Global XSciBeta U.S.
S&P500
3.05%
17.05%
4.57%
12.93% 14.08%
2.76%
12.23%
3.93%
15.96%
3.50% 3.09% 3.17%
13.93%
17.90%
Momentum Size
Q2 2017 1 Year
0%
20%
40%
60%
80%
100%
SCIBETA U.S. HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2017
20.51%
24.46%
31.36%
23.67%
20.32%
24.00%
29.99%
25.68%
Q2 2015 Q1 2017 Q2 2017
20.98%
24.67%
31.52%
22.83% Momentum
Value
Size
Low Volatility
InformationTechnology
ConsumerStaples
EnergyHealthCare
ConsumerDiscretionary
TelecomServices
IndustrialsMaterialsReal EstateFinancialsUtilities
-1.45% -1.42% -0.14%
6.44%
-1.16% -1.01% -1.13%
1.40% 3.04%
7.15%
-11.91%
SCIBETA U.S. SECTOR OVERWEIGHT/UNDERWEIGHT VS. S&P 500 Source: Global X Funds, Bloomberg and SPDR.
Total 6.37%
Annaly Capital Management, Inc. 0.71%
Xcel Energy Inc. 0.68%
Arch Capital Group Ltd. 0.67%
KeyCorp. 0.66%
Aetna, Inc. 0.65%
CME Group, Inc. 0.63%
Anthem, Inc. 0.61%
WEC Energy Group, Inc. 0.61%
Regions Financial Corp. 0.59%
Edison International. 0.56%
Holdings subject to change.
PERFORMANCE AND ATTRIBUTION RISK AND DIVERSIFICATION
US ETF Q2 2017 GLOBAL X SCIENTIFIC BETA SCIU
Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
1 (888) GX-FUND-1GLOBALXFUNDS.COM@GLOBALXFUNDS
Total 16.89%
Nestle SA 2.95%
Novartis AG 2.25%
HSBC Holdings PLC 2.05%
Roche Holding AG 1.95%
British American Tobacco PLC 1.38%
TOTAL SA 1.33%
Royal Dutch Shell PLC 1.29%
Siemens AG 1.27%
BP PLC 1.23%
Sanofi SA 1.19%
Holdings subject to change.
SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2017 Source: Bloomberg, June 2017
May 15 Aug 15 Oct 15 Jan 16 Jun 17Mar 17Dec 16Sep 16Jun 16Apr 16
Global X Scientific Beta Europe ETF STOXX Europe 600 Index
SciBeta Extended Developed Europe Multi-Beta Multi-Strategy ERC
-25%
-20%
15%
5%
10%
0%
-5%
-15%
-10%
10.69%
3.23%
11.37%
Q2 2017 1 Year
11.88% 11.65% 11.59% 11.86%
Global X Scientific Beta Europe ETF
STOXX Europe 600 Index
VOLATILITYSource: Bloomberg, June 2017
HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and S&P.
43% Overlap by weight between SCID and STOXX Europe 600 Index
518 # of overlapping holdings
94% Holdings in SCID also in benchmark
86% Holdings in Benchmark also in SCID
56% Active share
STOXX Europe 600
Index
Global X Scientific Beta
Europe ETF
43%
ONE YEAR AND MOST RECENT QUARTER RETURNSSource: ERI Scientific Beta and Bloomberg, June 2017
9.34%
28.85%
10.87%
20.77%
25.11%
10.32%
19.38%
10.66%
23.80%
9.70% 7.54%
9.37%
23.06% 21.32%
Q2 2017 1 Year
STOXX Europe600 Index
SCIDDiversifiedIndex2
Low VolatilitySizeHigh MomentumValue
0%
20%
40%
60%
80%
100%
34.39%
17.58%
28.28%
19.76%
20.87%
18.13%
43.65%
17.35%
SCID HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2017
Q2 2017Q1 2016Q2 2015
20.39%
18.40%
43.28%
17.92% Momentum
Value
Size
Low Volatility
ConsumerStaples
HealthCare
EnergyTelecomServices
InformationTechnology
ConsumerDiscretionary
UtilitiesFinancialsMaterialsIndustrialsReal Estate
5.16% 4.88% 2.65%
1.22% 0.50%
-0.07%
0.21%
-0.38% -1.05%
-5.89% -6.92%
SCID SECTOR OVERWEIGHT/UNDERWEIGHT VS. STOXX EUROPE 600 INDEXSource: Global X Funds, Bloomberg and STOXX.
Total 5.39%
Hiscox Ltd. 0.59%
Carnival PLC 0.59%
Swiss Prime Site AG 0.58%
Orpea SA 0.55%
Flughafen Zuerich AG 0.54%
Alstom SA 0.52%
Bouygues SA 0.52%
Sofina SA 0.51%
PSP Swiss Property AG 0.50%
Cofinimmo SA 0.50%
Holdings subject to change.
1 Since inception of SCID ETF, 5/12/15.2 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.
GLOBAL X SCIENTIFIC BETA
SCID TOP 10 HOLDINGSSource: Global X Funds. As of 6/30/17.
STOXX EUROPE 600 INDEX TOP 10 HOLDINGSSource: STOXX. As of 6/30/17.
PERFORMANCE AND ATTRIBUTION RISK AND DIVERSIFICATION
SCIDEurope ETF Q2 2017
Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
1 (888) GX-FUND-1GLOBALXFUNDS.COM@GLOBALXFUNDS
Total 36.82%
Commonwealth Bank of Australia 6.65%
AIA Group Ltd. 5.35%
Westpac Banking Corp. 4.77%
Australia & New Zealand Banking Group 3.93%
National Australia Bank Ltd. 3.69%
BHP Billiton Ltd. 3.49%
CSL Ltd. 2.93%
Wesfarmers Ltd. 2.12%
CK Hutchison Holdings Ltd. 2.06%
Hong Kong Exchanges and Clearing Ltd. 1.83%
Holdings subject to change.
Global X Scientific Beta Asia ex-Japan ETF
MSCI Pacific ex-Japan Index2
SciBeta Developed Asia-Pacificex-Japan Multi-Beta Multi-Strategy ERC
-30%
10%
0%
-10%
-20%
May 15 Aug 15 Oct 15 Jan 16 Jun 17Mar 17Dec 16Sep 16Jul 16Apr 16
4.54%
3.76%
SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2017Source: Bloomberg, June 2017
5.93%
9.20% 10.28%
7.24%
11.14%
VOLATILITYSource: Bloomberg, June 2017
Global X Scientific Beta Asia ex-Japan ETF
MSCI Pacific ex-Japan Index
Q2 2017 1 Year
42% Overlap by weight between SCIX and MSCI Pacific ex-Japan Index
120 # of overlapping holdings
85% Holdings in SCIX also in benchmark
80% Holdings in Benchmark also in SCIX
57% Active share
MSCI Pacific ex-Japan
Index
Global X Scientific Beta Asia ex-Japan
ETF
42%
HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and iShares.
ONE YEAR AND MOST RECENT QUARTER RETURNSSource: ERI Scientific Beta and Bloomberg, June 2017
2.11%
16.48%
4.92%
12.57%
14.94%
3.42%
11.47%
4.37%
17.39%
3.43% 1.54%
3.90%
12.93%
19.43%
Q2 2017 1 Year
Value Low Volatility DiversifiedIndex3
SCIX MSCI Pacific ex-Japan Index
Momentum Size
0%
20%
40%
60%
80%
100%
SCIX HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2017
Q2 2017Q1 2017Q2 2015
27.36%
19.62%
25.73%
27.29%
22.42%
24.81%
29.29%
23.48%
22.16%
25.05%
29.53%
23.26% Momentum
Value
Size
Low Volatility
FinancialsMaterialsEnergyTelecomServices
HealthCare
IndustrialsUtilitiesConsumerStaples
InformationTechnology
Real EstateConsumerDiscretionary
SCIX SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI PACIFIC EX-JAPAN INDEXSource: Global X Funds, Bloomberg and MSCI.
13.05% 11.18% 4.61% 3.95% 3.53%
-1.42%
2.77% 0.89%
-1.57% -5.24%
-31.83%
Total 17.82%
MTR Corp Ltd. 2.47%
Venture Corp Ltd. 2.41%
Yue Yuen Industrial Holdings Ltd. 2.10%
NWS Holdings Ltd. 1.77%
Singapore Airlines Ltd. 1.61%
SATS Ltd. 1.58%
Link Real Estate Investment Trust 1.55%
CapitaLand Mall Trust 1.50%
Contact Energy Ltd. 1.43%
Hopewell Holdings Ltd. 1.40%
Holdings subject to change.
1 Since inception of SCIX ETF, 5/12/15.2 MSCI Daily Net Total Return Asia Pacific ex-Japan USD Index 3 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.
SCIX TOP 10 HOLDINGSSource: Global X Funds. As of 6/30/17.
MSCI PACIFIC EX-JAPAN INDEX TOP 10 HOLDINGSSource: MSCI. As of 6/30/17.
GLOBAL X SCIENTIFIC BETA
PERFORMANCE AND ATTRIBUTION RISK AND DIVERSIFICATION
Asia Ex-Japan ETF Q2 2017SCIX
Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
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Total 18.90%
Toyota Motor Corp. 4.27%
Mitsubishi UFJ Financial Group 2.52%
Softbank Group Corp. 2.08%
Sumitomo Mitsui Financial Group 1.63%
KDDI Corp. 1.51%
Sony Corp. 1.50%
Honda Motor Co Ltd. 1.46%
Mizuho Financial Group, Inc. 1.37%
Keyence Corp. 1.33%
Japan Tobacco, Inc. 1.20%
Holdings subject to change.
SINCE INCEPTION¹ PERFORMANCE AS OF 6/30/2017Source: Bloomberg, June 2017
Global X Scientific Beta Japan ETF MSCI Japan Index2 SciBeta Japan Multi-Beta Multi-Strategy ERC
-25%
-15%
-5%
5%
15%
25%
May 15 Aug 15 Oct 15 Jan 16 Jun 17Mar 17Dec 16Oct 16Jul 16Apr 16
20.91%
21.67%
7.75%
Global X Scientific Beta Japan ETF MSCI Japan Index
VOLATILITYSource: Bloomberg, June 2017
11.45%
14.32%
10.74%
14.66%
Q2 2017 1 Year
45% Overlap by weight between SCIJ and MSCI Japan Index247 # of overlapping holdings 94% Holdings in SCIJ also in benchmark77% Holdings in benchmark also in SCIJ55% Active share
MSCI JapanIndex
Global X Scientific Beta Japan ETF
45%
HOLDINGS OVERLAPSource: Global X Funds, Bloomberg and iShares.
5.61%
27.64%
9.21% 8.31%
15.46%
5.87%
9.49%
5.56%
16.10%
6.02% 5.19% 6.10%
17.76% 19.18%
Q2 2017 1 Year
Value LowVolatility
DiversifiedIndex3
SCIJ MSCI JapanIndex
Momentum Size
ONE YEAR AND MOST RECENT QUARTER RETURNSSource: ERI Scientific Beta and Bloomberg, June 2017
0%
20%
40%
60%
80%
100%
SCIJ HISTORICAL ALLOCATION SINCE INCEPTION¹Source: ERI Scientific Beta, June 2017
19.25%
21.80%
34.16%
24.79%
13.26%
15.94%
57.94%
12.86%
Q2 2015 Q2 2017Q1 2017
13.19%
16.14%
57.98%
12.70% Momentum
Value
Size
Low Volatility
TelecomServices
ConsumerDiscretionary
FinancialsInformationTechnology
HealthCare
ConsumerStaples
Real EstateEnergyUtilitiesIndustrialsMaterials
-4.85% -4.52% -4.06%
-0.77%
1.22%
-0.24%
4.19% 3.79%
-0.28% -0.48%
5.88%
SCIJ SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI JAPAN INDEXSource: Global X Funds, Bloomberg and MSCI.
Total 11.69%
NH Foods Ltd. 1.50%
LIXIL Group Corp. 1.42%
Mitsubishi Tanabe Pharma Corp. 1.31%
Asahi Kasei Corp. 1.31%
Kajima Corp. 1.19%
Obayashi Corp. 1.07%
Shimizu Corp. 0.99%
Taiheiyo Cement Corp. 0.98%
Mitsubishi Motors Corp. 0.97%
Komatsu Ltd. 0.96%
Holdings subject to change.
1 Since inception of SCIJ ETF, 5/12/15.2 MSCI Daily Net Total Return Japan USD Index3 Diversified index is represented by the Scientific Beta Multi-Strategy Index for the relevant region. The index represents the performance of the Scientific Beta Multi-strategy weighting scheme without applying factor tilts.
SCIJ TOP 10 HOLDINGSSource: Global X Funds. As of 6/30/17
MSCI JAPAN INDEX TOP 10 HOLDINGSSource: MSCI. As of 6/30/17
GLOBAL X SCIENTIFIC BETA
PERFORMANCE AND ATTRIBUTION RISK AND DIVERSIFICATION
Japan ETF Q2 2017 SCIJ
Beyond Ordinary ETFs 600 LEXINGTON AVE20TH FLNEW YORK, NY 10022
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Definitions:
The objective of the Scientific Beta Multi-Beta Multi-Strategy Equal Risk Contribution Indexes (USA, Japan, Extended Developed Europe, Asia ex-Japan) is to represent the performance of large and medium capitalization companies from their respective regions while outperforming the capitalization-weighted reference index for that region, with a limited amount of relative risk against that reference.
The S&P 500 is an index of 500 stocks chosen by factors such as market size, liquidity and industry grouping. The Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe.
The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The MSCI Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed Markets (DM) countries in the Pacific region (excluding Japan). With 150 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 318 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.
Active Share is the percentage of holdings in a portfolio that do not overlap with the benchmark index.
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing. Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. For the Scientific Beta Japan ETF, the Japanese economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on Japanese securities. In addition, Japan is subject to the risk of natural disasters, such as earthquakes, volcanoes, typhoons and tsunamis, which could negatively affect the Fund. Diversification may not protect against market risk. There is no assurance the goals of the strategy discussed will be met. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The market price is the Mid-Point between the Bid and Ask price as of the close of exchange and do not represent the returns you would receive if you traded shares at any other times.
EDHEC Risk Institute Asia Ltd. indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by EDHEC Risk Institute Asia Ltd. nor does this company make any representations regarding the advisability of investing in the Global X Funds. Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Global X Management Company, LLC.
GLOBAL X SCIENTIFIC BETA