GLOBAL X Equity Income

GLOBAL X MODEL PORTFOLIOS

Monthly Portfolio and Performance Analysis

Equity Income

All information provided is as of 12/31/20

PORTFOLIO DETAILS

Inception Date Benchmark Number of Positions Weighted Avg. Net Total Fee of Portfolio's ETF Allocations 12-Month Dividend Yield2

10/1/2017 Blended Benchmark1

12

0.25%

4.26%

PORTFOLIO SEGMENT

Core Dividend & Dividend Growth

ETF ALLOCATIONS iShares Core Dividend Growth ETF Vanguard High Dividend Yield ETF

Covered Calls

Global X NASDAQ 100 Covered Call ETF Global X S&P 500 Covered Call ETF

High Dividend

Global X SuperDividend? ETF Global X SuperDividend? U.S. ETF

Preferreds

Global X U.S. Preferred ETF

Vanguard Information Technology ETF

Health Care Select Sector SPDR? ETF

Vanguard Communication Services ETF Sector Specific

Financials Select Sector SPDR? ETF

Consumer Staples Select Sector SPDR? ETF

Global X E-commerce ETF

TICKER DGRO VYM QYLD XYLD SDIV DIV PFFD VGT XLV VOX XLF XLP EBIZ

CURRENT WEIGHT 16.00% 8.00% 12.00% 6.00% 5.00% 5.00% 11.00% 14.00% 10.00% 5.00% 3.00% 3.00% 2.00%

MONTHLY AND HISTORICAL PERFORMANCE (%)

Dec-20

Q4 2020

2020

1 Year 2Years 3Years

Since Inception

Equity Income Portfolio

Benchmark1

3.51 12.11 4.37 4.37 13.38 6.16

7.14

3.43 12.14 17.92 17.92 24.52 14.03 15.14

Model performance disclosure

The model performance shown is hypothetical and for illustrative purposes only and does not represent the performance of a specific investment product, account or any actual trading. Model performance reflects the reinvestment of dividends and/or other earnings. Model performance reflects all reallocations and changes among the funds since the start date. Performance of any account or portfolio derived from this information may vary materially from the performance shown herein.

Performance is net of the underlying ETFs' fees and does not include strategist fees, platform fees, brokerage fees, commissions, trading costs and any other direct expenses that, if applicable, would reduce returns. For standardized performance for the underlying funds, please see the end of this document. The performance data quoted represents past performance of the ETFs and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares of an ETF, when sold or redeemed, may be worth more or less than their original cost. Current performance may by higher or lower. Returns for periods greater than one year are annualized. For performance data of the Global X ETFs current to the most recent month end, please call 1 (888) 493-8631, or visit .

1Equity Income benchmark changed from S&P 500 TR Index to a blended benchmark effective 9/25/2020. Refer to page 3 for details on the blended benchmark. 2Model Portfolio Dividend Yield is calculated using the weighted average trailing 12-month distributions of the underlying holdings, this includes both equity and fixed income distributions. Funds incepted less than 12 months ago do not have a trailing 12-month dividend yield.

Equity markets had a strong fourth quarter with the S&P 500 Index rising 12.1% during Q4 bringing its 2020 return to 18.4%. Markets had plenty to cheer with election uncertainty in the rearview mirror, a new round of fiscal stimulus approved and the first COVID-19 vaccines being distributed. This propelled markets to close the year at new all-time highs.

Optimism surrounding the prospect of restoring normality to our daily lives fueled strong market performance as well as a rotation from large-caps to small-caps. During the fourth quarter, the Russell 2000 Value Index took the lead from a size and style perspective. This risk-on sentiment also fueled the performance of international equity markets, which outpaced U.S. markets during the quarter. The leadership change was beneficial for the Equity Income Portfolio as it includes some exposure to both international and small and mid-cap equities. Despite only being 10% of the portfolio, the High Dividend Yield segment provided the portfolio with its greatest exposure to both international and small-cap names. This exposure was highly beneficial during Q4 as it was the top performing portfolio segment in Q4.

Shifting focus to December, while small-caps continued to outpace large-caps, growth was slightly stronger than value. Financials and Information Technology were the top performing S&P 500 GIGS sectors during the month. This was beneficial for the Equity Income Portfolio's Sector Specific sleeve. It was this sleeve that drove the portfolio's slight outperformance relative to its blended benchmark.

Overall the portfolio had a solid December and Q4. During both periods, risk on sentiment was dominant. As such, the High Dividend Yield, Sector Specific and Core Dividend & Dividend Growth were the top performers while Preferreds and Covered Calls lagged. In terms of relative performance, during both periods, three segments of the portfolio; Sector Specific, Covered Calls and Preferreds were positive contributors to relative performance, with the Sector Specific component driving majority of the portfolio's slight outperformance in December. Conversely, although the High Dividend Yield segment of the portfolio performed exceptionally well during the final stretch of the year, this sleeve is benchmarked against a global high dividend yield index. As a result, within the High Dividend Yield segment of the portfolio, the Equity Income Portfolio is overweight U.S. equities. Given that U.S. high divided underperformed international high dividend, this adversely affected the portfolio's relative performance. This drove the portfolio's slight underperformance in Q4.

605 THIRD AVENUE 43RD FLOOR NEW YORK, NY 10158

1 (888) 493-8631 @GLOBALXETFS

GLOBAL X MODEL PORTFOLIOS

Equity Income

In September, this portfolio's benchmark was updated from the S&P 500 Index to a blended benchmark that more accurately reflects the different segments represented in this portfolio. Thus, Q4 was the first full quarter where this portfolio has been benchmarked against its blended benchmark. This new benchmark has significantly reduced the tracking error between the portfolio and its benchmark. While High Dividend Yield was the top performing segment in Q4, it drove majority of the portfolio's underperformance during 2020. Please refer to our methodology summary for more detail on the blended benchmark and how we view the different portfolio segments.

Return Relative Performance (Basis Points)

DECEMBER 2020: ABSOLUTE AND RELATIVE PERFORMANCE BY

PORTFOLIO SEGMENT

Source: Morningstar Data as of 12/31/2020

Portfolio Return by Segment

Relative Performance

5%

30

3%

20

10 1%

-1%

(10)

-3%

(20)

-5% Core Dividend & Covered Calls Dividend Growth

High Dividend Yield

Preferreds

(30) Sector Specific

CONTRIBUTION TO RETURNS

Source: Morningstar Data as of 12/31/2020

100%

Core Dividend & Dividend Growth High Dividend Yield Sector Specific

80%

60%

40%

20%

0% Dec-20

Covered Calls Preferreds

Q4 2020

605 THIRD AVENUE 43RD FLOOR NEW YORK, NY 10158

1 (888) 493-8631 @GLOBALXETFS

GLOBAL X MODEL PORTFOLIOS

Equity Income

BENCHMARK ELEMENT Benchmark from 9/25/20 - Current

S&P 500 TR Index

FTSE High Dividend Yield TR USD Index

CBOE NASDAQ 100 Buywrite Index

Solactive Global SuperDividend Index

ICE BofA Fixed Rate Preferred TR USD Index

WEIGHT 40% 20% 20% 10% 10%

INDEX DESCRIPTION

The S&P 500 Total Return Index is based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ and includes the reinvestment of all dividends.

The FTSE High Dividend Yield Index is a market cap weighted index that tracks the performance of U.S. high dividend paying stocks, excluding REITS.

The Cboe NASDAQ-100 BuyWrite Index tracks the performance of a hypothetical buy-write strategy on the NASDAQ-100. Calls are held until expiration and cash settled, at which time a new one-month, near-the-money call is written.

The Solactive Global SuperDividend Index is an equally weighted total return index tracking 100 international companies with the highest dividend yield subject to several qualitative dividend outlook checks.

The ICE BofA Fixed Rate Preferred Index tracks the performance of USD denominated preferred securities issued in the U.S. domestic market, with a credit rating of at least B3, based on an average of the three leading ratings agencies.

Benchmark from inception until 9/24/20

S&P 500 TR Index

100%

The S&P 500 Total Return Index is based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ and includes the reinvestment of all dividends.

For institutional use only ? not for retail distribution. Global X Management Company LLC (Global X) is an investment adviser registered with the U.S. Securities and Exchange Commission. The hypothetical model portfolios discussed herein are provided for illustrative purposes only. This information should not be relied upon for trading purposes or as investment advice, research, or a recommendation by Global X regarding (i) any fund, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Financial advisors are responsible for making their own independent judgment as to how to use this information. Target allocations contained herein are subject to change. There is no assurance that the target allocations can or will be achieved, and actual allocations and risk or return profiles of actual portfolio holdings may be significantly different from those shown here.

Performance is net of the underlying ETFs' fees and does not include strategist fees, platform fees, brokerage fees, commissions, trading costs and any other direct expenses that, if applicable, would reduce returns. The returns shown assume the reinvestment of dividends and/or other earning as well as all reallocation and changes among the funds since the start date of each model portfolio. Performance is shown for the stated time period only. Past performance is not indicative of future results. Investing involves risk, including the possible loss of principal. Diversification may not prevent investment loss. Investments based on the model portfolios will be subject to the risks of the ETFs that comprise the model portfolio.

Information on all funds contained herein is based on the publicly available prospectus for the fund as of the date of this document and is provided solely for illustrative purposes and should not be deemed an offer to sell or a solicitation of an offer to buy shares of any securities or any fund.

Investors should carefully consider the investment objectives, risk factors, charges, and expenses of each fund that comprises the model portfolio before investing. For information regarding the funds that comprise the model portfolios, please refer to each funds' currently available prospectus and statement of additional information. Read the prospectus carefully before investing.

The information presented is not definitive investment advice, should not be relied on as such, and should not be viewed as a recommendation by Global X generally or for any purpose outside of Global X's model portfolios as of the date indicated. It is presented solely to illustrate Global X's investment process in developing the model portfolios and its analysis and views of the funds that comprise the model portfolios as of the date indicated. The funds presented herein are not representative of all of the funds purchased, sold or held for advisory clients, and it should not be assumed that investment in the funds identified was or will be profitable. Global X's views of, recommendations with respect to, and investment decisions regarding, securities may vary across Global X's strategies. Such recommendations are subject to change continually and without notice of any kind and may no longer be true after the date indicated.

This document may contain certain statements deemed to be forward-looking statements. All statements, other than historical facts, contained within this document that address activities, events or developments that Global X expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions and analyses made by Global X in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances, many of which are detailed herein. The opinions expressed in these statements represent the current, good faith views of the author(s) at the time of publication and are provided for limited purposes, are not definitive investment advice, and should not be relied on as such. Such statements are subject to a number of assumptions, risks, uncertainties, many of which are beyond Global X's control. Please note that any such statements are not guarantees of any future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

The information presented in this document has been developed internally and/or obtained from sources believed to be reliable; however, Global X does not guarantee the accuracy, adequacy or completeness of such information. Predictions, opinions, and other information contained in this presentation are subject to change continually and without notice of any kind and may no longer be true after the date indicated. Any forward-looking statements speak only as of the date they are made, and Global X assumes no duty to and does not undertake to update forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Actual results could differ materially from those anticipated.

605 THIRD AVENUE 43RD FLOOR NEW YORK, NY 10158

1 (888) 493-8631 @GLOBALXETFS

GLOBAL X MODEL PORTFOLIOS

Equity Income

As of 12/31/20

Ticker

Expense Inception

Ratio

Date

Annualized 1 Year 5 Year 10 Year Since Fund

Inception*

iShares Core Dividend Growth ETF Vanguard High Dividend Yield ETF Global X NASDAQ 100 Covered Call ETF Global X S&P 500 Covered Call ETF Global X SuperDividend? ETF Global X SuperDividend? US ETF Global X U.S. Preferred ETF Vanguard Information Technology ETF Health Care Select Sector SPDR? ETF Vanguard Communication Services ETF Financial Select Sector SPDR? ETF Consumer Staples Select Sect SPDR? ETF Global X E-commerce ETF SPDR? S&P Insurance ETF1 iShares Core High Dividend ETF2 Global X SuperDividend? REIT ETF3 Global X MLP ETF 4 Global X SuperIncome Preferred ETF5 Consumer Discretionary Select Sect SPDR? ETF 6 First Trust NASDAQ Technology Dividend Index ETF 7 Technology Select Sector SPDR? ETF 8

DGRO VYM QYLD XYLD SDIV DIV PFFD VGT XLV VOX XLF XLP EBIZ KIE HDV SRET MLPA SPFF XLY TDIV XLK

0.08% 0.06% 0.60% 0.60% 0.59% 0.46% 0.23% 0.10% 0.13% 0.10% 0.13% 0.13% 0.50% 0.35% 0.08% 0.59% 0.46% 0.58% 0.13% 0.50% 0.13%

6/12/14 11/16/06 12/12/13 6/24/13 6/8/11 3/11/13 9/11/17 1/26/04 12/16/98 9/29/04 12/16/98 12/22/98 11/27/18 11/15/05 3/29/11 3/16/15 4/18/12 7/17/12 12/16/98 8/14/12 12/16/98

NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price NAV Market Price

9.47% 14.51% -

9.50% 14.48% -

1.14% 9.96% 11.49%

1.14% 9.97% 11.48%

8.76% 10.18% -

8.74% 9.97% -

-0.66% 7.41% -

-0.50% 7.29% -

-20.71% -0.78% -

-20.92% -0.76% -

-22.89% 0.05% -

-22.87% 0.05% -

8.85% -

-

8.88% -

-

45.94% 28.20% 20.47%

46.00% 28.19% 20.47%

13.33% 11.42% 15.66%

13.34% 11.42% 15.65%

28.95% 9.78% 9.20%

29.11% 9.80% 9.21%

-1.68% 10.99% 10.63%

-1.67% 11.01% 10.63%

10.19% 8.88% 11.68%

10.15% 8.87% 11.68%

74.38% -

-

74.37% -

-

-3.02% 9.70% 10.85%

-3.00% 9.69% 10.85%

-6.48% 7.47% -

-6.47% 7.46% -

-36.52% 1.44% -

-36.61% 1.27% -

-33.93% -7.08% -

-33.79% -7.10% -

6.90% 4.47% -

6.90% 4.54% -

29.66% 17.06% 17.33%

29.63% 17.07% 17.33%

17.28% 17.19% -

17.49% 17.29% -

43.67% 26.70% 19.75%

43.61% 26.69% 19.74%

12.16% 12.15% 7.61% 7.61% 9.03% 8.97% 7.81% 7.74% 0.68% 0.51% 1.85% 1.71% 6.74% 6.68% 13.29% 13.40% 8.86% 8.64% 8.49% 8.50% 4.34% 4.07% 6.74% 6.73% 41.74% 41.17% 6.24% 6.19% 9.50% 9.52% -0.74% -0.82% -5.66% -5.72% 4.06% 4.04% 10.21% 10.02% 14.38% 14.36% 8.11% 7.80%

*Returns for funds over one year old are annualized, whereas returns for funds less than one year are cumulative.

1SPDR? S&P Insurance ETF (KIE) was removed from the Equity Income Portfolio effective 9/25/2020. The performance of KIE through that date is embedded in the historical model portfolio performance. 2iShares Core High Dividend ETF (HDV) was removed from the Equity Income Portfolio effective 6/19/2020. The performance of HDV through that date is embedded in the historical

model portfolio performance. 3Global X SuperDividend REIT ETF (SRET) was removed from the Equity Income Portfolio effective 3/25/2020. The performance of SRET through that date is embedded in the historical model

portfolio performance. 4Global X MLP ETF (MLPA) was removed from the Equity Income Portfolio effective 9/27/2019. The performance of MLPA through that date is embedded in the historical model portfolio performance. 5Global X SuperIncome Preferred ETF (SPFF) was removed from the Equity Income Portfolio effective 2/15/2018. The performance of SPFF through that date is embedded in the historical model

portfolio performance. 6Consumer Discretionary Select Sector SPDR? ETF (XLY) was removed from the Equity Income Portfolio effective 8/20/2018. The performance of XLY through that date is embedded in the historical

model portfolio performance. 7First Trust NASDAQ Technology Dividend Index ETF (TDIV) was removed from the Equity Income Portfolio effective 2/15/2018. The performance of TDIV through that date is embedded in the historical

model portfolio performance. 8Technology Select Sector SPDR? ETF (XLK) was removed from the Equity Income Portfolio effective 8/20/2018. The performance of XLK through that date is embedded in the historical model

portfolio performance.

605 THIRD AVENUE 43RD FLOOR NEW YORK, NY 10158

1 (888) 493-8631 @GLOBALXETFS

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download