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

The Scientific Beta Report

SCIU SCID SCIX SCIJ

United States

Europe

Asia ex-Japan

Japan

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.

All data as of 3/31/2018

Ticker

Gross Expense Ratio

Net Expense Ratio1

Since Fund Inception

1 Year

Annualized Since Fund Inception

Global X Scientific Beta US ETF

Global X Scientific Beta Europe ETF

Global X Scientific Beta Asia ex-Japan ETF

Global X Scientific Beta Japan ETF

NAV

SCIU

0.28%

0.19%

Market Price

SBUXRHMG Index

SCID

0.38%

NAV

--

Market Price

SBRXRHMN Index

NAV

SCIX

0.38%

--

Market Price

SBAXRHMN Index

SCIJ

0.39%

NAV

--

Market Price

SBJURHMN Index

28.78% 28.86% 29.83% 22.21% 22.93% 23.27% 15.76% 17.18% 15.23% 33.29% 35.50% 35.14%

12.86% 12.73% 13.11% 21.12% 21.14% 21.40% 14.53% 14.52% 14.99% 16.87% 17.89% 17.76%

9.17% 9.19% 9.47% 7.20% 7.42% 7.51% 5.20% 5.65% 5.03% 10.47% 11.11% 11.00%

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 .

1Fee waivers are contractual and in effect until at least March 1, 2019.

Beyond Ordinary ETFs

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GLOBAL X SCIENTIFIC BETA

U.S. ETF SCIU Q1 2018

PERFORMANCE AND ATTRIBUTION

RISK AND DIVERSIFICATION

SINCE INCEPTION? PERFORMANCE AS OF 3/31/2018

Source: Bloomberg, March 2018

Global X Scientific Beta US

SciBeta United States Multi-Beta Multi-Strategy ERC

S&P 500 Index

50% 40% 30% 20% 10% 0% -10% -20%

May 15

Nov 15

Apr 16

Oct 16

Apr 17

33.65%

29.83% 28.78%

Oct 17

Mar 18

ONE YEAR AND MOST RECENT QUARTER RETURNS

Source: ERI Scientific Beta and Bloomberg, March 2018

Q1 2018

1 Year

18.38%

10.79%

11.99%

12.59%

12.60%

12.88%

13.99%

-1.26% Value

2.47% Momentum

0.38% Size

-0.72%

Low Volatility

-0.38%

Diversified Index?

0.00%

Global X SciBeta U.S.

-0.76%

S&P 500

SCIU TOP 10 HOLDINGS

Source: Global X Funds. As of 3/31/18.

Total CME Group, Inc. NextEra Energy Inc. Xcel Energy Inc. Annaly Capital Management, Inc. Regions Financial Corp. Aetna, Inc. WEC Energy Group, Inc. Consolidated Edison, Inc. Arch Capital Group Ltd. Anthem, Inc.

Holdings subject to change.

VOLATILITY

Source: Bloomberg, March 2018

Global X Scientific Beta US

6.13% 0.74% 0.66% 0.63% 0.60% 0.60% 0.59% 0.59% 0.58% 0.58% 0.57%

S&P 500 Index

19.99% 17.13%

11.42% 10.10%

Q1 2018

1 Year

S&P 500 INDEX TOP 10 HOLDINGS

Source: S&P. As of 3/31/18.

Total Apple, Inc. Microsoft Corporation , Inc. Berkshire Hathaway, Inc. Class B Facebook, Inc. Class A JPMorgan Chase & Co. Johnson & Johnson Exxon Mobil Corporation Alphabet, Inc. Class C Alphabet, Inc. Class A

Holdings subject to change.

20.30% 3.78% 3.12% 2.59% 1.71% 1.70% 1.68% 1.53% 1.41% 1.40% 1.38%

HOLDINGS OVERLAP

Source: Global X Funds, Bloomberg and S&P.

45%

Global X

S&P 500

Scientific Beta U.S. Index

45% Overlap by weight between SciBeta U.S. and S&P 500

428 Number of overlapping holdings

91% Holdings in SciBeta U.S. also in S&P 500

85% Holdings in S&P 500 also in SciBeta U.S.

55% Active share

SCIBETA U.S. HISTORICAL ALLOCATION SINCE INCEPTION?

Source: ERI Scientific Beta, March 2018 100%

80% 25.68%

60% 29.99% 40%

24.00% 20%

20.32% 0%

22.59% Momentum 26.84%

31.40%

Value 29.46%

23.87%

Size 22.99%

22.14% Low Volatility 20.71%

SCIBETA U.S. SECTOR OVERWEIGHT/UNDERWEIGHT VS. S&P 500

Source: Global X Funds, Bloomberg.

7.20%

5.43%

3.10%

1.12%

0.75%

-0.91%

-1.05%

Q2 2015

Q4 2017

Q1 2018

Utilities

Financials Real Estate Materials Industrials

Health Care

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.

Consumer Staples

-1.19%

Telecom Services

-1.28% -2.13%

Energy

-11.20%

Consumer Information Discretionary Technology

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Europe ETF SCID Q1 2018

PERFORMANCE AND ATTRIBUTION

RISK AND DIVERSIFICATION

SINCE INCEPTION? PERFORMANCE AS OF 3/31/2018

Source: Bloomberg, March 2018

Global X Scientific Beta Europe ETF

SciBeta Extended Developed Europe Multi-Beta Multi-Strategy ERC

STOXX Europe 600 Index

40%

30%

20%

10%

0%

-10%

-20%

-30% May 15

Nov 15

Nov 15

Apr 16

Oct 16

Apr 17

Oct 17

23.27% 22.21%

10.21% Mar 18

SCID TOP 10 HOLDINGS

Source: Global X Funds. As of 3/31/18.

Total Carnival PLC Neste Oyj Alstom SA Hiscox Ltd. Rubis SCA Bouygues SA Orpea SA Snam SpA Deutsche Wohnen SE TDC Group

5.88% 0.67% 0.66% 0.62% 0.61% 0.60% 0.57% 0.57% 0.56% 0.52% 0.49%

STOXX EUROPE 600 INDEX TOP 10 HOLDINGS

Source: STOXX. As of 3/31/18.

Total

16.00%

Nestle SA

2.50%

Novartis AG

2.02%

HSBC Holdings PLC

1.93%

Roche Holding AG

1.64%

Royal Dutch Shell PLC

1.48%

TOTAL SA

1.47%

BP PLC

1.36%

British American Tobacco PLC

1.35%

SAP SE

1.15%

Siemens AG

1.10%

ONE YEAR AND MOST RECENT QUARTER RETURNS

Source: ERI Scientific Beta and Bloomberg, March 2018

Q1 2018

1 Year

Holdings subject to change.

VOLATILITY

Source: Bloomberg, March 2018

Holdings subject to change.

HOLDINGS OVERLAP

Source: Global X Funds, Bloomberg and S&P.

22.00%

23.70%

22.94%

19.73%

20.42%

21.12%

14.81%

-0.71% Value

0.00% High Momentum

0.34% Size

-0.96% Low Volatility

SCID HISTORICAL ALLOCATION SINCE INCEPTION?

Source: ERI Scientific Beta, March 2018 100%

19.76% 80%

60% 28.28%

40% 17.58%

20% 34.39%

0% Q2 2015

-0.48%

Diversified Index2

-0.57% SCID

-1.84%

STOXX Europe 600 Index

17.83% Momentum 15.39%

43.27%

Value 50.70%

18.63%

Size 17.31%

20.27% Low Volatility 16.61%

Q4 2017

Q1 2018

Global X Scientific Beta Europe ETF

13.63% 14.00%

STOXX Europe 600 Index

10.42% 10.48%

Q1 2018

1 Year

44%

Global X

STOXX

Scientific Beta Europe 600

Europe ETF Index

44% Overlap by weight between SCID and STOXX Europe 600 Index

512 # of overlapping holdings

94% Holdings in SCID also in benchmark

85% Holdings in Benchmark also in SCID

56% Active share

SCID SECTOR OVERWEIGHT/UNDERWEIGHT VS. STOXX EUROPE 600 INDEX

Source: Global X Funds, Bloomberg.

4.79%

3.12%

2.78%

2.77%

1.34%

0.74%

-0.02%

-0.79%

-1.35%

-5.79% -6.87%

Real Estate Financials Industrials Materials

Utilities Consumer Telecom Information Discretionary Services Technology

Energy

Health Care

Consumer Staples

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.

Beyond Ordinary ETFs

600 LEXINGTON AVE 20TH FL NEW YORK, NY 10022

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Asia Ex-Japan ETF SCIX Q1 2018

PERFORMANCE AND ATTRIBUTION

RISK AND DIVERSIFICATION

SINCE INCEPTION? PERFORMANCE AS OF 3/31/2018

Source: Bloomberg, March 2018

Global X Scientific Beta Asia ex-Japan ETF

30%

SciBeta Developed Asia-Pacific ex-Japan Multi-Beta Multi-Strategy ERC

MSCI Pacific ex-Japan Index2

20% 10%

0% -10%

-20%

-30% May 15

Nov 15

Apr 16

Oct 16

Apr 17

Oct 17

ONE YEAR AND MOST RECENT QUARTER RETURNS

Source: ERI Scientific Beta and Bloomberg, March 2018

Q1 2018

1 Year

15.76%

15.23% 13.12%

Mar 18

SCIX TOP 10 HOLDINGS

Source: Global X Funds. As of 3/31/18.

Total Venture Corp Ltd. MTR Corp Ltd. Shenzhou International Grp Holdings Ltd. Yue Yuen Industrial Holdings Ltd. Singapore Airlines Ltd. Link Real Estate Investment Trust CapitaLand Mall Trust CapitaLand Commercial Trust NWS Holdings Ltd. Swire Properties Ltd.

Holdings subject to change.

VOLATILITY

Source: Bloomberg, March 2018

19.86% 4.41% 2.28% 2.26% 1.80% 1.64% 1.58% 1.53% 1.49% 1.49% 1.39%

MSCI PACIFIC EX-JAPAN INDEX TOP 10 HOLDINGS

Source: MSCI. As of 3/31/18.

Total

36.51%

AIA Group Ltd.

5.93%

Commonwealth Bank of Australia

5.65%

Westpac Banking Corp.

4.33%

BHP Billiton Ltd.

4.04%

Australia & New Zealand Banking Group 3.51%

National Australia Bank Ltd.

3.41%

CSL Ltd.

3.13%

Hong Kong Exchges and Clearing Ltd.

2.22%

DBS Group Holdings Ltd.

2.19%

Wesfarmers Ltd.

2.10%

Holdings subject to change.

HOLDINGS OVERLAP

Source: Global X Funds, Bloomberg.

12.24%

18.98%

16.40%

12.82%

-2.95% Value

1.10% Momentum

-0.13% Size

-0.80% Low Volatility

SCIX HISTORICAL ALLOCATION SINCE INCEPTION?

Source: ERI Scientific Beta, March 2018 100%

80% 27.29%

60% 25.73%

40% 19.62% 20%

27.36% 0%

Q2 2015

13.28%

14.53%

8.43%

-1.68%

Diversified Index3

-0.85% SCIX

-3.73%

MSCI Pacific ex-Japan Index

25.15% Momentum 27.09%

28.78%

Value 27.91%

25.22%

Size 24.62%

20.85% Low Volatility 20.37%

Q4 2017

Q1 2018

Global X Scientific Beta Asia ex-Japan ETF 13.21%

12.31%

MSCI Pacific ex-Japan Index

10.13% 8.52%

Q1 2018

1 Year

41%

Global X Scientific Beta Asia ex-Japan

ETF

MSCI Pacific ex-Japan Index

41% Overlap by weight between SCIX and MSCI Pacific ex-Japan Index

113 # of overlapping holdings

82% Holdings in SCIX also in benchmark

75% Holdings in Benchmark also in SCIX

59% Active share

SCIX SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI PACIFIC EX-JAPAN INDEX

Source: Global X Funds, Bloomberg.

10.96% 10.30% 7.93% 3.96% 2.92% 1.89%

1.00%

-1.27%

-1.97%

-5.45%

Consumer Real Estate Information Consumer

Discretionary

Technology Staples

Utilities

Industrials

Health Care

Telecom Services

Energy

-30.59%

Materials Financials

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.

Beyond Ordinary ETFs

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Japan ETF SCIJ Q1 2018

PERFORMANCE AND ATTRIBUTION

RISK AND DIVERSIFICATION

SINCE INCEPTION? PERFORMANCE AS OF 3/31/2018

Source: Bloomberg, March 2018

Global X Scientific Beta Japan ETF

SciBeta Japan Multi-Beta Multi-Strategy ERC

50%

40%

30%

20%

10%

0%

10%

20%

30% May 15

Nov 15

Apr 16

Oct 16

Apr 17

MSCI Japan Index2 35.14%

33.29% 22.54%

Oct 17

Mar 18

ONE YEAR AND MOST RECENT QUARTER RETURNS

Source: ERI Scientific Beta and Bloomberg, March 2018

Q1 2018

1 Year

SCIJ TOP 10 HOLDINGS

Source: Global X Funds. As of 3/31/18

Total Asahi Kasei Corp. Mitsubishi Tanabe Pharma Corp. Komatsu Ltd. JXTG Holdings Inc. LIXIL Group Corp. NH Foods Ltd. Mitsubishi Motors Corp. Canon Inc. Fuji Electric Co Ltd. Kajima Corp.

Holdings subject to change.

VOLATILITY

Source: Bloomberg, March 2018

9.60% 1.19% 1.06% 1.04% 0.98% 0.94% 0.92% 0.91% 0.86% 0.85% 0.85%

MSCI JAPAN INDEX TOP 10 HOLDINGS

Source: MSCI. As of 3/31/18

Total Toyota Motor Corp. Mitsubishi UFJ Financial Group Softbank Group Corp. Sony Corp. Keyence Corp. Honda Motor Co Ltd. Sumitomo Mitsui Financial Group Nintendo Co Ltd. FANUC Corp. KDDI Corp.

Holdings subject to change.

HOLDINGS OVERLAP

Source: Global X Funds, Bloomberg.

19.05% 4.63% 2.16% 1.70% 1.69% 1.67% 1.64% 1.56% 1.38% 1.36% 1.28%

16.93%

25.12%

18.49%

17.96%

20.74%

16.87%

19.64%

-2.32% Value

-0.86% Momentum

0.87% Size

1.96%

Low Volatility

SCIJ HISTORICAL ALLOCATION SINCE INCEPTION?

Source: ERI Scientific Beta, March 2018 100%

24.79% 80%

60% 34.16%

40% 21.80%

20% 19.25%

0%

1.25%

Diversified Index3

-2.06% SCIJ

0.83%

MSCI Japan Index

9.87%

Momentum 15.18%

62.60%

Value 49.41%

15.05%

Size 18.83%

12.48% Low Volatility 16.59%

Global X Scientific Beta Japan ETF

MSCI Japan Index

17.91% 18.03%

12.33% 12.57%

Q1 2018

1 Year

46%

Global X Scientific MSCI Japan Beta Japan ETF Index

46% Overlap by weight between SCIJ and MSCI Japan Index

250 # of overlapping

holdings

93% Holdings in SCIJ also in benchmark

78% Holdings in benchmark also in SCIJ

53% Active share

SCIJ SECTOR OVERWEIGHT/UNDERWEIGHT WITH MSCI JAPAN INDEX

Source: Global X Funds, Bloomberg.

6.15% 3.49%

1.99%

1.37%

1.09%

-0.17% -0.34%

-1.21%

-3.84%

-4.47% -4.89%

Q2 2015

Q4 2017

Q1 2018

Materials Utilities Industrials Real Estate Energy Consumer

1 Since inception of SCIJ ETF, 5/12/15.

Staples

2 MSCI Daily Net Total Return 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.

Health Care

Information Telecom Technology Services

Financials Consumer Discretionary

Beyond Ordinary ETFs

600 LEXINGTON AVE 20TH FL NEW YORK, NY 10022

1 (888) GX-FUND-1 @GLOBALXFUNDS

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