Global X Investments Canada Inc.: Milestones to $30 billion

Since launching in 2005, Global X Investments Canada Inc. (“Global X”) (formerly Horizons ETFs Management (Canada) Inc.) has built a reputation as a leading innovator in the Canadian ETF marketplace. As the company enters its 19^th year, we’ve highlighted a collection of key milestones on our firm’s journey to $30 billion in assets under management (AUM).

2023

2022

2021:

2020

2019

2018

2017

2016

2014

2013

2012

2011

2010

2009

2008

2005

Sources:

¹ Source: Global X ETFs, April 14, 2023: https://Global Xetfs.com/press-release/Global X-etfs-launches-canadas-first-ultra-short-term-canadian-and-u-s-t-bill-etfs/

² Source: ETFGI, January 12, 2023: https://etfgi.com/news/press-releases/2023/01/etfgi-reports-global-etf-industry-gathered-us856-billion-net-inflows

³ Source: ETFGI, December 29, 2023: https://etfgi.com/news/press-releases/2023/12/assets-invested-etfs-industry-are-forecasted-hit-new-milestone-over-115

⁴ Source: TMX Group ETF Screener as at January 8, 2024 shows CASH.TO as the 18^th-largest Canadian ETF by AUM.

⁵ Source: Global X ETFs, May 16, 2019 https://Global Xetfs.com/press-release/Global X-etfs-launches-canadas-first-uranium-etf/

⁶ Source: Global X ETFs, March 28, 2017 https://Global Xetfs.com/press-release/Global X-etfs-to-launch-first-marijuana-etf/

⁷ Source: Global X ETFs, July 19, 2016 https://Global Xetfs.com/press-release/Global X-etfs-launches-the-Global X-global-currency-opportunities-etf/

⁸ Source: The Globe & Mail, July 28, 2016: https://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/canadas-etf-industry-crosses-100-billion-mark/article31171237/

⁹ Source: Newswire.ca, May 08, 2014: https://www.newswire.ca/news-releases/Global X-etfs-launches-canadas-first-swap-based-bond-index-etf-514268821.html

¹⁰ Source: CNW Press Release, October 23, 2013 https://www.newswire.ca/news-releases/Global X-etfs-launches-its-first-etf-in-colombia-513137631.html

¹¹ Source: Newswire.ca, April 13, 2010 https://www.newswire.ca/news-releases/betapro-management-launches-worlds-first-commodity-spread-etfs-539707192.html

¹² Source: Advisor.ca, January 6, 2010 https://ls.advisor.ca/news/industry-news/Global X-launches-blackberry-app/

¹³ Source: Financial Post, December 16, 2010 https://financialpost.com/investing/trading-desk/Global X-betapro-launches-canadas-first-volatility-etf

¹⁴ Source: CBC, December 29, 2009: https://www.cbc.ca/news/business/taxes/the-rise-of-the-etf-1.792278

¹⁵ Source: Investment Executive, January 23, 2008: https://www.investmentexecutive.com/news/products/betapro-launches-more-Global X-betapro-commodity-etfs/

DISCLAIMERS

Commissions, management fees, and expenses all may be associated with an investment in products (the “Global X Funds”) managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their values change frequently and past performance may not be repeated.  The Global X Money Market funds are not covered by the Canada Deposit Insurance Corporation, the Federal Deposit Insurance Corporation, or any other government deposit insurer. There can be no assurances that the money market fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the Funds will be returned to you. Certain Global X Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the Global X Funds. Please read the relevant prospectus before investing.

CARB and HURA (or the “ETFs”) are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds (“NI 81- 102”) and are permitted to use strategies generally prohibited by conventional mutual funds, such as the ability to invest more than 10% of their net asset value in securities of a single issuer or the ability to borrow cash. While these strategies will only be used in accordance with the ETF’s investment objectives and strategies, during certain market conditions they may accelerate the risk that an investment in the ETF Shares decreases in value. The ETF will comply with all requirements of NI 81-102, as such requirements may be modified by exemptive relief obtained on behalf of the ETF.

CASH uses cash accounts and does not track a traditional benchmark but rather receives interest paid on cash deposits that can change over time.  CASH primarily invests in bank deposit accounts.

CBIL & UBIL.U may be susceptible to an increased risk of loss, including losses due to adverse events because fund assets are concentrated in a particular issue, issuer or issuers, country, market segment, or asset class.  While U.S. Treasury and Canadian Treasury obligations are fully backed by the respective governments, such securities are nonetheless subject to credit risk (i.e. the risk that the issuing government may be, or be perceived to be, unable or unwilling to honour its financial obligations, such as making payments). For a full description of the associated risks, please refer to the fund’s prospectus at www.GlobalX.ca.

HMMJ will not knowingly invest in any constituent issuers that have exposure to the medical or recreational marijuana market in the United States, unless or until it becomes legal. HMMJ will not be directly engaged in the manufacture, possession, use, sale, or distribution of marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.

Global X Total Return Index ETFs (“Global X TRI ETFs”) (formerly are generally index-tracking ETFs that use an innovative investment structure known as a Total Return Swap to deliver index returns in a low-cost and tax-efficient manner. Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Global X TRI ETFs use a synthetic structure that never buys the securities of an index directly. Instead, the ETF receives the total return of the index by entering into a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash held by the ETF. Any distributions which are paid by the index constituents are reflected automatically in the net asset value (NAV) of the ETF. As a result, the Global X TRI ETF receives the total return of the index (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive any taxable distributions. Certain Global X TRI ETFs (Global X Nasdaq-100 ® Index ETF and Global X US Large Cap Index ETF) use physical replication instead of a total return swap. The Global X Cash Maximizer ETF and Global X USD Cash Maximizer ETF use cash accounts and do not track an index but rather receive interest paid on cash deposits that can change over time.

Global X Total Return Index ETFs (“Global X TRI ETFs”) include ETFs that use physical replication instead of a total return swap to gain exposure to their benchmark index. These ETFs are a class of shares in a corporate class structure that allows the ETF to deliver its returns in a tax-efficient manner. With this structure, the ETF will receive the total return of the Index (less any withholding tax payable on constituent distributions if applicable), which is reflected in the NAV of the ETF. However, investors are not expected to receive any taxable distributions from these ETFs. The  Global X Cash Maximizer Corporate Class ETF (formerly Horizons Cash Maximizer ETF) and the  Global X USD Cash Maximizer Corporate Class ETF (formerly Horizons USD Cash Maximizer ETF) use cash accounts and do not track an index but rather receive interest paid on cash deposits that can change over time.

The Global X Funds include our BetaPro products (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in shares of a BetaPro Product decreases in value.

The BetaPro Products consist of our Daily Bull and Daily Bear ETFs (“Leveraged and Inverse Leveraged ETFs”), Inverse ETFs (“Inverse ETFs”), and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the Leveraged and Inverse Leveraged ETFs and the Inverse ETFs are the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and BetaPro Marijuana Companies Inverse ETF (“HMJI”), which track the North American MOC Marijuana Index (NTR) and North American MOC Marijuana Index (TR), respectively. The Leveraged and Inverse Leveraged ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, among other risks, which are described in their respective prospectuses. Each Leveraged and Inverse Leveraged ETF seeks a return, before fees and expenses, that is either up to or equal to, either 200% or –200% of the performance of a specified underlying index, commodity futures index, or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its Target. Due to the compounding of daily returns a Leveraged and Inverse Leveraged ETF’s or Inverse ETF’s returns over periods other than one day will likely differ in amount and, particularly in the case of the Leveraged and Inverse Leveraged ETFs, possibly direction from the performance of their respective Target(s) for the same period. For certain Leveraged and Inverse Leveraged ETFs that seek up to 200% or up to or -200% leveraged exposure, the Manager anticipates, under normal market conditions, managing the leverage ratio as close to two times (200%) as practicable however, the Manager may, at its sole discretion, change the leverage ratio based on its assessment of the current market conditions and negotiations with the respective ETF’s counterparties at that time. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF. Due to the high cost of borrowing the securities of marijuana companies in particular, the hedging costs charged to HMJI are expected to be material and are expected to materially reduce the returns of HMJI to unitholders and materially impair the ability of HMJI to meet its investment objectives. Currently, the manager expects the hedging costs to be charged to HMJI and borne by unitholders will be between 10.00% and 45.00% per annum of the aggregate notional exposure of HMJI’s forward documents. The hedging costs may increase above this range. The manager publishes on its website, the updated monthly fixed hedging cost for HMJI for the upcoming month as negotiated with the counterparty to the forward documents, based on the current market conditions.

The VIX ETF, which is a 1x ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not intended as a stand-alone long-term investment. Historically, the VIX ETF’s Target has tended to revert to a historical mean. As a result, the performance of the VIX ETF’s Target is expected to be negative over the longer term and neither the VIX ETF nor its target is expected to have positive long-term performance. BetaPro Inverse Bitcoin ETF (“BITI”) which is an up to -1X ETF as described in the prospectus, is a speculative investment tool that is not a conventional investment.  Its Target, an index which replicates exposure to rolling Bitcoin Futures and not the spot price of Bitcoin, is highly volatile. As a result, the ETF is intended as a stand-alone investment. There are inherent risks associated with products linked to crypto-assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. An investment in any of the BetaPro Products is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. Please read the full risk disclosure in the prospectus before investing. Investors should monitor their holdings in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) remain consistent with their investment strategies.

The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60, and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.

Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase investment products (the “Global X Funds”) managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.

All comments, opinions and views expressed are generally based on information available as of the date of publication and should not be considered as advice to purchase or to sell mentioned securities. Before making any investment decision, please consult your investment advisor or advisors.

Published January 12, 2024