Important Information
Investors should not base investment decisions on this content alone. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X Japan Global Leaders ETF (the “Fund”) seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the FactSet Japan Global Leaders Index (the “Index”).
- The Fund is subject to general investment risk, equity market risk, new index risk, annual reconstitution risk, differences in dealing arrangements between Listed Class of Units and Unlisted Classes of Units risk, differences in cost mechanisms between Listed Class of Units and Unlisted Classes of Units risk, currency risk, risk of reliance on the Index Calculation Agent, trading difference risk, passive investment risk, tracking error risk, trading risk, termination risk, reliance on market maker risks and distributions out of or effectively out of capital risk.
- The Fund’s investments are concentrated in securities in Japan. The Fund’s value may be more volatile than that of a fund with a more diverse portfolio. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Japanese market.
- The Japanese economy is heavily dependent on international trade and may be adversely affected by protectionist measures, competition from emerging economies, political tensions with its trading partners and their economic conditions, natural disasters and commodity prices. Further, the TSE or JASDAQ has the right to suspend trading in any security traded thereon. The Japanese government or the regulators in Japan may also implement policies that may affect the Japanese financial markets.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
- Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including product features and the risk factors. There is no guarantee of the repayment of the principal.
- Global X India Select Top 10 ETF’s (the “Fund”) underlying Index is a new index. The Underlying Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Underlying Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history. The Underlying Index is an equal weighted index whereby the Underlying Index constituents will have the same weighting at each rebalancing (but not between each rebalancing) regardless of its size or market capitalisation based on the methodology of the Underlying Index.
- The Fund is a FPI registered with the SEBI. The applicable laws, rules and guidelines on FPI impose limits on the ability of FPI to acquire shares in certain Indian issuers from time to time and are subject to change. This may also adversely affect the performance of the Fund. The FPI status of the Fund may be revoked by the SEBI under certain circumstances. In the event the Fund’s registration as a FPI is cancelled, revoked, terminated or not renewed, this would adversely impact the ability of the Fund to make further investments, or to hold and dispose of existing investment in Indian securities. The Fund may be required to liquidate all holdings in Indian securities acquired by the Fund as a FPI. Such liquidation may have to be undertaken at a substantial discount and the Fund may suffer significant/substantial losses.
- The Fund’s investments are concentrated in securities in India. The Fund’s value may be more volatile than that of a fund with a more diverse portfolio. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Indian market.
- The Fund’s investments are concentrated in companies in various sectors and themes including communication services, information technology, financials, health care, consumer staples and consumer discretionary, industrials and energy. Fluctuations in the business for companies in these sectors or themes will have an adverse impact on the Net Asset Value of the Fund.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
- Global X K-pop and Culture ETF’s (the “Fund”)The Index is a new index. The Index has minimal operating history by which investors can evaluate its previous performance. There can be no assurance as to the performance of the Index. The Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.
- The Fund is subject to concentration risk as a result of tracking the performance of a single geographical region or country (South Korea). The Fund may likely be more volatile than a broad-based fund, such as a global equity fund, as it is more susceptible to fluctuations in value of the Index resulting from adverse conditions in South Korea. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the South Korean market.
- The Fund’s investments are concentrated in companies in various industries and sectors including entertainment, communication services, internet, gaming, consumer staples, consumer discretionary as well as food. The business performance of these industries or sectors are subject to a wide range of risks. Fluctuations in the business for companies in these industries or sectors will have an adverse impact on the Net Asset Value of the Fund.
- The Fund may invest in small and/or mid-capitalisation companies. The stock of small-capitalisation and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
- The borrower may fail to return the securities in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests. As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund.
- Global X Innovative Bluechip Top 10 ETF (the “Fund’s”) seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Mirae Asset Global Innovative Bluechip Top 10 Index (the “Index”).
- The Fund is subject to general investment risk, equity market risk, new index risk, equal weighted index risk, risks related to companies with technology themes, differences in dealing arrangements between Listed Class of Units and Unlisted Classes of Units risks, differences in cost mechanisms between Listed Class of Units and Unlisted Classes of Units risk, currency risk, trading difference risk, risks associated with ADRs, passive investment risk, tracking error risk, trading risk, termination risk, reliance on market maker risks, reliance of the same group risk and distributions out of or effectively out of capital risk.
- The Fund’s investments are concentrated in companies in the technology sector. The Fund’s value may be more volatile than that of a fund with a more diverse portfolio. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the technology sector.
- The number of constituents of the Index is fixed at 10. The Fund by tracking the Index may have a more concentrated investment portfolio than it would have held if tracking an index with a higher number of constituents, leading to higher risks of volatility.
- As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
- Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including product features and the risk factors. There is no guarantee of the repayment of the principal.
- Global X AI & Innovative Technology Active ETF (the “Fund”)’s investment objective is to achieve long term capital growth by primarily investing in equities of exchange-listed companies globally, which fall within the investment theme of artificial intelligence (“AI”) and innovative technologies.
- The Fund will invest primarily (i.e. at least 70% of its net asset value (the “Net Asset Value”)) in equity securities and equity-related securities (such as common shares, preferred stock as well as American depositary receipts (“ADRs”), global depositary receipts (“GDRs”) and participation notes) of companies which (i) create, design and develop, or (ii) benefit from the advancement of, AI and Innovative Technologies Companies. Risk associated with AI and Innovative Technologies Companies include Operational and business risk, Changes in technology risk, Governmental intervention risk, Regulatory risk, Intellectual property risk, Significant capital investment risk, Cyberattack risk.
- The performance of the Fund may be exposed to risks associated with different sectors including but not limited to industrial, consumer discretionary, financial services, information technology, semiconductor, communication services, entertainment and healthcare. Fluctuations in the business for companies in these sectors will have an adverse impact on the Net Asset Value of the Fund.
- The Fund employs an actively managed investment strategy. The Fund does not seek to track any index or benchmark, and there is no replication or representative sampling conducted by the Manager. It may fail to meet its objective as a result of the Manager’s selection of investments, and/or the implementation of processes which may cause the Fund to underperform as compared to other index tracking funds with a similar objective.
- The Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
- There is no industry sector requirement and the Fund may from time to time concentrate in a particular sector. The performance of the Fund may be exposed to risks associated with different sectors and themes, including but not limited to industrial, consumer discretionary, financial services including fintech, information technology, semiconductor, communication services, entertainment, and healthcare. The Fund may experience relatively higher volatility in price performance when compared to other economic sectors.
- Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner or at all. The Fund may as a result suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from redemption requests.
- Investors should note that Unitholders will only receive distributions in USD and not HKD. In the event the relevant Unitholder has no USD account, the Unitholder may have to bear the fees and charges associated with the conversion of such distribution from USD into HKD or any other currency.
- Payments of distributions out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions involving payment of dividends out of capital or effectively out of capital of the Fund may result in an immediate reduction in the Net Asset Value per Unit of the Fund and will reduce the capital available for future investment.
- The trading price of the Listed Class of Units on the SEHK is driven by market factors such as the demand for and supply of the Listed Class of Units. Therefore, the Listed Class of Units may trade at a substantial premium or discount to the Fund’s Net Asset Value.
- The Fund may invest in financial derivative instruments (“FDIs”) for non-hedging (i.e. investment) and/or hedging purposes, in order to achieve efficient portfolio management. Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Fund.
Monthly Commentary
Global Thematic ETFs – Feb 2025
Global X India Select Top 10 ETF (3184 HK)
Market Update
The MSCI India Index was down 3.6 % (in USD terms) in January, underperforming the MSCI APxJ/EM Indices due to concerns on global macro uncertainties, a depreciating Indian rupee, and domestic growth issues. The RBI announced the liquidity injection measures on 27th January, which led to a rebound for the remainder of the month post the announcement.
Domestic demand-based high-frequency data for January showed a gradually improving trend. The Manufacturing PMI rose to 57.7 led by higher export orders, while the Services PMI moderated to 56.5 in January from 59.3 in December. GST collection in January rose by 12.3% YoY, reaching Rs 1.96tn, and Central Government CAPEX in December increased by 95.3% YoY to Rs 1.7tn, compared to an average of Rs 640bn between April and November. That said, the Naukri job index grew at a softer pace and power demand also weakened to 2.5% YoY in January.
December CPI softened to 5.2% with Core CPI (ex food, fuel) steady at 3.6% YoY. Food inflation also slowed to 8.4% YoY in December, and the trend in high-frequency food prices showed further moderation in January. We expect headline CPI will continue to soften, driven by disinflation in food prices, which may create room for the RBI to pivot towards an easing cycle to support growth.
Indian equity flows from foreign institutional investors ended with a net selling of USD 8.2 billion as of 30th January (vs. a net buying of USD 1.3 billion in December), while domestic institutional investors maintained their buying trend for the 18th consecutive month, with net buying of USD 9.8 billion in January (vs. USD + 4.0 billion in December).
Stock Comments
- Maruti Suzuki India (MSIL IN) was the major contributor in December, as the company reported better-than-expected December sales numbers. Sales volume increased by 30% YoY in December, driven by strong exports volumes during the month. Higher year-end discounts, coupled with the anticipation of a price hike from January 2025 also contributed to stronger retail sales. In addition, Maruti underperformed in the last 12-18 months; thus, positioning wise, it has become a less crowded name and has been more defensive in January amid the market correction.
- Sun Pharmaceutical (SUNP IN) was the major detractor in January mainly driven by concerns on potential tariff on import drugs in the US. In addition, uncertainty around the launch timeline of its specialty drug Leqselvi (Deuruxolitinib, approved in July 2024), due to ongoing patent litigation also weighed on Sun Pharmaceutical’s performance
Preview
We expect a strong GDP growth supported by easing monetary policy, increased fiscal spending, moderate inflation, and a recovery in consumption. These factors suggest a buoyant outlook for the Indian equity markets, and we believe these conditions will be conducive to capitalizing on potential growth opportunities during this fiscal year in India. We remain constructive on India market.
Global X K-pop and Culture ETF (3158 HK)
Market Update
In January, KOSPI increased 4.9% MoM to 2,517, driven by a rebound from overselling and easing of political uncertainties. During this period, market attention was primarily concentrated on earnings results, Trump’s tariff policies and concerns regarding AI capex.
For K-pop sectors, the entertainment industry (our product’s top holding sector) has rebounded strongly after a challenging December. This rebound is attributed to improved investor sentiment and expectations of strong 4Q earnings. We remain optimistic about the sector’s 2025 outlook, driven by top artists’ comeback (namely Blackpink and BTS), China rebound, low base, improved monetization as well as the industry’s resilience to potential tariff hike post Trump’s re-election.
Stock Comments
- HYBE (352820 KS): HYBE recorded 15% return in January. The continued growth of fan bases for emerging artists, alongside BTS’s comeback, is poised to support revenue growth. A key highlight is BTS member J-Hope’s announcement of his first solo world tour, featuring 31 concerts across 15 cities. Additionally, BTS is likely to celebrate the 10th anniversary of their album Young Forever with a special release. BTS is expected to comeback in full group in 2H25, likely followed by a world tour in 2026. Other HYBE acts, including BoyNextDoor, &Team, and TWS, are also projected to contribute significantly to concert revenue. Meanwhile, the US-based girl group Katseye is gaining notable traction and steadily expanding its US fan base, with Spotify streams in 4Q24 more than doubling QoQ. HYBE plans to further refine and strengthen its localization strategies in the US market moving forward.
- JYP Entertainment (192820 KS): JYP recorded 7% return in January. JYP is experiencing robust growth in the global fandom of its established artists, particularly Stray Kids. The group is anticipated to attract an audience of 1.7 million during their ongoing world tour, dominATE. Meanwhile, JYP’s new boyband, KickFlip, which debuted on January 20, is also gaining traction, signaling improved competitiveness among new artists. KickFlip a;sp introduces a unique style not seen in JYP’s existing acts, reducing the likelihood of fan base cannibalization within the company’s artist lineup.
- Netmarble (251270 KS): Netmarble experienced 16% loss in January on expectations of challenging 4Q earnings. Recently launched mobile games—including Solo Leveling: ARISE, Raven 2, and Arthdal Chronicles: Three Factions—are expected to experience a decline in revenues, dragged by decreasing expenditure on in-game items by players, intensified competition and limited content updates during 4Q24. Additionally, we foresee a slight increase in both commission and marketing expenses for promoting these new mobile games. Furthermore, the new game pipeline for 2025 appears less compelling compared to that of 2024.
Preview
Although facing short term fluctuations such as political uncertainties (which we believe are easing and well-reflected in share prices.), we maintain positive on the rise of K-Pop and cultural phenomenon in global market. Recent hit track APT by Rose and Bruno Mars, along with Han Kang’s Nobel Prize win in Literature, have significantly raised global awareness of K-pop culture. We expect it to continuously provide a halo effect towards Korean goods such as cosmetics and packaged food. We also believe that price competitiveness and compelling value propositions stand out as key factors driving the strong export of Korean consumer goods in the global market, especially under current economic uncertainties and consumer downtrading trend.
Global X Innovative Bluechip Top 10 ETF (3422 HK)
Microsoft remains committed to CAPEX increase for AI
Microsoft announced 2Q25 result. The all-in capex figure (cash capex plus assets acquired under capital leases) in 2Q/Dec was $22.6 billion. CAPEX should remain at a similar level to FQ2 in the next 2 quarters. The 13-point growth contribution to Azure growth from AI was slightly above the 12-point guidance. Azure AI performance ($13 billion run rate, up from $10 billion in 1Q/Sept, with Azure AI revs +157%). Non-AI Azure growth was 18%, down from 21% in 1Q/Sept and 22% in 4Q/Jun.
Apple announced Dec quarter result
Dec Q solid, weak China sales: Sales were $124.3bln (+4% y/y) largely in-line with street; EPS was $2.4 slightly ahead of street due to better GPM at 46.9%, reflecting Services gross margin of 75.0% (potentially impacted by FX) and Product gross margin of 39.3%. iPhone revenue were down 1% YoY, Macs + 16% YoY, iPad + 15% YoY, wearables -2% YoY; greater china sales down 11% YoY.
Guide better than feared: ‘’March quarter total company revenue to grow LSD to MSD % yoy. (vs. street MSD %) We expect services revenue to grow low DD % yoy. (vs. street low-teen %) When you remove the negative impact of the foreign exchange headwinds I described earlier, the yoy growth rate would be comparable to that of the December quarter. We expect gross margin to be between 46.5% and 47.5%. (vs. street 47%)’’
Meta reported solid 4Q result continue to invest in AI
4Q beat: 4Q revenue of $48.4B grew 21% Y/Y, ahead of street/guide. 1Q: 1Q25 reported revenue guidance of $39.5-41.8bn (incl. ~300bps FX headwind & leap-day tough comp) above expectations. Meta reiterated its outlook for $60B-$65B in capex in 2025. Management continues to believe that investing very heavily in capex and infrastructure is going to be a strategic advantage over time.
Global X Japan Global Leaders 10 ETF (3150 HK)
Industry Update
In January 2025, the FactSet Japan Global Leaders Index recorded -3% returns in JPY terms1. BOJ hiked policy rate by 25bps to 0.5% in its January meeting, as market had expected. However, the hawkish stance of BOJ caused market concern and led to sell offs. In late January, Japan market was also affected by DeepSeek shock (which weighed on Semiconductor stocks) and Trump tariff uncertainty. USDJPY ended January at 155, from 157 as of end December.2
Stock Comments
- Nintendo recorded +11% gain in January, a key contributor to the ETF. Nintendo revealed its Switch 2 next-gen console on 16 January, and will host a session to explain on 2 April. More details including specs, price, and launch date could be announced then. Nintendo reported Dec-quarter results, with sales and EBIT both below consensus estimates. However, current focus is centered around earnings outlook after Switch 2 launches this year.
- Fast Retailing recorded 8% loss in January, a detractor to the ETF. The company reported 1QFY8/25 results on 9 January, with OP increased by 7% YoY and in line with consensus. However, Uniqlo international missed due to soft performance of Uniqlo Mainland China, which recorded substantial YoY OP decline.
Preview
Japan stock market went through massive volatility over past few months under concern for JPY volatility and US economy recession. While short term outlook remains uncertain given slowing global economy and political events uncertainty, we remain constructive over Japan stock market in the long term, as supported by a combination of robust export growth, recovering domestic demand, and ongoing corporate reform. JPY appreciation is a key market concern as it could weigh on Japanese corporate earnings, but gradual appreciation should be manageable for global investors as it is also positive for dollar-denominated returns (without currency hedging).3
Global X AI & Innovative Technology Active ETF (3006 HK)
Industry Update
DeepSeek launched DeepSeek V3/R1
The launch of DeepSeek V3 further lowers the cost of LLM adoption. DeepSeek V3/R1 runs on lower inference cost with comparable performance vs leading models like Llama 3.1 405B / GPT4o and o1 (artificial analysis 2025). It is the leading model in terms of performance/cost. Startups leveraging these models, such as Perplexity and Glean, can achieve faster ROI by avoiding the prohibitive API fees associated with closed models and redirecting capital toward product differentiation and market penetration. Simultaneously, enterprise giants like Salesforce gain leverage to reduce dependency on costly closed-source APIs, accelerating in-house AI integration. user experiences through improved AI interactions
Our view is that while DeepSeek V3 demonstrate algorithmic and architecture innovation, it is too early to call the end of scaling law in LLM given the projected size of next-generation model training clusters. DeepSeek V3 is trained on 2048 H800 GPU over 60 days with a total cost of 5.6m USD, which is significantly lower verses other front-tier LLMs with similar performance. (DeepSeek 2025) GPT4 was trained on 25,000 NVIDIA A100 GPUs, Llama 3.1 was trained on 16,000 H100 GPUs, both likely cost 100s of millions to train.
However, note that the front-tier model today such as GPT4 is trained on last-generation Nvidia chips (Ampere) with a relatively small cluster vs the size of investment we see today. It is important to recognize the time lag in infrastructure investment today and the launch of a new front-tier pre-trained model, i.e. the GPU investment today is used for models launching in 6 months to 1 year from now. We therefore keep our overweight in AI infrastructure play such as TSMC.
OpenAI introduce deep research
Deep research is an agent that uses reasoning to synthesize large amounts of online information and complete multi-step research tasks. On Humanity’s Last Exam, a recently released evaluation that tests AI across a broad range of subjects on expert-level questions, the model powering deep research scores a new high at 26.6% accuracy. (OpenAI )
Stock Comments
- Amazon + 8.55% – Donald Trump’s crackdown on tariff-free access for small goods could threaten the business models of Chinese ecommerce groups Shein and Temu by raising their costs while benefiting Amazon. The US president imposed an additional 10 per cent tariff on Chinese imports over the weekend and said that the so-called de minimis rules exempting shipments under $800 from duties would no longer apply. (FT 2025)
- NetEase +16.2% – NetEase has been gaining market share via its best-in-class development capabilities. It is expanding globally via self-established studios partnering with industry veterans. The company released Marvel Rivals which reached 10m players globally in 72 hours.
Preview
The Global X AI and Innovative Technology Active ETF Fund is committed to being at the forefront of AI investment, leveraging our expertise to identify and capitalize on opportunities across the AI value chain. By focusing on both established leaders and emerging innovators, we aim to provide our investors exposure to one of the most dynamic and impactful sectors of the global economy. As the AI landscape continues to evolve, we remain dedicated to adapting our strategy to ensure that our investors benefit from the full spectrum of AI-driven growth and innovation.