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.
- Global X Electric Vehicle and Battery Active ETF (the “Fund”) invests in equity to achieve long term capital growth by primarily investing in companies which are directly or indirectly involved in electric vehicle or electric vehicle-related battery businesses.
- The Fund employs an actively managed investment strategy and does not seek to track any index or benchmark. 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 investments are concentrated in companies involved in the EV/Battery Business, which may experience relatively higher volatility in price performance when compared to other economic sectors. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments and may be more susceptible to adverse economic, political, policy, liquidity, tax, legal or regulatory event affecting the relevant sector.
- Electric vehicle companies and electric vehicle-related battery companies invest heavily in research and development which may not necessarily lead to commercially successful products. In addition, the prospects of electric vehicle companies and electric vehicle-related battery companies may be significantly impacted by technological changes, changing government regulations and intense competition from competitors.
- 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.
- Dividends may be paid from capital or effectively out of capital of the Fund, which may amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and result in an immediate reduction in the Net Asset Value per Unit of the Fund.
- The trading price of the Fund unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). 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 Sub-Fund.
- Global X Asia Semiconductor ETF’s (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.
- Semiconductor industry may be affected by particular economic or market events, such as domestic and international competition pressures, rapid obsolescence of products, the economic performance of the customers of semiconductor companies and capital equipment expenditures. These companies rely on significant spending on research and development that may cause the value of securities of all companies within this sector of the market to deteriorate.
- Some Asian securities exchanges (including Mainland China) may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. Some Asian markets may have higher entry barrier for investments as identification number or certificate may have to be obtained for securities trading. All these may have a negative impact on the Fund.
- The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk, currency devaluation, inflation and the likelihood of a high degree of volatility.
- The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). 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 Sub-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 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 realisation requests.
- Global X India Select Top 10 ETF (the “Fund”) seeks to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the Mirae Asset India Select Top 10 Index (the “Underlying Index”).
- The 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.
- The number of constituents of the Underlying Index is fixed at 10. The Fund by tracking the Underlying 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.
- High market volatility and potential settlement difficulties in the equity market in India may result in significant fluctuations in the prices of the securities traded on such market and thereby may adversely affect the value of the Fund. The BSE has the right to suspend trading in any security traded thereon. The Indian government or the regulators in India may also implement policies that may affect the Indian financial markets. There may also be difficulty in obtaining information on Indian companies as disclosure and regulatory standards in India are less stringent than those of developed countries.
- The taxation of income and capital gains in India is subject to the fiscal law of India. The tax rate in respect of capital gains derived by a FPI on transfer of securities will vary depending upon various factors. Any increased tax liabilities on the Fund may adversely affect the Net Asset Value of the Fund. Any shortfall between the provision and the actual tax liabilities, which will be debited from the assets of the Fund, will adversely affect its Net Asset Value. For details, please refer to the section headed “Taxation in India” in the Prospectus.
- Underlying investments of the Fund may be denominated in currencies other than the base currency of the Fund. In addition, the base currency of the Fund is USD but the trading currency of the Fund is in HKD. The Net Asset Value of the Fund and its performance may be affected unfavourably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.
- 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.
- The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s Net Asset Value.
- 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.
Monthly Commentary
Global Thematic ETFs – June 2025
Global X K-pop and Culture ETF (3158 HK)
Market Update
In May, KOSPI increased 5.5% MoM to 2,698, driven by easing concerns over tariffs. For the K-pop sector, Tencent Music (TME) acquired c.10% stake in SM Entertainment, becoming the second largest shareholder (Reuters 30 May 2025). Previously, TME entered into a strategic partnership with DearU, a subsidiary of SM that operates a fandom platform, to integrate its direct messaging service within QQ Music in China. This development indicates a strengthening relationship between major K-pop companies and Chinese streaming platforms, further boosting market optimism regarding the reopening of China’s market. We anticipate that momentum will continue to build following the election of pro-China Jae-Myung Lee as the next president.
Stock Comments
- YG Entertainment (041510 KS): YG recorded 21% return in May. 1Q25 revenue increased by 14.7% YoY, primarily driven by Baby Monster. Gross margins have also steadily improved over the past 12 months, benefiting from Baby Monster’s better monetization. In 2H25, we anticipate increased earnings contributions from major artists and additional activities. Blackpink is expanding its world tour, with 18 concerts confirmed so far. Additionally, there is a potential for Treasure to launch a large-scale world tour towards the end of 2025, following the release of a new album. Baby Monster and Winner are also scheduled for new releases, and the company plans to debut a new boy group in 2H25 under the project name “Next Monster.”
- Samyang Foods (003230 KS): Samyang recorded 15% return in May. The company is a leading manufacturer of food products, specializing in instant noodles, snacks, and sauces. Its flagship instant noodle offerings include Buldak Ramen and Samyang Ramen. We believe Samyang is well-positioned to sustain strong earnings growth in the coming years, driven largely by the rapid international expansion of Buldak Ramen, particularly in the US and Europe. Additionally, the upcoming completion of its first overseas factory in China by January 2027 will provide opportunities for further geographical expansion over the long term.
- Orion Corp (035720 KS): Orion experienced 10% loss in May. In April, its sales exhibited a sudden slowdown, with China sales increasing by 3% YoY in KRW terms (a 2% decline in RMB), compared to an 18% rise in KRW terms (9% in RMB) in March. This slowdown was largely driven by intensified promotional activities from major competitors and high inventory levels. Operating margin declined by 170bps YoY due to rising input costs, which were only partially offset by price increases.
Preview
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. Amid escalating Trump tariff risk, we believe K-pop industry is less vulnerable thanks to its unique cultural and fandom characteristics, as well as the potential for price increases to mitigate the effects.
Global X Innovative Bluechip Top 10 ETF (3422 HK)
- NVIDIA reported solid result and guidance despite H20 impact. NVIDIA announced solid result and guidance despite sizable impact from H20 ban. First-quarter 2025 revenue of US$44.1 billion, a 69% year-over-year increase that exceeded guidance of US$43 billion, even as export restrictions on H20 chips forced the company to recognize over US$4 billion in inventory costs. (Mirae Asset)
- Amazon is reportedly training humanoid robots to deliver packages. Future Amazon orders may be delivered to your door by a humanoid robot workforce. The Information reports that Amazon is developing AI software that will enable robots to operate as package delivery workers that are ferried around in Rivian electric vans, and will soon be ready to start real-world testing at a new facility. (The verge)
- BYD recorded loss of 0.2% in May, a detractor to the ETF. BYD announced price cut of Rmb12-40k on 22 models, to be financed by corporate and dealers. The decline of domestic market share for BYD over the past months could be the trigger of price cut, while its overseas sales are tracking ahead of its targets. Though the price cut impact on BYD could be manageable, the cut dampens sentiment across the sector as investors are concerned on the potential following of peers will further depress profitability of the sector.
Global X Japan Global Leaders ETF (3150 HK)
Industry Update
In May 2025, the FactSet Japan Global Leaders Index recorded 4% returns in JPY terms (FactSet, January 2025). The US-China trade deal is favorable for the Japanese market, particularly benefiting exporters closely tied to the economies of the US and China. US-Japan trade negotiations are still ongoing, and corporate guidance holds up relatively solid despite tariff uncertainty. Updated share buyback plan exceeds market expectations, reflecting the favorable outcomes of capital market reforms and showcasing the resilience of companies. Ultra-long interest rates hit record highs due to deteriorating supply-demand conditions, but the equity market is relatively not affected. USDJPY ended May at 144, from 143 as of end April. (Bloomberg, March 2025)
Stock Comments
- Mitsubishi Heavy Industries recorded 20% return in May. The company has long played a central role in national projects in Japan, such as defense/security and nuclear power generation. Growth outlook is solid thanks to growth in the aircraft, defense, & space segment (on a greater Japan defence budget) and in energy systems (on greater global electricity demand).
- Fujifilm recorded 12% return in May. The company reported F3/25 4Q Results in the month, with OP beating market expectation and solid outlook ahead despite tariff uncertainty. The firm anticipates higher operating rates in bio CDMO and operational effects in business solutions, leading to positive share price reaction after the results.
Preview
Japan stock market went through massive volatility over past few months under concern for JPY volatility, US tariff uncertainty, 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). (JP Morgan, August 2024)
Global X AI & Innovative Technology Active ETF (3006 HK)
- DeepSeek release DeepSeek R1 0528
DeepSeek-AI launched DeepSeek-R1-0528, a 685B-parameter open-source language model, on May 29, 2025. Offered freely under the MIT License for both personal and commercial use, it features a 128K token context window and enhanced reasoning abilities through DeepSeek-V3 architecture and reinforcement learning. This upgrade positions it among the largest publicly accessible AI models worldwide, supporting complex tasks like long-form creative writing, code generation, and interactive tool calling with APIs. (Mirae) - Google released an app that lets you download and run AI models locally
Last week, Google quietly released an app that lets users run a range of openly available AI models from the AI dev platform Hugging Face on their phones.
Called Google AI Edge Gallery, the app is available for Android and will soon come to iOS. It allows users to find, download, and run compatible models that generate images, answer questions, write and edit code, and more. The models run offline, without needing an internet connection, tapping into supported phones’ processors. (Techcrunch) - Amazon is reportedly training humanoid robots to deliver packages
Future Amazon orders may be delivered to your door by a humanoid robot workforce. The Information reports that Amazon is developing AI software that will enable robots to operate as package delivery workers that are ferried around in Rivian electric vans, and will soon be ready to start real-world testing at a new facility. (The verge)
Stock Comments
NVIDIA +24.06%: NVIDIA announced solid result and guidance despite sizable impact from H20 ban. First-quarter 2025 revenue of US$44.1 billion, a 69% year-over-year increase that exceeded guidance of US$43 billion, even as export restrictions on H20 chips forced the company to recognize over US$4 billion in inventory costs.
TSMC +12.54%: Overall sentiment improvement on semiconductor cycle. Chairman and chief executive CC Wei said the artificial intelligence business would remain “very strong.””Our revenue and profit this year will set new historical highs,” he told the company’s annual shareholders meeting. With AI demand “very high,” the company was trying to “increase production capacity to satisfy our customers,” Wei said. But he denied reports that the company was planning to build factories in the Middle East.
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.
Global X Electric Vehicle and Battery Active ETF (3139 HK)
Industry Update
BYD announced pricing discounts for most of their car models on May 23rd, from Rmb12k or 10-20% off. In the meantime, the local media reported BYD’s supply chain financing and high payable issues, which caused people’s concerns on the sustainability of China leading EV makers’ earnings growth and led to deep correction of China auto sector. Dealer feedback indicated local brands inventory remaining in the normal level, despite half a month inventory building up in April and May. So far, Qin Plus PHEV’s selling price is as low to Rmb50k and Yuan Plus Rmb90k, which may push more car brands or models exit from China in the coming two years. Later, China’s MIIT urged major EV makers to halt excessive price cuts and avoid selling below cost, calling for “self-regulation” to curb the damaging price war. We witnessed local brands auto sales improving week-over-week in late May post the discounts.
Stock Comments
NVIDIA Corporation: The company’s quarterly results beat street expectation. Management indicates the pace of rack shipment is improving. Multiple customers are taking 1k racks per week. GB300 sampling began in May and production shipment will come later this quarter.
BYD Company Limited Class A: The company announced deep pricing discounts for most of their car models on May 23rd. The local media also reported their supply chain financing and high payable issues. Hence, people are worried about their earnings growth sustainability.
Preview
Firstly, we don’t think payable is a key problem to Chinese EV makers, although this is a good reminder to them to bear more social responsibility and lead the supply chain more sustainable. Secondly, we remain constructive on China EV and battery sales in 2025, as it is an important vehicle for China government to boost economy in the near term and reduce the dependency on oil imports from the long-term perspectives. Last but not the least, we are positive on some leading companies who are continuously working on technology innovation, making strategic self-help efforts and gaining market share globally in spite of protectionism.
Global X Asia Semiconductor ETF (3119 HK)
Industry Update
TSMC forecasts record profit in 2025 on soaring AI demand, Chairman and chief executive CC Wei said the artificial intelligence business would remain “very strong.””Our revenue and profit this year will set new historical highs,” he told the company’s annual shareholders meeting. With AI demand “very high,” the company was trying to “increase production capacity to satisfy our customers,” Wei said. But he denied reports that the company was planning to build factories in the Middle East. (TSMC)
Samsung Reportedly Controls DRAM Output in 2H25 amid Market Uncertainties, Sansung is expected to shift focus to profitability over volume in H2 2025 by adjusting output, according to the Chosun Daily. Though some speculate Samsung may ramp up to regain its DRAM lead, there’s little sign of major shifts on key production lines, the report notes. The company seems to focus on controlling wafer input at its key DRAM lines (Line 15 and 16) in Hwaseong starting in H2 instead, as suggested by the Chosun Daily. (Trendforce)
Xiaomi Confirms 3nm SoC, Commits $6.9 Billion to Chip Development Over 10 Years, Xiaomi recently drew widespread attention after announcing its self-developed smartphone SoC, the XRING 01. According to Chinese media outlet Ming Pao, Xiaomi CEO Lei Jun revealed on Weibo on May 19 that the chip is manufactured on a 3nm process—marking the first time a Chinese firm has successfully achieved a breakthrough in 3nm chip design, the report highlights. (Trendforce)
Stock Comments
SK Hynix +17.74%: NIVIDIA provided solid guidance which eased investors’ concerns on AI demand. SK hynix stands to benefit as the exclusive supplier of 12H HBM3E for the Blackwell Ultra. In addition, SK hynix could further strengthen its HBM lead, as the report suggests its HBM4 will power NVIDIA’s next-gen AI chip, Rubin, set for a Q3 launch. (Business Post)
TSMC +12.54%: Overall sentiment improvement on semiconductor cycle. Chairman and chief executive CC Wei said the artificial intelligence business would remain “very strong.””Our revenue and profit this year will set new historical highs,” he told the company’s annual shareholders meeting. With AI demand “very high,” the company was trying to “increase production capacity to satisfy our customers,” Wei said. But he denied reports that the company was planning to build factories in the Middle East.
Preview
Increasing AI adoption in the data centre and increasing penetration of AI at the edge and on-device will be the key enabler of next upcycle semiconductor as AI-enabled devices have much higher semi-content. We expect volume growth in end devices to drive broad-based semiconductor cycle recovery in 2025. (Mirae Asset 2025)
Global X India Select Top 10 ETF (3184 HK)
Market Update
The MSCI India Index was up 1.1% (in USD terms) in May, driven by de-escalation between India and Pakistan, a stronger than expected 4QFY25 GDP print which came in at 7.4%yoy compared to consensus expectation of 6.8%yoy, India-UK FTA, record RBI dividends of INR 2.7tn or 0.7% of GDP and easing inflation.
Domestic demand-based high-frequency data for May presented a similar picture to last month, showing a mixed but gradual improvement overall. The Manufacturing PMI slowed to 57.6, while the Services PMI rose to 58.8 in May. GST collections remained resilient at INR 2 trillion, reflecting a stronger year-on-year growth of 16.4%. However, power demand declined by 4.9%, and credit growth moderated to 9.8%yoy in May. On a positive note, Central government capital spending grew 61%yoy reaching INR 1.6tn in April. Vehicle registrations improved for two-wheelers but moderated for passenger vehicles year-on-year, and air passenger traffic continued to grow at a healthy rate, indicating resilient consumer sentiment.
April CPI softened further to 3.2%yoy down from 3.3%yoy in March. Food prices declined for a fourth consecutive month and food inflation came in at 2.1%yoy, the lowest in three and a half years. Food inflation is expected to remain benign in coming quarters considering robust production from the winter crop and forecasts of an above normal monsoon this year.
Indian equity flows from foreign institutional investors continued buying this month and bought USD 2.3 billion in May (vs. USD +1.3 in April), and domestic institutional investors remained their buying trend for the 22nd consecutive month by net buying USD 7.9 billion during the same period (vs. USD + 3.3 billion in April).
Stock Comments
Larson & Toubro Limited (LT IN) the major contributor in May as the company reported strong 4QFY25 results and guidance. The company’s earnings were up 17%yoy, beating the street expectation of +6%yoy. The company also guided +10%yoy ordering growth which came in upper end of analysts’ expectations of +5-10%yoy. The street expect 15% revenue growth and margin expansion leading to 20+% earnings growth for FY26.
Sun Pharmaceutical (SUNP IN) was the major detractor in May as the company guided FY26 to be a year of investments and consolidation, with mid to high single digit top line growth which came in lower than the street expectation. That said, FY25 was a strong year with overall EBITDA and PAT growth of 19% on the back of 14% growth in India business and 17% growth in global specialty sales.
Preview
While global macro uncertainties remain, we expect India’s domestic growth to recover over the coming quarters, supported by easing monetary policy and improved fiscal spending, moderate inflation, and recovery in consumption. This suggests 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.