ETF Research Center

The Global X MSCI China Consumer Discretionary ETF seeks to invest in large- and mid-capitalization segments of the MSCI China Index that are classified in the Consumer Discretionary Sector as per the Global Industry Classification System.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Global X Management Co LLC
Website	www.globalxfunds.com
Inception date	Dec 01, 2009
Assets (mns)	$157
Currency	USD
Expense ratio	65 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	Brown Brothers Harriman & Co
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	68
Wgt avg mkt cap (mns)	$68,819
Large cap (>$10bn)	68.4%
Mid cap ($2-10bn)	29.1%
Small cap (<$2bn)	2.5%
Developed mkts	25.7%
Emerging mkts	74.3%

TOP TEN HOLDINGS
Total	52.9 %
ALIBABA GROUP HOLDING LTD. SPONSOR	8.7 %
JD.COM INC-ADR	6.6 %
TAL EDUCATION GROUP UNSPONSORED AD	5.6 %
NEW ORIENTAL EDUCATIO-SP ADR	5.4 %
CTRIP.COM INTERNATIONAL-ADR	5.0 %
MEITUAN DIANPING	4.9 %
YUM CHINA HOLDINGS, INC.	4.7 %
ANTA SPORTS PRODUCTS LTD	4.1 %
GEELY AUTOMOBILE HOLDINGS LT	4.1 %
VIPSHOP HOLDINGS LTD SPONSORED ADR	3.7 %

TOP COUNTRY EXPOSURE
	CHINA	82.3 %
	HONG KONG	14.8 %
	UNITED STATES	0.6 %
	BRITISH VIRGIN ISLANDS	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
36.5%	28.4%	7.9%	--	2.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.25	46%
MSCI EAFE	1.41	48%
MSCI Emg. Mkts.	1.22	58%

Technical Indicators
Recent close	$17.85
30d moving avg.	$17.80
Annualized volatility	22.4%
Short interest (ETF)	0.4%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	73
Turnover	0.8%
Bid/Ask (% of price)	0.29%
ADV underlying (mns)	$7,531

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Global X MSCI China Consumer Discretionary ETF based on the alternatives' overlap in portfolio holdings with CHIQ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

CHIQ

Expense:

65 bp

ALTAR Score™:

5.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH CHIQ
Ticker	Fund Name	Overlap¹ vs CHIQ (%)	Expense ratio (bp)	Savings vs CHIQ (bp)	ALTAR Score™ (%)	ALTAR vs CHIQ (%)
PGJ	Invesco Golden Dragon China	38.7	70	-5	3.7	-1.6
KWEB	KraneShares CSI China Internet	35.5	76	-11	3.9	-1.5
FNI	First Trust ISE Chindia	29.6	59	6	4.0	-1.3
CXSE	WisdomTree China ex-State Owned Enterprises	28.9	32	33	7.0	+1.7
DINT	Davis Select International	22.9	75	-10	5.9	+0.5
EMQQ	Emerging Markets Internet & E-Commerce	22.7	86	-21	3.9	-1.5
CHIL	Global X MSCI China Large-Cap 50	21.3	29	36	10.5	+5.1
TTTN	TigerShares China-U.S. Internet Titans	21.2	59	6	3.9	-1.4
FDNI	First Trust Dow Jones International Internet	20.9	65	0	4.5	-0.8
KALL	KraneShares MSCI China All Shares	20.0	49	16	9.0	+3.7
ECON	Columbia Emerging Markets Consumer	19.7	59	6	5.1	-0.3
FLCH	Franklin FTSE China	19.5	19	46	10.0	+4.7
MCHI	iShares MSCI China	19.4	59	6	9.4	+4.0
GXC	SPDR S&P China ETF	19.2	59	6	9.2	+3.8
EEB	Invesco BRIC	19.0	64	1	6.6	+1.3
WCHN	WisdomTree ICBCCS S&P China 500	18.3	55	10	9.1	+3.8
EBIZ	Global X E-commerce	17.9	68	-3	2.8	-2.5
KEMQ	KraneShares EM Consumer Focus	17.6	80	-15	7.8	+2.4
ONLN	ProShares Online Retail	16.6	58	7	2.3	-3.1
DWLD	Davis Select Worldwide	16.3	64	1	6.1	+0.8

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Global X MSCI China Consumer Discretionary
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.0	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	65	bp
Equals: ALTAR Score	5.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.35	CATEGORY AVERAGE	1.49

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.