ETF Research Center

HERO tracks a modified market-cap-weighted global index of companies in video games and esports industry.

FUND BASICS
Category	Global Equities
Fund Sponsor	Global X
Website	www.globalxfunds.com
Inception date	Oct 25, 2019
Assets (mns)	$2
Currency	USD
Expense ratio	50 bp
Distributions	Semi-annual

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	38
Wgt avg mkt cap (mns)	$23,035
Large cap (>$10bn)	48.8%
Mid cap ($2-10bn)	42.6%
Small cap (<$2bn)	8.6%
Developed mkts	70.0%
Emerging mkts	30.0%

TOP TEN HOLDINGS
Total	55.7 %
NETEASE.COM INC-ADR	6.3 %
NVIDIA CORP	6.2 %
ELECTRONIC ARTS INC	6.1 %
NINTENDO CO LTD	6.0 %
SEA LTD. (SINGAPORE) SPONSORED ADR	5.7 %
TAKE-TWO INTERACTIVE SOFTWRE	5.6 %
ACTIVISION BLIZZARD INC	5.5 %
NEXON CO LTD	5.1 %
SQUARE ENIX HOLDINGS CO LTD	4.6 %
NCSOFT CORPORATION	4.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	29.5 %
	JAPAN	28.7 %
	CHINA	16.3 %
	SOUTH KOREA	8.6 %
	SINGAPORE	5.6 %
	FRANCE	4.0 %
	SWEDEN	1.0 %
	HONG KONG	0.8 %
	TAIWAN	0.3 %

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.
5.1%	--	--	--	5.1%

Market Correlations
versus...	Beta	R-squared
S&P500	--	--
MSCI EAFE	--	--
MSCI Emg. Mkts.	--	--

Technical Indicators
Recent close	$15.88
30d moving avg.	$15.53
Annualized volatility	0.0%
Short interest (ETF)	7.8%
Relative strength (RSI)

Liquidity measures
Avg. volume (thou.)	2
Turnover	2.0%
Bid/Ask (% of price)	0.32%
ADV underlying (mns)	$4,436

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Global X Video Games & Esports ETF based on the alternatives' overlap in portfolio holdings with HERO. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

HERO

Expense:

50 bp

ALTAR Score™:

3.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HERO
Ticker	Fund Name	Overlap¹ vs HERO (%)	Expense ratio (bp)	Savings vs HERO (bp)	ALTAR Score™ (%)	ALTAR vs HERO (%)
ESPO	VanEck Vectors Video Gaming & eSports	68.1	55	-5	3.5	-0.4
GAMR	ETFMG Video Game Tech	45.9	75	-25	5.7	+1.9
NERD	Roundhill BITKRAFT Esports & Digital Entertainment	44.1	25	25	2.9	-1.0
SOCL	Global X Social Media	13.8	65	-15	4.4	+0.5
EWCO	Invesco S&P 500 Equal Weight Comm. Services	12.8	40	10	7.9	+4.1
GBUY	Goldman Sachs Motif New Age Consumer	12.7	50	0	3.0	-0.9
EMQQ	Emerging Markets Internet & E-Commerce	12.4	86	-36	3.9	+0.0
CHIC	Global X MSCI China Communication Services	9.9	65	-15	5.4	+1.6
KEMQ	KraneShares EM Consumer Focus	9.7	80	-30	7.8	+3.9
XLC	Communication Services Select Sector SPDR	9.5	13	37	6.3	+2.5
CQQQ	Invesco China Technology	9.5	70	-20	5.3	+1.5
IEME	iShares Evolved U.S. Media and Entertainment	9.5	18	32	6.6	+2.8
PLAT	WisdomTree Modern Tech Platforms	9.4	45	5	2.8	-1.1
PGJ	Invesco Golden Dragon China	9.2	70	-20	3.7	-0.1
KWEB	KraneShares CSI China Internet	9.0	76	-26	3.9	+0.0
IGV	iShares N. American Tech-Software	7.9	46	4	3.1	-0.7
FDNI	First Trust Dow Jones International Internet	6.9	65	-15	4.5	+0.7
FNI	First Trust ISE Chindia	6.6	59	-9	4.0	+0.2
SOXX	iShares PHLX SOX Semiconductor	6.2	46	4	6.1	+2.3
BOTZ	Global X Robotics & Artificial Intelligence Thematic	6.2	68	-18	3.7	-0.1

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 Video Games & Esports
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.7	%
Divided by: Fwd. P/BV	3.2	x
Less: Expense ratio	50	bp
Equals: ALTAR Score	3.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.33	CATEGORY AVERAGE	1.55

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.