Fund Description: Global X Lithium ETF is an exchange-traded Index Fund or Index ETF which is a separate investment portfolio of the Global X Funds, an investment management company. INVESTMENT OBJECTIVE: Global X Lithium ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index. INDEX DESCRIPTION: The Solactive Global Lithium Index is free float adjusted, liquidity tested and market capitalization-weighted Index that is designed to measure broad based equity market performance of global companies involved in the lithium industry, as defined by Structured Solutions AG, the Fund’s Index Provider. As of June 30, 2010 the Index had 20 constituents, 60% of which are foreign companies. The three largest stocks were SQM, FMC Corporation and Rockwood Holdings. FUND STRATEGY: A passive or indexing approach is used to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to beat the Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund will normally invest at least 80% of its total assets in the securities of the Index and in depositary receipts based on the securities in the Index. The Fund will use a replication strategy which is an indexing strategy that involves investing in the securities of the Index in approximately the same proportions as in the Index. However, the Fund may utilize a representative sampling strategy with respect to the Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Index, in instances in which a security in the Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Index. Correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions. An index is a theoretical financial calculation, while the Fund is an actual investment portfolio. The performance of the Fund and the Index may vary somewhat due to transaction costs, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spin-offs), legal restrictions or limitations, illiquid or unavailable securities, and timing variances. The Adviser expects that, over time, the correlation between the Fund's performance and that of the Index, before fees and expenses, will exceed 90%. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Index than if it uses a representative sampling strategy. FUND MANAGEMENT: Global X Management Company LLC, is the investment advisor of the Fund.