Fund Description: Global X TargetIncome Plus 2 ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Global X Funds, an open-end investment management company. INVESTMENT OBJECTIVE: The Global X TargetIncome Plus 2 ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Wilshire TargetIncome 10-Year Treasury +2% Plus Index. INDEX DESCRIPTION: The Wilshire TargetIncome 10-Year Treasury +2% Plus Index seeks to provide broad exposure to income-producing asset classes using a portfolio of exchange-traded funds with the goal, but not the guarantee, of providing exposure that may be sufficient to support an annualized yield of the US 10-Year Treasury yield plus two percent (2.0%) for the Fund, net of fees. The Index targets an annualized yield that is somewhat higher than the US 10-Year Treasury yield plus 2% (US 10-Year Treasury +2% Plus), which is intended to provide the Fund with the ability to achieve the US 10-Year Treasury yield plus 2% target. The Index allocates index weights among the ETFs based on a methodology developed by Wilshire Associates, the Index Provider. The share prices of the ETFs are expected to track the performance of equities or bonds in developed or emerging markets, senior loans, preferred securities, real estate investment trusts (REITs), master limited partnerships (MLPs) and energy infrastructure equities, U.S. Treasury bonds, and U.S. Treasury Inflation Protected Securities (TIPS). The ETFs which invest in bonds may have exposure to investment grade and non-investment grade bonds. Optimization is the quantitative process that is used of selecting a specific portfolio allocation from the set of all potential portfolio allocations, based on a defined objective and subject to certain constraints. Given that the objective of the Index is to achieve the stated income target while seeking to minimize overall portfolio risk, the primary optimization inputs for the Index are the yield, volatility, and correlation characteristics of the ETFs. On a quarterly basis, and subject to certain weighting constraints, the Index is rebalanced. FUND STRATEGY: The Fund is a fund of funds and invests at least 80% of its total assets in the securities of the Index. The Adviser uses a passive or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to outperform the Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund invests at least 80% of its total assets in the securities of the Index. The Fund generally will use a replication strategy. A replication strategy 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 or disadvantageous to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to replicate 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. A representative sampling is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Index in terms of key risk factors, performance attributes and other characteristics. These include country weightings, market capitalization and other financial characteristics of securities. The Fund may or may not hold all of the securities in the Underlying Index. FUND MANAGEMENT: Global X Management Company LLC serves as the investment adviser to the Fund.