Global X Funds' Scientific Beta Suite of Multi-factor ETFs All Outperform Benchmarks at One-Year Anniversary

NEW YORK, May 18, 2016 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange-traded funds (ETFs), celebrates the one-year anniversary of the launch of its four Scientific Beta ETFs, which launched on May 12, 2015. The funds are one of the fastest growing suites of multifactor ETFs:

• Global X Scientific Beta US (SCIU)
• Global X Scientific Beta Europe (SCID)
• Global X Scientific Beta Japan (SCIJ)
• Global X Scientific Beta Asia ex-Japan (SCIX)

Since launch, all four ETFs have outperformed their market cap-weighted benchmarks, with lower realized volatility. Of the four geographic regions, the Global X Scientific Beta Japan fund demonstrated the most outperformance, beating the MSCI Japan Index by over 11% since the fund's inception.

SciBeta ETF Performance vs. Cap-weighted Benchmarks¹

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-gxfund-1 or visit our website at www.globalxfunds.com.

SciBeta ETFs Realized Volatility vs. Cap-weighted Benchmarks³

"One year in, we're pleased to say that these academically-driven funds have made a mark, with all four outperforming their benchmarks with less volatility," said Jay Jacobs, director of research of Global X.

The ETFs, tracking the EDHEC-Risk Institute's Scientific Beta Indexes, provide core equity exposure to the U.S., Europe, Japan, and Asia ex-Japan. The funds seek to outperform market cap-weighted indexes and mitigate unrewarded risks at lower fees than most actively managed funds.

"We fully believe that multi-factor funds are the latest evolution in smart beta investing," said Jay Jacobs, director of research of Global X. "The rigorous research put into these strategies, combined with the low fees and increased tax efficiency associated with ETFs, represents an attractive alternative to expensive actively managed mutual funds."

Global X will be hosting a webinar on Thursday, May 19^th at 2:00-3:00 PM EDT with Eric Shirbini, Global Product Specialist with EDHEC-Risk Institute Scientific Beta. For more information, click here.

Standard Performance:

ABOUT GLOBAL X

Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs).  Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 40 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.

Definitions:

SBUXRHMN Index: The objective of the Scientific Beta United States Multi-Beta Multi-Strategy Equal Risk Contribution (ERC) Index is to represent the performance of large and medium capitalisation companies from the United States universe while outperforming the capitalisation-weighted reference (the Scientific Beta United States Cap-Weighted Index for this universe), with a limited amount of relative risk against that reference.

SBRXRHMN Index: The objective of the Scientific Beta Extended Developed Europe Multi-Beta Multi-Strategy Equal Risk Contribution (ERC) Index is to represent the performance of large and medium capitalisation companies from the extended developed European countries universe while outperforming the capitalisation-weighted reference (the Scientific Beta Extended Developed Europe Cap-weighted Index for this universe), with a limited amount of relative risk against that reference.

SBAXRHMN Index: The objective of the Scientific Beta Developed Asia-Pacific ex-Japan Multi-Beta Multi-Strategy Equal Risk Contribution (ERC) Index is to represent the performance of large and medium capitalisation companies from the developed Asia-Pacific countries universe excluding Japan while outperforming the capitalisation-weighted reference (the Scientific Beta Developed Asia-Pacific ex-Japan Cap-Weighted Index for this universe), with a limited amount of relative risk against that reference.

SBJURHMN Index: The objective of the Scientific Beta Japan Multi-Beta Multi-Strategy Equal Risk Contribution (ERC) Index is to represent the performance of large and medium capitalisation companies from the Japan universe while outperforming the capitalisation-weighted reference (the Scientific Beta Japan Cap-Weighted Index for this universe), with a limited amount of relative risk against that reference.

S&P 500 Index: The S&P 500 is an index of 500 stocks chosen by factors such as market size, liquidity and industry grouping. The Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe

Stoxx Europe 600 Index: The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

MSCI Pacific ex Japan Index: The MSCI Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed Markets (DM) countries in the Pacific region (excluding Japan). With 150 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country

MSCI Japan Index: The MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 318 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.

Disclosure:

Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' summary or full prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. The Funds are nondiversified. For the Scientific Beta Japan ETF, the Japanese economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on Japanese securities. In addition, Japan is subject to the risk of natural disasters, such as earthquakes, volcanoes, typhoons and tsunamis, which could negatively affect the Fund.

Diversification may not protect against market risk. There is no assurance the goals of the strategy discussed will be met.

Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange.

EDHEC Risk Institute Asia Ltd. indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by EDHEC Risk Institute Asia Ltd. nor does this company make any representations regarding the advisability of investing in the Global X Funds, which is not affiliated with Global X Management Company, LLC.

Global X Management Company, LLC serves as an advisor to the Global X Funds. The Global X Funds are distributed by SEI Investments Distribution Co., One Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Global X Management Company or any of its affiliates.

¹ Source: Bloomberg. Data 5/12/2015 to 5/11/2016
² Cap weighted benchmarks: 
                United States: S&P 500 Index
                Europe: Stoxx 600 Total Return USD Index
                Asia ex-Japan: MSCI Net Asia Pacific ex-Japan USD Index
                Japan: MSCI Net Japan Index USD Index
³ Source: Bloomberg. Data 5/12/2015 to 5/11/2016
⁴ Pursuant to an Expense Limitation Agreement, the Adviser has agreed to reimburse or waive fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund will not exceed 0.19% of the Fund's average daily net assets per year until at least March 1, 2017. Total Annual Fund Operating Expenses apply after Fee Waiver and/or Expense Reimbursement

SOURCE Global X Funds