CEFA | Global X S&P Catholic Values Developed ex-US ETF

CEFA ISSUER

Global X Funds, as the issuer of the CEFA (Catholic Values ETF), adheres to a strict investment strategy aligned with the moral and social principles of the Catholic Church. With a commitment to investing at least 80% of its assets in the S&P Developed ex-U.S. Catholic Values Index, the fund excludes companies involved in activities conflicting with Catholic values outlined by the United States Conference of Catholic Bishops. These exclusions cover areas such as abortion, contraceptives, and gambling. The Underlying Index, sponsored by Standard & Poor’s Financial Services LLC, comprises companies screened for alignment with Catholic values, while still mirroring the sector exposures of the S&P EPAC ex-Korea Large Cap Index. The fund employs a passive approach, aiming to replicate the performance of the Underlying Index closely. Though typically using a replication strategy, the fund may opt for representative sampling under certain circumstances. Despite potential deviations caused by sampling or concentration within specific industries, the Adviser anticipates a correlation of over 95% between the fund's performance and that of the Underlying Index, demonstrating a commitment to maintaining alignment with Catholic values while seeking investment returns.

CEFA DIVIDEND

The CEFA (Catholic Values ETF) managed by Global X Funds offers investors the potential for dividends. The fund's investment strategy, centered around the S&P Developed ex-U.S. Catholic Values Index, comprises securities screened for alignment with Catholic values while mirroring the sector exposures of the S&P EPAC ex-Korea Large Cap Index. While the fund primarily seeks capital appreciation consistent with its investment objective, dividends may also be generated from the underlying securities held within the index. As the fund invests in a diversified portfolio of international equities, dividends from constituent companies may contribute to the fund's overall returns. Investors interested in potential dividend income alongside the fund's ethical investment approach may find the CEFA an appealing option. However, specific dividend amounts and frequency may vary depending on the performance of the underlying securities and market conditions.

CEFA TRACKING

The tracking of the CEFA (Catholic Values ETF) by Global X Funds reflects its adherence to the investment strategy based on the S&P Developed ex-U.S. Catholic Values Index. The fund aims to replicate the performance of this index, which comprises companies screened for alignment with Catholic values while maintaining sector exposures similar to the S&P EPAC ex-Korea Large Cap Index. Through a passive approach, the fund seeks to closely track the movements of its underlying index. While deviations may occur due to factors such as sampling or concentration within specific industries, the Adviser anticipates a correlation of over 95% between the fund's performance and that of the Underlying Index. Investors monitoring the CEFA can assess its tracking efficiency by comparing its returns with those of its benchmark index over time. This tracking allows investors to evaluate the fund's ability to deliver investment results consistent with its stated objective while maintaining alignment with Catholic values.

CEFA CORRELATION

The CEFA (Catholic Values ETF) managed by Global X Funds aims to maintain a high correlation with its underlying index, the S&P Developed ex-U.S. Catholic Values Index. This index screens companies based on their alignment with Catholic values while mirroring sector exposures similar to the S&P EPAC ex-Korea Large Cap Index. The fund employs a passive investment approach, seeking to replicate the performance of its underlying index closely. While deviations may occur due to factors such as sampling or concentration within specific industries, the Adviser expects the fund's correlation with its underlying index to exceed 95% over time. This high correlation indicates that the fund's performance is closely aligned with the movements of its benchmark index, providing investors with confidence in its ability to deliver returns consistent with its investment objective while adhering to Catholic values.

CEFA SECTOR

The sector composition of the CEFA (Catholic Values ETF) managed by Global X Funds reflects its commitment to aligning with Catholic values while mirroring the sector exposures of the S&P EPAC ex-Korea Large Cap Index. The fund's underlying index, the S&P Developed ex-U.S. Catholic Values Index, screens companies based on their adherence to Catholic principles outlined by the United States Conference of Catholic Bishops. While the fund seeks to exclude companies involved in activities conflicting with Catholic values, it aims to maintain sector diversification similar to the benchmark index. As of the most recent data available, the sector composition of the fund aligns with the sector exposures of the S&P EPAC ex-Korea Large Cap Index, ensuring that investors can participate in various sectors while investing in line with their ethical beliefs. This sector diversification provides investors with exposure to international equities across different industries while adhering to the fund's Catholic values screening criteria.

CEFA EXPOSURE

The CEFA (Catholic Values ETF) managed by Global X Funds offers exposure to developed market equity securities outside the U.S. while maintaining alignment with the moral and social teachings of the Catholic Church. The fund invests at least 80% of its total assets in the securities of the S&P Developed ex-U.S. Catholic Values Index, alongside American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the securities in the index. The underlying index, sponsored by Standard & Poor’s Financial Services LLC, screens companies based on socially responsible investment guidelines outlined by the United States Conference of Catholic Bishops (USCCB). It excludes companies involved in activities deemed inconsistent with Catholic values, such as abortion, contraceptives, and gambling. Despite these exclusions, the fund maintains exposure to various sectors, as the remaining constituents are reweighted to match the sector exposures of the S&P EPAC ex-Korea Large Cap Index. Through a passive indexing approach, the fund provides investors with exposure to international equities while upholding Catholic values.