SDEM ETF ANALYSIS

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SDEM ETF FUNDAMENTALS
SDEM ETF PERFORMANCE

SDEM ISSUER

Global X Funds, the issuer of the SDEM ETF, focuses on tracking the MSCI Emerging Markets Top 50 Dividend Index, investing predominantly in securities from emerging markets and utilizing American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the index's components. The fund's investment policy mandates at least 80% of its assets be allocated to the Underlying Index, which consists of 50 equally-weighted high dividend-yielding companies across various emerging markets such as Brazil, China, India, and South Korea. This approach is supported by a non-fundamental policy, subject to shareholder notice, allowing flexibility in adapting to market changes. The ETF aims to mirror the performance of its benchmark closely, employing a passive indexing strategy managed by Global X Management Company LLC. While typically employing a replication strategy, the fund may resort to representative sampling under certain circumstances, ensuring efficient portfolio management and compliance with regulatory requirements. With a concentrated focus on industries mirroring the Underlying Index, particularly evident in the banking sector as of December 31, 2023, the SDEM ETF endeavors to achieve a correlation of over 95% with its benchmark, emphasizing stability and consistency in returns for investors.

SDEM DIVIDEND

SDEM Dividend, an exchange-traded fund (ETF) offered by Global X Funds, is designed to provide investors with exposure to high-dividend-yielding companies within emerging markets. The ETF primarily invests at least 80% of its total assets in the MSCI Emerging Markets Top 50 Dividend Index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) linked to the index's securities. This strategy seeks to capitalize on the dividend potential of emerging market equities while maintaining diversification across countries and industries. Managed by Global X Management Company LLC, SDEM Dividend adopts a passive indexing approach, aiming to closely track the performance of its benchmark index. Through a replication strategy, the fund strives to mirror the index's composition, ensuring a high correlation of over 95% over time. With its focus on income generation from emerging markets and adherence to a disciplined investment methodology, SDEM Dividend offers investors a potential avenue for long-term growth and income within their portfolios.

SDEM TRACKING

SDEM Tracking, an exchange-traded fund (ETF) issued by Global X Funds, is engineered to closely follow the movements of the MSCI Emerging Markets Top 50 Dividend Index. The fund's primary objective is to provide investors with a reliable tool for gaining exposure to the performance of high-dividend-yielding companies within emerging markets. SDEM Tracking allocates a minimum of 80% of its total assets to securities from the underlying index, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on its constituents. Utilizing a passive indexing strategy, Global X Management Company LLC manages the ETF, aiming to replicate the composition and performance of the benchmark index. Through meticulous tracking and adherence to the index methodology, SDEM Tracking strives to achieve a correlation of over 95% with its benchmark, ensuring that investors can effectively capture the returns generated by high-dividend-yielding equities in emerging markets. This approach provides investors with a convenient and cost-effective means of participating in the potential growth opportunities offered by these markets while emphasizing stability and consistency in performance over the long term.

SDEM CORRELATION

SDEM Correlation, an exchange-traded fund (ETF) issued by Global X Funds, focuses on delivering investors a high correlation with the MSCI Emerging Markets Top 50 Dividend Index. With at least 80% of its total assets invested in securities from the underlying index, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), SDEM Correlation seeks to closely mirror the performance of the benchmark index. Managed by Global X Management Company LLC, the fund adopts a passive indexing strategy, aiming to replicate the composition and returns of the benchmark index. The ETF's investment approach is meticulously designed to ensure that over time, it achieves a correlation of over 95% with its underlying index. By emphasizing consistency and alignment with the benchmark's performance, SDEM Correlation offers investors a reliable tool for gaining exposure to high-dividend-yielding companies within emerging markets while mitigating tracking error and maximizing returns over the long term.

SDEM SECTOR

SDEM Sector, an exchange-traded fund (ETF) offered by Global X Funds, concentrates its investments in specific industries within emerging markets, aligning closely with the composition of the MSCI Emerging Markets Top 50 Dividend Index. With a commitment to maintaining at least 80% of its total assets in securities from the underlying index, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), SDEM Sector provides investors with targeted exposure to high-dividend-yielding companies within select sectors. Managed by Global X Management Company LLC, the ETF employs a passive indexing strategy to replicate the performance of its benchmark index. As of December 31, 2023, the underlying index exhibited concentration in the banking industry, indicating significant exposure to the financial sector. This strategic focus allows SDEM Sector to align its investments with the sectoral composition of the benchmark, potentially capturing opportunities for income generation and long-term growth within emerging market industries while ensuring diversification across countries and sectors.

SDEM EXPOSURE

SDEM Exposure, an exchange-traded fund (ETF) managed by Global X Funds, offers investors targeted exposure to high-dividend-yielding companies within emerging markets. The ETF aims to mirror the performance of the MSCI Emerging Markets Top 50 Dividend Index by investing at least 80% of its total assets in securities from the underlying index, including American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) linked to its constituents. Managed by Global X Management Company LLC, SDEM Exposure adopts a passive indexing strategy to closely track the benchmark index's composition and returns. By focusing on companies with robust dividend yields across various emerging market economies, the ETF provides investors with an avenue to capitalize on income-generating opportunities while mitigating risks associated with individual stock selection. With its emphasis on exposure to high-dividend-yielding equities within emerging markets, SDEM Exposure presents investors with a potential vehicle for capturing the growth potential of these markets while seeking income and diversification within their investment portfolios.

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FREQUENTLY ASKED QUESTIONS

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