ZAP

The financial statements include the Fund's disclosures required by Items 7 through 11 of Form N-CSR, which includes the financial statements, financial highlights, and other important information when applicable.

The financial statements include the Fund's disclosures required by Items 7 through 11 of Form N-CSR, which includes the financial statements, financial highlights, and other important information when applicable.

PAVE seeks to invest in companies that stand to benefit from a potential increase in infrastructure activity in the United States, including those involved in the production of raw materials, heavy equipment, engineering, and construction.

DTCR seeks to invest in companies that own, operate, or develop data centers and cellular towers, as well as those that manufacture the servers and hardware powering these facilities, offering targeted exposure to the digital infrastructure underpinning the AI economy.

SHLD seeks to invest in companies positioned to benefit from the increased adoption of defense technology, including those building cybersecurity systems, leveraging artificial intelligence and big data, and developing advanced military systems and hardware such as robotics, fuel systems, and aircraft for defense applications.

ZAP can complement broad equity and infrastructure allocations by providing targeted exposure to the U.S. electrification value chain, from conventional and alternative electricity producers to grid infrastructure and smart grid technology providers.

As AI data centers, manufacturing reshoring, and vehicle electrification drive an expected multi-decade increase in U.S. electricity demand, this concentrated approach can help fill a gap in broad allocations, where companies positioned specifically to benefit from electrification may be underrepresented relative to diversified utilities.

U.S. electricity demand is projected to increase 35-50% between 2024 and 2040 due to the expansion of AI data centers and manufacturing, as well as the adoption of EVs.¹

Companies that can potentially benefit from U.S. electrification tailwinds include alternative and conventional electricity providers, and those involved in the growth and modernization of the U.S. power grid.

U.S. utilities will likely need to significantly expand power generation and grid infrastructure to keep up with the rising electricity demand and address other challenges, such as aging assets.

¹ACP, Mar 2025

U.S. data center power demand is surging, creating significant investment needs for new power generation and grid infrastructure.

AI is driving a stack of interlinked technologies, from semiconductors to data centers to energy, shaping the next era of growth and innovation.

U.S. electricity demand is forecast to increase due to AI data centers, EVs, and manufacturing, creating potential opportunities for investors.

The Premium/Discount chart demonstrates the difference between the daily market price of shares of the Fund and the Fund's net asset value (NAV). The vertical axis of the chart shows the premium or discount of the daily market price as a percentage of the NAV. The horizontal axis shows each trading day in the time period, and each data point in the chart represents the Premium/Discount on that day. The data presented in the chart and table above represent past performance and cannot be used to predict future results.

The primary explanation is that timing discrepancies can arise between the NAV and the trading price of the Fund. Since shares of the Fund trade on the open market, prices are affected by the constant flow of information received by investors, corporations and financial institutions. Depending on how this changing information affects investor sentiment, shares of the Fund may deviate slightly from the value of the Fund's underlying assets. The NAV of the Fund is only calculated once a day (normally at 4:00 p.m. eastern time). As a result, shareholders may pay more than NAV when they buy Fund shares and receive less than NAV when they sell those shares, because shares are purchased and sold at current market prices. However, due to the creation and redemption process that is unique to ETFs, market makers are able to minimize these deviations from NAV by taking advantage of arbitrage opportunities.

Close of Trading Times. Although both the NAV and the daily market price of the Fund are generally calculated based on prices at the closing time of the exchange (generally 4:00 p.m. eastern time), slight differences in this timing may cause discrepancies.

Time of Last Trade. Trading of Global X funds generally takes place during normal trading hours (9:30 a.m. to 4:00 p.m. eastern time). However, it is important to note that the last trade - from which the closing price is determined - may not occur at exactly 4:00 p.m. eastern time. Therefore, changing market sentiment during the time difference may cause the NAV to deviate from the closing price.

International Holdings. The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets. Because the Funds trade during U.S. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price.

Source: AltaVista Research, LLC