Strategy. Under normal circumstances, the Fund invests, on a consolidated basis with the Global X Subsidiary (as defined below), in long positions included in the ICE Global Carbon Futures Index (the "Underlying Index") as well as in investments that have economic characteristics that are similar to the economic characteristics of such component positions, such that the notional exposure to the Underlying Index is at least 80% of the Funds net assets, plus borrowings for investment purposes (if any), as described in further detail below. The Fund's 80% investment policy is non-fundamental and requires 60 days prior written notice to shareholders before it can be changed. The Underlying Index is designed to provide exposure to the price of carbon emissions through a … Show more… Under normal circumstances, the Fund invests, on a consolidated basis with the Global X Subsidiary (as defined below), in long positions included in the ICE Global Carbon Futures Index (the "Underlying Index") as well as in investments that have economic characteristics that are similar to the economic characteristics of such component positions, such that the notional exposure to the Underlying Index is at least 80% of the Funds net assets, plus borrowings for investment purposes (if any), as described in further detail below. The Fund's 80% investment policy is non-fundamental and requires 60 days prior written notice to shareholders before it can be changed. The Underlying Index is designed to provide exposure to the price of carbon emissions through a long-only basket of carbon credit futures contracts. Carbon credit futures are a means of providing exposure to carbon credits (also known as carbon allowances) which are government-issued permits that allow a company or entity to emit a specific quantity of carbon dioxide equivalent into the atmosphere. Generally speaking, a carbon futures contract represents a lot (typically 1,000) of the respective carbon credits. The value of the Underlying Index is expected to increase if the value of the underlying basket of carbon credit futures increases, and to decrease if the value of the underlying basket of carbon credit futures decreases. The value of the underlying carbon credit futures is expected to be driven primarily by supply and demand of the carbon credits linked to the respective carbon credit futures contract. For example, if the cost of carbon emissions increases (e.g. new regulation that increases carbon emission restrictions) in the jurisdiction of one of the carbon credit regimes that is reflected in the Underlying Index, the demand for those carbon credits would be expected to increase. All else equal, this increased demand would be expected to increase the price of the carbon credit futures linked to those carbon credits, causing the Underlying Index to increase in value. In contrast, if the cost of carbon emissions decreases (e.g. new regulation that decreases carbon emission restrictions) in the jurisdiction of one of the carbon credit regimes reflected in the Underlying Index, the demand for those carbon credits would be expected to decrease. All else equal, this decreased demand would be expected to decrease the price of the carbon credit futures linked to those carbon credits, causing the Underlying Index to decrease in value. The Underlying Index seeks to provide exposure to the most actively traded carbon credit futures that require physical delivery of emission allowances and that are issued under cap and trade regimes, as determined by ICE Data Indices, LLC (the Index Provider). A cap and trade regime is a market-based mechanism that governments or regulatory bodies use to reduce carbon dioxide and other greenhouse gases from entering the atmosphere. A cap and trade program is designed to set a geographic limit on the amount of carbon dioxide that can be emitted into the atmosphere by specific sectors of the economy. This limit declines on an annual basis, with the intention of reducing the overall amount of carbon dioxide emitted over time. Companies and other entities that are obliged to comply within a specific cap and trade program must either reduce their emissions below their allowable annual limit, or use additional carbon credits which at least equal their emissions above their annual limit to comply with the program. As of March 30, 2023, the Underlying Index consists of a long-only basket of the following contracts (collectively, the Contracts): 1. ICE EUA Futures Contracts (EUA Contracts) - Each EUA Contract is euro-denominated and represents a lot of 1,000 Carbon Emission Allowances (EUAs) that are deliverable to or from the Union Registry under the European Union Emissions Trading System. Each EUA is an entitlement to emit one metric ton of carbon dioxide equivalent gas. 2. ICE UK Allowance Futures Contracts (UKA Contracts) - Each UKA Contract is pound-denominated and represents a lot of 1,000 UK Allowances (UKAs) that are deliverable to or from the UK Emissions Trading Registry under the UK Emissions Trading Scheme. Each UKA is an entitlement to emit one metric ton of carbon dioxide equivalent gas. 3. ICE California Carbon Allowance Futures Contracts (CCA Contracts) - Each CCA Contract is dollar-denominated and represents a lot of 1,000 California Carbon Allowances (CCAs) that are physically delivered greenhouse gas emissions allowances issued by the California Air Resources Board or a linked program under California Assembly Bill 32 "California Global Warming Solutions Act of 2006" and its associated regulations, rules and amendments, all together known as the "California Cap and Trade Program". Each CCA is an entitlement to emit one metric ton of carbon dioxide equivalent gas. 4. ICE Regional Greenhouse Gas Initiative Futures Contracts (RGGI Contracts) - Each RGGI Contract is dollar-denominated and represents a lot of 1,000 RGGI Allowances (RGGIs) that are physically delivered greenhouse gas emissions allowances issued by each state in the RGGI program. The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont and Virginia to cap and reduce power sector carbon dioxide emissions. Each RGGI is an entitlement to emit one short ton of carbon dioxide gas. As the global carbon credit market grows, additional carbon credit futures contracts will be evaluated by the Index Provider for potential inclusion in the Underlying Index. The Underlying Index is rebalanced annually, with the futures contract weights set at the end of August and with the futures rolling process occurring over a three-month period (the Roll Period), running from the first to the fifteenth business day of the months of September, October, and November. The EUA and UKA Contracts roll in one-third increments per month over the three-month Roll Period, from the current year December expiration contract month to the next year December expiration contract month. The CCA and RGGI Contracts roll in one-third increments per month over the three-month Roll Period, from the current year vintage/current year December expiration contract month to the next year vintage/next year December expiration contract month. As of March 30, 2023, the Underlying Index had four constituents. As of March 30, 2023, at the annual rebalance, the EUA Contracts have a maximum weighting of 50%, the RGGI Contracts have a minimum weighting of 5%, and there are no weight constraints for the UKA Contracts or the CCA contracts. The rebalancing contract weights are calculated based on the total dollar volume of the contracts utilizing closing settlement prices, contract sizes (all currently in units of 1,000), and daily volumes, as determined by the Index Provider. The total dollar volume is measured by the Index Provider based on the current year December expiration EUA Contracts, current year December expiration UKA Contracts, current year vintage/current year December expiration CCA Contracts, and current year vintage/current year December expiration RGGI Contracts. As of March 30, 2023, the weights in the Underlying Index for the EUA Contracts, UKA Contracts, CCA Contracts and the RGGI Contracts, were 55.9%, 22.2%, 17.6%, and 4.2%, respectively. The Fund seeks to gain exposure to carbon credit futures, in whole or in part, through investments in a subsidiary organized in the Cayman Islands, namely the Global X Carbon Credit Strategy Subsidiary Limited (the Global X Subsidiary). The Global X Subsidiary is wholly-owned and controlled by the Fund. The Funds investment in the Global X Subsidiary may not exceed 25% of the Funds total assets at each quarter-end of the Funds fiscal year. The Funds investment in the Global X Subsidiary is intended to provide the Fund with exposure to carbon credit futures while enabling the Fund to satisfy source-of-income requirements that apply to regulated investment companies (RICs) under the Internal Revenue Code of 1986, as amended (the Code). Except as noted, references to the investment strategies and risks of the Fund include the investment strategies and risks of the Global X Subsidiary. The Underlying Index is sponsored by the Index Provider, which is an organization that is independent of, and unaffiliated with, the Fund and Global X Management Company LLC, the investment adviser for the Fund ("Adviser"). In addition, any determinations related to the constituents of the Underlying Index are made independent of the Fund's portfolio managers. The Index Provider determines the relative weightings of the futures contracts in the Underlying Index and publishes information regarding the market value of the Underlying 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 Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund generally uses a representative sampling strategy with respect to the Underlying Index. "Representative sampling" is an indexing strategy that involves investing in a representative sample of securities (including indirect investments through underlying ETFs) that collectively has an investment profile similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics. The Adviser expects that, over time, the correlation between the Fund's performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. While the Fund will generally seek to obtain exposure to the same carbon credit futures contracts that are included in the Underlying Index, the Fund and Subsidiary may not replicate the Underlying Index. For example, the Fund may invest in carbon credit futures with different maturity dates, the Fund may weight the carbon credit futures differently, and/or the Fund may purchase carbon credit futures on different dates than the rebalancing date. The Fund may also invest in other instruments that are consistent with its investment objective but which are not included in the Underlying Index. For example, the Fund may invest in emission allowances issued under a cap and trade regime, options on futures contracts, swap contracts, and other investment companies and notes, which may or may not be exchange-traded. The debt instruments in which the Fund intends to invest indirectly, through short-term bond funds and exchange-traded funds (ETFs), include government securities and corporate or other non-government fixed-income securities with maturities of up to 12 months. The Fund may also invest in cash and cash equivalents, including money market funds and repurchase agreements. The Fund concentrates its investments (i.e., holds 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. To the extent the Underlying Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry (using the notional value of any futures in which it invests). The Fund is classified as non-diversified, which means it may invest a larger percentage of its assets in a smaller number of issuers than a diversified fund. Show less