FUND PROFILE: Fertilizers/Potash ETF

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Food Supply Chain

Within the agricultural sector, fertilizer producers are the first link in the global food supply chain. Farmers require these nutrients to increase crop yields, and fertilizer companies have become the primary producers of commodities that are critical for global food supply growth. The Global X Fertilizers/Potash ETF offers targeted exposure to fertilizer producers around the world, giving investors access to a critical agricultural industry.

FERTILIZER UTILIZATION BY COUNTRY/REGION

Source: International Fertilizer Industry Association 2011.

Nutrients for Emerging Markets

Emerging markets in Asia and Latin America account for almost twothirds (2/3) of global consumption to support food production for their large and growing populations. Global fertilizer consumption is growing fastest in these emerging markets, with historical annual growth rates of more than 3% over the past 15 years. Global economic growth is predicted to drive food demand (especially high value foods such as meat, fruit and vegetables) in emerging economies, thereby strengthening demand for fertilizers (Food and Agricultural Organization, 2010). China and India are the largest fertilizer consuming countries, together accounting for more than 40% of world fertilizer use. China typically imports about 70% of its potash requirements, and annual consumption is expected to return to pre-2008 growth levels of nearly 10% per year.

21% 11% 12% 14%

28%

China 28% India 14% North America 14% Other Asia 12%

14%

Latin America 11% Other 21%

Demand Outpacing Supply

WORLD FERTILIZER CONSUMPTION

Source: Fertecon, IFA, PotashCorp 2011
Million Tonnes
Nitrogen Phosphate Potash

An estimated 660 million tons of grain and oilseed consumption are expected by 2020, approximately 30% higher than current demand. As grain areas are converted to vegetable and fruit production to meet higher demand, fertilizer use will increase the average application rates for the latter are about double those for grain crops (Food and Agricultural Organization, 2010). Purchasing power growth and the resulting diet shifts in emerging markets are driving crop usage: soybean demand has grown over 9% per year over the past ten years, driven by the need for high-protein animal feed and edible cooking oil. In China, corn consumption primarily as animal feed has grown nearly 3% for a decade while corn yields have risen by less than 2% annually, drawing down inventories. In India, grain yields are less than one half of those in the US, with improper fertilization being a key reason for lower yields. Source: PotashCorp 2010, unless otherwise noted.

200 150 100 50 0

1994

1996

1998

2000

2002

2004

2006

2008

2010F 2012F 2014F

Data reported in a combination of fertilizer and calendar years. For example, 2010F is based on 2010 calendar year and 2010/11 fertilizer year data. Estimates start after 2010.

Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Securities in the Funds portfolio may be significantly subject to the effects of competitive pressures in the fertilizer industry and the price of fertilizer commodities. These prices may fluctuate substantially over short periods of time so the Funds share price may be more volatile than other types of investments. In addition, fertilizer companies may also be significantly affected by import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

Carefully consider the Funds investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds 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.

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

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