Global X Funds Launches First Fertilizers/Potash ETF (SOIL)
NEW YORK, May 26, 2011 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X Fertilizers/Potash ETF (Ticker: SOIL). SOIL offers targeted exposure to fertilizer producers around the world, giving investors access to a critical agricultural and commodity sector.
Global 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). In India, for instance, grain yields are less than one half of those in the US, with improper fertilization being a key reason for lower yields. 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. China and India alone account for more than 40% of world fertilizer use and China's annual consumption is expected to return to pre-2008 growth levels of nearly 10% per year.
"As the population in emerging economies continues to increase their food consumption and purchasing power, these nations have to increase farming yields," said CEO of Global X Funds, Bruno del Ama. "We are starting to see how these fertilizer and potash companies stand to benefit from this demand."
The Global X Fertilizers/Potash ETF tracks the Solactive Global Fertilizers/Potash Index, which is designed to track the performance of the largest and most liquid listed companies globally that are active in some aspect of the fertilizer/potash industry. As of May 23, 2011, the three largest components of the index were CF Industries Holdings Inc., Yara International ASA, and Incitec Pivot Ltd.
Source: PotashCorp, 2010 unless otherwise noted
ABOUT GLOBAL X FUNDS
Global X Funds is a New York-based provider of exchange-traded funds that facilitates access to investment opportunities across the global markets. With $1.8 billion in managed assets as of April 29, 2011, it is one of the fastest growing ETF providers in the world. Global X Funds currently offers exchange-traded funds that target Commodity Producers, Developed Markets, Emerging Markets, and Special Opportunities fund suites. For more information, please visit www.globalxfunds.com
DISCLOSURE
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. Narrowly focused investments may be subject to higher volatility. Securities in the Fund's 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 Fund's 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. The securities of companies involved in the fertilizer industry may under- or over-perform fertilizer commodities prices over the short-term or the long-term.
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.
Structured Solutions AG Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Structured Solutions AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds.
Index data source: Structured Solutions AG. Index components subject to change.
SOURCE Global X Funds
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