NEW YORK, Sept. 6, 2012 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds, today launched the Global X Junior Miners ETF (NYSE Arca: JUNR). It is the first ETF to provide access to junior mining companies globally, and adds diversification across resources by including companies involved in the production of coal, copper, gold, iron, nickel, silver, titanium and other materials.
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The mining industry relies on junior mining companies to provide additional supply of key commodities – as large miners exhaust existing resources, junior miners are often poised to explore, develop, and monetize new mines to bring additional supply to the market. While junior miners typically have a higher risk/reward profile than large-cap miners, JUNR helps reduce company-specific risk by diversifying investments across 96 junior mining companies.
Investors may also benefit from increased merger and acquisition (M&A) activity in the sector, as large mining companies look to acquisitions and partnerships as additional sources of supply and geographic expansion. "Low interest rates, above-average metal prices, well-funded junior programs, and M&A potential driven by balance sheet strength of the major mining companies are positive underlying factors supporting the junior mining sector" (Canaccord Capital 2011). In addition to traditional M&A activity from large industry players, more deal activity is expected from sovereign wealth funds, specialized private equity funds, large pension funds and other industrials like steelmakers and iron producers (PwC 2012).
The Underlying Index's top holdings:
Top Ten Constituents |
Index Weight |
Primary Commodity |
Coeur d'Alene Mines Corp |
2.58% |
Silver |
AuRico Gold Inc |
2.57% |
Gold |
Alumina Ltd |
2.29% |
Aluminum |
China Molybdenum Co |
2.23% |
Molybdenum |
Alacer Gold Corp |
2.18% |
Gold |
Kenmare Resources PLC |
2.04% |
Titanium |
Alpha Natural Resources Inc |
2.03% |
Coal |
Arch Coal Inc |
2.02% |
Coal |
Hecla Mining Co |
1.95% |
Silver |
Atlas Iron Ltd |
1.90% |
Iron |
Source: Structured Solutions, AG. As of 8/23/2012. |
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"We see value in junior miners at current valuations, particularly in an environment that could bring significant inflation over the next few years following massive quantitative easing globally," said Bruno del Ama, CEO of Global X Funds.
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 $1.2 billion in managed assets and over 100,000 investors from more than 100 countries as of August 15, 2012, Global X Funds currently offers exchange-traded funds that target Commodity Producers, International, Domestic, Alternatives, Industry, Income, and Asset Allocation 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. Small-cap investments may be subject to higher volatility. There are additional risks related to investing in base and precious metals and their mining industries. Diversification does not prevent all investment loss. There is no guarantee that favorable conditions for commodity producers will continue to exist or that the forecasts made will come to pass.
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 companies make any representations regarding the advisability of investing in the Global X Funds.
SOURCE Global X Funds
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