Global X Fund, the New York-based ETF provider known for its niche strategies, rolled out today an ETF that focuses on global fertilizer producers, looking to tap the agricultural and commodities sector amid growing global food demand.
The Global X Fertilizers/Potash ETF (NYSEArca: SOIL), by tracking the Solactive Global Fertilizers/Potash Index, will own the largest and most liquid global names involved in various aspects of the fertilizer industry. SOIL comes with a 0.69 percent price tag.
Fertilizers are increasingly a major player in the global food supply story, as they hold the key to agricultural crop yields, all at a time when food costs have been on the rise thanks to a global consumption showing no signs of slowing down.
“As the population in emerging economies continues to increase their food consumption and purchasing power, these nations have to increase farming yields,” Bruno del Ama, Global X’s CEO, said in a press release. “We are starting to see how these fertilizer and potash companies stand to benefit from this demand.”
More than 20 percent of the portfolio comprising 29 securities is tied to U.S. companies. Canada, one the world’s largest potash producers, also ranks high in country allocation, as does Israel. CF Industries Holdings, Yara International and Incitec Pivot are among the top holdings.
SOIL adds to the Global X’s growing commodities lineup, which include a $259 million Uranium ETF (NYSEArca: URA), a $161 million lithium ETF (NYSEArca: LIT) and a $5 million aluminum ETF (NYSEArca: ALUM), among other metals and oil funds.
Global X, which is behind other off-the-beaten-path strategies such as a waste management ETF, a fishing ETF and an auto ETF, has been on a roll this past year, gathering more than $1.6 billion in assets through its roster of niche funds, according to data compiled by Index Universe.