Global X Funds has launched the Global X Farming ETF, an exchange-traded fund that focuses on companies involved in agricultural products, livestock operations and the manufacturing of farming equipment.
Higher fuel costs, weather events and increased demand from emerging market nations is creating a global food crisis and greater importance on the farming industry, Global X said. World food production will have to rise 70% by 2050 to feed a population expected to reach nine billion people.
“As the population in emerging economies increases their purchasing power and shifts dietary patterns, these nations have to increase food production yields,” said Bruno del Ama, chief executive officer of Global X Funds. “Investors in Global X Farming ETF may stand to benefit from this continuing and global demand.”
The fund tracks the Solactive Global Farming Index.