Global X Funds on Thursday launched the Global X Fertilizers/Potash ETF, giving investors access to what Global X calls a “critical” agricultural and commodity sector.
Indeed, there have been a number of food-related ETF launches in recent months, in anticipation of increasing food demand as the population grows in emerging economies.
In the case of the fertilizers ETF, Global X said that fertilizer companies have become the primary producers of commodities that are critical for global food supply growth.
“As the population in emerging economies continues to increase their food consumption and purchasing power, these nations have to increase farming yields,” said Global X CEO 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.