Global X Files Plans For Ag, Auto ETFs
Global X, the New York-based ETF issuer with 26 ETFs currently on the market, is continuing a robust flow of new ideas by filing plans with the SEC for two new sector funds, one for the automotive sector and the other a play on agriculture.
The Global X Auto ETF will track the S-Network Global Automotive Index, which is cap-weighted. The ETF will give investors exposure to auto makers, parts suppliers and tire producers. Companies must have a minimum market value of $3 billion to be included in the index.
Direxion has also filed plans for an ETF tracking the auto industry, though that fund has yet to make its debut, so it will be interesting to see who is first to market here.
Global X also filed plans for the Global X Farming ETF, which will track the Solactive Global Farming Index. This ETF will immediately see more competition than the auto ETF as it tries to take on more established ETFs such as the Market Vectos Agribusiness ETF (NYSE: MOO) and the PowerShares Global Agriculture Fund (Nasdaq: PAGG), not to mention the new Index IQ Global Agribusiness Small Cap Fund (NYSE: CROP).
The filing did not highlight tickers or expense ratios for the new ETFs.
With over $1.5 billion in assets under management, Global X has taken on a leadership role in terms of introducing new ETFs. The firm has already introduced nine new funds since the start of 2011 and has filed plans for an ample amount of new funds as well.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.