Global X Files for Aluminum and Lithium ETFs (and More)
May 6th 2010 at 1:00am by Tom Lydon
The exchange traded fund (ETF) market is booming, and with it, we are seeing an increasing number of ETFs that track specialized market niches. Global X is one such provider that offers specialized funds, and their lineup will continue to expand with a slew of interesting ETFs.
Roger Nusbaum of Random Roger notes that Global X has filed for several new and interesting ETFs. These include the Global X Aluminum ETF, Lithium ETF, Uranium ETF, Food ETF, Shipping ETF, Waste Management ETF and most obscure of them all, the Fishing ETF.
Roger’s initial take on these funds are as follows:
- The Aluminum ETF could be quite volatile.
- It will be interesting to see what stocks are included in the Lithium ETF- most of the world’s lithium supply comes from Latin America’s Sociedad Quimica y Minera (SQM). It will also be interesting to see whether this fund is more or less volatile than what is likely to be its largest holding, SQM.
- Cameco (NYSE: CCJ) will likely be a top holding in the Uranium ETF. Like the Lithium ETF, it will be interesting to see how volatile this fund is.
- Depending on the direction, the Food ETF will either be a staples fund or a materials fund. If it is the former, the fund could be a good way to increase exposure to this area of emerging markets, which does not have many choices to choose from.
- The Shipping and Waste Management ETFs are existing concepts, but there has been investor interest.
- The Fishing ETF could provide a different way to make a play on the “citizens eating more protein” theme in emerging markets.
Sumin Kim contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.