Global X Funds, commonly known for its niche exchange traded fund (ETF) products, launched its newest fund that targets fertilizer/potash producer in the agriculture business on May 26, which seems rather timely given the rising costs of food.
The Global X Fertilizers/Potash ETF (NYSEArca: SOIL) will try to reflect the performance of the Solactive Global Fertilizers/Potash Index, which includes the largest and most liquid listed global companies that does business in some form in the fertilizer industry. The fund has an expense ratio of 0.69% and has 29 holdings.
SOIL’s top ten holdings include: CF Industries Holdings Inc. 5.28%, Yara International ASA 5.00%, Incitec Pivot Ltd. 4.92%, Intrepid Potash Inc. 4.89%, Sociedad Quimica Y Minera de Chile 4.82%, Potash Corp. of Saskatchewan Inc 4.81%, K+S AG 4.75%, Mosaic Co. 4.74%, Agrium Inc. 4.73% and Syngenta AG 4.69%.
The ETF’s country allocations include: U.S. 21.69%, Israel 13.9%, Canada 11.88%, Australia 9.39%, China 7.76%, Norway 5.00%, Chile 4.82%, Germany 4.75%, Switzerland 4.69% and Russia 4.54%.
At the recent BMO Capital Markets Farm to Market Conference, David Honeyfield, president and chief financial officer of Intrepid Potash Inc. (NYSE: IPI) commented on the “strength in the commodity sector across the board,” reports Leia Michele for Resource Investing News. Honeyfield argues that the higher food prices translates to more money farmers may put into potash or other fertilizer purchases. As it stands, record low stockpiles of major crops has kept soft commodities elevated and rather volatile. [Small-Cap Agriculture ETF Leverages Food Prices, Population.]
For more information on agriculture, visit our agriculture category.
Max Chen 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.