Global X Introduces New Food ETF

Global X, the New York-based ETF issuer now with 28 ETFs listed in the U.S. and $1.8 billion in assets under management, will introduce the Global X Food ETF EATX today. With an expense ratio of 0.65%, EATX will track the Solactive Global Food Index. EATX is comprised of 50 holdings including familiar food producers such as Switzerland-based Nestle NSRGY, the world's largest food company, which accounts for just under 4.9% of EATX's weight. France's Danone GPDNF also gets a weight of just under 4.9%. The U.S. accounts for over 48% of the new ETF's sector weight with Dow component Kraft KFT and General Mills GIS, the two largest U.S. food companies, accounting for more than 9% of EATX's weight combined. Kellogg K, HJ Heinz HNZ and Sara Lee SLE are also featured among EATX's top-10 holdings. China and Switzerland combine for another 16.5% of EATX's county weight. The ETF's international exposure sets it apart from what would appear to be an obvious and a more well-established competitor in the form of the PowerShares Dynamic Food & Beverage Portfolio PBJ, which holds only U.S.-based companies. “8 out of 10 people in the world live in emerging markets. We are starting to see how food companies stand to benefit as the population in emerging economies continues to increase their purchasing power,” said CEO of Global X Funds, Bruno del Ama in a statement issued by the firm. Global X has been one of the most prolific issuers of new ETFs in 2011, bringing more than 10 new funds to market.