NEW YORK, March 15, 2011 /PRNewswire/ -- Global X Funds, the New York based provider of exchange traded funds, today launched two new funds: the Global X Pure Gold Miners ETF (NYSEArca: GGGG) and the Global X Oil Equities ETF (NYSEArca: XOIL). The launches are the latest expansion in the ETF issuer's global commodity funds suite and are aimed at giving investors a purer play in gold and oil equities, respectively, by following the indexing methodology of the Solactive Indexes.
The goal of the Global X Pure Gold Miners ETF is to provide investors with relatively easy access to companies that get the vast majority of their revenues from gold mining. Unlike other indexes such as the NYSE Arca Gold Mining Index, which actually includes several silver miners, over 95% of the revenues from the companies in the Solactive Index are derived from gold mining. The Global X Pure Gold Miners ETF is a global fund, providing access to gold mining companies listed on exchanges all over the world. As of March 15, 2011, the Fund includes companies based in Canada, the United States, the United Kingdom, Hong Kong, Australia and Turkey.
"Not all gold miner ETFs are created equal and Global X Funds is the first to provide one which is a pure play on gold miners," said Bruno del Ama, chief executive officer of Global X Funds.
In addition to spurring the demand for gold, recent events in the Middle East have led to soaring prices for another commodity: oil. While many indexes have been developed to track the market price of oil – using oil futures or oil equities, for example – few have been able to accurately track the performance of oil. In order to address this issue, the Global X Oil Equities ETF was developed as a Fund that only includes companies with the highest correlation to oil prices. By using this correlation criterion, the Fund provides exposure to pure-play oil companies with significant oil reserves that are not as involved in other industries such as natural gas or downstream operations.
"We are offering a product for investors looking for exposure to oil while avoiding issues such as contango that reduce their returns," continues Mr. del Ama.
The Global X Pure Gold Miners ETF tracks the Solactive Global Pure Gold Miners Index, which is comprised of global companies involved in the gold mining industry. Only companies that generate the vast majority of their business from gold mining are eligible to be included in the Underlying Index. As of 2010 revenue data, over 95% of the revenues from the companies in the Underlying Index were derived from gold mining, according to Structured Solutions AG. As of March 10, 2011, the three largest components of the index were Gold Fields, Polyus Gold, and Kinross Gold Corp. The Global X Oil Equities ETF tracks the Solactive Global Oil Equities Index, which is designed to measure the performance of oil companies globally that are highly correlated with the spot price of oil. As of March 10, 2011, the three largest components of the index were Forest Oil Corp., Newfield Exploration Co., and Apache Corp.
ABOUT GLOBAL X FUNDS
Global X Funds is a New York-based provider of exchange-traded funds that facilitates access to investment opportunities across the global markets. With over $1.5 billion in managed assets as of March 1, 2011, it is one of the fastest growing ETF providers in the world with a focus on Global Commodities, Developed and Emerging Markets fund suites. For more information, please visit www.globalxfunds.com
Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. There are additional risks associated with investing in base and precious metals as well as their respective mining industries. The market value of companies in the oil industry are strongly affected by the levels and volatility of global oil prices, oil supply and demand, capital expenditures on exploration and production, energy conservation efforts, the prices of alternative fuels, exchange rates and technological advances.
For the avoidance of any doubt, please note that "pure gold miners" refers to the fact that the companies in the Underlying Index generate the vast majority of their business from gold mining. "Pure gold miners" does not refer in any way to the type or purity of the gold mined by these companies.
The Underlying Index measures the performance of oil companies and is intended to correlate with the price of oil itself. However, the securities of oil companies are not perfectly correlated with oil prices and may under- or over-perform the performance of oil prices over the short-term or the long-term.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.
Structured Solutions AG Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Structured Solutions AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds.
Index data source: Structured Solutions AG.
SOURCE Global X Funds