The new funds are aimed at giving investors a pure 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 a global fund, is to provide investors with relatively easy access to companies that get the majority of their revenues from gold mining. It provides access to gold mining companies listed on exchanges all over the world.
As of 15 March 2011, the Gold Miners ETF includes companies based in Canada, the US, the UK, Hong Kong, Australia and Turkey.
The other fund Global X Oil Equities ETF was developed to address the issues related to changes in the price of oil, and is the only fund that includes companies with the highest correlation to oil prices.
By using this correlation criterion, the oil equities 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.
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.
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.
Global X Funds CEO Bruno del Ama said the company is offering a product for investors looking for exposure to oil while avoiding issues such as contango that reduce their returns.
