A press release stated that Barn will focus on companies involved in agricultural products, livestock operations, and the manufacturing of farming equipment. The fund will track the Solactive Global Farming Index, which is designed to measure broad based equity market performance of global companies involved in the farming industry.
According to the announcement, demand from emerging market nations is expected to be a main driver of demand for world agricultural production, consumption and trade; food scarcity and a weakened U.S. dollar will affect the rise of food prices and lead agricultural products to become hard assets.
“As the population in emerging economies increases their purchasing power and shifts dietary patterns, these nations have to increase food production yields,” said CEO of Global X Funds, Bruno del Ama. “Investors in BARN may stand to benefit from this continuing and global demand.”
For more information, visit http://www.globalxfunds.com.