Global X Funds Launches Food ETF (EATX)

Global X Funds, the New York based provider of exchange traded funds (ETFs), today launched the Global X Food ETF (NYSE:EATX).

Continued GDP growth in emerging market nations has led to a dynamic shift in the way citizens procure, prepare, and consume food in these countries. Greater purchasing power has led to increased consumption of dairy and livestock, as well as consumer packaged goods.  “Emerging markets are key to unlocking future growth because their economies are growing at a significantly higher rate than developed markets,” explains William Johnson, Heinz Chairman and CEO. “The middleclass in emerging markets will eventually outnumber the combined populations of the US and Europe.” Multinationals like Nestle, one of the world’s largest food producers with a 4.88% weighting in the ETF as of 4/29/11, has 40% of its business in emerging markets and saw underlying sales up 12% in regions such as China, South Asia and Africa (Reuters, April 2011).

“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.

The Global X Food ETF tracks the Solactive Global Food Index, which is designed to measure broad based equity market performance of global companies involved in the food industry. As of April 29, 2011, the three largest components of the index were Nestle, Kraft Foods, and Danone.

As a commitment to corporate social responsibility, Global X Management Company, LLC, the fund adviser, will donate any profit it derives from EATX to Action Against Hunger | ACF International, a global humanitarian organization that works to save the lives of malnourished children while providing communities with sustainable access to safe water and long-term solutions to hunger. “In harnessing global food markets for good, Global X Management will be making a significant contribution to the vulnerable communities we serve around the world,” said Geoffrey M. Glick, Director of External Relations for Action Against Hunger.

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 $1.8 billion in managed assets as of April 29, 2011, it is one of the fastest growing ETF providers in the world. Global X Funds currently offers exchange-traded funds that target Commodity Producers, Developed Markets, Emerging Markets, and Special Opportunities fund suites. For more information, please visit www.globalxfunds.com

DISCLOSURE

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.  Narrowly focused investments may be subject to higher volatility.  Securities in the Fund’s portfolio may be significantly subject to government policies and regulations affecting the agricultural sector and related industries; a broad range of environmental laws and regulations; demographic and product trends and fads, marketing campaigns; environmental factors; adverse changes in general economic conditions; evolving consumer preferences; nutritional and health-related concerns; federal, state and local food inspection and processing controls; consumer product liability claims; risks of product tampering; the availability and expense of liability insurance, and the possibility of product recalls.

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.  Index components subject to change.

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