In the past week, the New York-based exchange traded fund (ETF) issuer Global X Funds launched two new ETFs based on indices calculated by Structured Solutions AG. The Global X Canada Preferred ETF offers investors the opportunity to participate in the performance of preferred stocks of Canadian companies. The Global X Fertilizers /Potash ETF offer investors a targeted access to the fertilizer industry. The Solactive Global Fertilizers/Potash Index calculated by Structured Solutions AG is used as the underlying index for this fund.

Compared to common stocks, preferred stocks do not bear any voting rights but offer preferential treatment concerning dividends. In the Anglo-Saxon area preferred shares pay out a pre-known dividend amount in many cases. Thus preferred shares basically combine characteristics of debt and equity. Whereas their expected volatility and returns lie between those of common stocks and bonds, their yields are typically higher than those of common stocks, bonds and the money market.

The Solactive Canada Preferred Stocks Index includes preferred shares of companies headquartered in Canada.
The index is calculated as a total return index and published in USD. The index is adjusted semi-annually and
includes a minimum of 20 and a maximum of 60 constituents. The index members are weighted according to market capitalization. Currently the index contains 50 members.

Due to a growing global population and thus increasing demand for food, the demand for fertilizer and potash may rise continually. New farm land is running out but also climate change affects many regions. To make the land nutritionally fit for farming, the use of fertilizers and potash is the only solution. With the Global X Fertilizers/Potash ETF, investors have the opportunity to participate in the stock market development of fertilizer producers. 

The Solactive Global Fertilizers/Potash Index tracks the performance of the largest international developers and producers of fertilizers. The index is calculated as a total return index and published in USD. The index is adjusted semi-annually and weighted according to freefloat market capitalization. The Global Fertilizers Index includes a minimum of 20 constituents. Currently the index contains 29 members.

Steffen Scheuble, CEO of Structured Solutions AG, comments: „In the Anglo-Saxon area preferred shares are a popular investment vehicle given that their risk–return profile differs from common stocks. With our new index we offer a benchmark focused on the market for Canadian preferred stocks“.

Sebastian Seifried, Head of Indexing at Structured Solutions AG, says: „Experts have high expectations for fertilizers to support agricultural production. For this reason companies active in the fertilizer industry may be an interesting target for investors“.

“With these two new ETFs we enlarge our range of products and are very pleased to collaborate with Structured
Solutions on these products as well,” adds Global X Funds CEO Bruno del Ama.

The Indices are calculated every trading day between 09:00am and 10:30pm (CET) and published on the website
www.solactive.com as well as through data vendors.