A new vehicle has been launched for investors who want to cash in on TSX Venture Exchange-listed junior mining companies.
On Thursday, New York’s Global X Funds launched the S&P/TSX Venture 30 Canada exchange-traded fund (ETF) (NYSE Arca:TSXV), the first of its kind to globally target Canada’s junior exchange.
ETFs are securities that trade similar to other stocks, but track the performance of a specific index.
Global X’s new ETF tracks the S&P/TSX Venture 30 Index, which measures the performance of the 30 largest, most liquid stocks listed on the junior exchange.
The New York company said Thursday the ETF will provide investors with a “wide range” of commodity exposure through the numerous junior mining companies that dominate the Venture Exchange, which is jointly headquartered in Vancouver and Calgary.
Global X expects the ETF to benefit from the continued rise in commodity prices as emerging markets in Asia drive growth in the mining sector.
“Our innovative produced allows investors access to a previously difficult-to-trade, illiquid market,” said Global X CEO Bruno del Ama.
On Monday, the three largest components of the index were Vancouver’s Atac Resources (TSX-V:ATC) and Rainy River Resources (TSX-V:RR) and Calgary’s Canacol Energy (TSX-V:CNE).