Global X Management launched three new exchange-traded funds (ETF) last week, including Global X Food ETF (NYSE: EATX) and Global X Fishing Industry ETF (NYSE: FISN).

Focused on companies involved in commercial fishing, fish farming, fish processing or the marketing and sale of fish products, Global X Fishing Industry ETF is an enticing offering.

Fish is a significant protein source for hundreds of millions of people across the world and is likely to become even more important in the future. According to the United Nations (UN), fish consumption has grown by just less than 6 percent annually over the past half century. I believe that growth rate will only increase as the global population swells and the standard of living rises in developing nations. This shift will lead to a sharp uptick in protein demand, which will cause the price of beef and other meats to rise.  

Aquaculture is becoming an increasingly efficient endeavor that has reduced the prices for many farmed fish. Although it’s possible that fishing and aquaculture operations could face intense regulatory scrutiny, the long-term fundamentals are extremely favorable for greater fish consumption.

Global X Food ETF will replicate the Solactive Global Food Index, which consists of about 50 companies engaged in agriproduct or livestock operations or in the manufacture, sale or distribution of food products. The fund’s portfolio suggests that Global X Food ETF will hew toward the manufacture and distribution side of the equation; among the fund’s top holdings are packaged food giants such as Nestle (OTC: NSRGY), Kraft Foods (NYSE: KFT) and Danone (OTC: DANOY).

In the fund’s marketing materials, Global X Management argues that the growing middle class in emerging markets will provide significant growth opportunities for these types of companies. I agree with that thesis, but for now I think investors would be better served by focusing on agricultural product makers and suppliers of farming equipment and fertilizer. Market Vectors Agribusiness (NYSE: MOO) is a better option for investors looking to play the agriculture theme. In addition to offering broader exposure, Market Vectors Agribusiness is cheaper; it charges a 0.56 percent annual expense ratio, compared to 0.65 percent for the Global X fund.

Nevertheless, the launch of Global X Food ETF underscores investors’ interest agriculture-related offerings. We’ll likely see a number of similar products hit the market.

What’s New

Global X Management also launched Global X Mexico Small Cap ETF (NYSE: MEXS). I don’t have much of an opinion about Global X Mexico Small Cap ETF, because I don’t have much of an opinion about Mexico. The Mexican market has turned in an impressive performance over the past year and Mexican small caps have outperformed larger companies. But Mexico’s brutal drug-related violence and its dithering politicians make me leery of the nation. Not only does the turmoil affect Mexico’s tourism industry, it hurts the country’s prospects for garnering significant international investment.

IndexIQ launched IQ Global Oil Small Cap ETF (NYSE: IOIL) last week. The fund invests in small-cap companies involved in oil exploration and production, refining and marketing as well as distribution. The fund also offers significant exposure to equipment and drilling outfits.

IQ Global Oil Small Cap ETF is an interesting departure from the “Big Oil” strategy that generally dominates oil ETFs; smaller companies often stand to gain the most from rising oil prices. Additionally, these small fry can be tempting takeover targets for larger outfits. The fund also offers broad international exposure to countries such as Canada, Japan, Thailand and Colombia.

With a 0.75 percent expense ratio, IQ Global Oil Small Cap ETF is an interesting oil play.

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