IndexIQ, a leading developer of index-based liquid alternative investment solutions, is scheduled to ring the Opening Bell
at The New York Stock Exchange on April 25
, it was announced today. The event will mark the March 22
launch of the
IQ Global Agribusiness Small Cap ETF
on the NYSE Arca platform.
“The global cupboard is not yet bare, but the competition for food resources is reaching a fever pitch as populations rise, shortages increase, and the demand for alternative fuels grows,” said Adam Patti, chief executive officer at IndexIQ. “Investors who want exposure to the fast-growing agribusiness sector have traditionally been limited to products that focus on large-cap companies. We believe that small capitalization companies are best positioned to translate global demand into significant potential growth.”
CROP is the first Exchange-Traded Fund (ETF) designed to provide dedicated exposure to global small capitalization companies engaged in the fast-growing agribusiness sector, including crop production and farming, food products machinery, livestock operations, and biofuels and alternative energy. It seeks to track, before fees and expenses, the performance of the IQ Global Agribusiness Small Cap Index (Bloomberg Index Ticker IQSMCROP).
CROP has come to market during a time of sustained, significant growth in global food prices. Just one month prior to the fund’s launch, food prices soared 3.9 percent, the biggest monthly increase since November 1974. Economists and other experts widely expect food prices to continue rising for the remainder of 2011, and the World Bank cites rising food prices as one of the major concerns currently facing the global economy.
Small-cap agribusiness is generally under-represented in investor portfolios, are typically faster growing than their large-cap brethren and, in many cases, are undervalued relative to mega-cap multi-national companies, according to IndexIQ. “This undervaluation leaves small-cap agribusiness firms attractively positioned for growth and as possible acquisition candidates by larger players,” said Patti. “With CROP, we believe we have created an efficient vehicle for gaining global exposure to these companies and this dynamic sector.”