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First ETF to Target Junior Miners
The mining industry relies on junior mining companies to provide additional supply of key commodities – as large miners exhaust existing resources, junior miners are often poised to explore, develop, and monetize new mines to bring additional supply to the market. The Global X Junior Miners ETF (JUNR) is the first ETF to provide access to junior mining companies globally, and adds diversification across resources by including companies involved in the production of coal, copper, gold, iron, nickel, silver, titanium and other materials. While junior miners typically have a higher risk/reward profile than large-cap miners, JUNR helps reduce company-specific risk by diversifying investments across up to 100 junior mining companies. Investors may also benefit from increased merger and acquisition (M&A) activity in the sector, as large mining companies look to acquisitions and partnerships as additional sources of supply and geographic expansion.
Producers of Hard Assets
Quantitative easing in both developed and emerging markets continues to raise the probability of inflationary pressure in the near future. During times of inflation, producers of hard assets such as gold, silver and copper tend to benefit from rising prices of the commodities they produce. JUNR provides transparent, cost-efficient access to a basket of junior commodity producers, which may offer investors a key source of diversification for inflationary times.
Positive M&A Fundamentals
Large-Cap Miners Seeking Supply - According to PwC,large-cap miners are expected to focus on M&A in 2012 as a direct result of "over $105 billion in cash, pent-up demand for new projects, rising production costs and declining developed world reserves... Activity will be underpinned by continued demand for base and precious metals by the world’s rapidly industrializing nations."
Deal Competition from "Non-Miners" - In addition to traditional M&A activity from large industry players, more deal activity is expected from sovereign wealth funds, specialized private equity funds, large pension funds and other industrials like steelmakers and iron producers (PwC 2012).
Deal Cancellations Reach Record Low - despite volatility in commodity prices, 2011 saw a record low for M&A deal cancellations as a proportion of total deal volume. This may be attributed to acquirers seeing significant value in the M&A market (S&P Capital IQ, PwC 2012).
 
 
 
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DISCLOSURE
Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation 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. Small-cap investments may be subject to higher volatility. There are additional risks related to investing in base and precious metals and their mining industries. Diversification does not prevent all investment loss. There is no guarantee that favorable conditions for commodity producers will continue to exist or that the forecasts made will come to pass.

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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. Solactive 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 Solactive AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds. 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.