January 5, 2011 / 3:43 PM / 9 years ago

UPDATE 1-Global X Funds launches first aluminum ETF

* Global X Funds launches first aluminum ETF

* Rio Tinto, Alcoa, Norsk Hydro three top components

* Fund rises nearly 2 pct in debut trading (Adds CEO comments, fund rises in debut)

NEW YORK, Jan 5 (Reuters) - Global X Funds, a provider of exchange-traded funds, on Wednesday launched the first ETF for aluminum, saying demand for the metal is growing.

In its debut, the Global X Aluminum ETF ALUM.P rose 25 cents, or almost 2 percent, to $15.25 in morning trading.

“Aluminum has seen tremendous price increases as a result of increased global demand, especially from China and India,” Global X Funds Chief Executive Officer Bruno del Ama said in a statement.

“Its invaluable properties to various industries make it essential for future economic growth.”

Aluminum is used in automobile and airplane manufacturing and beverage cans, After a sharp drop in demand and price after the 2008 recession, aluminum prices are on the rise, increasing 11 percent last year and now stand near a two-year peak of $2,500 per tonne.

The Global X Aluminum ETF tracks the Solactive Global Aluminum Index, which is designed to reflect the performance of the largest and most liquid companies globally in the aluminum mining industry.

As of last Dec. 13, the three largest components of the index were Rio Tinto plc (RIO.L), Alcoa Inc (AA.N) and Norsk Hydro ASA (NHY.OL).

The aluminum ETF expands Global X Funds’ commodity producer funds and comes on the footsteps of Global X Copper Miners ETF (COPX.P). (Reporting by Steve James; Editing by Maureen Bavdek)

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