It’s not an aluminum fund – it’s an aluminum producers fund. Global X Aluminum ETF (ALUM) began trading 1/5/11, becoming the first ETF to target the stocks of companies involved in the aluminum industry.

According to the press release, the underlying index is the Solactive Global Aluminum Index, which “is designed to track the performance of the largest and most liquid companies globally active in some aspect of the aluminum industry.” The index methodology employs a multi-tier capped weighting approach with the largest constituent capped at 15%, the second largest capped at 10%, the combined weight of the five largest capped at 45%, and all other constituents capped at 4.75%.

The methodology results in 22 current holdings, with the five largest being Rio Tinto Plc (RIO) 15%, Alcoa Inc (AA) 10%, Norsk Hydro ASA 7.3%, Alumina Ltd (AWC) 7.2%, and Aluminum Corp of China Ltd (ACH) 5.5%. Country weightings are USA 21.5%, Hong Kong 19.6%, Japan 15.1%, UK 15.0%, Norway 7.3%, and others 21.5%.

ALUM has an expense ratio of 0.69%. It has no direct competitors, but a related product is the iPath DJ-UBS Aluminum ETN (JJU), an exchange-traded note launched in June 2008 linked to the performance of aluminum futures contracts.

Additional information is located in the summary page, ALUM fact sheet (pdf), and the prospectus (pdf).

Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.