BlackRock has launched an ETF capturing companies focused on mining and manufacturing the metals facilitating the transition to renewable energy.
The iShares Essential Metals UCITS ETF (METL) is listed on Deutsche Boerse and Euronext Amsterdam with a total expense ratio (TER) of 0.55%.
METL tracks the S&P Global Essential Metals Producers index which offers exposure to companies mining or manufacturing alumina, aluminium, bauxite, cobalt, copper, lithium, manganese, molybdenum, nickel, palladium, platinum, silver, rare earth elements and zinc, which S&P Global Commodity Insights (GCI) deems essential for energy transition technologies.
BlackRock said increased interest in the sector has been driven by the shift to a low-carbon economy, supply chain challenges and strategic and geopolitical priorities.
Manuela Sperandeo, global head of sustainable indexing at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and building precision exposure to potential beneficiaries.
“We see structurally rising demand for minerals and metals like copper, lithium, and nickel that are critical for renewable energy infrastructure and will help power the transition to a low-carbon economy.
“In our view, Investing in assets such as those that provide key inputs necessary for decarbonisation – could offer some of the most attractive investment opportunities in the transition to a low-carbon economy.”