BlackRock has expanded its transition metal offering with a lithium and battery producers ETF, ETF Stream can reveal.
The iShares Lithium & Battery Producers UCITS ETF (LITM) is listed on Euronext Amsterdam with a total expense ratio (TER) of 0.55%.
LITM tracks the STOXX Global Lithium and Battery Producers index comprised of lithium mining, compound manufacturing and lithium battery production companies.
Exposure to each subsector is based on FactSet Revere revenue data and EconSight patent data.
Companies are also screened for compliance with Global Standards Screening (GSS) and ‘severe’ controversy ratings identified by Sustainalytics.
The resulting basket allocates 25% to basic resources, 24% to chemicals, 15.1% to technology and 11.4% and 11.3% to consumer products and industrial goods and services sectors, respectively.
LITM is 24.7% exposed to US equities, 21.5% to Japan, 20.3% to Australia, 14.7% to South Korea and 11.2% to China.
BlackRock said the launch affirms its commitment to providing our clients with a range of transition exposures to fit their views and portfolio needs and to deliver opportunities across the different investment and market cycles.
Omar Moufti (pictured), thematic and sector product specialist at BlackRock, commented: “We see two focus areas for transition investors today: on the one hand transitioning the core of portfolios to align with low-carbon objectives, and on the other building precision exposure to potential beneficiaries: renewable energy, electric vehicles and the essential materials that power these low-carbon technologies.
“Lithium is expected to see exponential demand growth—the highest among transition-related metals—over the coming decades, linked to the growth of electric vehicles and renewable energy production.”
LITM underscores BlackRock’s view of the role underlying metals will play in the energy transition and follows the launch of the iShares Essential Metals UCITS ETF (METL) in October and the iShares Copper Miners UCITS ETF (COPM) in June.