New Listing

First Trust expands thematic ETF range with energy transition double launch

Offering equity exposure to future metals and scarce resources

Theo Andrew

Rupert Haddon First Trust

First Trust has expanded its thematics range with the launch of two ETFs tracking companies involved in future economy metals and scarce resources.

The First Trust Indxx Future Economy Metals UCITS ETF (METL) and the First Trust Bloomberg Scarce Resources UCITS ETF (SCAR) are listed on the London Stock Exchange with total expense ratios (TERs) of 0.65%.

METL tracks the Indxx Global Future Economy Metals index targeting companies that service technologies such as semiconductors, wind turbines, energy storage and electric vehicles.

The three sectors it will focus on are sustainable energy metal providers, next-generation mobility metals and future tech metals.

First Trust said the transition metals such as copper, lithium, silicon and germanium are “poised for growth” given the advancements in artificial intelligence and solar.

The International Energy Agency (IEA) anticipates a six-fold rise in mineral demand by 2050, owing to the shift towards a carbon-free economy.

Meanwhile, SCAR tracks the Bloomberg Scarce Resources index constructed by grouping the Bloomberg World Aggregate Equity index into five categories; fuel, security, clean and renewable energy, agriculture and rare and precious metals.

The index is comprised of 50 stocks which offer exposure to the top 10 biggest companies by market cap of each group, with a 20% weighting for each category.

Rupert Haddon (pictured), managing director at First Trust, said: “METL offers investors a unique opportunity to gain exposure to companies enabling the future economy through their involvement in the critical supply chain of more well-known metals like copper and aluminium as well as rare earth and other critical materials."

He added energy demands are likely to continue to outpace supply due to factors including global conflicts, inflation and escalating energy demands.

“These critical sectors stand to benefit from this trend and play an important role in the evolving global landscape. This presents compelling opportunities for investors,” Haddon said.

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