The desired energy transition has a major impact on the raw material market. For investors who want to benefit from it, there have been two new ETFs since mid -January 2025.
• Invest with a new ETF in the energy transition
• Different metals are used in electric cars, wind turbines, solar modules and when expanding electricity networks
• Wisdomtree Strategic Metals Ucits ETF
In order to achieve the global net zero goals, experts assess the investments in the energy transition and the network infrastructure compared to 2020. This is likely to inspire the demand for raw materials, with the appropriate effects on the prices of the relevant metals.
Future metals
Metals such as copper, nickel, aluminum, silver and tin and lithium play an important role in the energy transition. Copper, for example, is used in electric vehicles, charging infrastructure, and energy storage systems. Nickel contributes to a higher energy density and a larger storage capacity in batteries. Aluminum is used for wind and solar energy, green hydrogen, high-voltage cables and in batteries. Silver and tin are included in solar modules and electric vehicles. Lithium next to it is indispensable for lithium-ion batteries used in electric cars.
In mid -January, Wisdomtree launched the Wisdomtree Strategic Metals UCITS ETF for investors who want to invest specifically in such metals of the energy transition. This has been offered together with a currency -assured variant on the euro on the Xetra and Borsa Italiana Stock Exchange since January 14th and also on the London Stock Exchange (LSE) since January 15.
Wisdomtree Strategic Metals Ucits ETF
The ETF offers investors access to a raw material basket that, according to Xetra information, consists of futures contracts on aluminum, sheet metal, cobalt, copper, lithium, nickel, platinum, silver, zinc and tin. The maximum weighting of a raw material is 20 percent.
According to Wisdomtree, the ETF’s raw material basket is weighted twice a year. In addition, it is regularly checked whether further metals can be added depending on criteria such as relevance for the energy transition and liquidity. The total cost rate of the Exchange Traded Fund is 0.55 percent.
Nitesh Shah, Head of Commodities & Macroeconomic Research, Europe, Wisdomtree, commented on the start of the new ETFs in a press release: “Metals play a crucial role in the energy transition. Whether it is about the drive of more electric vehicles or the production of solar cells, it is It is difficult to imagine that the development of technologies for the energy transition is not dependent on the supply of some important metals. to master the dynamics of technological changes, trade policy measures and sudden increase in the metal offer. ”
Editor finance.net
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