The First Trust Indxx Future Economy Metals UCITS ETF (METL) aims to provide investors with exposure to companies producing metals and minerals necessary for the advancement of the energy transition and development of computing technology.
METL targets sustainable energy metal providers such as copper, mobility metals like lithium and future tech metals including silicon and germanium.
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Rahul Sen Sharma, president and co-CEO at Indxx said: “Metals and minerals are instrumental in propelling the shift from fossil fuels to renewable energy, electric vehicles, and hydrogen production.
“The International Energy Agency anticipates a six-fold rise in mineral demand by 2050, owing to the shift towards a carbon-free economy. Our Global Future Economy Metals index offers exposure to companies facilitating this transition.
“We are thrilled to collaborate with First Trust in bringing this innovative strategy to the European market.”
Rupert Haddon, managing director at First Trust, added: “As technologies like AI and solar advance, the companies producing the necessary metals should be poised for growth.”
First Trust Bloomberg Scarce Resources UCITS ETF
First Trust also unveiled a second portfolio, tracking the Bloomberg Scarce Resources index.
The First Trust Bloomberg Scarce Resources UCITS ETF (SCAR) also launched today and provides exposure to emerging geopolitical and energy security trends by investing in companies that actively address global resource challenges.
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The ETF focuses on companies engaged in the production of real or hard assets which have finite supply or capacity for production and tracks the Bloomberg Scarce Resources index.
The index groups the components of the Bloomberg World Aggregate Equity index into five categories; fuel, security, clean energy, agriculture and rare metals and based on their Bloomberg Industry Classification System Code (BICS).
Additionally, the top ten issuers within each category are selected for 50 stocks in the index, with a 20% weighting to each category. The index is reconstituted and rebalanced semi-annually.
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Allison Stone, head of multi-asset products at Bloomberg Index Services, said: “We are proud to see First Trust bring their product to market with the Bloomberg Scarce Resources index, which we designed to incorporate companies providing the essential resources that form the bedrock of societal needs, such as food, energy, base metals and materials, and security.
“Thanks to the BICS classifications we have selected to navigate index inclusion, the companies represented will be those benefiting as global competitors as demand rises for these resources.”
METL has a total expense ratio of 0.64%, while SCAR of 0.65% and they are both available in GBP and USD share classes.
