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BetaShares to launch new Energy Transition Metals ETF

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BetaShares plans to launch a new Energy Transition Metals ETF on the ASX.

BetaShares has announced the expected launch of the BetaShares Energy Transition Metals ETF (XMET) on the Australian Securities Exchange (ASX) in late October.

XMET is planned to provide exposure to leading global companies that are producing a range of energy transition metals (ETMs) including copper, nickel, cobalt, graphite, manganese, silver, and rare earth metals, as well as other companies involved in the discovery, development and manufacture of these ETMs.

According to BetaShares, as the transition from fossil fuels to clean energy solutions gathers pace, ETM producers are expected to greatly benefit especially given that renewable energy generation, battery storage solutions and electric vehicles are all critically dependent on a select group of ETMs.

“We’re excited to add XMET to our leading range of sustainability-themed ETFs. The products and processes which are driving the move to a more environmentally friendly economy, such as electric vehicles and battery storage, are all critically dependent on energy transition metal,” said BetaShares CEO, Alex Vynokur.

“Reflecting the importance of these materials, many global companies and national governments are investing significant amounts of capital with the aim of securing supply of these critical components. Demand for these materials is projected to remain high, while at the same time, supply is structurally constrained”, Mr Vynokur added.

BetaShares intends to offer “simple and cost-effective” access to primarily “pure play” ETMs producers via XMET, as well as other companies such as diversified producers and recyclers of ETMs.

In addition, it explained that the investment methodology underpinning XMET also includes a number of ESG screens to remove companies that receive material revenue from certain business activities, such as oil and gas production as well as thermal coal extraction.

Subject to regulatory approvals, XMET is expected to start trading on the ASX in late October 2022.

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.