On Wednesday, Global X ETFs Australia announced the launch of the new Global X Green Metal Miners ETF, which has commenced trading on the ASX under the ticker code GMTL.
The first ETF launched by the firm since it rebranded from ETF Securities in September, GMTL provides exposure to global companies who produce critical metals for clean energy infrastructure and technologies including lithium, copper, nickel, rare earths and cobalt.
“Demand for green metals is soaring around the globe and promises to intensify as climate change initiatives become more ambitious,” said Global X ETFs Australia head of investment strategy, Blair Hannon.
“The investment opportunity lies in the market dislocation of critical minerals over the medium to longer term — with demand set to outpace supply and spark higher commodity prices.”
GMTL tracks the BITA Global Green Energy Metals Index and includes companies that make more than 50 per cent of their revenue mining or producing green metals. It features an ESG screen which aims to exclude businesses who do not meet reasonable industry standards.
As part of its announcement, Global X highlighted an International Energy Agency report which found that around US$1.4 trillion has been invested in clean energy globally this year.
“Australian investor interest in green metals is surging as governments and corporations alike align in a common goal to reach net-zero carbon emissions by 2050,” said Mr Hannon.
The new ETF adds to Global X ETFs Australia’s existing range of more than 20 ETFs with almost $5 billion in assets under management locally.
XMET will 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.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.