Global X launches Australia’s first Green Metal Miners ETF
GMTL provides exposure to global companies which produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel, rare earths and cobalt.
Blair Hannon (pictured), Head of Investment Strategy says significantly more green metals are required to produce, transmit and store renewable energy compared to fossil fuels.
“Demand for green metals is soaring around the globe and promises to intensify as climate change initiatives become more ambitious,” Hannon said.
“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.”
Around US$1.4 trillion has been invested in clean energy globally during 2022, according to the International Energy Agency’s World Energy Investment Report. As a result, Australian investors are looking for strategic commodities exposure to capitalise on the clean energy megatrend.
“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,” Hannon said.
The fund works by tracking the BITA Global Green Energy Metals Index and will include companies that make more than 50% of their revenue mining or producing green metals as well as an ESG screen which aims to emit businesses which do not meet reasonable industry standards.
GMTL is the first ETF launched by Global X ETFs Australia since it rebranded from ETF Securities in September 2022. It joins a diverse product suite of more than 20 ETFs with almost $5 billion in assets under management in Australia.