WisdomTree Introduces Thematic Metals ETPs
WisdomTree, an exchange-traded fund and asset manager based in New York, has announced the launch of two thematic metals exchange-traded products (ETPs) for sale in Germany, the UK, Ireland, Austria, Italy, and Norway.
The WisdomTree Battery Metals ETC (WATT) and the WisdomTree Energy Transition Metals ETC (WENT), which were recently listed on the Borsa Italiana, Borse Xetra, and the London Stock Exchange (LSE), will monitor the WisdomTree Energy Transition Metals Commodity Index TR and the WisdomTree Battery Metals Commodity Index TR.
The company says the indices are energy transition and battery-focused commodity indices.
The WisdomTree Energy Transition Metals Commodity Index TR comprises metals involved in energy transition, such as copper, nickel, aluminium, silver, zinc, tin, platinum and gold. They are used in products and services like electric vehicles, electricity storage, solar, wind, and hydrogen power.
The WisdomTree Battery Metals ETC, on the other hand, gives investors exposure to essential metals used in the battery theme, which is a subset of the energy transition trend that includes electric vehicles, charging, and energy storage. Nickel, aluminium, copper, and zinc are currently included in the index.
Each fund is assessed 45 basis points in management costs.
The indices are reconstructed on a yearly basis in January, and their holdings are subject to a quarterly review, during which more commodity metals may be added.
Nitesh Shah, head of commodities and macroeconomic research, Europe, at WisdomTree, said: "COP26 has put climate change and the energy transition back in the spotlight for investors. Policy is starting to catch up to the concerns around the need to decarbonise at a faster pace to align with the Paris Agreement in seeking to keep global warming to well below 2°C, compared to pre-industrial levels."
“While it is clear that certain commodities are needed to progress the energy transition, it is less clear whether sufficient production of those commodities will take place. Growing demand and supply constraints could propel many commodities for years to come,” he said.