🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

BlackRock expands offerings with Essential Metals Producers UCITS ETF

Published 21/10/2023, 05:44 am
© Reuters.
BLK
-

BlackRock (NYSE:BLK)'s iShares Essential Metals Producers UCITS ETF (Deutsche Börse Xetra and Euronext Amsterdam: METL), an investment vehicle providing exposure to mining companies extracting energy transition metals, was highlighted this Friday. The fund targets investors capitalizing on the shift from fossil fuels to sustainable energy alternatives. It is linked to the S&P Global (NYSE:SPGI) Essential Metals Producers Index, which selects constituents from companies with market capitalizations above $300 million and average daily trading volumes greater than $3m.

The ETF includes firms dealing with key metals like copper, lithium, nickel, cobalt, platinum, palladium, and rare earth metals. These are in high demand due to the transition towards renewable energy technologies. Manuela Sperandeo underscored the rising demand for these minerals due to strategic priorities, supply chain issues, and low-carbon investment opportunities.

The index uses 'Exposure Scores' derived from firms' revenue generation from metal discovery, extraction, and processing of 'core' or 'non-core' metals like aluminum, bauxite, molybdenum, silver, zinc. The demand for these metals isn't significantly influenced by the sectoral transition. Companies with high revenue from non-core metals see a relative decrease in their Exposure Scores.

The index aims for a roster of at least 50 constituents meeting or exceeding a specific Exposure Score threshold. Constituents are weighted using a hybrid formula considering float-adjusted market capitalization and Exposure Scores. Capping rules limit individual stock weightings with high-scoring firms capped at 8% portfolio weighting and lower-scoring ones capped at 4%.

The fund accumulates income within its portfolio for long-term capital growth and has an expense ratio of 0.55%. This new ETF expands BlackRock's offerings following the iShares Copper Miners UCITS ETF (COPM).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.