CommoditiesApr 22 2022

WisdomTree launches thematic metal ETCs

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WisdomTree launches thematic metal ETCs

WisdomTree has launched a pair of thematic metal exchange-traded products.

The group has listed WisdomTree Energy Transition Metal ETC and WisdomTree Battery Metals ETC on the London Stock Exchange, as well as the Borsa Italiana and Xetra exchanges.

The former, offered in sterling, US dollars and euros, will track the WisdomTree Energy Transition Metals Commodity Index and the latter, also offered across the three currencies, is pinned to the performance of the WisdomTree Battery Metals Commodity Index.

The transition metals index is currently made up of copper, nickel, aluminium, silver, zinc tin, platinum and gold, all metals used in the energy transition, including in electric vehicles, transmission, charging, energy storage and hydrogen power production.

The battery metals index is made up of nickel, aluminium, copper and zinc and gives investors access to the sub-section of the energy transition trend. 

The indices are reviewed quarterly and reconstituted on an annual basis each January.

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 degrees, compared to pre-industrial levels."

While it is clear that certain commodities are needed to progress the energy transition, he said, it is less clear whether sufficient production of those commodities will take place. 

“Increased demand and supply constraints could propel many commodities for years to come.”

WisdomTree has $24.5bn (£18.8bn) of assets under management across its platform.