WisdomTree has launched two thematic metals exchange-traded products (ETPs) for sale across Austria, Germany, Ireland, Italy, Norway and the UK.
The WisdomTree Energy Transition Metals ETC (WENT) and the WisdomTree Battery Metals ETC (WATT), which were listed yesterday (20 April) on the Borsa Italiana, Borse Xetra, and the London Stock Exchange (LSE), will passively track the WisdomTree Energy Transition Metals Commodity Index TR and the WisdomTree Battery Metals Commodity Index TR, respectively.
According to the firm, the selected indices are “proprietary energy transition and battery focused commodity indices”.
The WisdomTree Energy Transition Metals Commodity Index TR contains key metals involved in energy transition products and services, such as electric vehicles, transmission, charging, energy storage, solar, wind and hydrogen power production, and currently includes copper, nickel, aluminium, silver, zinc tin, platinum and gold.
Elsewhere, the WisdomTree Battery Metals ETC provides investor exposure to key metals involved in the battery theme, a sub-set of the energy transition trend, including electric vehicles, charging and energy storage. The index currently comprises nickel, aluminium, copper and zinc.
Management fees of 45 basis points apply to each fund respectively.
The indices are reconstituted on an annual basis in January and are subject to a quarterly review of holdings, whereby additional commodities metals may be added.
“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,” said Nitesh Shah, head of commodities and macroeconomic research, Europe, at WisdomTree.
“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. Increased demand and supply constraints could propel many commodities for years to come,” he added.
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