Alternative Investments/ESG: KraneShares Launches ETF Focused On Metals Required For The Energy Transition
The new ETF will offer investors exposure to aluminum, copper, nickel, zinc, cobalt, and lithium – all metals essential to global decarbonization.
Asset management firm Kranes Funds Advisors LLC launched on Thursday the KraneShares Electrification Metals ETF (NYSE: KMET) on the New York Stock Exchange. The ETF offers exposure to the core metals expected to see strong demand from a range of electrification uses including EVs and their batteries, transmission and distribution grids, electrical wiring, and in solar panels and wind turbines. (CISION PR Newswire)
KraneShares Electrification Metals ETF (NYSE: KMET)
The Fund tracks the Bloomberg Electrification Metals Index, which is comprised of futures contracts on aluminum, copper, nickel, zinc, cobalt, and lithium, the key metals needed for the electrification of the global economy.
As the economy decarbonizes, massive demand is expected for renewable energy, electrification, and battery storage. More than $140 trillion of investment is needed for the clean energy transition over the next thirty years.
The ETF has an expense ratio of 0.79%.
“Transitional commodities are expected to experience a supply and demand imbalance over the next decade,” said Luke Oliver, Head of Strategy at KraneShares. “These resources may be repriced depending on how they factor into the decarbonization of the global economy. We believe now is the time to invest in these electrification metals as demand is poised to accelerate into the energy transition.”
“KMET is a timely expansion of the KraneShares Climate Investment suite, which has quickly evolved from our flagship KraneShares Global Carbon Strategy ETF (Ticker: KRBN) to include regional carbon markets, energy transition equities, and now electrification metals,” said Jonathan Krane, Chief Executive Officer at KraneShares.
Related Story: A New ETF From KraneShares Provides Exposure To Carbon Offsets
Photo by Biel Morro on Unsplash
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