Alternative Investments/ESG: BlackRock Unveils Energy Transition Metals ETF

The BlackRock fund will ride the enduring trend of a worldwide transition from fossil fuels to more environmentally sustainable energy alternatives.

BlackRock (NYSE: BLK) has introduced a new thematic Exchange-Traded Fund (ETF) in Europe, with a specific focus on companies engaged in mining and processing metals vital for energy transition technologies. The iShares Essential Metals Producers UCITS ETF is now available for trading on Deutsche Börse Xetra in euros (CEBT GY) and Euronext Amsterdam in US dollars (METL NA). This fund is designed for investors looking to benefit from the global shift away from fossil fuels towards more sustainable energy alternatives.

One notable feature of this ETF is that it accumulates income within the portfolio, making it an attractive option for those seeking long-term capital growth. Its expense ratio is set at 0.55%. (ETF Strategy)

The new BlackRock ETF is linked to the S&P Global Essential Metals Producers Index, which selects its components from a pool of companies in developed and emerging markets with market capitalizations exceeding $300 million and substantial daily trading volumes exceeding $3 million.

Companies within this universe are assessed based on ‘Exposure Scores,’ determined by the percentage of revenue generated from core or non-core metals. Core metals, such as cobalt, copper, lithium, nickel, platinum, palladium, and rare earth metals, are expected to see strong demand due to the transition to renewable energy technologies. On the other hand, non-core metals like aluminum, bauxite, molybdenum, silver, and zinc are used in renewable energy but won’t experience significant demand shifts due to this transition.

Companies heavily reliant on non-core metals will have lower Exposure Scores compared to those primarily involved in core metals. The index aims to include companies surpassing a specific Exposure Score threshold and targets at least 50 constituents. These constituents are weighted based on a formula considering their market capitalization and Exposure Scores, with capping rules to limit individual stock weightings.

As of October 18, the index’s primary country exposures were Australia (20.9%), Canada (17.3%), the US (15.4%), the UK (8.9%), China (8.6%), and South Africa (6.0%).

Related Story:  BlackRock Amongst Investors Funding NorthVolt With $1.2B

Image credit: Lithium miner Pilbara Minerals

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…