Alternative Investments/ESG: Element Launches ETF Focused On Future Energy Metals
These materials are critical inputs for the renewable economy.
RBB Fund Complex, a turnkey ETF and mutual fund solution that permits an investment adviser to focus on its core competency of asset management, has launched the Element EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF (NYSE: CHRG). Element ETFs, LLC is a newly launched investment adviser to CHRG, which seeks to provide actively-managed exposure to the core commodities essential to the production of electric vehicles, battery energy storage systems, and other renewable infrastructure. (Businesswire)
An amount of $1.2 trillion is expected to be spent through 2030 to both develop and produce electric vehicles alone, from mining and refining the raw materials, to manufacturing the batteries. The energy revolution is expected to need more than 200 new mines and plants over the ensuing decade to supply essential raw materials.
Element EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy ETF (NYSE: CHRG)
The ETF will invest in futures contracts of commodities such as lithium, cobalt, nickel, and copper that would be essential to the energy transition.
Since CHRG invests in metal commodities’ futures, it’s not exposed to price fluctuations based on demand for lithium, nickel, copper and other metals.
It’s also not affected by factors such as political, operations and management risks attached to the mining of these raw materials, according to the fund’s prospectus.
The ETF has an expense ratio of 0.95%.
“Over the past several years, we’ve seen enormous investor demand in strategies linked to the EV and renewables revolution,” said William McDonough, CEO and co-founder of Element Funds, in a news release. “However, critical metals are not an investment that you can set and forget. We will utilize our global experience to continuously monitor and re-evaluate CHRG’s portfolio allocations and weighting based on real-time industry developments.”
Raymond, CEO of EMG, added: “In the decades of experience that we have accumulated managing private market strategies in this space, we have become acutely aware of the necessity of an active approach to investing in the raw materials at the foundation of the renewable energy economy. Our experience confirms that accessing these specific metals requires a deep knowledge in the exploration, mining, processing, and end-use application lifecycle, and we’re excited to bring investors a means of accessing this market.”
Image Credit: Vattenfall
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