Best Cobalt ETFs

Invest in the best cobalt ETFs with Interactive Brokers.

Investing in metals can be a smart way to round out your portfolio. Metals are a broad class, and they include more than gold, silver and other precious metals.

Cobalt can be a smart buy, as it’s an essential component of phone batteries and electric car batteries — meaning demand shouldn’t be slowing down anytime soon. Exchange-traded funds (ETFs) are the easiest, safest way to invest. Here’s Benzinga’s guide to the best cobalt ETFs out there.

5 Top Performing Cobalt ETFs

No ETFs focus solely on cobalt, as most cobalt is a byproduct of mining other metals. These are some of the best-performing ETFs that include cobalt.

1. iShares MSCI Global Metals & Mining Producers ETF (CBOE BZX: PICK)

If you want to invest in metals, PICK is one of the best ETFs out there. It includes shares of more than 250 mining stocks, so it’s a fantastic way to avoid company-specific risk. It has a strong dividend growth track record overall, so it’s one of the more promising metals ETF investments.

PICK has a fairly low expense ratio of 0.39% and $1,499.6 million in assets under management. This ETF includes shares in precious metals, aluminum, steel and other metals, and it tracks the MSCI ACWI Select Metals & Mining Producers ex Gold and Silver Investable Market Index.

2. Amplify Lithium & Battery Technology ETF (NYSEARCA: BATT)

In a world where electric cars and other green technologies are gaining popularity, BATT is a smart investment. This fund is a little smaller than giants like PICK, with $149.5 million in assets under management. It has a slightly higher expense ratio of 0.59%.

BATT sounds promising, but it’s one of the more volatile ETFs, and many investors regard it as carrying medium risk. But given the growth potential of battery-driven technology, it’s a good buy if your risk tolerance is somewhat high.

3. ProShares S&P Global Core Battery Metals ETF (NYSEARCA: ION)

ION is a smaller, newer fund, making it relatively risky but still promising. It opened in late 2022 and holds over 40 companies. It currently has only $2.8 million in assets under management, and its expense ratio is 0.58%.

Still, ION has the advantage of being the first ETF with an exclusive focus on companies that mine metals to produce batteries. It has decent growth potential, so now could be a good time to buy. Prices are still low, and there’s a possibility that share prices will rise as the fund grows.

4. Vanguard Materials ETF (NYSEARCA: VAW)

If you want to invest in a large fund with a low expense ratio, this is a great one to check out. Cobalt makes up a relatively low percentage of its holdings as its primary focus is on industrial gasses and specialty chemicals. About 5% of its holdings produce copper, and cobalt is a valuable byproduct of copper mining.

VAW holds over 100 companies and has $2,814.2 million in assets under management. Its 0.1% expense ratio is a major draw.

5. VanEck Green Metals ETF (NYSEARCA: GMET)

This mid-sized fund focuses on green metals, so it has significant potential for growth in the coming years. It has $24.5 million in assets under management and a relatively high 0.63% expense ratio.

GMET holds 61 companies all over the world, so it can be a good way to protect your investments from regional mining issues. Experts generally regard this ETF as being undervalued, so now is a good time to buy.

What is a Cobalt ETF?

Many metal ETFs focus on just one metal, which is especially common in gold and silver ETFs. Cobalt ETFs are a little different. Cobalt is not mined directly but is a byproduct of mining copper and nickel. As a result, cobalt ETFs don’t focus only on cobalt. They generally give you exposure to multiple types of metals.

Some of these ETFs focus more closely on cobalt than others. Depending on your goals as an investor, you might want to look at one with a greater focus on mining companies that produce cobalt. 

The high diversity of these ETFs can be advantageous. For instance, if the price of cobalt suddenly declines, the total share price may be buoyed by the unchanging or rising prices of other metals in the fund.

Why Invest in Cobalt ETFs?

You can choose from many types of ETFs out there, and you can’t invest in them all. So what makes cobalt a good buy? 

• Cobalt demand is growing: Cobalt is a critical component of the lithium-ion batteries used in electric cars and smartphones, and the demand for both has increased steadily in recent years.
• Producers are already turning profits: If you invest now, you’re betting on a commodity that’s winning right now.
• Prices can rise if and when cobalt supply dwindles: Like all metals, cobalt is limited; as supplies inevitably deplete, the market price should rise.
• Cobalt has multiple uses: Cobalt isn’t only used in batteries — it’s also in demand for aircraft engines, turbines and magnets.
• It might serve as a hedge against inflation: As inflation rises, commodities like cobalt tend to hold or increase their value.

Like all metal prices, the price of cobalt can be volatile. But when you look at overall market trends and cobalt’s potential for steady growth, it becomes clear why it could be such a good buy.

Where to Invest in Cobalt ETFs

Investing in cobalt stock is a smart move. But where can you do it?

The easiest way to invest in cobalt ETFs is to find a good online brokerage platform. There are many to choose from, and you might find that some suit your needs better than others. Brokerages also charge different fees, so you should take a close look at those extra costs before you invest.

Are you unsure of how to find the best broker for you? Benzinga offers detailed reviews and comparisons of the top brokers. Take your time deciding where to invest, and you’ll be well on your way to creating or improving your investment portfolio.

Cobalt: A Promising Metal to Diversify Your Portfolio

Cobalt is an industrial metal with considerable growth potential, so it can be a great companion investment for gold, silver and other metals already in your portfolio. With many different cobalt ETFs out there, it’s vital to look closely at each before selecting the right one.

Benzinga has a wealth of resources — including articles, reviews and an active trader forum — to help you build a robust portfolio and sharpen your trading strategy.

Frequently Asked Questions

Best Cobalt ETFs Methodology

In selecting the most promising cobalt ETFs, Benzinga took a number of factors into account:

• Assets under management
• Expense ratio
• Growth potential
• Number of holdings
• Geographical distribution of holdings
• Whether now is a good time to buy
• Overall track record

Do your own research before investing to make sure you have the most up-to-date information.