VanEck Debuts ETF Focused On Clean Tech Green Metals

The New York City-based global investment manager VanEck has launched the VanEck Green Metals ETF GMET, a fund focused on the producers, refiners, processors and recyclers of the green metals being used to enable a lower carbon economy.

What Happened: VanEck noted that the rising prominence in clean-tech solutions including wind power and electric vehicles have created an increased demand for certain metals required to power these technologies. The company cited International Energy Agency data that found the clean energy demand for lithium was up by 29% as of 2020 and could rise as high as 92% by 2040.

Also, the IEA is forecasting the clean energy demand for cobalt will rise from 15% to 69% over the same period while the clean energy demand for nickel is expected to increase from 8% to 61%.

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What Happens Next: Brandon Rakszawski, senior ETF product manager with VanEck, observed that clean-tech solutions “cannot function without green metals such as lithium, copper, zinc and manganese. As governments around the world mandate and consumers embrace these shifts to lower-carbon approaches, demand for these metals is only expected to increase.”

In launching its new ETF, Rakszawski stated the VanEck is providing investors with the tool for adding “global exposure to the leading and emerging companies driving the supply of green metals.”

VanEck plans to have its new ETF closely track the price and yield performance of the MVIS Global Clean-Tech Metals Index, a rules-based index offering exposure to companies involved in the production, refining, processing and recycling of metals used in clean tech applications, products and processes.

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