First green metal ETF for Australia launches

Global X ETFs has announced the launch of the Global X Green Metal Miners ETF (GTML) as its first exchange traded fund (ETF) made available to investors after its September rebrand.

The fund provides investors with exposure to global companies producing “critical metals” to sustain a future of clean energy infrastructure and technologies, including lithium, copper, nickel, rare earths and cobalt.

The ETF launch comes as the International Energy Agency’s World Energy Investment Report revealed US$1.4 trillion has already been invested in clean energy globally in 2022, leaving Australian investors to seek new methods of capitalising on the clean energy ‘megatrend’.

“Demand for green metals is soaring around the globe and promises to intensify as climate change initiatives become more ambitious,” Blair Hannon, Head of Investment Strategy at Global X, said.

“The investment opportunity lies in the market dislocation of critical minerals over the medium to longer-term – with demand set to outpace supply and spark higher commodity prices.

“Australian investor interest in green metals is surging as governments and corporations alike align in a common goal to reach net-zero carbon emissions by 2050.”

The fund tracks the BITA Global Green Energy Metals Index and allows investors access to companies that make more than half of their revenue mining or producing green metals, using an environmental, social and governance (ESG) screening process to eliminate businesses that don’t meet industry-wide standards.