Green-metal ETFs are a type of thematic fund. Increasingly, retail investors are using ETFs rather than investing directly in stocks. Unlike active managed funds that handpick stocks and aim to beat an index, ETFs simply track that index.ĮTFs have become a global investment phenomenon as more investors desert higher-cost active funds, most of which underperform their index over time. The main drawback of ETFs is that they are passive investments (although some investors use them actively to trade markets). Some ETF fees are less than 0.1 per cent. In a single trade, investors can gain exposure to hundreds of stocks. The main benefits of ETFs are diversification, low fees and simplicity. Bought and sold like a share, ETFs aim to replicate the price and yield return of their underlying index.įor example, an ETF over the S&P/ASX 200 Index provides exposure to stocks in the index and seeks to closely match the return of the ASX 200. Or focus on lithium, nickel, cobalt or other metals vital for clean-energy infrastructure and technologies.ĮTFs are investment funds that track an index over equities, bonds, commodities, currencies or other assets. More are on the way as investors position their portfolios for decarbonisation.įor the first time, investors can buy a portfolio of global copper producers that will benefit as demand for electric vehicles (EVs) soars. Now, ETFs are doing the same for the green-metals boom.Īt least six green-metal ETFs were launched on the ASX in the fourth quarter of 2022. But approach with caution, writes Tony Featherstone.Įxchange Traded Funds (ETFs) have transformed investing in global technology stocks. More investors are using ETFs for exposure to the mining industry’s green metals movement.
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