The ASX is welcoming a new exchange-traded fund (ETF) to its boards today. New ASX ETFs aren't a new phenomenon. We seem to get a new one every couple of months these days. But the Global X Green Metal Miners ETF (ASX: GMTL) taps into an area that has seen white-hot interest on the ASX in recent months.
This new ETF from provider Global X does pretty much what it says on the tin. According to the provider, the fund invests in materials shares that have "strategic allocations to green metals such as lithium, copper, nickel and cobalt".
However, this is not an ASX-centric ETF. ASX shares only make up 11.7% of this ETF's portfolio as it currently stands. A plurality of the Green Metals ETF's holdings hails from China at 42.2% of the portfolio. The United States and Canada make up another 10% each. That leaves 26.1% with 'other countries.
In order to make the cut into his ETF, a green metal extractor, processor or trader must derive at least 50% of its revenues from green metals.
What kind of shares are in the Green Metal Miners ETF?
At present, the fund has 46 holdings. We don't know all of them, but here is a list of the top ten by weighting and where they are from:
- Albemarle Corp (US) at an 8.6% weighting
- Eve Energy Co Ltd (China) at 6.7%
- Ganfeng Lithium Group Co Ltd (China) at 5.8%
- First Quantum Minerals Ltd (Canada) at 5.5%
- Sociedad Quimica y Minera de Chile SA (Chile) at 4.5%
- Zhejiang Huayou Cobalt Co Ltd (China) at 4.2%
- Our own Pilbara Minerals Ltd (ASX: PLS) at 4%
- Norsk Hydro ASA (Norway) at 3.7%
- Boliden AB (Sweden) at 3.6%
- China Northern Rare Earth Group High-Tech Co Ltd (China) at 3.5%
So how has this ETF fared on its first day of trading? Well, Green Metal Miners units hit the ASX at $10 per unit this morning. At present, the ETF has risen by… 0.3% to $10.03 per unit.
The Global X Green Metal Miners ETF charges a management fee of 0.69% per annum.
